Oops! Who Pays for That? The Tenancy Damage Dilemma

Liability for damage is something that often comes up in our day to day work as Property Managers. Tenants can be held liable for damage to a property or owners chattel, depending on the circumstances.

The relevant areas of the Residential Tenancies Act that govern how damage liability can be enforced are as follows:

Proving Damage: The Landlord must prove the damage occurred during the tenancy and was more than fair wear and tear (Sections 40(2)(a), 41, and 49B RTA).

Careless Damage: If damage is careless and covered by insurance, Tenant liability is limited to the insurance excess or four weeks' rent (Section 49B(3)(a) RTA).

Intentional Damage: Tenants are liable for intentional damage or damage resulting from imprisonable offenses (Section 49B (1) RTA).

Fair Wear and Tear: Damage resulting from reasonable use and duration of the tenancy may be considered fair wear and tear.

The Just Property team always conduct a thorough 'Entry Condition' report prior to a new tenancy commencing to ensure the condition of the property at the outset is documented, this includes a written report accompanied by photographs.

We also strive to build and maintain proactive relationships with our tenants so that if situations arise we can have an open discussion with the tenant to try and come to an agreement. 

If an agreement cannot be reached, an application to the tenancy tribunal may be required in order to determine the appropriate outcome and an order issued.

You can find out more information on this subject on the below link to the Tenancy Services website.:
https://www.tenancy.govt.nz/maintenance-and-inspections/repairs-and-damages/