Excess costs: how the dispute starts 3 ways you can recover repair costs as a landlord Steps you can take to avoid a bond dispute Secure an end of lease clean with Dirt2Tidy What to Expect: Cost of End of Lease Cleaning How the Type of Cleaning Service Impacts Pricing How Cleaning Frequency Impacts Service Costs In a perfect world, landlords and tenants should coexist in harmony.
This, of course, isn’t the case, which is why we need measures to help each side agree on matters and reach some level of parity. Along with rental rates, tenant bonds cause the most friction between landlords and tenants, particularly when cleaning and repair costs exceed a tenant’s bond.
For either side, settling a bond dispute can be painful and stretched. It doesn’t have to be. A proactive approach like thorough tenant screening and exploring landlord insurance policies if you own the property will help keep you prepared and protected.
Let’s look at the steps you can take if you find yourself in this situation. Most of us have been a tenant at least once, so we know the expectations.
When you rent a property, you look after it, and when you move out, you give it one last end of lease clean so that the property is restored to the same condition it was in before the start of the lease, as outlined in your Condition Report and Residential Tenant Agreement.
If you’re now a landlord, you wait for the tenant to move out, then clean and fix what’s needed.
If the costs to clean and fix are more than your tenant’s bond and these higher costs were directly caused by tenant negligence or a failure on their part to fulfil their responsibilities as outlined in the Residential Tenant Agreement, it’s within your rights to request compensation from them to cover the extra costs.
If the tenant refuses, a dispute starts. As a landlord, there are a few different ways you can recover the costs: Whilst renters insurance is designed to provide contents cover for renters, landlord insurance is similar to building insurance, in that it protects your property asset as a landlord.
If you have landlord insurance, recovering costs for repairs resulting from tenant damage is a simple matter of lodging a claim and following the process. As long as your policy covers damage caused by tenants, the claim will be valid.
Lodging a claim with VCAT A common path to resolution comes by lodging a compensation claim through the Victorian Civil and Administrative Tribunal (VCAT). The same rule applies to landlord and tenant: if you lodge the claim, you have to prove it.
For example, a landlord must prove that they’ve lost money or suffered property damage because of a tenant, that the claimed amount is reasonable, and that the damage or loss breached the Residential Tenancies Act 1997.
If former tenants have been summoned to pay for the costs of repairs by VCAT, then chances are the payment will need to be made within an agreed upon timeframe. A failure to meet these payment deadlines may result in debt collectors coming to your door.
Of course, if you’re the tenant involved in the dispute, there’s nothing worse than debt collectors at your front door. Calm and collected is the way to deal with debt collectors. Some disputes happen regardless of virtue shown by either side. Your best defence is taking steps to reduce the chance of a dispute.
Step 1: Get everything in writing Like, everything. This is a professional relationship like any other; the more you have on record, the better. For personal reference, for peace of mind, for in the event that you’re summoned to court, it doesn’t matter.
Disputes built on a foundation of what you said versus what they said often crumble, leaving a mess for both sides. Treat the relationship with the same respect and due diligence you extend to relationships at work. For a landlord or a tenant, your opposite is your key stakeholder.
If you find yourself constantly calling a tenant about overdue rent, keep a ledger of these calls. If you find yourself constantly emailing your landlord about repair requests, create a folder for these emails. Steps like these give you quick access to these messages if you need them.
It’s about honesty, transparency, and properly understanding the relationship between the two parties. The better each side understands, the less likely the relationship will end on a sour note. Step 2: Start the relationship on the right foot The first two things you need in writing are: Most of us know this as the lease.
An accurate rental agreement contains all the information either side needs to commence this relationship. Everything from the amount of rent and bond to the length of agreement to any conditions or rules will be covered in this document.
Practical next steps for Cleaning Repair Costs Exceed Tenant Bonds
- Share the property type, size, condition and access information before requesting a quote.
- Identify priority rooms, surfaces, stains, pets, furniture and any inspection or handover date.
- Separate cleaning from repairs, pest treatment, plumbing, electrical or restoration work.
- Confirm inclusions, exclusions and optional services before the appointment.
