Tenant damage question..

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dan_89

I have recently had my tenants of 4 years move out of my unit in Boronia. After going through the condition report with my rental manager (who I have now eliminated and managing privately) we noticed a 20c piece sized raised burn mark/bubble in the laminated benchtop.. The unit is only around 7 years old so still relatively modern and clean.

I noted that I wanted to look into claiming a replacement benchtop or atleast portion of the costs for the damage out of the bond. My rental manager agreed. I went ahead and got a quoted of just under $2000 for replacement benchtop but noted I'd be happy to settle on $1000. The tenant has not yet signed forms to release the bond or that portion of it although they have mentioned to my rental manager that they will require a receipt of the works being completed. By law can they request this?

In the mean-time I have organized a new tenant to move in therefor was not planning to replace benchtop until after this 12 month lease is up. Can anyone confirm if I am required to provide a receipt for any works that are required after claiming from the bond? My rental manager is being reasonably unhelpful and uninformative so thought I'd ask here.

Thanks in advance!
 
You don't need a copy of the receipt showing the work completed. A quote is good enough to claim a bond but if you end in VCAT they will probably only a portion amount of the full cost as it is pro rata over 10 yrs. The tenant probably put a hot pot on the counter. I have had this many a times in the rentals in Sydney and the best way to fix the issue is not replace the whole bench top but get a qualified tradesman to cut a square piece and install a ceramic tile in the bench top. If done correctly looks good, fixes the problem without the whole bench top being replaced, win win situation for you and your old tenant plus helps future clumsy tenants.
 
A 2 bob mark on 3 m2 of benchtop, works out as insignificant % of benchtop and VCAT would call it fair wear and tear, especially if it is still in good condition otherwise.

Pragmatically, life of a kitchen is 25 years, so you would have to depreciate the kitchen by 7/25 as a minimum. You aren't repairing the kitchen in the present but some dubious time in the future (what if the tenant doesn't move out for 10 years?). How are you going to treat it? as income until you carry out the work? What about colour matching in a year's time?
 
Placing a hot object on a bench top is not fair wear and tear IMO. At best a reckless or careless action. I think the tenant should be shown the quote for repair to its original condition and cough up or repair it themselves (and quickly).

Imagine if a reckless driver smashes into the side of a car, jumps out and yells "that's fair wear 'n tear mate, the rest of your car is OK, the damage only covers 10% of your car"

Too late, damage done, pay up!
 
Scott No Mates said:
A 2 bob mark on 3 m2 of benchtop, works out as insignificant % of benchtop and VCAT would call it fair wear and tear, especially if it is still in good condition otherwise.

Pragmatically, life of a kitchen is 25 years, so you would have to depreciate the kitchen by 7/25 as a minimum. You aren't repairing the kitchen in the present but some dubious time in the future (what if the tenant doesn't move out for 10 years?). How are you going to treat it? as income until you carry out the work? What about colour matching in a year's time?
Click to expand...


I wouldn't consider damage to a benchtop due to carelessness "fair wear and tear".. I wouldn't even be considering replacement of the benchtop if it weren't for the damage therefor feel I should be compensated in some form from the bond (that is the purpose of a bond is it not?). If an amount is agreed apon what do I class that as? It may very well not be replaced for 5 years but I still feel I am entitled to claim a portion.

I am just interested to get peoples thoughts on fairly resolving the issue without going to VCAT. The tenants also left the house un-cleaned in the bathroom/kitchen with thick oil left on majority of doors (rental manager agreed $200 cleaning bill be charged from bond). I also replaced the rangehood as it was in my opinion beyond cleanable. For this I am not claiming out of bond and replaced at my cost out of respect for new tenant.
 
BTW, if I placed a hot object on a benchtop and damaged it, I'd gladly pay for it :D

And I'd try and get some money out of the hot object lol
 
If I were the tenant, I'd be arguing that $1000 for replacement is excessive for a 20c piece sized piece of damage. $2000 replacement cost, even with a 10 year life on the benchtop, is $200. That should be adequate for you to work out some remediation, or just pocket the cash until you replace it.
 
Salvatore1 said:
You don't need a copy of the receipt showing the work completed. A quote is good enough to claim a bond but if you end in VCAT they will probably only a portion amount of the full cost as it is pro rata over 10 yrs. The tenant probably put a hot pot on the counter. I have had this many a times in the rentals in Sydney and the best way to fix the issue is not replace the whole bench top but get a qualified tradesman to cut a square piece and install a ceramic tile in the bench top. If done correctly looks good, fixes the problem without the whole bench top being replaced, win win situation for you and your old tenant plus helps future clumsy tenants.
Click to expand...

I like this idea.

You can still do this after the new tenants move in.
Just let them know when it will be done....easy.
 
Sorry Dan, you do have produce a receipt if you want the money. Had a similar case in VCAT a while back and quotes were not accepted VCAT is getting tougher on these sorts of things. They require proof that the works have been done and that the owners are not just claiming money and keeping it without doing the repairs being claimed for. Getting compensation for small damages like this are becoming a thing of the past unfortunately for investors. The worst part is if each and every tenant that goes through a property does just one small thing like this soon the property looks like $%&#

It may be worth your while if the tenant is actually agreeing to sign over $1,000 get the bench replaced now otherwise you will be up for lot if you wait. Dont forget you need to refund bond or make claim on it within 10 working days of tenant vacating, VCAT are now sarting to come down on abridgement of time claims as well.:confused:
 
A mark the size of a 20c piece. My son did that years ago while we were renting during our house build. It was a tea candle light lit on the benchtop. Caused a burn mark. Me being the perfect tenant repaired before we left. Replaced that section of benchtop with the same laminate cost was $450.
 
Sounds like you need to go to VCAT and I can promise you that you probably won't get $1000 at VCAT! Possibly $200 - $500. Hence the reason many LL's and agents do not like going.

If you only have a quote and go to VCAT then sign a stat dec and take it to VCAT with you. Something to state that you will be booking in the works. VCAT is trying to crack down on quotes HOWEVER the VCAT rules actually state that quotes are acceptable evidence in a compensation claim. Most members seem to try to forget that rule.......

Also, try to get some quotes for repair and not just to replace.

Agree with Crystalclear regarding the VCAT coming down on abridgement claims too (a special tick box when your VCAT application is after the 10 business day for bond refund or claim)..... they are there for big issues where costs have taken some time to collect to put together a claim. This can take more than 10 business days and that is why the abridgement option is there, we are now being questioned very closely when using this option.

I agree that getting the section cut out and putting in a ceramic tile is probably the best option :).

Let us know how it goes!
 
I'm going to have to agree with Sez here.

You don't generally need an invoice if you're claiming part compensation.

I don't know if you're planning on going to VCAT, or your previous agent, however you need to have your ducks in a row.

I would first try negotiating with the tenant.

Ie. Provide invoice for cleaning works and quote for bench top. With the bench top, the best course of action would be to charge the tenant a % of the replacement costs eg. $200-$500.

You would be very fortunate to get even close to half the cost, as the VCAT member will take into account the size of the damage, age of the property and also the reasoning the tenant gives to the damage (whether they deem it to be wear and tear).

It may not be fair, but unfortunately that's how VCAT works.
 
Our rules are similar...you have 10 days from the end of the lease to file for the bond.

In our case, we are permitted to estimate the costs of repairs, because they are rarely finalised in that time period.
If unknown, we always quote higher repairs, and reduce them to the actual costs when we get to the hearing...we can just never increase our amounts.
 
Thanks all for the helpful comments. Very much appreciated!

After readying through the comments I decided $1000 compensation for damage + $200 for cleaning was slightly unreasonable (rental manager suggested this figure as a starting point after I was quoted just under $2k for replacement benchtop) therefor rang my manager this afternoon to ask her to reduce the claim to $800 total of which she stated it was too late after the amount had already been forwarded to the tenants to be signed (communication skills of manager are reasonably poor which makes discussions difficult.. won't go there!).

I am also now outside of the 10 day period as discussed above.. Tenants moved out on 30th August. My new tenants moved into the property on 15th of this month therefor works were unable to be completed or even bond money agreed apon. My rental manager has never notifed me of a 10 day period and seemed reasonably confident that the bond amount would be signed and released shortly.

So basically from here I'm assuming it will go 1 of 2 ways;

(I) Tenant rejects claim for bond and takes matter to VCAT of which I would then try to re-negotiate figure (although well outside of 10 days so is this even possible?)

(II) Tenants agrees to release $1000 + $200 for cleaning and moneys released into my account.

I'd prefer settle things as quickly and easily as possible and would probably feel the urge to transfer maybe $400 or so back to the tenant as a sign of good will if that is the outcome (I may be crossing another legal issue again here??). I guess initially I should have not agreed to try claim such a large amount of the bond for such a small issue although after seeing the quote and discussion with manager it seemed fair..

Anyway enough blabbing, thanks again guys. Will keep those interested updated of the outcome
 
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