Legal Definitions - fair wear and tear

Fair wear and tear refers to the natural and unavoidable deterioration of property or an item that occurs through ordinary, reasonable use over time. It accounts for the gradual decline in condition that is expected from daily living or normal operation, rather than damage resulting from negligence, abuse, or accidental events. Essentially, it's the expected aging and minor imperfections that naturally arise from something being used as intended.

This concept is particularly important in rental agreements, leases, and contracts, as it distinguishes between damage that a user is responsible for repairing and the normal depreciation that is accepted as part of the item's lifespan.

• Example 1: Residential Apartment Rental

  Imagine a tenant moves out of an apartment after living there for three years. During the final inspection, the landlord notes that the paint on the walls has slightly faded in areas exposed to sunlight, there are minor scuffs on the hardwood floor in high-traffic pathways, and a few cabinet hinges are slightly looser than when the tenant moved in. These observations would typically be considered fair wear and tear because they are the natural result of someone living in and using the apartment normally over a period of time. They are not indicative of neglect or intentional damage, such as a large hole punched in a wall or a broken window, which would fall outside the scope of fair wear and tear.

• Example 2: Leased Company Vehicle

  A small business leases a company car for two years for its sales team. When the lease term ends, the vehicle is returned. The inspection reveals a few small stone chips on the hood, minor scratches around the door handles from regular use, and the tires show expected tread wear. These are generally accepted as fair wear and tear because they are common occurrences from daily driving and normal operation. However, if the car had a large dent from an accident, a cracked windshield, or significant rips in the upholstery, these would likely be considered damage beyond fair wear and tear, for which the lessee would be responsible.

• Example 3: Rented Event Equipment

  An event company rents a set of high-quality speakers for a series of outdoor concerts over a summer season. Upon their return, the speakers have some minor cosmetic scuffs on their casings from being moved and set up repeatedly, and the power cables show slight signs of flexing near the connectors. These small imperfections are considered fair wear and tear, as they are the natural outcome of the equipment being used for its intended purpose in a demanding environment. In contrast, if a speaker grille were broken, a control knob snapped off, or an internal component failed due to mishandling, these would constitute damage beyond fair wear and tear.