Why the difference matters
Every home ages while people live in it. Carpet wears along walkways, paint fades in the sun and door handles loosen with use. In NSW, tenants are responsible for damage they or their visitors cause, but not for fair wear and tear: the deterioration that comes from ordinary, reasonable use of the property.
Knowing which is which before the final inspection saves time and avoids disputes. A claim for something that is really wear and tear is unlikely to succeed, and it can turn a straightforward vacate into a long disagreement.
- Expect some deterioration after every tenancy, even a careful one.
- Ask your team to assess each item against the ingoing condition report.
- Budget for normal refresh work such as repainting and carpet replacement over time.
Common examples
Fair wear and tear usually includes faded curtains or paint, light scuffs from furniture, worn carpet in high-traffic areas, small marks around light switches, minor scratches on benchtops and loose fittings from regular use.
Damage is usually caused by an accident, carelessness or neglect: holes in walls, burns or large stains in carpet, broken windows or doors, pet damage, unapproved alterations, or mould that developed because a problem was not reported. Where it is unclear, the age of the item, how long the tenancy lasted and the condition at the start are all considered.
- Worn carpet in a hallway after several years: usually wear and tear.
- A burn mark or large dye stain in carpet: usually damage.
- Faded paint: wear and tear. Large holes from removed wall mounts: usually damage.
Age and condition count
An item that was already near the end of its life cannot be replaced at the tenant’s full cost. If ten-year-old carpet is damaged, a fair claim reflects what the carpet was worth at that point, not the price of new carpet.
Keep records of when carpet, paint, blinds and appliances were installed or last replaced. Invoices and dates make it much easier to reach a fair figure.
- Keep invoices showing when major items were installed.
- Record repainting and flooring dates in your property file.
- Expect any claim to allow for the item’s age.
Evidence starts on day one
The ingoing condition report is the most important document at the end of a tenancy. Detailed notes and dated photos of every room let your team compare the start and end condition fairly.
Routine inspection reports during the tenancy help as well. They show when an issue first appeared and whether it was reported or dealt with.
- A thorough ingoing condition report with dated photos.
- Routine inspection reports showing condition during the tenancy.
- An outgoing inspection photographed from the same angles.
How a bond claim works
In NSW, rental bonds are held by NSW Fair Trading, not by the landlord or the agency. At the end of a tenancy, the bond can be paid out as agreed between landlord and tenant. If they cannot agree on a claim, the NSW Civil and Administrative Tribunal (NCAT) can decide.
A claim is strongest when it is specific: what was damaged, how it compares to the ingoing report, and a quote or invoice for a fair repair cost. Your team can talk you through whether a claim is likely to be reasonable before it is made.
- Compare the outgoing and ingoing reports item by item.
- Get quotes or invoices for any repair you intend to claim.
- Separate cleaning, damage and unpaid rent in the claim.
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