Every landlord dreads receiving a bad final inspection report once tenants have moved out of their rental property. The initial reaction may be to withhold the bond, but what happens if the damage is claimed to be ‘fair wear and tear’? If this is challenged, tensions can rise, potentially leading to public disputes on social media or lengthy hearings in Civil and Administrative Tribunals.
The core issue often lies in the unclear definitions of ‘fair wear and tear’ versus ‘accidental damage.’ Understanding these terms is crucial for both landlords and tenants to avoid conflicts.
What is Wear and Tear?
According to Fair Trading, wear and tear refers to the normal deterioration of a property from ordinary, everyday use. Elements like exposure to the weather, the passage of time, and daily living contribute to fair wear and tear. This definition is broadly accepted across Australia, though real estate tenancy laws may vary by state and territory.
Common examples of wear and tear include:
- Furniture indentations and traffic marks on the carpet
- Scuffed wooden floors
- Faded, chipped, or cracked paint
- Worn kitchen benchtops
- Loose hinges or handles on doors or windows
- Cracks in walls from movement
- Water stains on carpet from rain through a leaking roof or plumbing issues
- Worn paint near light switches
Landlords are responsible for these types of wear and tear, and they are not covered by insurance.
What is Accidental Damage?
Accidental damage, as defined by most home insurance policies, occurs suddenly due to an unexpected and non-deliberate external action. This typically refers to an unintentional incident that harms the property or its contents.
Examples of accidental damage include:
- Broken windows
- Walls drawn on by children
- Holes in walls
- Burn marks on countertops
- Torn window screens
Most home insurance policies do not cover damage caused by animals chewing, tearing, or scratching.
What Damage is Covered by Most Insurance Policies?
Tenants are responsible for negligent, irresponsible, or intentional actions causing damage to the premises. Insurance policies also cover accidental damage but vary in specifics. Understanding the definitions within your policy is crucial.
Definitions:
- Deliberate Act: An action taken without permission but without malice, knowing it will alter the property.
- Malicious Damage or Vandalism: A wrongful act motivated by malice, intending to damage the property.
Examples of tenant liability include:
- Missing or pet-torn curtains
- Pet urine stains
- Carpet stains or burn marks
- Deep scratches or gouges in wooden floors
- Unapproved or poor-quality paint jobs
- Burns or cuts in benchtops
- Broken glass from children playing
- Holes from removed picture hooks or shelves
- Water stains from overflows
- Paint damage from removing decorations
Proving Fair Wear and Tear
Thorough rental condition reports, with detailed photos and videos, are essential for avoiding or settling disputes over fair wear and tear. Both tenants and landlords benefit from complete, signed reports, ensuring predictable outcomes in case of loss.
How to Avoid Disputes
Regular inspections of the property help ensure it is well-maintained, with routine repairs being made. Each state or territory has specific allowances for the number of inspections per year. Inspections should ensure:
- Lease terms are honored
- The property is maintained cleanly and tidily
- No unauthorized damage occurs
- The tenant limit is adhered to
- No unauthorized pets are housed
Carefully reading the insurance policy’s product disclosure statement is also crucial. Some policies may not cover periodic leases or reduce claims due to depreciation. Clear communication about insurance coverage can prevent disputes.
Understanding the difference between fair wear and tear and accidental damage can prevent many issues when a lease expires or damage needs urgent fixing. Both parties should know what constitutes damage and wear and tear and what their specific insurance policy covers.
In most situations, being transparent about insurance coverage and maintaining regular property checks can avoid disputes. Both tenants and landlords should recognize that occasional accidents do happen.
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If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.
How can we help?
If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.
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The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.
Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.
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