Tenant accident - like for like

Seven years ago tenants in our house in Qld broke the top of the ceramic cooktop - according to then PM tenants dropped something heavy on it. So, PM said tenants would pay for half of the replacement cost for a new cooktop. PM got quote for a new one - around $900, and charged tenants for half of it.

 

Standard requirement in commercial and retail leases is that the tenant effects plate glass insurance. The tenant doesn't own the existing windows or shopfront.

 

Could you propose to replace with a reasonable brand like Bosch when you leave, so that they have a brand new cooktop for re-letting and also a brand new warranty for future. As a landlord I would be happy with that as an option.

 

Thanks all for your comments. Does anyone know if there are any actual laws/legislation etc. about this sort of thing or is it purely a negotiation with the owner? i.e. they want a brand new cooker top - I'm not paying that. I'll pay the equivalent price of a 5year old used cook top etc. or Owner agrees to claim on insurance and I pay excess.

From the discussion XCAT would side with me (if it went that far) that I am not paying to replace a brand new cooktop as it is used and old.

 

Hi Mel. How much would you expect a new cook top for? How would you agree on a reasonable cost of a cook top? I crack a 5year old, worn cook top that is still functioning and safe to use.

 

Any landlord would be happy with that but do you think it's fair? @$uperman states the cooktop still works and the damage really is quite minor looking at the photos. It is accidental damage on an item which is probably already partially or fully depreciated.

 

@$uperman I believe there is but I don't know the specifics. Pretty sure the value of the appliance decreases with age and as it's still working would come into play.
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To all the people saying just leave it. Would you be happy with this in your properties? I wouldn't!
Not only is it unsightly (in my opinion it could make the difference between taking this property or choosing another one, as a prospective tenant), but it's also dangerous. Fixing isn't going to work that well either. You can't fix glass/ceramic, cracks will likely propagate, especially in the case where it's expanding and contracting due to heat.

As a landlord, I would be happy with the replacement with a cheaper brand new cooktop, a second hand one in good condition of the same or similar brand/make or would entertain going halves. But leaving it or fixing it wouldn't be an option.

 

I know not WA, but if you look hard or long enough, something similar will pop up.

$400. Then another $200 to have it installed and the other one removed brings your total cost to $600. Sounds like a reasonable solution to me.

70Cm Smeg Induction Hot Plate | Cooktops & Rangehoods | Gumtree Australia Brisbane South West - Seventeen Mile Rocks | 1248718289

 

There's no clearcut solution here as Tom mentioned. It comes down to an outcome that everyone is satisfied with, and I was making a suggestion on an option.

It would probably cost you $600 on a new cooktop and installation. But a replacement smeg ceremic top or insurance excess would likely be similar.

A cracked cooktop may be functioning, but its like a cracked window, its clearly damaged despite working. Its just one of those unfortunate expensive accidents.

 

In all other states the court that handles it is SomethingCAT. So in NSW it's NCAT, in Vic its VCAT and QLD it's QCAT. WA doesn't follow this rule and ours is just called SAT (State Administrative Tribunal) and that is where tenant/landlord disputes are heard.[/QUOTE]
I thought it was the small claims division of the Magistrates Court for tenant/landlord disputes, rather than the SAT.

 

I thought it was the small claims division of the Magistrates Court for tenant/landlord disputes, rather than the SAT.[/QUOTE]

Shoot you're probably right

 

Hello again. Can anyone explain to me the calculation for depreciation of a rental appliance in Australia? Is it diminishing value or prime cost? and how long is the period considered for depreciation? I'm trying to figure out the value of the current unit. I would say the average price online for a new Smeg is $1600. The property is 7 years old in July 2020 so I would assume so is the cooktop.

 

According to ATO Rental properties 2019 it's 12 years. Owners elect whether they claim DV or PC

The issue might be trying to work out how much it cost in 2007 as it may have been cheaper than today.

 

Awesome help thanks. I have done both the calculations based on an RRP cost of $1590 in 2016. It equals DV of $443.74 and PC of $488.11 after 7 years. How do you calculate the depreciation if the owner bought the property 3 years ago and the cooktop has been installed for 7 years?

Surely all this information is available from the owners tax return? I should be able to find out what the owner states it is and I will replace with a cooker of according value?

 

I really don't think you can use that argument!
Otherwise if you accidentally demolish a 40 year old house, then you can just walk away whistling, saying it was fully depreciated and therefore had zero residual value.

 

I am not saying that, Originally the unit cost $1600 (7 years ago), I am happy to pay for new unit at the same value of a 7 year, depreciated unit.

 

That's exactly the argument that your making. If your accident had happened to a cooktop that was 12 years, you'd replace it with a $0 new unit?

 

Ok I understand. What would you suggest is a fair outcome? I have been reading case law from NSW on this very matter where Magistrate has sided with Tenant based on depreciation. I am trying to find the best solution to offer to the owner without having to go to bond dispute.

 

Have a look through the thread, I suggested three options the other day.
Plus if you want to keep living there, it's definitely best to solve things amicably.