Understanding Damage vs Fair Wear and Tear in Commercial Rental Properties

By Karyn Stroet

As property management experts, we often encounter questions surrounding the distinction between damage caused by tenants and fair wear and tear. It’s crucial for both landlords and tenants to grasp the nuances of this differentiation to ensure a smooth and fair tenancy experience.  The award-winning property management team at RWC Bayside is well-versed in clarifying these complexities, averting potentially contentious disputes.

In short, any damage resulting from intentionally destructive or negligent behaviour by the tenant falls squarely within the tenant’s responsibility to ‘make-good’. In these cases, tenants are obliged to inform the property management team immediately and seek guidance on the process to action any necessary repairs or replacements.

Meanwhile, the term ‘fair wear and tear’ can sometimes be ambiguous, leading to disagreements between landlords and tenants. Essentially, it refers to the natural deterioration that occurs through ordinary, everyday use, considering factors like exposure to the elements, age, and regular function.

Both landlords and tenants may harbour unrealistic expectations regarding the condition of the property at the end of the lease term.  Landlords may anticipate the property to remain pristine, while tenants may overlook their responsibility for reasonable wear and tear.

In reality, wear and tear are inevitable in commercial rental properties, and landlords should anticipate a certain level of deterioration during occupancy.

Inspection Reports, ideally supplemented with detailed photographs, serve as a crucial tool in preventing or resolving disputes over fair wear and tear, and help to minimise the risk of these types of disputes.  These reports also play a pivotal role in keeping landlords informed about the property’s condition and provide the opportunity to promptly address any issues.

At RWC Bayside, we understand the complexities surrounding damage and fair wear and tear in commercial rental properties. Our team of experts is well-versed in handling these matters efficiently and fairly. Whether you’re a landlord seeking guidance or a tenant needing clarification, you can trust the award-winning property management team at RWC Bayside to provide expert assistance every step of the way.

Call us today to find out how we can help with all your property management requirements – 07 3245 7199.

Up to Date

Latest News

  • The power of synergy in commercial real estate

    Sales, leasing, and property management functions should not operate in isolation; instead, they should work in harmony to deliver exceptional service and value to clients. Yet, all too often, these departments function as silos, leading to communication breakdowns, inefficiencies, and diminished client satisfaction. When departments within a commercial real estate … Read more

    Read Full Post

  • The Essential Role of Routine Inspections

    In the realm of commercial real estate management, the significance of routine inspections can’t be overstated. While not legally mandated like their residential counterparts, these inspections play a crucial role in safeguarding the interests of both property owners and tenants. It’s worth noting that although routine inspections are not legislatively … Read more

    Read Full Post