What constitutes "fair wear and tear" at a rental property?

Generally speaking, at the end of a tenancy, the Renter is responsible for leaving the premises and its chattels as close to the same condition in which they were found as possible.

It is expected that over time a property will have “Fair wear and tear”.

In Australia, Renters are not responsible for paying for fair wear and tear to a property. It’s only when the Renter has been irresponsible, negligent or has intentionally caused damage to premises that they will be liable to pay for repairs.

‘Fair’ relates to the cause of the damage. For damage to be reasonable, it must have occurred in the course of fair use of the property.

It’s in the best interests of all parties (Renters, Residential Rental Providers, and their managing agency), to ensure that extensive Condition Reports are completed before the tenancy and signed.

These reports outline the condition of the property in detail and may also include photos and/or video of any items mentioned within the report.

Under the updated Victorian legislation, renters have 5 business days after moving in to inspect, complete, sign, and return their condition report to the rental provider or managing agent.

With care, consideration and proper documentation, you can avoid crossing the line from fair wear and tear to damage and facing a potential bond dispute.

Condition Reports help to avoid and settle any potential disputes over fair wear and tear at the end of a tenancy.

Understanding ‘fair wear and tear’

‘Fair wear and tear’ is the ordinary deterioration of property from everyday use. Such as wear that happens during normal use; for example, carpet in a hallway would (generally) be more worn than carpet in less used areas of the house. Although tenancy laws vary across each state, the real estate industry broadly accepts this definition of ‘fair wear and tear’.

Examples of ‘fair wear and tear’:

• Carpet deterioration in high traffic areas would be reasonable. On the other hand, it would be hard to argue that large motor oil stains in the bedroom are the product of fair use.
• Faded curtains or frayed cords from natural causes.
• Minor scuff mark.
• Sun fading and small stains.
• Scuffed wooden floors.
• Faded, chipped or cracked paint.
• Worn kitchen benchtop.
• Door handles or hinges that are loose from use.
• Cracks in the walls from movement.
• Watermarks on flooring resulting from a roof leak, or bad plumbing.
• Worn paint near light switches.
  

Examples that would be considered ‘Damage’ and not ‘fair wear and tear’.

• Curtains or blinds that are missing, or torn by the Renter or their pets.
• Stains or burn marks on the carpet.
• Extensively broken tiles or torn carpet.
• Badly scratched or gouged wooden floors.
• An unapproved or poor-quality paint job or wallpaper.
• Burns or cuts in benchtops.
• Broken panes in windows.
• Holes in walls.
• Water stain on carpet or flooring, as a result of indoor pot plants or overflowing bath.
• Paint damage from removing sticky tape, Blu-Tack, nails or wall fixtures.

Barry Plant Property Managers will conduct periodic property inspections to ensure rental properties are being maintained at a good standard and that any issues, either from the Residential Rental Provider or Renter, can be addressed.

How VCAT Calculates Damage (Depreciation & Useful Life)

It’s important to note that when damage exceeds fair wear and tear, Residential Rental Providers are rarely awarded the full replacement cost of a brand-new item.

VCAT applies the concept of depreciation based on the item’s age and expected useful lifespan (often aligning with Australian Taxation Office guidelines):

• 10-Year Carpet Example: Carpet is generally considered to have a 10-year lifespan. If a renter severely burns a 7-year-old carpet, the rental provider can only claim the remaining 30% of the carpet’s depreciated value—not the cost of a brand-new replacement.
• Paint Life: Interior paint typically carries a depreciated lifespan of 5 to 10 years depending on quality.

Factoring in an item's age helps both parties reach fair agreements during bond negotiations without requiring formal VCAT hearings.

Minimum Rental Standards & Unaddressed Maintenance

Under Victorian legislation, Residential Rental Providers must ensure their property meets strict Minimum Rental Standards throughout the lease.

• Structural & Ventilation Issues: Deterioration caused by structural defects or lack of adequate ventilation (such as mould growth stemming from poor building design rather than renter habits) remains the responsibility of the rental provider.
• Unresolved Urgent Repairs: If a renter promptly reports a leak or plumbing fault and slow repairs lead to subsequent damage (e.g., swollen floorboards or stained carpet from a dripping pipe), this cannot be claimed against the renter’s bond.
  
  

Tip for Residential Rental Providers:

Having the right Landlords’ Insurance cover will give peace-of-mind, as you will be protected against any potential major damage or malicious damage that goes beyond the boundaries of fair wear and tear.

Disclaimer: This article contains general information about residential tenancies and property management practices in Victoria. It is published for informational purposes only and does not constitute legal, financial, or professional real estate advice. Tenancy legislation, including the Residential Tenancies Act 1997 (Vic), Minimum Rental Standards, and VCAT guidelines, is subject to ongoing updates and regulatory changes. Barry Plant makes no representation or warranty as to the ongoing accuracy, completeness, or currency of the information provided once published. Readers should not act or refrain from acting on the basis of any content herein without first verifying current state regulations through Consumer Affairs Victoria or consulting a qualified legal professional or licensed property manager.