Fair wear and tear is where a lot of Sydney landlords quietly lose money, and not in the way they expect. The reality is that many bond disputes are not lost on the damage itself, but on a landlord trying to claim for something they were never entitled to. Knowing where the line sits between fair wear and tear and genuine damage is one of the most useful things a landlord can understand, because it decides what you can actually recover at the end of a tenancy, and what will simply be knocked back.
What fair wear and tear actually means
Fair wear and tear is the ordinary ageing a property goes through simply from being lived in: floors that lose their shine in the busy spots, paintwork that dulls over the years, the small marks that come with everyday life. It is expected, it is not the tenant’s fault, and you cannot charge them for it. A property is never handed back in the exact condition it was leased in. It is handed back allowing for normal use across the length of the tenancy.
Where wear and tear ends and damage begins
Damage is different. It is something broken, burnt, stained or marked through carelessness or an accident: a cracked basin, a burn in the carpet, a wall marked well beyond a clean. That is the tenant’s responsibility to put right. The line between the two usually comes down to two things: how the property was used, and the condition it was in when the tenant moved in. This is exactly why the entry condition report and its photos matter so much. They are the record everything is measured against.
What a landlord can, and cannot, claim
At the end of a tenancy, a landlord can generally claim from the bond for unpaid rent, for cleaning if the property is left unclean, and for damage beyond fair wear and tear. What you cannot do is use the bond to improve the property, or to replace something old and worn with something brand new. That is where a lot of claims fall over. If a carpet is already near the end of its life, a mark does not entitle you to a brand-new carpet at the tenant’s expense. It is weighed against the age and condition of what was already there. Trying to claim for fair wear and tear, or to come out ahead, is the quickest way to lose a bond dispute.
How to protect yourself as a landlord
The landlords who recover what they are actually owed are the ones with the paperwork to back it up:
- A thorough entry condition report, with clear, dated photos.
- Routine inspections through the tenancy, documented properly.
- A property manager who knows where the line sits and records everything along the way.
Done well, that means that if a claim is ever tested, the evidence is already there. This is a big part of the day-to-day value of good property management across Sydney, it is part of what you are paying for in a management fee, and it is one of the first things worth checking if you are thinking about switching agents.
Frequently asked questions
Why do landlords lose bond disputes in NSW?
Usually by claiming for the wrong thing. The two most common mistakes are trying to charge a tenant for fair wear and tear, and trying to replace something old and worn with something brand new at their expense. A claim kept to genuine damage, unpaid rent or cleaning, and backed by the entry condition report, is far more likely to hold.
Can a landlord claim the bond for worn carpet?
Generally not for fair wear and tear. If the carpet is simply worn from normal use, that is not claimable. Genuine damage, such as a burn or a deep stain, may be, but it is weighed against the age and condition of the carpet when the tenancy began, not replaced brand new at the tenant’s expense.
How does an entry condition report affect a bond claim?
It is often the deciding factor. The report and its dated photos record the property’s condition at the start of the tenancy, so they are what any claim for damage is measured against. Without them, it is much harder to show that something was genuinely damaged rather than simply worn from normal use.
Who decides a bond dispute in NSW?
Ideally the landlord and tenant sort it out directly. If they cannot, it can be referred to NSW Fair Trading, and if it is still unresolved, to the NSW Civil and Administrative Tribunal (NCAT), which can make a binding decision.
Talk to Dylan Henry
Dylan Henry is Business Development Manager and Partner at Lifestyle Property Agency. For a straight, no-obligation conversation about your property — how it is performing and how to get more from it — book a quick call.
This is general information only and does not take into account your particular circumstances, and it is not legal advice. For the rules that apply to your tenancy, check NSW Fair Trading or ask your property manager.