What to Do If a Tenant Damages Property

05 Mar 2025

While most tenants respect and take care of the property they rent, sometimes accidents or neglect can lead to damage. Knowing how to handle these situations properly can save you time, money, and headaches.

If you find yourself in the unfortunate situation where a tenant has damaged your property, here’s a step-by-step guide on what to do.

1. Assess the Damage and Document It

The first step is to assess the situation thoroughly. Inspect the property and take photographs or videos of the damage. Ensure your documentation is clear, detailed, and dated. This is especially important in case there are disputes over the extent or cause of the damage later on, whether it’s through mediation, the Tenancy Tribunal, or claims against the tenant’s bond.

2. Review the Tenancy Agreement

Your tenancy agreement is the primary document that sets out the rights and responsibilities of both you and the tenant. It’s important to check the terms around property damage. The tenancy agreement should clarify who is responsible for repairs, what is considered damage (as opposed to wear and tear), and how damages should be addressed.

3. Consider the Difference Between Wear and Tear vs Damage

Landlords cannot charge tenants for damage that falls under normal wear and tear e.g faded paint, worn carpets, or minor scuffs. However, damage, such as broken windows, stained carpets, or holes in the walls, should be repaired at the tenant’s expense. If you’re unsure, ask yourself whether the damage would have occurred if the property had been well-maintained. If the damage is clearly due to the tenant’s actions (either accidental or intentional), then you may be able to recover the costs.

4. Communicate with the Tenant

Once you’ve assessed and documented the damage, the next step is to communicate with the tenant – this should be done in writing, such as through email or letter, so you have a record of the communication. If the damage is significant or the tenant is uncooperative, you may need to move forward with other options, such as making a claim on their bond or seeking a resolution through the Tenancy Tribunal.

5. Use the Tenant’s Bond to Cover Damages

The tenant’s bond is generally used to cover any damage to the property beyond normal wear and tear. If you’re unable to reach an agreement with the tenant regarding repairs, you may be able to claim from their bond. If the tenant disputes the bond claim or refuses to pay for repairs, the issue may need to be resolved through the Tenancy Tribunal.

6. Consider Mediation or the Tenancy Tribunal

If communication with the tenant doesn’t lead to a resolution, you can seek assistance from Mediation Services or the Tenancy Tribunal.

  • Mediation: Mediation is a free service offered by Tenancy Services. It’s a neutral process where both parties can discuss the issue with a trained mediator to try to reach an agreement. Mediation is often the quickest and least expensive option for resolving disputes.
  • Tenancy Tribunal: If mediation doesn’t work or if the situation is more serious, you can take the matter to the Tenancy Tribunal. The Tribunal will hear both sides and make a legally binding decision. You can apply to the Tribunal if there’s a dispute over bond deductions, unpaid rent, or damage to the property.

7. Repair the Damage Promptly

Once the dispute is settled, or if you’re able to use the bond to cover the damage, it’s important to repair the property as soon as possible. Not only does this prevent the damage from worsening, but it also ensures that the property remains habitable for future tenants.

Summary

Managing tenant damage can be challenging, but having comprehensive landlord insurance is a crucial way to protect both your property and your investment. It offers financial protection and ensures you're covered if tenants accidentally damage your property or neglect to pay for required repairs.

Want help or more details? Contact our property management team at [email protected] today.

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