When a
tenant vacates your property, it’s important to understand your rights and
responsibilities to avoid disputes and potentially save time and money.
What is a
final bond inspection?
A final bond inspection is what
you carry out once your tenant has ended the tenancy and delivered a vacant
property. When this inspection is carried out (either by you or your managing
agent), you should compare the property against the Property Condition Report.
The Property Condition Report is
a report carried out before your tenant moves into your property. It is a
comprehensive document that details your property’s condition, including any
damages present before the tenant moves in.
If you’re self-managing your
property, make sure you carry out this report very thoroughly. It’s a common
area for discrepancies.
Your rights and responsibilities as a landlord
As a landlord,
you have to uphold several responsibilities. Of course, as with most things in
the property management industry, there is state and territory-specific
legislation to protect your rights and your tenant’s rights.
Property
damage
You’re
entitled to have your property returned to you in a clean and undamaged
condition at the end of a tenancy. There is, however, a difference between deliberate
damage caused by recklessness and neglect and fair wear and tear. Your tenant
is not responsible for fair wear and tear on your property.
Conducting the final inspection
As soon as possible, you or your
property manager must:
- Conduct a final inspection of the property;
- Prepare the final condition report describing
the condition of the property; and
- Provide a copy of that report to the tenant.
You must give your tenant a
reasonable opportunity to attend this final inspection. It’s in the best
interests of both you and your tenant to undertake a joint inspection when they
move out and arrange for the return of the property keys.
How
to cost repairs
You can hold
your tenant liable for any wilful or neglectful damage they cause during their
tenancy. However, unless your tenant has caused total havoc on your fixtures or
fittings, it can be tough to determine what amount to charge for damages to
contents. Generally speaking, if someone can reasonably repair the damage, only
the repair costs can be charged.
If the damage
is severe (i.e. carpet damage, which could require replacing), your tenant
would be liable to pay for replacing the damaged carpet with one of similar
quality to the original.
It can,
however, be more difficult to assess burn marks or stains that you can’t
remove. Consider factors like the age of your property and the size and
location of the damage. Where possible, try to negotiate the sum of money
deducted from the tenant’s bond as compensation.
Keep
everything civil
Where
possible, make every effort to agree with your vacating tenant on deductions
from the security bond. If you cannot agree, try to compromise. If this still
doesn’t go to plan, the bond disposal will need to be resolved in your state
Magistrate’s Court.
Return
of the keys
At the end of
the tenancy, your tenant is responsible for returning all sets of keys provided
to them. If they don’t return the keys, you can hold them responsible for the
cost of changing the locks or charge them rent until the keys are returned.
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Jason Gwerder
Thursday, 21 October 2021
