ACT CIVIL & ADMINISTRATIVE TRIBUNAL
MARONEY v BULLARD (Residential Tenancies) [2016] ACAT 33
RT 1139/2015
Catchwords: RESIDENTIAL TENANCIES – rental bond dispute – whether tenant improvements are excused from ‘make good’ at end of lease – whether damage to property was fair wear and tear – difference between same state of cleanliness and same condition, fair wear and tear excepted, at end of lease
Legislation cited: Residential Tenancies Act 1997 sch 1 s 64
Cases cited:Alamdo Holdings Pty Limited v Australian Window Furnishings (NSW) Pty Ltd [2006] NSWCA 224
JSMManagement Pty Ltd v QBE Insurance (Australia) Ltd [2011] VSC 339
Patmore & Anor v Hamilton [2014] VSC 275
Regis Property Company Ltd and Dudley [1959] AC 370
Tabcorp Holdings Ltd v Bowen Investments Pty Ltd (2009) 236 CLR 272
Taylor v Webb [1937] 2 KB 283
Tribunal: President G McCarthy
Date of Orders: 22 April 2016
Date of Reasons for Decision: 22 April 2016
AUSTRALIAN CAPITAL TERRITORY )
CIVIL & ADMINISTRATIVE TRIBUNAL ) RT 1139/2015
BETWEEN:
JACLYN MARONEY
Applicant/Lessor
AND:
ANDREW BULLARD
ANNE BULLARD
Respondents/Tenants
TRIBUNAL: President G McCarthy
DATE: 22 April 2016
ORDER
The Tribunal Orders that:
The tenants pay the lessor compensation in the sum of $768 comprised of $528 by way of compensation for damage to the premises and $240 for cleaning the premises.
The Office of Rental Bonds is directed to release $768 of the bond to the lessor to be credited against the sum payable under order 1.
The Office of Rental Bonds is directed to release the balance of the bond ($832) to the tenants.
………………………………..
President G McCarthy
REASONS FOR DECISION
On 12 October 2013, the applicant lessor, Ms Jaclyn Maroney, leased her property in Gunghalin, ACT to the respondent tenants, Mr and Mrs Andrew and Anne Bullard, for a rent of $400 per week. Mr and Mrs Bullard occupied the property for approximately two years, with a final inspection occurring on 21 October 2015.
Despite cordial dealings between the lessor’s agent and the tenants during the course of tenancy, a dispute arose at its conclusion over the condition of the property and whether the lessor was entitled to deduct money from the bond to cover the costs of repairing damage to the property and cleaning the property to a standard required at the conclusion of the lease under clause 64 of the tenancy agreement. The dispute was not resolved, and so by application to the Tribunal dated 4 February 2016 the lessor claimed compensation of $2,002 to cover:
...the remaining costs in returning the property to an acceptable as at commencement of tenancy state, taking into consideration fair wear and tear.
Ms Sian Day from the property management agency, Property Difference, appeared on behalf of the lessor. Mr Bullard appeared with leave by telephone for himself and on behalf of his wife.
The lessor claims compensation comprised of the following items:
(a)$1,762, being a portion of an invoice in the sum of $2,002 inclusive of GST for internal painting of…
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- Maroney v Bullard [2016] ACAT 33
- Case
- [2016] ACAT 33
- Decision Date
CaseChat Overview and Summary
The primary legal issues before the court were whether the tenants' improvements were exempt from the make-good requirement and if the damage observed was due to fair wear and tear. The court needed to distinguish between the same state of cleanliness and the same condition, fair wear and tear excepted, at the end of the lease. The tenants argued that since the property was in the same state of cleanliness, albeit with some wear and tear, they should be entitled to the full bond. The lessor, on the other hand, argued that the damage observed was beyond fair wear and tear and therefore, the tenants should be liable for compensation.
The court found that the tenants' improvements were not exempt from the make-good requirement and that some of the damage observed was not due to fair wear and tear. The court clarified that the requirement to leave the premises in the same condition, fair wear and tear excepted, means that the property should be in the same condition as when the lease commenced, excluding normal wear and tear. The court held that the tenants were liable for compensation for the damage and for cleaning costs, as the property was not in the same condition as it was at the start of the lease. Accordingly, the court ordered that the tenants pay the lessor $768 and directed the Office of Rental Bonds to release $768 to the lessor and the balance of the bond to the tenants.
Orders
Orders of the court
1. The tenants pay the lessor compensation in the sum of $768 comprised of $528 by way of compensation for damage to the premises and $240 for cleaning the premises.
2. The Office of Rental Bonds is directed to release $768 of the bond to the lessor to be credited against the sum payable under order 1.
3. The Office of Rental Bonds is directed to release the balance of the bond ($832) to the tenants.
Background
Background to the litigation
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Evidence
Evidence Before The Court
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Decision
Reasons for decision
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Ratio Decidendi
Legal Principle Established
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