Can I charge tenants for professional cleaning at the end of a tenancy?

Tenants must leave the property reasonably clean and tidy, but this does not require professional cleaning unless the tenancy agreement specifically requires it and the property was professionally cleaned at the start. You cannot claim for cleaning that simply returns the property to the condition it was in at the start of the tenancy.

How many picture hook holes are considered fair wear and tear?

There is no specific number. A reasonable number of small picture hook holes is generally considered fair wear and tear. Excessive holes, large holes, or damage to the surrounding wall may be claimable damage. The Tribunal considers what a reasonable tenant would do in a normal tenancy.

What if the tenant disappears and I cannot find them to claim against?

You can still apply to the Tenancy Tribunal even if you cannot locate the tenant. The Tribunal can make orders in their absence. However, enforcing those orders if you cannot find the tenant is difficult. This is where landlord insurance becomes valuable for covering the loss.

Are tenants responsible for damage caused by their guests or pets?

Yes. Tenants are responsible for the actions of anyone they allow onto the property, including guests, family members, and pets. If a guest damages the property, the tenant is liable. Ensure your tenancy agreement is clear about pets and visitor responsibilities.

Tenant Damage: Prevention and Claims NZ

Dealing with tenant damage is one of the less pleasant aspects of property investment. However, understanding the legal framework, documenting properly, and focusing on prevention can significantly reduce both the occurrence of damage and the difficulty of recovering costs when it does happen.

Under the Residential Tenancies Act, tenants have an obligation to keep the property reasonably clean and tidy, and to notify the landlord of any damage. They are liable for damage they intentionally cause, or damage resulting from their failure to meet their obligations. However, they are not responsible for fair wear and tear.

Understanding Fair Wear and Tear

The distinction between damage and fair wear and tear is crucial but often misunderstood. Fair wear and tear is the natural deterioration that occurs through normal everyday use. It is not caused by negligence, carelessness, or abuse.

Examples:

Fair wear and tear: Faded curtains from sun exposure, minor scuff marks on walls, worn carpet in high-traffic areas
Damage: Large holes in walls, burn marks on carpet, broken windows, pet urine stains
Grey area: Picture hook holes (generally fair wear), excessive marks requiring repainting (may be damage)

The Tenancy Tribunal considers factors like the age and condition of items at tenancy start, the length of tenancy, and the expected lifespan of fixtures and fittings when determining what constitutes fair wear and tear.

Documentation is Everything

Your ability to claim for damage depends almost entirely on your documentation. Without clear evidence of the property's condition at the start of the tenancy, proving damage occurred during the tenancy becomes very difficult.

Documentation Checklist:

☐ Comprehensive property condition report at tenancy start
☐ Dated photographs of every room, including close-ups of any existing damage
☐ Tenant signature acknowledging the condition report
☐ Records of all routine inspections with photos
☐ Final inspection report with photographs at tenancy end
☐ Quotes or invoices for repairs

Start of Tenancy

Complete a detailed property condition report before the tenant moves in. Photograph every room from multiple angles, and take close-ups of any existing marks, wear, or damage. Note the condition of carpets, walls, fixtures, and appliances. Have the tenant sign and date the report to acknowledge they agree with the recorded condition.

During Tenancy

Conduct regular inspections (with proper notice) and document the property's condition. If you notice damage developing, raise it with the tenant promptly. Keep records of any maintenance requests and how they were addressed.

End of Tenancy

Conduct a thorough final inspection, ideally with the tenant present. Compare the property's condition to your start-of-tenancy documentation. Photograph any damage and discuss it with the tenant. A tenant who acknowledges damage at the inspection is more likely to agree to a bond claim.

Claiming for Damage

Bond Claims

When a tenancy ends, both parties must apply to Tenancy Services for bond refund. If you believe the tenant has caused damage, you can claim part or all of the bond to cover repair costs. If the tenant disputes your claim, Tenancy Services will refer the matter to the Tenancy Tribunal.

To support a bond claim, you need evidence that the damage exists, that it was not present at tenancy start, that it exceeds fair wear and tear, and documentation of the cost to repair. Quotes or invoices from tradespeople carry more weight than your own estimates.

Tenancy Tribunal

If damage exceeds the bond or the tenant disputes your claim, you may need to apply to the Tenancy Tribunal. The Tribunal can order the tenant to pay compensation for damage they caused. Bring all your documentation, photographs, and repair quotes to the hearing.

Tribunal Considerations:

You must prove damage on the balance of probabilities
The Tribunal will consider betterment, meaning you may not get full replacement cost for old items
Application fees apply but can be recovered if successful
Tribunal orders are legally binding but enforcement can be challenging

Insurance Claims

Landlord insurance often covers intentional damage by tenants. Check your policy for coverage limits, excess amounts, and any requirements about pursuing the tenant first. Insurance can be valuable when damage is significant and the tenant is unlikely to pay.

Related: Landlord Insurance Guide NZ

Prevention Strategies

Prevention is far more effective than chasing tenants for damage after the fact. Most damage can be reduced through careful tenant selection and good property management practices.

Tenant Screening

Thorough tenant screening is your best defence against damage. Check references from previous landlords, asking specifically about property care. Verify employment and income to ensure the tenant is stable. Consider using a property management company with robust screening processes.

Regular Inspections

Regular inspections help you identify problems early before they become serious. A small water leak fixed promptly causes far less damage than one left for months. Inspections also remind tenants that you are monitoring the property's condition.

Clear Communication

Set clear expectations at the start of the tenancy. Walk through the property with new tenants, explaining what you expect in terms of care and maintenance. Encourage them to report problems promptly. Tenants who feel they can communicate openly are more likely to report issues before they become major damage.

Responsive Maintenance

Respond promptly to maintenance requests. Tenants who see that you care for the property are more likely to do the same. A property that is already in poor condition invites less care than one that is well maintained.

Calculating Betterment

When claiming for damage, you generally cannot claim the full replacement cost of an item that was already partially through its useful life. This reduction is called betterment. For example, if a carpet has a 10-year expected lifespan and was already 5 years old when damaged, you might only claim 50% of the replacement cost.

Keep records of when items were installed or replaced. This helps establish their age and remaining useful life, which affects how much you can reasonably claim.

The Bottom Line

Tenant damage is an unfortunate reality of property investment, but proactive management significantly reduces both its occurrence and impact. Focus on prevention through careful tenant selection, clear communication, and regular inspections. When damage does occur, thorough documentation from the start of the tenancy positions you to recover costs through bond claims, the Tenancy Tribunal, or insurance.

Remember that pursuing small claims may cost more in time and stress than they are worth. Pick your battles, maintain good records, and focus your energy on finding and keeping quality tenants who will care for your property.