Fully Explained!
Rebecca Halton
?? CEO of LJ Hooker WA’s number 1 office, ensuring our customers have an amazing experience with us. Property Management, Investors and Sales - all things Real Estate. SPEAKER 0448843311
So your tenants have moved out, and you've done the final inspection on the property. Official condition report in hand, you realise that your property doesn't look as good as it did when the tenants moved in. You start to freak out and withhold the bond while your tenant claims any damage is wear and tear.
The tension rises until the tenant hits social media, slamming you and your property manager. Next thing you know, they have filed an application with the Civil and Administrative Tribunal.
This isn't something you'd want. The problem in this situation often stems from the loose definition of what exactly is classified as 'wear and tear' and what is defined as 'accidental damage'.
What is 'wear and tear'??
According to peak real estate bodies, wear and tear means the normal deterioration of a property from ordinary, everyday use. Exposure to the elements, time, and day-to-day living can cause fair wear and tear.
Think traffic marks on carpet from furniture, surface marks to timber flooring from general use, light/sun damage to curtain backing or surface wear on ceramic cooktops.
What is Accidental Damage?
The definition of accidental damage is mostly standard across home insurance policies. It refers to damage that occurs suddenly as a result of unexpected and non-deliberate external action. This typically refers to an unintentional one-off incident that harms either the property or its contents. Accidental damage is still the tenant's responsibility, as although it was an accident, it is generally still damage that requires repair. Here is a look at some of the damage that tenants are liable for:
领英推荐
Proving fair wear and tear?
Thorough rental condition reports – complete with detailed photos and potentially even videos – are very useful for avoiding or settling disputes over fair wear and tear. It's in the best interests of tenants and landlords to ensure these reports are complete and signed. With a bit of care, consideration and proper documentation, the outcome of a loss is predictable.
How to avoid disputes?
One of the best ways to avoid disputes is to ensure your property manager or yourself carries out periodic inspections of your investment property to ensure it is well cared for and any routine repairs are being made. If there are any noticeable issues during the routine inspection, they should be brought to the tenant's attention at the time and not left until the tenant vacates the home.
Disclaimer. This blog does not necessarily reflect the opinion of the publisher. It is intended to provide general news and information only. While every care has been taken to ensure the accuracy of the information it contains, neither the publishers, authors nor their employees, can be held liable for inaccuracies, errors or omission. Copyright is reserved throughout. No part of this publication can be reproduced or reprinted without the express permission of the publisher. All information is current as at publication release and the publishers take no responsibility for any factors that may change thereafter. Readers are advised to contact their financial adviser, broker or accountant before making any investment decisions and should not rely on thisnewsletter as a substitute for professional advice. ? LJ Hooker Corporation Limited.
Categories
Archive