Think you can charge tenants the full replacement cost for damaged items? Think again. Recent rulings from the Tenancy Tribunal are underscoring a crucial factor for landlords pursuing damage claims: depreciation. Understanding how the Tribunal assesses the current value of items is essential for fair and successful claims at the end of a tenancy.
Our latest report breaks down a significant case and explains the Tribunal’s approach to compensation, revealing:
- The $3,300+ Ruling & the Depreciation Factor: Learn about a recent case where a tenant was ordered to pay for damages, but with depreciation significantly impacting the final amount owed.
- How the Tribunal Calculates What’s Fair: Discover the key factors the Tenancy Tribunal considers โ including age, condition, and lifespan โ when applying depreciation to damage claims.
- Fastest Depreciation Offenders: Find out which common rental property items, like curtains and carpets, lose value most rapidly according to Tribunal precedents.
- Real-World Examples of Depreciation in Action: See exactly how depreciation was applied to missing curtains (fully depreciated!) and damaged carpets (50% reduction) in the featured case.
- Why Landlords Can’t Profit from Damage: Understand the Tribunal’s core principle: ensuring landlords are compensated fairly for the current value, not placed in a better financial position.
- Key Considerations Before Filing a Claim: What landlords need to assess about the age and condition of their property items before seeking compensation for damages.
- Crockers’ Expert Advice: Practical recommendations for landlords on documenting property conditions at the start of tenancy to support fair depreciation calculations.
- Your Burning Questions Answered: A quick FAQ covering how depreciation works, commonly depreciated items, and how landlords can best prepare for potential claims.
Navigating damage claims at the Tenancy Tribunal requires a clear understanding of depreciation. Don’t assume full replacement costs will be awarded.
Read the full report here: Can Landlords Claim Full Replacement Costs for Damaged Items?