Understanding Normal Wear and Tear vs. Damage in Rental Properties

As a landlord, understanding the difference between normal wear and tear and damage caused by tenants is essential for maintaining your property and ensuring that you are making the most of your investment. Wear and tear are the natural and expected deterioration that occurs to a property over time due to normal use, while damage is the result of negligence, misuse, or abuse by tenants. In this article, we will discuss what could be considered wear and tear by landlords.

Paint and Decorations

Over time, it is normal for paint to fade or peel due to sunlight, moisture, and temperature changes. This is considered normal wear and tear, and landlords should expect to repaint their property every few years. Minor scuffs and marks on walls are also expected and should be addressed with touch-up paint, but significant damage or holes caused by tenants will need to be repaired.

Flooring

Flooring is another area of a property that is subject to wear and tear. Scuffs and scratches on hardwood floors are considered normal wear and tear, but significant damage or stains caused by tenants may require repair or replacement. Similarly, minor damage to carpets, such as normal wear patterns or minor stains, is expected, but significant damage or stains may require replacement.

Appliances and Fixtures

Appliances and fixtures are another area where wear and tear should be expected. Over time, appliances may wear out or break down, and fixtures may become outdated. However, if an appliance or fixture is damaged by a tenant's misuse or negligence, such as a broken dishwasher or a cracked sink, then the landlord may need to repair or replace the item.

Furniture and Furnishings

Furniture and furnishings provided by the landlord are also subject to wear and tear. Minor scratches, dents, or stains on furniture are considered normal wear and tear, but significant damage or missing items will need to be addressed. If a tenant damages a piece of furniture beyond repair, the landlord may need to replace it.

Maintenance and Repairs

Maintenance and repairs are an ongoing part of property ownership, and landlords should expect to perform routine maintenance and repairs over time. This may include replacing light bulbs, repairing leaks, or fixing minor damage caused by wear and tear. However, significant repairs or damage caused by tenants will need to be addressed separately.

Meet Kevin

Although it seems straightforward when listed out, it can feel a bit more complicated when the wear and tear happens to your property. Below we share a fictional story of a landlord who is conducting a move-out inspection:

Meet Kevin, a landlord who is about to conduct his first tenant move-out inspection. Upon entering the unit, Kevin is immediately struck by the condition of the paint. As he examines it more closely, he realizes that the paint is starting to fade in certain areas, particularly near the windows where the sun shines the brightest. Kevin knows that this is a common issue with painted surfaces, and that it is considered normal wear and tear.

As he continues to inspect the property, Kevin notices that the hardwood floors have some minor scuffs and scratches. Again, he knows that this is normal wear and tear and that it is to be expected in a rental property.

However, as Kevin moves into the kitchen, he notices that the refrigerator has a large dent on the side. He also sees that the stove has a small burn mark on the stovetop. After some research, Kevin is happy to find that these items are not considered to be normal wear and tear.

Moving into the bedrooms, Kevin finds that the carpets have some minor stains and wear patterns. These, too, are considered normal wear and tear and will not require any additional charges to the tenants.

As Kevin completes his inspection, he reflects on the importance of understanding the difference between normal wear and tear and damage caused by tenants. He knows that as a landlord, it is his responsibility to maintain the property and ensure that it is in good condition for future tenants. By carefully distinguishing between normal wear and tear and damage caused by tenants, he can ensure that he is making the most of his money, and that financial investments can be used to improve property value.

In the end, Kevin was pleased with the tenants' overall care for the property and their commitment to keeping it clean. Although there were a few items that needed to be addressed, he knew that they were a result of the tenants' negligence and that he could confidently charge them for the repairs. As he left the unit, Kevin felt confident that he had done his due diligence as a landlord and that the property was ready for its next tenant.

As a landlord, it is important to understand what could be considered wear and tear by landlords. Normal wear and tear is expected and should not be charged to tenants, while damage caused by negligence, misuse, or abuse should be addressed separately. By understanding the difference between wear and tear and damage, landlords can maintain their property and ensure that they are making the most of their investment. If you have any questions or concerns about wear and tear in your rental property, consult with a property management company to help you navigate the process.