What Exactly is “Normal Wear and Tear?”

Key Takeaways:

• Normal wear and tear refers to the natural deterioration of a rental property caused by everyday use and aging over time.
• Landlords should distinguish between normal wear and tenant-caused damage to avoid disputes over security deposits and repair costs.
• Factors like length of tenancy, material lifespan, and level of deterioration help determine whether an issue is wear and tear or actual damage.
• Proper move-in and move-out documentation, including inspections and photos, helps protect both landlords and tenants during the rental process.

As a landlord, you’ll most likely find “normal wear and tear” as one of the phrases in the rental property business that can create a lot of uncertainty.

Normal wear and tear may appear in your lease agreement, property inspection report, or security deposit policy, but there is usually a difference in what a landlord and tenant define as “normal.”

This means that when financial issues arise between landlords and tenants who have different definitions of “normal wear and tear,” it can lead to disagreements about what is acceptable and what is not.

Normal wear and tear refers to the deterioration in a property’s condition from everyday use.

It represents the natural processes of aging of furniture, fixtures, and surfaces due to continuing use, as well as materials that have reached the end of their useful life.

In this article, TJC Real Estate will cover what is meant by “normal wear and tear,” and why this knowledge is valuable to landlords.

Understanding Normal Wear and Tear

Normal wear and tear is determined by the principle that an occupied residence is designed for occupancy.

An unoccupied residence in immaculate condition is not functioning as intended, and while it’s nice to look at, will not earn rent. Therefore, it’s best to minimize vacancies .

There is also an inherent tendency for routine life events (walking across floors, opening doors, preparing food, utilizing bathrooms) to create evidence of use. The evidence is due to usage and is not based on negligence.

When landlords misclassify normal wear and tear as security deposit claims, disputes can arise due to changes in Colorado’s security deposit laws.

On the other hand, if damages are not held accountable to the tenant, a landlord will incur unnecessary repair costs.

Determining Normal Wear and Tear vs. Damage

Although wear and tear and property damage are generally discussed together, they have very different meanings.

Normal wear & tear happens as a result of routine life activities and occurs slowly over time. It is normally:

• Not intentional.
• Not avoidable.
• Not significant.

Examples:

• Paint - slight color change.
• Carpet - fraying of carpet edges after years of use.
• Hardwood floors - worn finish after years of use.
• Bathroom - minor discoloration of grout after many years of use.

These situations will occur no matter how well the tenant takes care of the property because everything has a lifespan. If you're offering a furnished rental be aware of how wear can affect your furniture.

Tenant damages to the property occur due to the abuse, neglect, accident, of the tenant that causes deterioration of the property. Examples of tenant damage may include:

• Broken windows.
• Large holes in the drywall.
• Burn marks on the floor.
• Water damage due to ignoring leaks.
• Missing fixtures or appliances.

Another key difference between wear and tear and damage is that damage should be reported by your tenants.

How Time Affects the Condition of a Property

A critical factor when evaluating wear and tear is the amount of time the property has been occupied.

All things considered, a property that has been lived in for several years will have an age factor to it, versus a property that has only been occupied for a few months.

When evaluating wear and tear, property owners should look at deterioration from the viewpoint of age, material longevity, and the amount of time the tenant actually uses the property.

How Long Each Material is Expected to Last

Every type of material/fixture has a different life expectancy.

Knowing the average life expectancy of the material being used in your property will assist you in determining if the need for repair/maintenance should be a routine task or the responsibility of the tenant.

The average expected life of most materials is as follows:

• Interior paint = 3-5 years.
• Carpet/flooring = 5-10 years.
• Major appliances (washing machines, dryers, refrigerators, etc.) = 10-15+ years.
• Vinyl/laminate flooring = 10-20+ years.

It’s also important to understand that, as with anything, the older the material, the more naturally it will deteriorate over time.

Landlords charging tenants the cost of replacing items that have nearly reached the end of their useful lives may be considered unreasonable and/or unenforceable under the law.

Depreciation should therefore be part of the move-out inspection process.

How Landlords can Navigate It

1. Move-in Documentation

One way to reduce the number of disputes is to keep good records when tenants move into a property. Property owners should maintain accurate written records of the following:

• Written inspection checklists.
• Photographs of every room.
• Notes on pre-existing conditions of damage or wear.

These documents must be made available to tenants for their review and approval before taking possession of the apartment. This helps set the tone for tenant expectations.

Creating a record during move-in establishes a reference point to be used in assessing additional wear and tear that will occur over time.

2. Move-out Evaluation

At the conclusion of a lease, all landlords should compare the current condition of a rental apartment against what was documented during the inspection at the time of the commencement of the tenancy.

In conducting this comparison, the property owner must consider:

• Whether the deterioration occurred as a result of normal wear and tear on the part of the tenant
• Whether the amount of damage that was done exceeds reasonable expectations
• How long the item has been in service and how much usable life remains before replacement

Providing repair records or a “house journal” in an itemized format gives transparency when deductions are required.

Final Thoughts

Normal wear and tear occurs as a part of the natural aging process associated with responsible use of a rental property over time. Normal wear and tear is considered the result of normal use as opposed to neglect or abuse.

It is important to understand the difference between these types of use to ensure that both parties manage their properties fairly and professionally.

Rental properties are created for human use, not preservation. Therefore, the floor will wear, the paint will fade, and the fixtures will wear.

Partnering with a property management company like TJC Real Estate means approaching these issues with fairness documentation, and open communication.

Both parties will be able to navigate tenancy changes more easily and have the opportunity for a positive professional relationship.