A common query we often hear from people including Landlords and Tenants is “What is accidental damage and how is this different to malicious damage, deliberate damage and/or Wear and Tear?”.
This is a great question!
In the marketplace, some Landlords have unrealistic expectations that their property will remain in exactly the same condition at the end of the lease as when their Tenants first move in. This is not a realistic expectation as wear and tear on a rental property will inevitably occur over time.
From an insurance perspective, it is important to know the differences and the definitions of all the types of damage and wear and tear:
Accidental Damage: An unexpected or sudden loss. This is generally something that is an accident and not planned, or intentional. Examples may include spills on carpet, damage to furniture, kids writing on walls – it was an accident, but there is damage from the accident.
Malicious Damage: Damage which was motivated by spite, malice or vindictiveness with the intention of causing damage. Examples may include holes kicked/punched in walls and doors, graffiti and doors knocked off their hinges. A police report is required for malicious damage claims.
Deliberate Damage: An act that will alter the current state of an item; however, the act is carried out without any spite, malice or vindictiveness. Examples may include putting picture hooks into walls without permission – this is not a vindictive act, it is however a deliberate action but generally with the intent of making the property more homely.
Wear and Tear: Damage which occurs naturally and inevitably simply because people reside in the property. Wear and tear occurs just as much in an owner-occupied property as it does in a rental property. Examples may include scuff marks on walls, carpet in walkways appearing worn, small marks on lino to name a few.
Another area of contention can sometimes be poor housekeeping. This is where a tenant maintains a property in a condition or standard which is lower than the Landlord’s expectations, but where no damage has occurred. This can include tenants who do not clean up after themselves, who don’t ventilate their home, who don’t regularly clean areas such as carpets, ovens and bathrooms etc.
Wear and tear and poor housekeeping are not generally covered in an insurance policy, even where a property may be brand new prior to being occupied by tenants. A Property Management company can monitor this during routine inspections and outline to the tenants at the outset of the lease expectations of cleanliness, maintaining the property etc. Agents will also ensure that tenants are made aware that any damages or maintenance needs to be reported to the property management office immediately and that these are rectified in a timely manner.
Landlords should expect fair wear and tear to their property, as would happen in any home that is being lived in.
One of the main reasons Landlords confuse wear and tear for accidental damage is because after leasing their property they often don’t see it again until the end of the rental agreement. This is why it is important for your Property Manager to carry out regular inspections and advise you on the property’s upkeep.
Questions? Leave a comment below to have your question answered.
Below is a number of videos concerning Accidental Damage and Wear & Tear
