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Carpet damage depreciated 100% - claim wiped out?!

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  • Carpet damage depreciated 100% - claim wiped out?!

    When awarding carpet damage for carpet needing to be replaced - depreciation, according to the age of the carpet is taken into account.

    First & foremost though any depreciation should be relative to the condition of the carpet stated in the tenants incoming inspection report .

    This is just a scenario: Lets suppose a carpet is 10 years old - Its condition still excellent as stated and signed in the incoming property inspection report.

    Tenants have been in the property 2 years but stained the carpet beyond repair.

    Only option is replacement with new carpet.

    Would an adjudicator award $0 due to the age of the carpet - 10 years of depreciation at current IRD rates would leave it a nil value asset ?
    The IRD schedule for carpet depreciation is around 20% per annum - in theory no residual value for tax purposes is left after 5 years.

    Are there any guidelines given to TT that when adjusting claims for depreciation any offset should first be relative to the actual condition at the start of a tenancy?

    This should also apply to other chattels like curtains etc
    Last edited by mrsaneperson; 04-04-2016, 12:20 AM.

  • #2
    Does anyone have experience where the carpet claim for damages became obsolete after its value was depreciated even though its condition at start of tenancy was excellent?
    Must be quite a few unfair situations arising where this would happen.
    Last edited by mrsaneperson; 04-04-2016, 12:51 AM.

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    • #3
      It has'nt happened to me ,but I was told by the tenancy advice that you have no claim due to the IRD depreciation schedule --I put a few different scenarios to him(still immaculate after 10 years)--He just got aggravated and didnt want to know.


      Having said that --I think most tenants would pay,at least something towards costs as they dont know this ridiculous clause---Whatsa the point of doing an inspection on a place with over 10yr old carpets and paintwork ,no matter how tidy.

      PS-you can bet the tenancy adviser doesnt replace his carpets every 5 yrs
      Last edited by skid; 05-04-2016, 12:40 PM.

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      • #4
        Originally posted by skid View Post
        It has'nt happened to me ,but I was told by the tenancy advice that you have no claim due to the IRD depreciation schedule --I put a few different scenarios to him(still immaculate after 10 years)--He just got aggravated and didnt want to know.
        You were making him think too hard about the implications of the fixed stance they have.
        Ask them what their carpet is like after 8-10 years - assuming they look after their own place.

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        • #5
          I read something recently about a similar case and the LL got something in recognition of the fact that it was having to be replaced far sooner than it otherwise would have needed to be.
          My blog. From personal experience.
          http://statehousinginnz.wordpress.com/

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          • #6
            I'm thinking there's no real hard & fast guideline on this and it boils down to what the adjudicator thinks is fair & reasonable.

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