When renting your property, some universal rules are covered by residential tenancies legislation that gives both the owner and tenant rights.
These rights are automatic to both parties once a property is leased to a tenant with any consideration involved (monies payable).
As a property owner, it’s good to know who’s responsible for property repairs.
In general, all property repairs are the property owner’s responsibility and are claimable against your taxable income for the property.
Not everything is straightforward, so it’s important to understand ‘fair wear and tear’ and’ tenant damage’.
#1- What’s considered ‘Fair Wear and Tear’?
These are items breaking or wearing down just from using them.
Paintwork gets marked and scratched over time, carpets wear out, rubber seals get old, and things like tap fittings can become corroded.
If the tenant hasn’t damaged or used the item incorrectly, then you can, more often than not, safely put it down to ‘fair wear and tear’!
#2- What’s considered ‘Tenant Damage’?
This is deliberate or accidental damage to an item that hasn’t just broken down from normal use. This could be a broken window, an impact hole through a cupboard door, or a serious burn to a kitchen benchtop.
In some cases, it may be appropriate to use building insurance to fix the item and the excess reimbursement sought from the tenant.
Other instances may involve compensation payable by the tenant depending on the item, the damaged area affected, and the item’s age.
As your property manager, it’s our role to work out how the item will be rectified and how the tenant will need to reimburse the cost of the damage.
Contact us on 0408 293 966 regarding the management of your rental property.