When renting a property, it is important to understand the difference between careless and intentional damage. This helps both tenants and landlords know who is responsible for repairs and what costs may apply.
What is Careless Damage?
Careless damage is when a tenant or their guests cause damage by accident or fail to take reasonable care. It’s not on purpose, but it could have been avoided with more caution.
For example, if a tenant places a hot pan directly on a kitchen bench, leaving a burn mark, this would be considered careless damage. The tenant didn’t mean to cause harm, but they also didn’t take enough care to prevent it.
Under the Residential Tenancies Amendment Act 2019, tenants must pay for careless damage, but only up to four weeks’ rent or the landlord’s insurance excess (if applicable) — whichever is lower.
Landlords can’t ask for or accept more than that limit and insurance companies can’t chase tenants on the landlord’s behalf for the cost of repairs for careless damage.
What is Intentional Damage?
Intentional damage is when a tenant or their guests deliberately causes harm to the property. This means they knew their actions would cause damage and did it anyway.
For example, if a tenant purposely broke a window or punched a hole in a wall, this would be intentional damage. Unlike careless damage, there is no cap on how much the tenant must pay for repairs.
Insurance companies may also recover costs directly from the tenant.
What is Fair Wear and Tear?
It is important to know that fair wear and tear is different from both careless and intentional damage. Fair wear and tear refers to the natural deterioration of the property or chattels from ordinary everyday use, such as worn carpets or chipped paint.
What happens if the landlord or tenant can’t agree who should pay for damages?
In this situation, either party can apply to the Tenancy Tribunal. First, the landlord needs to prove that the damage is not fair wear and tear, and then the tenant must prove that the damage was either:
- Careless (and not intentional), or
- Neither careless nor intentional.
If the damage is neither careless nor intentional, the tenant is not liable.
How does South Property manage property damage?
Our property managers handle everything - from talking to tenants, inspecting, taking photos, getting quotes, arranging repairs and recovering the costs from the tenant. We can also include filing an insurance claim on behalf of owners.
We keep our owners updated and informed throughout the process.
If the issue goes to the Tenancy Tribunal, our property managers will prepare the application and attend the tenancy tribunal hearing on the owner’s behalf.
Want to know more about how we can help manage your property?
Use the contact form directly below or request a free rental appraisal.