What to Do If Tenant Damages Property in Queenstown

Damage to a rental property can happen unexpectedly. In Queenstown, with its busy tourism sector, winter conditions, and seasonal tenancies, rental homes face unique pressures. This raises the important question: what to do if tenant damages property in Queenstown? 

This article explains what the law says, the steps both landlords and tenants should take, and real-life examples of how property damage cases are resolved.

Key Takeaways:

• Tenants are not responsible for fair wear and tear or damage from natural events.

• Tenants may be liable for intentional or careless damage by themselves or their guests.

• Liability for careless damage is at four weeks’ rent or the landlord’s insurance excess, whichever is lower.

• Tenants must notify landlords promptly and document the damage.

• Landlords must prove damage was caused by the tenant and was beyond fair wear and tear.

• Liability disputes can be taken to the Tenancy Tribunal if matters escalate.

Determining tenant liability

Under New Zealand’s Residential Tenancies Act 1986, the general rule is that tenants are not automatically liable for damage to a rental. They are not required to pay for destruction or damage, nor to carry out repairs, unless certain conditions apply. Moreover, fair wear and tear (e.g., worn carpet, faded paint) and damage from burglaries and natural events are not their responsibility.

When is a tenant liable?

1. Intentional Damage: The tenants or their guests deliberately damage the property

2. Criminal Acts: The damage results from an imprisonable offence

3. Careless Damage: The tenant or their guest causes damage through carelessness (e.g., leaving a candle burning, breaking a window accidentally).

For careless damage, liability is capped at four weeks’ rent or the landlord’s insurance excess, whichever is lower. In some cases, tenants may repair the damage themselves if agreed with landlord consent and if repairs meet proper standards.

How much should the tenant pay?

1. The law caps up to 4 weeks’ rent or the landlord’s insurance excess as payment, whichever is lower for careless damage.

2. Sometimes, instead of paying cash, tenants are allowed to carry out the repairs themselves up to the value of their liability. 

Knowing what to do if tenant damages property during a tenancy helps both landlords and tenants act quickly and avoid unnecessary disputes.

What tenants & landlords should do?

In the case of property damage, both tenants and landlords play an important role to ensure a smooth and fair process of taking accountability and covering repairs. 

Tenants must…

• Notify landlord promptly about damages in need of repair, regardless of liability

• Document the situation with photos and details (dates, cause, parties involved)

• If landlords find tenants responsible, the burden of proof must be transferred to them. They must be able to prove they are not guilty for whatever damages were figured and incurred.

Landlords must…

• Inspect the damage and gather sufficient documentation (photos, quotes)

• Determine if the damage is normal wear and tear

• Ensure beforehand that insurance policies and excess are disclosed to the tenant (as RTA requires)

• To identify if the damage is the tenants’ responsibility, landlords must first show that the damage occurred during the tenancy and is more than fair wear and tear, before applying to the Tenancy Tribunal.

If both parties cannot agree on whether damage is beyond fair wear and tear and who pays, either of them can apply to the Tenancy Tribunal. Disputes like these often surface at the end of a lease, when end of tenancy cleaning and final inspections bring outstanding issues to light. Regular routine inspections in rentals help landlords identify damage early and ensure tenants are meeting their responsibilities.

Common examples of property damage

In Queenstown, rental properties face both normal wear and tear and situations that cross into tenant damage. Some of the most common examples include:

• Broken windows and doors, from forced entry, slamming, or rough use

• Stains and burns on carpets caused by spills, cigarettes, or dropped items

• Wall damage, such as holes from mounting TVs or punching walls.

• Water damage from overflowing baths, neglected leaks, or unreported plumbing issues.

• Kitchen damage, including cracked benchtops, broken tiles, or scorched cooktops.

• Outdoor areas, damaged fencing, oil spills on driveways, or misuse of garden areas.

Unlike fair wear and tear (e.g., faded paint, naturally worn carpet), these issues usually involve carelessness, neglect, or intentional actions, making tenants potentially liable. Nevertheless, conditions vary and depend on their specific situation.

What Queenstown property owners & renters need to know

In Queenstown, as across New Zealand, tenants are not responsible for fair wear and tear or for damage caused by natural events or burglaries. They are liable for intentional damage and for careless damage by themselves or their guests, up to a cap of four weeks’ rent or the landlord’s insurance excess, whichever is lower. If the damage is intentional, tenants may be ordered to cover the full repair or replacement cost.

Landlords must prove that damage occurred during the tenancy and that it is more than fair wear and tear before they can claim costs. Disputes that cannot be resolved can be taken to the Tenancy Tribunal. Routine inspections, clear documentation, and open communication reduce the risk of disputes.

Frequently asked questions

Does “fair wear and tear” cover carpet discoloration over ski season?

No. Normal usage leading to gradual wear is fair wear and tear. But heavy staining from snow, salt, or neglect may be more than that, especially if not cleaned or managed. It depends on evidence.

Are there local Queenstown cases that differ from national precedent?

So far, national law via the Residential Tenancies Act and Tribunal cases is applied in Queenstown as elsewhere. No well-known Queenstown case has changed the principles, but local climate and usage may affect what constitutes “careless” damage.

How much could a tenant owe if the damage is intentional?

If damage is intentional, the tenant can be ordered to pay the full repair or replacement cost. There’s no cap like the 4-weeks’ rent limit that applies for careless damage in those cases.