What Exactly is “Normal Wear and Tear”?

Key Takeaways

• Landlords use security deposits to cover tenant-caused damage, but must clearly define what counts as damage.
• Everyday aging is the landlord’s responsibility, while neglect or abuse is considered excessive damage.
• Strong leases, tenant screening, deposits, and renters’ insurance help minimize potential damage.
• Inspections, records, and regular maintenance make it easier to identify damage and justify withholding deposits if needed.

As a landlord, you invest in rental properties to earn a stable income and build enduring wealth. But when renting to tenants, you also understand the risk that comes with handing an investment worth hundreds of thousands of dollars to a total stranger.

To mitigate this risk, you require tenants to pay a security deposit as a precondition to renting. If a tenant takes good care of your property, they get their money back at the expiration of their lease.

If they damage your property, you can use all or part of the money to fix any damage they have caused. To determine if a tenant has damaged your property, you must define exactly what you mean by damage.

There are existing guidelines that landlords and tenants can use to determine whether the defects in a property are due to natural wear and tear or constitute excessive damage.

They ensure that landlords are fair to their tenants, but also hold renters accountable for their actions in the property. In this article, TrueNest Property Management will go over what constitutes normal wear and tear and excessive damage.

Normal Wear and Tear Versus Excessive Damage

Normal wear and tear refers to the overall decline of a rental property as a result of everyday use. It’s the kind of natural aging and deterioration you expect when people live in a space for an extended period.

Normal wear and tear can also be referred to as reasonable wear & tear, natural wear & tear, or wear & tear.

Since it is not the result of negligence or accidents, normal wear & tear is the responsibility of the property owner to fix. Landlords cannot make their tenants bear the cost of fixing this kind of damage.

Examples of normal wear and tear in a rental property include:

• Fading/cracking paint due to sunlight exposure or peeling wallpaper caused by aging and humidity.
• Minor scuff marks on walls from furniture pushing against them or other normal activities
• A few nail holes in the walls for hanging small picture frames, décor, and art.
• Hairline cracks in walls or ceilings, and slightly chipped wall plaster due to house settling.
• Worn-out, thin, or matted sections in high-traffic areas like entryways and hallways, plus indentations in carpets due to the weight of furniture.
• Loose, sticky, or misaligned door handles, hinges, and locks caused by frequent use.
• Worn-out or scratched enamel in aging bathtubs, sinks, and toilets.
• Noticeable decline in the performance of appliances, along with worn-out knobs and buttons.

Normal wear and tear happens gradually. Excessive damage is the result of malice, abuse, negligence, or accidents by the tenant, pets, or guests.

Protecting Your Rental Property From Damage

The following steps not only help you avoid excessive damage to your rental, but they also offer a way to fix the damage if it ever happens.

Clear Rental Agreements

The lease agreement must define the tenant’s role in protecting the property and their responsibility to use its features in the right manner.

By signing the contract, tenants automatically consent to it. To prevent disputes, ensure that tenants understand the terms of the contract.

Require a Security Deposit

To incentivize tenants to take good care of the property, they must pay a security deposit. The conditions for returning the security deposit must also be clearly outlined in the lease agreement.

Tenant Screening

A lease agreement and a security deposit cannot protect your property from damage if you don’t have detailed tenant screening.

In addition to defaulting on rent, the wrong tenant can cause more damage to your rental property than the security deposit can cover. Vet all rental applications thoroughly.

Require Renters’ Insurance

Landlord's insurance will help you cover the cost of damage from fires, storms, vandalism, and liability claims. Requiring your tenants to also have renters' insurance adds another layer of protection to your rental property. It also helps you attract more responsible renters.

Move-In/Move-Out Inspections

Move-in inspections establish a baseline of the rental’s condition when the tenant moved in. Move-out inspections, on the other hand, compare the condition of the rental when the tenant moves out to its condition when they moved in.

These steps are vital for evaluating a tenant's handling of your property.

Seasonal Inspections

These are quarterly inspections of a rental unit to assess the tenant’s use of the property and its features. They help landlords detect improper use of their property in time, so they can take steps to prevent further damage. Seasonal inspections must be baked into the lease agreement.

Proper Documentation

If a renter damages your property, communication trails between you and the tenant, video & photos from move-in and move-out inspections, as well as signed copies of the lease agreement, will help you prove your case.

They let you establish legal grounds for not refunding the tenant’s security deposits.

Regular Property Maintenance

If a rental is poorly maintained, it undermines the landlord’s case even if a tenant damages the property. Timely and adequate maintenance of their property also helps landlords detect tenant negligence before it causes costly damage.

Conclusion

For new landlords who lack the experience to do all of the above or established investors who do not have the time, a good option to prevent damage to their rental property is to hire a professional property manager.

A competent property manager will already have the systems to ensure that tenants do not damage your rental property. Contact TrueNest Property Management today for more information.