When managing rental properties, it is important to understand the different types of damages caused by tenants and how liability is determined under the Residential Tenancies Amendment Act 2019 (RTA). The four primary categories of damage are fair wear and tear, accidental damage, careless damage, and intentional damage.
1. Fair Wear and Tear
Tenants are not liable for fair wear and tear. This refers to the natural deterioration that occurs over time with normal use, such as worn carpets or faded paint. It’s up to the landlord to prove that damage exceeds fair wear and tear when making a claim.
2. Accidental Damage
Accidental damage happens from incidents outside the tenant’s control. Accidental damage could include scenarios like a pet knocking over a vase. Tenants are generally not held liable for these situations, as it’s not due to neglect or carelessness.
3. Careless Damage
Careless damage occurs when tenants fail to take reasonable care of the property. Tenants are liable for the lesser of the landlord’s insurance excess or four weeks' rent. An example of careless damage would be a tenant accidentally chipping a cooktop due to mishandling. The distinction between careless and accidental damage often depends on the evidence provided.
4. Intentional Damage
Intentional damage is when a tenant deliberately damages the property. This can also be considered a criminal offense under the Crimes Act 1961. Tenants are fully liable for intentional damage, such as vandalism or damage caused by illegal activities like arson or methamphetamine production.
Understanding these four types of damage can help landlords manage liability and effectively address property issues. It is important for landlords to sufficiently gather evidence of all damages in order to support damage claims.
