COMMON LANDLORD-TENANT DISPUTES | WEAR AND TEAR VERSUS DAMAGES

Having managed investment properties for over 140 years, Steer & Co are well versed in the most common landlord-tenant disputes. In our experience, it is the conclusion of the tenant's exit that can be most problematic, especially where the condition of the leased premises has deteriorated between the start of the lease and its termination. Who is responsible for repairing what?

The most common landlord-tenant gripe is the refunding of the tenant's deposit following the termination of the lease agreement. It is at this stage that the landlord can hold the tenant liable for any damage to the leased premises. These damages are highlighted by performing a joint (tenant and landlord or landlord's representative) ingoing inspection at the start of the lease agreement, which records the condition of the premises before the tenant takes occupation. While it is not always possible to perform this ingoing inspection before the tenant has started moving in, the tenant can take pictures before moving in, which form an annexure to the formal ingoing inspection a day or two later.

Following the termination of the lease agreement, a joint outgoing inspection is performed preferably once the tenant's furnishings have been removed from the premises. This allows exposure of all areas of the premises to allow for the most accurate account of the condition of the leased premises. In practice, the tenant isn't always able to remove their belongings in time for the outgoing inspection, but should at least be able to allow the inspector enough space to form an accurate account of the condition of the premises. The ingoing and outgoing inspections are compared so that the degradation (if any) of the leased premises can be highlighted to the landlord. This allows the landlord to repair any items that fall under "wear and tear" and to repair any damages caused by the tenant, at the tenant's expense.

Items that generally fall under "wear and tear" include the following:

• Naturally worn-down carpets
• Frayed/faded fabric and furniture
• Loose door and window hinges/handles
• Faded/cracked paint
• Faded curtains
• Loose/tight tap handles

Items that generally fall under "damage" include the following:

• Broken locks, doors and windows
• Tears, large stains, burns on carpets incl. dirty carpets
• Large scratches on wooden floors
• Burnt/split/discoloured (from detergent use) kitchen counter tops
• Torn curtains
• Broken toilet seat
• Holes in walls, poorly patched and painted walls/surfaces

To best avoid conflict regarding who is liable for which repairs, we have the following tips for tenants and landlords:

• As a tenant, maintain your leased premises as if it were your own property - perform minor repairs as soon as they are required, report major defects to the landlord as soon as they are discovered. This will allow for no surprises at the termination of the lease agreement.
• As a tenant, leave the premises in the same condition as you 'received' them in, allowing for fair wear and tear.
• As a landlord, ensure that your tenant understands their responsibility to maintain the premises during their tenancy. This is done through explaining the lease agreement clearly, and through the performance of the ingoing inspection.
• As a tenant, pay attention to the ingoing inspection by making sure that everything is accurately recorded. The same goes for the outgoing inspection.
• As a tenant, when you give notice to cancel the lease agreement, ask the landlord for a copy of the ingoing inspection. This will allow you to be prepared for the outgoing inspection, giving you time to perform repairs before your exit.
• As a landlord, ensure that your investment property is well maintained and in a good lettable condition at the start of the lease. By setting a good standard, a tenant can be held liable for maintaining that standard while they rent your property. Repair your investment property as and when it becomes necessary.

Through good communication and by acting reasonably, neither a tenant nor landlord should feel as if they've lost anything at the conclusion of a lease. Investment properties should be to the benefit of both tenants and landlords, both being responsible for some form of maintenance of such premises.