End Of Tenancy Bond Claims By DFJ Real Estate 1/03/2023 1:32pm The tenant/s have just vacated your investment property. The property manager has a copy of the original property condition report (the only legal evidence that can be taken into consideration to release the bond) and attends the property to undertake the final vacate inspection. The property manager enters the property and observes: The griller is dirty, there is a chip in the kitchen tile, marks on the lounge room wall, walk-way wear marks down the hallway, slight mould on the bathroom tiles, a broken soap holder, a crack in the toilet seat, a dent behind the bedroom door from a missing door stopper, dust in the window tracks, small tears in several fly screens, a wardrobe rail has broken off, there is a bleach stain on the bedroom carpet and weeds in the garden. It seems like a long list that needs to be actioned. Who is responsible… is it cleaning, repairs, damage, or fair wear & tear? Whenever there is a dispute, it is a good business practice to try and mediate the situation between all parties to come to a win/win situation or a compromise. If an outcome cannot be reached between the parties, the matter may have to be determined by a hearing at the tribunal/courts, where they will take into consideration fair wear & tear. The definition of fair wear and tear is something that occurs through normal use or is the normal changes that take place with the aging of the property. The tribunal/courts will look at: How old is the property? How old are the fixtures and fittings that require attention, considering depreciation (the diminishing value)? How long did the tenants reside in the property? How many tenants resided in the property? If the property is 12-months old, has almost brand-new fixtures and fittings, and two tenants have been residing there for six-month, this could be considered cleaning, repairs, and damage that the tenant needs to action. However, if the property is 18 years old, with the original fixtures and fittings (that have depreciated over time in value), had a family of six reside there for five-years, then this could be considered fair wear and tear and a landlord expense. We will always discuss the final vacate inspection with you and explain our understanding of the situation in accordance with legislation requirements, while also considering your instructions. APPLIANCE BREAKDOWNS It is all too common with rental properties that, at some stage, appliances will break down or cease to work. As a landlord, you must be aware that it is your responsibility to maintain all fixtures, fittings, and appliances within the property. It is the tenant's responsibility to keep the property clean. If the appliance forms part of the tenancy at the commencement when they move in, it must be maintained, repaired, or replaced if it breaks down. On occasions, landlords have requested that the appliance be removed from the property and not replaced. The tenant has a legal right to use all appliances throughout the tenancy. If you do not wish to replace the item (and the tenant agrees in writing), you may be required to pay compensation for the loss of the appliance. This is a timely reminder that it is important to be proactive and budget for these unexpected replacement costs in advance. You may also like to consider renting appliances for the property, which is a tax deduction, and you don’t need to worry about maintaining, repairing, or replacing the item.