Thursday 8 January 2009

What is Fair Wear and Tear

What is Fair Wear and Tear


Are you being too tough on your tenants?

The basic definition for fair wear and tear is:


‘damage that occurs during normal use or something that happens due to aging’.
As a tenant wrapped up in day-to-day life little bumps and dints, some light scratches and a smattering of smudges are usually things which cannot be avoided. A complete list of employment contracts can be found here: Residential Tenancy Agreements.

BUT, what if you are the proud owners of an investment property and your tenants are leaving their mark on your asset? Just HOW much do you let them get away with?
Deciding on what is fair is a huge challenge that property managers have to face every time a tenant leaves a property.
The problem lies in the fact that the term 'fair wear and tear' is not specifically defined in the Tenancy Act or the Tenancy Agreement, so it is open to individual interpretation. Some landlords can be very hard on tenants and while they expect the premises to be perfect, it is important to be fair to the renters.

Things like wearing carpet, slight smudges on the walls, chipped tiles, holes in fly screens, marks on curtains and carpets, insects in light fittings or dusty window and door tracks can happen in a normal day, and, they can happen to anyone. Other important factors that should be considered are the number of tenants, the time of tenancy and the age of fixtures and fittings prior to their tenancy.

It is important to think about the normal signs that appear when a property has been lived in for a period of time. Allowances must be made for this when it comes time for the property inspection and checking off on the original ‘condition report’.
So why is comparing the ‘condition report’ to the current state of the property so important?
The purpose of the final inspection is to compare the current state of the property to the initial condition report completed by the tenants at the beginning of their stay. The legislation states that the tenant must leave the property in the same condition as when they entered, and any substantial damages will then have to be paid from their rental bond after they have vacated the premises.

Just a bit of simple common sense and understanding from both sides can prevent any disputes;
As a tenant you should take care of the property and try and leave it as you entered it or you may be liable for the costs involved for repairs. You may also lose the large ‘rental bond’ which you paid at the beginning of your stay.

As a landlord then understanding that little things happen when living in a property is important and allowances MUST be made, you must take into consideration the fair wear and tear factor. Of course if there are obvious signs of avoidable damage to the property then you should not have to pay for this yourself.
With this understanding the relationship between tenant and landlord can and should be a good one.
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