“What happens if the cost of repairs to my investment property is higher than the bond the tenant has paid?” (Owner, WA)
When repairs cost more than the rental bond
We asked Helene Parker, Property Manager with Harcourts Integrity for her advice:
“When you vacate the property, the real estate agent will be conducting a final inspection report,” Helene said.
“If there are repairs/damages to be done and that it is more than the bond the tenant must pay the remaining.”
Helene said that if the tenants do not pay the amount over the bond you can go through your insurance company or arrange debt collectors to collect the money from the tenants.
Rental property maintenance and repairs
Any obvious maintenance and repair issues should be noted in the property condition report – this document is required to be completed by the owner when a tenant moves into and out of the property.
Your tenant is expected to keep the property reasonably clean and is also expected to hand it back in a similar condition to how they found it at the beginning of their lease (taking into account normal use or fair wear and tear).
Repairs are your responsibility as the landlord, but if your tenant or resident caused the damage, you can ask them to arrange or pay for repairs.
Tenants must continue paying the rent even while they’re waiting for repairs to be done.
Take note of any phone calls reporting the need for repairs and, where possible, communicate information about repairs in writing.
If you have a Reader Question you’d like to see answered, we’d love to hear from you! Let us know.
You might also like:
- How are management fees deducted for my property?
- What do real estate agent fees cover?
- Steps to take when your tenant gives notice to vacate
- Do landlords have to charge a rental bond?