The news that tenants are now liable for careless damage to their rental homes was a long time in coming. Owners have had to claim on their insurance to cover damage caused by their tenants for the last few years with no recourse to claim even the excess from the tenant, so the announcement of the Residential Tenancies Amendment Act 2019 was well received.

If a tenant causes careless damage , they will be liable for the cost of the damage up to a maximum of four weeks’ rent or the landlord’s insurance excess, whichever is lower. They are not responsible for normal wear and tear or accidents caused through natural disasters or break ins. Normal wear and tear would be minor scuffs on a painted wall but a hole in the wall would be accidental or careless damage, unless the tenant made the damage deliberately.

The tenant is fully liable for the cost of repair if the damage was intentional or where the act (or failure to act) is an imprisonable offence e.g. arson. It will be up to the tenant to prove the damage was accidental and not intentional.

All tenancy agreements now have to contain information about the owner’s insurance and if requested, the owner must produce a copy of the policy. It is advisable for owners to seek advice from their insurance broker on setting the excess level and also the various forms of cover available e.g. house, contents, landlord. Policies differ from insurer to insurer.