The single concept that decides most Victorian bond disputes is "fair wear and tear." Under the Residential Tenancies Act 1997 (Vic), rental providers cannot claim the cost of fair wear and tear from a bond. They can only claim damage that goes beyond it.
The trouble is, the line between the two is not always obvious. This guide explains how VCAT members and RDRV coordinators typically distinguish them, using the Consumer Affairs Victoria guidelines and case patterns.
What counts as fair wear and tear
Fair wear and tear is the deterioration that happens through ordinary everyday use of a property, even when the renter has behaved perfectly. Things like:
- Faded paintwork from sunlight
- Minor scuff marks on walls near light switches and door handles
- Carpet thinning in hallways and main traffic paths
- Faded curtains and slightly worn bench tops
- Small cracks in plaster from building movement
- General kitchen and bathroom use marks accumulated over time
None of these can be claimed against your bond, even if they are visible at move-out. They are the rental provider's cost of owning and renting out the property.
What counts as damage
Damage is deterioration caused by something beyond ordinary use, whether that's negligence, accident, or action. Things like:
- Large holes in walls, not just scuffs
- Broken or torn curtains
- Cracked bench tops, tiles, or basins
- Burn marks or large stains on carpet
- Pet urine damage to flooring
- Broken fixtures and fittings
- Mould caused by a failure to ventilate (though mould from a building defect is the rental provider's responsibility)
These are things a rental provider can claim, though they still need to prove the cost of rectification and that the damage was not already present at entry.
The tests that apply
When a member or mediator is deciding whether something is fair wear and tear or damage, they typically ask:
1. How long was the tenancy?
What is fair wear and tear in a five-year tenancy may not be fair wear and tear in a one-year tenancy. Longer occupancy justifies more visible deterioration.
2. What was the condition at entry?
If the entry condition report says "hallway carpet, good condition, minor marks" and the exit condition shows heavy wear paths, that looks like damage. If the entry report says "hallway carpet, visible wear along traffic path", then worse wear at exit is less clearly your responsibility.
3. Is this what would happen with ordinary use?
A scratch on a bench the length of a fingernail is wear and tear. A deep gouge running half the length of the bench is damage. The question is whether the item could reasonably deteriorate to this state through normal, careful use.
4. Is the claim proportionate?
A rental provider who seeks to replace the entire carpet because of a stain in the corner of one room is overreaching. Replacement value is only recoverable where there is no practical alternative, and the carpet's remaining useful life has to be discounted.
The depreciation argument
Even where damage is established, the rental provider cannot usually claim the full cost of new for old. If a nine-year-old carpet with a useful life of ten years is damaged, the renter may owe compensation for the final year of useful life only, not the full cost of a new carpet.
The Australian Taxation Office publishes useful life schedules for fixtures and fittings, which tribunals often reference. If a rental provider is claiming full replacement cost for something old, check the ATO schedule.
Specific examples from VCAT practice
Carpet
- Wear and tear: Flattening in high-traffic areas, minor pile crushing.
- Damage: Burn marks, pet urine stains, tears, deep stains from spills not cleaned promptly.
Walls
- Wear and tear: Small scuff marks near switches and doors, minor yellowing near cooking areas, small nail holes.
- Damage: Large holes, crayon or texta marks, patches not properly painted over.
Kitchen benches and cabinetry
- Wear and tear: Surface scratches, faint heat marks near cooktops, worn cabinet hinges.
- Damage: Deep cuts, burn marks that have discoloured the surface, cracked or broken fittings.
Bathrooms
- Wear and tear: Mild mould in shower grout (if you ventilated properly), minor silicone yellowing, soap marks on tiles.
- Damage: Heavy mould from ventilation failure, cracked tiles, chipped basins, broken tapware.
How to protect yourself at move-out
- Compare your exit condition to your entry condition report. Anything consistent with the entry report is not your issue.
- Photograph everything your rental provider might claim about. Wide shots for context, close-ups for detail.
- Get a professional clean. A $300 end-of-lease clean is worth the money against a disputed $800 cleaning claim.
- Do a walkthrough with the rental provider or agent if possible. Agree on condition in writing or on video.
- Reference the CAV guidelines. Consumer Affairs Victoria's guidance is authoritative and can be cited in any dispute.
Tenantly documents condition as you go.
A video walkthrough at move-in. Another at move-out. The difference, minus fair wear and tear, is exactly what decides your bond. Tenantly captures both, automatically.
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