From Property Talk Community Wiki

Carpet Problems

17th September 2007. Reproduced with permission from Scotney Williams

Damage to carpets is a common occurrence in residential tenancies. Landlords should be aware that there is a protocol to be followed when dealing with such damage.

The more money at stake, the closer the protocol should be followed

• The first step is to have the carpet cleaned to try and remove any stains. The tenant will be liable for the cost of cleaning.
• The second step is to patch the carpet if that is possible, from carpet left behind or from a wardrobe. The tenant will be liable for the cost of patching.
• The third step - replacement. After going through both of the above only contemplate replacement if there is no other option.
  
  

Remember that the need to replace exists only if it is necessary to maintain the standard of the tenancy. If staining or marks are not too bad and would not affect re-rentability, then do not replace.

To justify replacement you must have an independent person (not the new carpet supplier) advise you in writing that the carpet has been so badly damaged that it must be replaced. Insurance assessors or an experienced, independent property manager would do.

The next step is to contact the tenant and advise them of what you are going to do and give them a couple of days to gather their own evidence, photos, eye witnesses, their experts, samples, etc., before the carpet problem is dealt with and the 'evidence' thereby removed.

Contact the tenant and ask them to make you an offer or suggest an alternative to going to the Tenancy Tribunal. They may be prepared to pay you money as compensation? Or supply and lay an acceptable carpet at their expense? This could be a second hand carpet.

If those options do not work, then apply to Tenancy Services for an order for compensation.

When you apply for compensation, you will only get the depreciated cost of the carpet. As a general rule, carpet has a life of seven years. If the carpet is older than that, you may not receive any monetary compensation at all.

E.g. The carpet is three and half years old. You could expect to get an order for compensation for about half the actual cost of replacement. Take this guideline into account before you apply to Tenancy Services. Further, using this guideline, your tenants' offer may not be so bad after all!

Finally, landlords should have quality insurance as a back up, if the worst should happen.

--Perry 22:01, 17 September 2007 (NZST)