It's the question that comes up at almost every end-of-tenancy bond release: is this damage, or is it fair wear and tear? The honest answer is — sometimes it's obvious, and sometimes it's the difference between a clean bond return and a trip to NCAT.
Here's how we think about it at Hunter PM.
The legal definition matters
NSW tenancy law allows landlords to recover the cost of damage caused beyond reasonable wear and tear. That last phrase is doing a lot of work. Reasonable wear and tear is the deterioration that happens just from a person living in a property — carpet flattening in walkways, a slight fade on curtains exposed to sun, scuff marks on a wall behind a couch.
What it isn't: a hole in plasterboard, a stained carpet from a spill that wasn't cleaned, a cracked basin, a smashed window, dog scratches on doors.
A quick test we use
Ask two questions:
- Could this have been avoided with normal care? If yes, it's likely damage.
- Is this what happens when a property is simply lived in? If yes, it's likely wear and tear.
A scuffed skirting near a hallway after four years? Wear and tear. A scuffed skirting because a tenant dragged furniture without protection? That's damage — and it's claimable.
The role of the entry condition report
This is where we'd give every landlord and tenant the same advice: take the entry condition report seriously. It's the single most important document in any future bond dispute. Walk through with it, photograph everything, note even the small things. Six or twelve months later, memory fades. The report doesn't.
Tenants who fill it out properly protect themselves from being charged for things that were already there. Landlords with thorough reports protect themselves from "it was already like that" claims.
What about depreciation?
Here's a piece many investors miss: even when damage occurs, you may be able to claim a portion through your depreciation schedule. Items that are damaged and need replacement may have a residual depreciable value that can be written off. If you're an investor, raising this with your quantity surveyor or accountant after a damage event is worthwhile — it can soften the financial blow.
Tips for tenants
- Keep the place clean. A bond cleaner at the end of tenancy is usually money well spent.
- Report issues early. A small problem reported in week three is your landlord's problem; the same problem hidden until move-out becomes yours.
- Document everything when you move in.
Tips for landlords
- Don't go on a fishing expedition at the end of tenancy. Bond claims that are disproportionate or unsupported tend not to survive NCAT scrutiny.
- Get quotes, not estimates. Real invoices carry weight.
- Lean on your property manager — that's literally what we're here for.
If you're with Hunter PM and you're heading into an end-of-tenancy negotiation, we'll guide you through what's reasonable to claim and what isn't.