Reasonable Wear and Tear

Virtually all leases provide for tenants to maintain and repair premises to a certain standard during the term and return them in certain condition at the end of the term. That standard is often qualified by: ”reasonable wear and tear excepted”, at the request of the tenant.

An October 2011 decision in Ontario, Canada dealt with a lease dispute regarding the end of term condition of the premises. The landlord withheld part of the security deposit it held to address premises damage it viewed as the tenant’s responsibility and the tenant sued for its return. The Court reviewed the law relating to “reasonable wear and tear” and the lease clauses dealing with the tenant’s repair obligations and the security deposit. The tenant was successful and the landlord was required to return the security deposit monies.

Some important points for landlords, tenants and property managers arose from this decision and must be kept in mind when drafting, negotiating and enforcing leases:

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