“What happens if the cost of repairs to my investment property is higher than the bond the tenant has paid?” (Owner, WA)
We asked Helene Parker, Property Manager at Perth Realty Group, 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
The property condition report should note any obvious maintenance and repair issues. This document must 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 everyday use or fair wear and tear).
Repairs are your responsibility as the landlord, but if your tenant or resident caused the damage, you could 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.
Helene Parker is a Property Manager with Perth Realty Group in Maylands, Western Australia. Perth Realty Group was founded in 2005 and is privately held. The company offers a full range of real estate services but specialises in property management services and residential and commercial property sales. Their product Perth Realty Connect provides free relocation services to make moving as effortless as possible.