Fair Wear and Tear

The salient point in most rental agreements regarding the return of the damage deposit is the term “fair wear and tear considered”. That is to say the property owner will return in full the damage deposit as long as there are no damages to the property or its contents beyond “fair wear and tear”.

But what is fair wear and tear? The definition itself is wide open to interpretation and each party whether owner, manager or tenant will have their own version of it’s meaning.

Wear and tear is a form of depreciation which is assumed to occur even when an item is used competently and with care and proper maintenance. Thus the faded and scuffed traffic pattern on wood floors or the flattening of plush carpet over time are examples of depreciation  from long term renting. There are many more examples. At the same time, it is expected that the normal use of an item will not break it beyond repair until a certain time and amount of use has passed.

Here is a general guideline that may help creating a meaningful and fair definition of what constitutes fair wear and tear.

1. The duration of tenancy will need to be taken into account. If there are several dishes and cups broken, a burnt cooking pot, stained carpet and the TV remote broken yet the tenants have been there less than a month that would seem beyond normal wear and tear to me.
2. The age and value of the items that are missing or broken. If your carpeting is more than 5 years old and your tenants have been staying at the property for a year or more and stains cannot be removed from the carpeting as an owner you may have to absorb in full the cost of the replacement of the carpeting if you choose to do so. On the other hand if you have just installed something that was in perfect condition at the beginning of tenancy and after tenants depart the item is broken or stained then you might be entitled to fair compensation for the cleaning, repair or replacement of the item.
3. Number of people occupying the premises is another factor is assessing what is fair wear and tear. A family with 2 or more small children are going to leave behind far more wear and tear than a single person or a couple.
4. Overall conditions after the tenants leave can also factor into how an owner views how the tenants cared for the place. A property that is generally quite clean, with towels and linens washed and put away and everything else in reasonable condition will go a lot farther in forgiving any minor damages than a place that has been left very dirty with things missing or broken as if the property was never well cared for.

An owner cannot expect to receive back a property in better shape than when he rented it out nor is it realistic to expect the property to be in the same shape as when it was first rented that transition is called fair wear and tear. The tenant however should not expect to return a property in far worse shape than he inherited. A few marks on the wall, a carpet stain or two, scratches on hardwood flooring (not massive gouges) are actually par for the course when renting long term. Again, how long the tenant was there is also a large factor. A landlord is cannot expect to charge their tenants the full cost of an item or property, neither can they look to get any fixture or fitting “put back to the condition it was at the start of the tenancy.” as this would be perceived as betterment.

The Condition Inspection Report filled in at the commencement of tenancy will be the document that sets the baseline for the property. Like a before and after picture the report will show how much of the property has changed over the tenancy.

In the end though a landlord can only look to seek compensation to :

• Replace an  item that is damaged beyond economic repair or is left unusable
• Repair or cleaning including carpet, drapery and upholstery cleaning
• Compensation for diminution in inherent value of the item or the shortening of its useful normal lifespan