When a tenant vacates a property, one of the biggest areas of confusion (and conflict) is what counts as fair wear & tear versus tenant caused damage.
The line isn’t always clear. And if you end up at NCAT (the tribunal) without good documentation/evidence (or with the wrong expectations), it can quickly turn into a frustrating & costly process.
So let’s break it down.
What’s normal wear?
What’s not?
And how do you protect your property & sanity when issues do arise?
What actually is fair wear & tear?
Wear & tear is the natural & expected deterioration of a property or specific area that occurs through normal, everyday use.
Even the world’s best tenants, who are neat freaks who clean daily, will cause wear & tear. Part of owning an investment property is coming to terms with this. Tenants don’t have to be punching holes in the walls for there to be wear & tear.
Sometimes listing some examples of what is fair wear & tear is the easiest way to wrap your head around it all…
Worn carpet in high traffic areas
Loose door handles that are used every day
Sun damage / fading of blinds or curtains
Minor marks & scratches to timber floors
Peeling paint
Wear marks on a stove or benchtop
What’s accidental damage & what’s malicious damage?
Understanding the different types of damage & how they’re treated in the eyes of the law can help landlords respond appropriately when issues arise. Not all damage is created equal & it’s important to distinguish between accidental, malicious & deliberate (intentional) acts.
Accidental Damage:
This is damage that happens unexpectedly & without intent. It’s usually the result of a sudden incident or honest mistake, not neglect or malice. Examples of accidental damage include:
- A hot pot placed on a laminate bench causing burn marks
- Tiles cracked after a heavy object is dropped
- Red wine spilled on the carpet, leaving a stain
- A pet chewing on a skirting board
- Even though it wasn’t intentional, accidental damage is still considered tenant damage & landlords may be entitled to seek compensation, especially if the tenant fails to report or address it properly.
Malicious Damage:
Malicious damage is the most serious form of tenant damage. It involves deliberate harm with the intent to damage, often driven by anger, spite or revenge. This goes well beyond neglect or poor decision making. Examples of malicious damage include:
- Punching or kicking holes in walls or doors
- Smashing windows
- Ripping out fittings or fixtures
- Spray painting or graffiti
- Destroying locks or doors
- Damaging services or sabotaging systems
This kind of damage is a serious breach of lease & would justify immediate action, including termination or legal proceedings.
It’s also often viewed more severely at the tribunal.
Deliberate or Intentional Damage (Without Malice):
We’re getting technical now…
Sometimes tenants cause damage on purpose – but not with bad intentions. This type of damage is often well meaning or functional, but still unauthorised. Examples include:
- Putting holes in walls to mount a TV or hang artwork
- Installing shelves or child safety devices
- Repainting walls
- Lifting flooring or removing/changing blinds
- DIY renovations or garden alterations
These actions might be done to personalise or “improve” the space, but if not approved by the landlord, they can still result in damage & associated repair costs.
Other Factors That Matter In Fair Wear & Tear:
Certain variables can influence how damage is assessed, particularly:
Age of the property
Older homes naturally experience more wear & tear. Things like faded paint or minor surface marks may be considered reasonable, especially if the property is already dated.
Negligence
If a tenant fails to take reasonable care, resulting in damage (e.g. not cleaning up a spill that stains the carpet), it’s not wear & tear, it’s preventable damage.
In short, intent, context & care all matter.
How Do We Handle This At My House Realty?
At My House Realty, we don’t just react to damage, we always strive to be proactive. While no outcome is ever guaranteed, we believe in lowering risk wherever we can & that often comes down to clear communication & consistent processes.
Risk management may not sound glamorous, but in real estate, it’s often the difference between a smooth tenancy & a stressful one.
Here’s some of the ways we reduce the risk of disputes over wear & tear vs damage:
Detailed Entry Reports
It’s not uncommon that we take 800, even 1,000-plus photos during the entry inspection. Evidence in general, but especially photos, is our best friend if there is an issue down the track. We take comprehensive photos of every room – inside & out. These photos are your strongest evidence if there’s ever a disagreement at the end of a tenancy.
Tenant Education
When a tenant moves in, we set clear expectations. What they’re responsible for, what wear & tear means & information on how to avoid common pitfalls (like attempting DIY improvements without approval). Clear up front education helps prevent problems before they begin.
Early Intervention
If an issue arises, we don’t let it drag on. We engage the tenant early, offer practical solutions, & aim to resolve things before they become a bond dispute. Usually, the sooner a problem is resolved, the easier & cheaper it is to fix.
The result?
Fewer disputes, faster resolutions & better outcomes for our landlords.
There’s no way to eliminate all risk – tenants are human & things can go wrong.
But by doing the groundwork properly, we stack the odds in yours & our favour. This gives us the best chance of a smooth, stress free tenancy.
The NCAT Reality Check
We say it all the time, but it’s worth repeating:
NCAT is a tool – not the first option.
Sometimes you need a scalpel.
Sometimes you need a sledgehammer.
But the key is knowing when to use which & making sure you have all the right tools in the toolbox.
Yes, NCAT (the tribunal) exists for a reason. And yes, it can absolutely help resolve serious tenancy issues. But not everything belongs at tribunal. Especially when it comes to grey areas like wear & tear versus damage.
Why?
Because put simply – you might lose.
Even if you’re right.
You also need to consider the bigger picture – will heading to the tribunal open a landlord to claims that they may have been ‘slack’ in other areas? Are you carefully understanding & considering your risk exposure?
Arrears: Clear cut, black & white.
Hole punched in the wall: Another easy one.
Faded carpet, peeling paint, or a scuffed benchtop? You might not win, even if you’re right.
NCAT doesn’t guarantee a perfect outcome. And more often than not, subjective or low-level issues result in compromise rulings, especially if they fall into the wear & tear zone.
That’s why we prioritise resolution over escalation. We’ll often recommend speaking with the tenant first, negotiating a fair outcome (e.g. partial bond deduction) & attempt to avoid the time, stress & uncertainty of a hearing.
The Other NCAT Cost Many Forget
NCAT is not free for landlords. The landlord has to pay an application fee (filing fee) to NCAT when submitting the matter. And because of the significant time & effort that the agent needs to undertake both in preparing for the hearing & the hearing day itself, they have to charge fees to complete the process.
So before we recommend heading down that road, we always ask:
Is it worth it?
Is it winnable?
And will the outcome justify the cost?
If the answer is yes – we’ll guide you every step of the way.
But if there’s a smarter, faster, more pragmatic solution…
We’ll always choose logic over emotion.
Final Tips For Landlords
To wrap it all up, here are a few final reminders:
Wear and tear is part of owning an investment property
Even the best tenants will leave a few marks. It’s unavoidable & something that needs to be expected as part of the process.
Not all damage is created equal
Understanding the difference between accidental, intentional malicious damage can make a big difference. Each type affects what you can claim & how likely you are to succeed.
Your entry photos are your best friend
This is why we take hundreds of photos at the start of every tenancy. It’s about investing time up front, so if a dispute arises later, the evidence is already there.
NCAT should be your backup plan, not your go-to
You can lose a case even when you’re technically right. Resolution with your tenant is often faster, more cost-effective & less stressful than going to tribunal.
Make sure you’ve got the right insurance
Yes, it can be expensive… until the day you actually need it. Proper landlord insurance can save you thousands when the unexpected happens.
Base decisions on logic, not emotion
It’s easy to take damage personally – especially if you’ve poured time, money, or effort into the property. But frustration driven decisions often backfire. Take a breath, look at the facts & act with a clear head. That’s what we’re here to help with.
