DAMAGE & REPAIR DISPUTES: WHAT LANDLORDS NEED TO KNOW

Patrick Rankin
Jul 12, 2025
3 min read

Updated: Jul 14, 2025

Story Hook:

You arrive after a tenancy: a cracked window, holes in the walls, burnt spots on the benchtop. You feel confident—you’ll cover it with the bond. But the tenant disputes the damage as “fair wear and tear.” Who’s right?

Damage disputes are one of the biggest causes of bond holdbacks and tribunal cases. At Good Neighbours, we help landlords protect their properties—without overreaching.

WHAT THE RTA REQUIRES

Under Sections 45–49B of the Residential Tenancies Act:

Landlords are responsible for “fair wear and tear”—the natural decline of items through normal use (e.g., worn carpet, scuffed paint on light switches).
Tenants are liable for intentional or careless damage—smashed windows, burns, holes, stains—up to the landlord’s insurance excess or 4 weeks’ rent, whichever is lower.
Landlords must prove damage is beyond fair wear and tear; tenants then must show it was accidental (not careless or intentional).

TRIBUNAL CASES THAT CLARIFY THE LINE

CASE 1: HOLE FROM 3M HOOK — TENANT LIABLE

In one recent case, there was a 10-cent sized hole from a 3M hook. The Tribunal found this was more than fair wear and tear—similar to hanging a picture—and the tenant was ordered to pay for repair, minus depreciation.

CASE 2: MULTIPLE HOLES & BURNT BENCHTOP — LANDLORD WON

In Tauranga, a tenant left:

A dozen holes in walls
A broken light fitting
A stained carpet
Broken door handles

The Tribunal ruled this went beyond reasonable wear, and the landlord was awarded costs for repairs and cleaning.

WHAT COUNTS AS FAIR WEAR & TEAR

Generally accepted examples include:

Gradual carpet wear or fading
Minor scuffs, door scratches, worn tap washers
Aged paint, cracked ceiling plaster from building movement

Not considered fair wear and tear:

Holes in walls, burn marks, large stains, broken windows, graffiti, or deliberate alterations

WHAT LANDLORDS SHOULD DO

DOCUMENT THOROUGHLY AT ENTRY:

Take photos/videos of everything—walls, windows, benchtops, carpets, fixtures.
Provide a signed copy to tenants.

CONDUCT REGULAR INSPECTIONS:

Identify and address small issues before they escalate.
Record problems and tenant responses.

ACT WHEN DAMAGE OCCURS:

If careless damage is found (e.g. carpet burn), ask tenants to fix or issue a 14‑day Notice to Remedy.
Charge repairs or claim through insurance as needed.

CAPTURE EVIDENCE AT TENANCY END:

Take dated photos of all damage.
Gather repair quotes and documents.

FOLLOW LEGAL PROCESS:

Inform tenant in writing of proposed bond deductions.
If no agreement, apply to Tribunal with clear evidence and legal framing.

HOW GOOD NEIGHBOURS MANAGES DAMAGE DISPUTES

Entry and exit condition reports with timestamps and signatures
Quarterly inspections to monitor wear and spot damage early
Simple tenant communications about early care
Written notices and repair order follow-through
Bond refunds and tribunal filings only when justified—with full photographic and invoice proof

WHY THIS MATTERS

Disputes over damage cost landlords money, time, and bond delays
Overclaiming invites Tribunal pushback and unnecessary stress
Proper documentation and legal steps boost your success rate in recovering real costs

PRO TIPS FOR LANDLORDS

Review your insurance excess—make sure it’s lower than 4 weeks’ rent
Note depreciation—bond claims should cover fair replacement value, not full cost
Include plain-language damage clauses in your tenancy agreement
Treat Tribunals as a tool, not a threat—used properly, they support your position