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All items in an investment property have a depreciation value. Watch this video as Kylie Best from Welcome Home Rentals explains the effect that depreciation has when it comes to damaged carpets in your rental property.
The carpet in an investment property will lose value with each year of age.
Typically carpets have a ‘shelf life’ of 10 years. Tenants who damage carpet in a rental property can only be held liable for the remaining shelf life of the carpet at the time that they vacate the property.
If a property investor installs brand new carpet in February of 2016 and these carpets were damaged when the tenants vacated 12 months later, the owner could claim 90% of the total cost of the replacement of the damaged carpet.
Carpet that exceeds 10 years in age no longer has any depreciation left and therefore a claim may not legally be awarded
