The concept of fair wear and tear on rental property is one topic that many property owners and tenants find confusing.
Generally speaking, at the end of a tenancy, the tenant is responsible for leaving the premises in as close to the same condition as they found it. To describe this requirement, many lease agreements include the phrase ‘fair wear and tear excepted'.
The word ‘fair' in the sentence relates to the cause of the damage. For damage to be reasonable, it must have occurred in the course of fair use of the property. So something like carpet deterioration in high traffic areas (e.g. hallways), would be reasonable. On the other hand, if there were large motor oil stains in the bedroom, it would be hard to argue that this is the product of fair use.
Secondly, the words ‘wear and tear' relate to the effect of the damage. For example, minor scuff marks, sun-fading and minor stains would all be likely to constitute fair wear and tear. On the other hand, large stains, extensively broken tiles or torn carpets would probably be considered to be more than merely wear and tear.
What is considered ‘fair wear and tear' will depend on the individual circumstances of the property but it has been enshrined into tenancy legislation.
At the end of the tenancy, the tenant must leave the premises and inclusions, as far as possible, in the same condition they were in at the start of the tenancy, fair wear and tear excepted. A myriad of case law has flowed from tenancy tribunals and other courts that have grappled with this issue.
The most important first step to prevent any disputes over damage is to ensure you have a detailed property condition report in place prior to any new tenancy. This document must be signed by both parties at the commencement of the lease agreement. This report alone could be worth thousands in the event of a claim.
Periodic property inspections are also a good way of making sure the condition of the property is maintained at a fair standard, and that any issues, either from the landlord or tenant, can be addressed in a timely manner.
Property inspections are essential for good property management, however it is not uncommon for significant issues to arise during the final inspection of a property, particularly where you have issued a notice for the tenant to vacate due to a breach of the lease agreement..
Landlords' insurance offers investment property owners peace-of-mind knowing that their property is protected against any potentially costly acts that go beyond the boundaries of fair wear and tear.
The team from @home Property Management have carefully researched such insurance products to ensure that our clients are protected against tenant damage and loss of income.
Take the risk out of renting.
