All Topics / Help Needed! / Landlord – Retaining a Bond due to Tenant Damage

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  • Profile photo of ChelleyChelley
    Participant
    @chelley
    Join Date: 2006
    Post Count: 15

    Hello

    I have a tenant who has given notice to vacate at the end of the lease. When this tenant moved in 2 years ago, the carpets were brand new and this was noted on the property condition report, which the tenant signed. I am currently in the UK, but did an inspection on a recent trip to Oz, where I discovered the carpets were a mess – stains, cigarette burns etc. I gave written notice that I had noted the bad state of the carpets and that she had to get them professionally cleaned as a bare minimum. This wasnt done and to be honest I havent had the time to chase it up. Now that she is leaving, I would like to retain her bond to pay for the cost of replacement carpet. I have been trying find something on the internet which sets out the steps a landlord must take to do this, but cannot find anything. I would appreciate some advice as to what I must do in order to keep the bond.

    Thanks!!

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Hello Chelley

    Which state are you in?

    For NSW http://www.tenants.org.au/resources/tenants_rights/tenants_rights-Chapter-5.html

    For VIC
    http://www.tuv.org.au/search.aspx?SearchText=bond

    Seems like you may just need to make an application to the rental bond board. The onus of proof will be on you to prove the carpets need replacing or cleaning.

    Terryw
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    Profile photo of units4meunits4me
    Member
    @units4me
    Join Date: 2005
    Post Count: 90

    Chelley, are you self managing from overseas???

    Profile photo of CallanderCallander
    Participant
    @callander
    Join Date: 2005
    Post Count: 33

    will depend on what state your property is in.

    You would probably need to be able to supply invoice to show that the carpet was new, photo’s of the damage that has been caused by the tenants. If your claim went to VCAT (Victoria) they will depreciate the value of the carpet also (as per tax depreciation figures), so unlikly you would be able to claim the full cost of replacement. Also if you have a quality Landlord Insurance and the carpet has been burned you may also be able to claim the cost of replacement on your insurance.

    Your property manager should be able to advise and should be organising your claim of the bond for you and would also represent you at any hearing you may need in order to claim the bond. If the carpet is in such a bad state after only two years there may be other issues/damage. If your tenant agrees with you (highly unlikly) you can get them to sign over the full bond to you without having to go to a hearing.

    Profile photo of dai888dai888
    Member
    @dai888
    Join Date: 2006
    Post Count: 4

    Renters are renters and you have to deal with them in ways that work. A landlord’s burden is to keep his property in good repair. Oh you can hassle around about deposits and paying for damage, you get what you can and often just have to suffer the loss. You hope to make a profit at the end of the year. I prefer to lease option my properties. The lessees are totally responsible for all repairs and in most cases they do not buy the property and you lease option it again, keeping their down payment. (On average you will lease option 5 times before you sell it.) They leave the property in about the same shape as any renter. Sometimes they make expensive improvements! In some jurisdictions I understand lease options are not allowed. In that case the next best option is to have a property management company handle the property for you. I been there and will never go back to managing rental property myself, I don’t have the time nor the temperament. I’d rather spend my energy making money in real estate investing.

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    PM should get a quote on cleaning and repair, then assess what amount should be demanded from the outbound tenant.
    If the PM & tenant can’t agree, then the PM should arrange a Tribunal hearing and ask someone else to decide the outcome. In this case, the PM has the responsibility to produce clear photographs of the situation together with several quotes for the cost of repairs and cleaning, plus the inbound & outbound Condition Reports to back up the claim.
    The PM can demand costs for cleaning and repairs above and beyond reasonable “fair wear’n’tear “. The ” fair ” part of FWnT differs with the nature of the tenant e.g. more WnT is allowable for the tenant if you rent to someone with 4 kids rather than a couple with no kids.
    good luck
    cheers
    thecrest

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