Policy: Furnished Property Rentals

Owner & Tenant/Guest Mutual Understanding of Responsibilities & Expectations.

Company Position:

At Property Providers, our vision is to “Help People Live Better” by being Sydney’s most flexible residential rental company. This vision is built on our core values: Passion, Performance, and Partnership. We believe that all meaningful long-term partnerships are founded on mutual investment, respect, risk, and reward. Our goal is to consistently deliver on these values to build strong, lasting relationships with all our stakeholders—long-term tenants, short-term guests, employees, suppliers, partners, and, most importantly, our clients: property owners, landlords, and investors.

Document Purpose:

The purpose of this policy is to provide clear guidance on the mutual responsibilities, expectations and risks associated relevant to renting a fully furnished/equipped property.

Objectives:

To establish clear expectations regarding the care, use, and maintenance of provided household contents: furnishings, fittings, appliances and amenities.
To differentiate between normal wear and tear (depreciation) and damage caused by misuse or negligence.
To support and protect all stakeholders by mitigating risks and reducing potential conflicts at the end of a tenancy or guest stay.
To promote fairness, accountability, and transparency between owners, tenants, guests, and our agency.

Importantly, this policy does not replace the need for owners/landlords to invest in adequate insurance to protect the home and its contents, including specialist insurance appropriate for the rental agreement.

Background:

Managing, renting and owning a fully furnished/equipped property presents unique challenges and requires a higher level of oversight compared to traditional unfurnished rentals. The amount of work equates to 3 to 4 times that of a normal long-term lease. With more items to account for—furnishings, appliances, and other amenities—there is an increased need for clear policies that protect the interests of all parties involved. Many of these items represent not only a financial investment but also a deeper emotional bond resulting from the the owner’s time, effort, and careful curation of a “home”.

This policy establishes a clear framework for expectations, responsibilities, and duty of care regarding the use and maintenance of furnished properties. It clarifies responsibilities and aims to reduce misunderstandings at the conclusion of tenancies / guest stays.

Our goal is to empower all parties involved in the transaction/relationship in such a way everyone can feel confident about renting furnished properties while ensuring the longevity and integrity. With this policy in place, all parties can operate with mutual understanding and clear expectations, fostering a positive, professional and respectful rental experience.

Definitions:

Understanding the distinction between wear and tear vs. damage or negligence is crucial in fairly assessing liability and reducing disputes at the end of a lease or guest stay. Examples are provided for context only and are not intended to limit this policy. For the avoidance of doubt, this policy uses these definitions in bold and provides examples for general guidance.

Contents: Refers to all items left at a property that are owned by the landlord/owner. It includes furniture, fittings, appliances, services (such as WiFi and Foxtel), plants, amenities and other items in the property for use or enjoyment. It does not include any item owned by the tenant/guest.
Duty Of Care: Refers to the social (and sometimes legal) responsibility/obligation to take reasonable care in such a way to avoid causing harm to others or their property. It really is is about respect. A rule of thumb is to “Take care of other people’s things in the same way as if it you would if you or it was yours or a close family or friends’ property/belongings”. It involves, “taking all reasonable steps” to do (or not to do) something that could cause foreseeable harm. A breach of Duty of Care is generally determined when a reasonable person in the same situation would have acted differently to prevent or reduce foreseeable risk. Tenants/guests should reasonably foresee damage resulting from not acting over an extended period of continual wear and tear. With longer term leases and stays that is something that tenants should be attentive to and demonstrate Duty of Care by being transparent about things during the time when they are occupying the property (not just flagging it at the end.)
Wear and Tear: Refers to the natural and gradual deterioration of a property, its furnishings, and amenities that occurs over time due to normal use over an extended period. This is expected and unavoidable, even when tenants or guests take reasonable care of the property. It is:
- Gradual & Predictable – Results from regular, everyday use rather than a single incident.
- Unintentional – Occurs despite proper care and responsible use.
- Expected Aging – Items lose their original condition due to time, exposure, and use.
  Examples include but are not limited to:
  - Fading or slight fraying, stretching or loosening of fabric, upholstery and carpets.
  - Minor scuff marks, minor scratches or dulling of surfaces, floors, walls or furniture.
  - Appliance wear from regular operation (e.g., slight discoloration on stovetops).
  - Cracking or chipping or disposal/loss or breakage of items during ordinary use or which may naturally degrade over time (e.g., candles, kitchenware).
  - General loosening of door hinges, cabinet handles, or light fixtures over time.
Damage is not considered wear and tear and is a result of intentional acts, negligence or lack of sufficient duty of care that requires repairs or replacement. Some examples include but are not limited to:
- Stains, burns, or tears on carpets, upholstery, or countertops.
- Broken furniture due to misuse (e.g., excessive force, jumping on beds).
- Excessive or deep scratches, holes, or gouges in benchtops, walls, floors or household contents.
- Missing or broken appliances, decor, or furnishings due to negligence or removal.
- Water damage, mould, or excessive dirt buildup from lack of proper or regular cleaning and care.
Depreciation is the overall aging and reduction in value of an item or property feature. Understanding depreciation helps property owners plan for maintenance, replacements, and long-term investment protection. Examples include but are not limited to
- Furniture: Gradual sagging of sofas, fading of fabric, or minor surface scratches.
- Amenities: Loss of individual items, or use/disposal of items, such as broken or missing cutlery, crockery or glassware, candles, food and beverages left for use over time.
- Appliances: Reduced efficiency in dishwashers, washing machines, or refrigerators due to long-term use.
- Flooring: Carpet fibres thinning out or hardwood floors losing their shine over time.
- Technology: TVs, Wi-Fi routers, or other electronics becoming outdated or slower.
- Paint & Walls: Slight discoloration or fading due to sunlight exposure and time.

Agency Policy:

1. Tenants/Guests Responsibility

1.1. Duty of Care

Tenants and guests have a duty of care to use and respect the property and its contents. They must take reasonable care throughout their stay and leave the property and contents in the same condition as it was provided on their arrival. While natural wear and tear is inevitable, it is important that tenant/guests take reasonable and respectable steps to avoid causing preventable damage, deterioration, loss, or irreparable harm.

Tenants/guests understand that any furniture/soft furnishings or other items moved or stored within the property to better suit their needs must be moved back to the original place upon their vacate and need to be careful to avoid damage when shifting items or leaving items in areas where damage may occur (e.g outside, in garages or storage spaces). If items are to be removed or stored offsite or outside the property, it must first be agreed by all parties, in writing.

It is the tenant/guest’s responsibly to vacate the property leaving it in a reasonable state of cleanliness. For tenants, this means ensuring to property and contents are regularly deep cleaned during the tenancy and a deep/exit clean conducted on vacate. This is not just surface level or at birds’ eye but rather ensuring that the property is truly cleaned (i.e. in cupboards, under beds, in closets, under/in sofas for example.)

1.2. Condition Reporting & Review

Tenants/guests must carefully review the condition of the property and its contents on arrival and identify any issues in writing (preferably with photos) with the quality or condition with the agency. Before vacating the property, users must take care to proactively identify any issues or damage with the agency.

Missing or damaged items that are not considered fair wear and tear will be the responsibility of the tenant/guest to pay for repair, replacement, making good, cleaning or any other remedy as required.

On vacating the property, or as identified in any periodic inspection, in the event items appear to be excessively worn due to damage, misuse, overuse, negligence or neglect caused during the term of the rental, then tenants/guests are responsible for costs to repair or replace at a similar standard and/or provide compensation to the owner to remedy. Importantly, if the agency or owner is required to get involved their time to manage/rectify this will need to be considered (and will be charged at the agency’s rate card or in some cases involve a project management fee).

1.3. Pets

Where pets are approved in the property, the tenant/guest agrees that all upholstered furniture and carpets will be professionally cleaned on vacate. Additionally, any items that suffer damage due to chewing, scratching, or other related events attributed to the pet/s will be required to be repaired, replaced or have require a fair and reasonable financial compensation agreement.

2. Owners/Landlord’s Responsibility

2.1. Contents & Maintenance

Owners agree to maintain their properties in a suitable, executive condition. This includes providing adequately furnished spaces, contents for everyday usage and addressing any maintenance that arises, outside of normal wear and tear. Owners also accept that the property will require preparation for marketing purposes, which includes linen and cleaning costs which will be required to be paid upfront.

2.2. Acceptance of Risk

Owners agree to carefully review the contents of a property and remove items of high value, where there is a strong emotional bond, or difficulty to replace or repair. Owners should understand the cost/benefit of moving and storing contents, and consideration of providing a furnished property is duly offset by the rent. Anything left in the property for use is left at the owner’s risk and is not the tenants/guests or agency’s responsibility to limit ordinary usage or replace if used or disposed of through usual wear and tear.

It is the owner’s responsibility to replace or repair items impacted by fair wear and tear and depreciation if over 75% deterioration. Owners do need to understand and accept if items are worn or reasonably impacted by fair wear and tear, depreciation, loss or disposed of due to reasonable or accidental usage. Reasonably speaking, this is not the sole responsibility of the tenant/guest or the agency.

Owners also accept that users may move or relocate items within the property, and it is not the agency, guests’ or tenants’ responsibility to ensure items are returned exactly as shown in the condition report / photographs, just that they are contained within the property on vacate. In being upfront and frank, it needs to be understood that the team at Property Providers are not removalists, and we are not equipped (or insured) to take on responsibility of physically demanding activities/duties.

Where it is agreed in writing between the parties to remove items from the property at the start of a tenancy, both parties accept that the landlord will remove and store these items at their expenses. The agency or tenant is not responsible for removal, relocation or storage costs. If appropriate a Project Management/Labor charges may apply as this is outside the scope of the general acceptance of Account/Property Management.

Accusations of theft or pilferage without clear evidence or fairness is not acceptable. If an item is misplaced or used, it should be addressed in a respectful and considerate manner, recognising that items can sometimes be unintentionally taken or lost or disposed of through normal wear and tear.

2.3. Depreciation

Owners also agree that furnishings and appliances will depreciate at a rate of 25% per year, (as defined by tax depreciation experts BMT or as otherwise agreed between the parties in writing). This depreciation reflects the reduction in real value due to normal use. Owners should discuss the implications of depreciation with their tax accountant and their insurance provider. This is a calculation that will be applied if any dispute arises relevant to valuation or damage.

3. Mechanics

3.1. Documenting Contents & Condition

For all tenancies, the agency will provide a photographic, visual inventory of the property and its contents as part of the ingoing and outgoing condition report. For short term rentals, the agency will conduct regular inspections of the property to assess and document the property’s and content’s condition.

The agency (or our inspection partners and affiliates) are not qualified to assess the structural aspects of the property and the inspection does not include the moving of furniture, lifting of floor coverings, inspecting the interiors of roof spaces, under flooring, inside of cupboards or assessing the condition or number of individual items (for example, individual glassware or cutlery).

For tenancies, the owner may provide an itemised inventory, at their time/cost, which will be supplied with the ingoing condition report and reconciled in the outgoing condition report. This is required at least 5 working days prior to the commencement of a tenancy. The agency can support owners / landlords with preparing inventories using a standard template, charged using the agency labour rates.

Unless an inventory is provided, the agency is not responsible for reconciling contents unless visible damage or maintenance is reported or apparent.

3.2. Inclusions

WIFI/Internet: Generally, it is expected on furnished properties that WIFI and Cable TV/Foxtel will remain in the owner’s name/account. There are several very good reasons for this but notably the time and effort required to hook it up. This may or may not be included in the rent or it may be charged to the guest/tenant at cost depending on each individual agreement/preference.

Utilities (Gas & Electricity): For any occupancy over 6 months the gas and electricity will need to be established in the tenant’s name/account. Gas/Electricity accounts can be easily, quickly and painlessly be organised with a phone call or by simply using our Direct Connect Service.

Linens: All properties are to be dressed in the Agency’s professionally laundered linen (sheets and towels). For inspection purposes this will be at the owner’s cost (paid upfront). Linen will remain in the property for all occupancies under 6 months. For tenancies over 6 months the linens will automatically be removed unless expressed organised and agreed to in writing at least 5 days prior to the commencement of the lease. Tenants are welcome to purchase the agency’s linen if they want it use it throughout the length of the lease term. Alternatively, the tenant can “rent” the linen or the agency will organise collection.

Pool and Landscaping Services: If applicable all Pool and Landscaping costs will be included in the rent for all tenancies under 6 months. For longer term tenancies over 6 months the tenant will be responsible to pay for these services in addition to the rent and will be obliged to use existing trades to allow for continuation of service and avoid transfer of knowledge which incurs unnecessary communication and costs. Should the tenant of over 6 months insist on using their own trade a reasonable justification will be required, and the agency/owner will be required to address any objections or concerns with existing trades (i.e. cost is higher for example)

3.3. Calculation of Damage Costs

In all cases, the agency will assess the facts based on the available evidence to negotiate a reasonable and timely settlement. Where damage is identified, the agency will calculate the costs to compensate, repair or replace based on the depreciated value of the item, or as agreed between the parties. Should items need to be removed/deposed of or replaced, the parties will each pay half or 50% of these disposal costs in addition to any other settlement cost.

3.4. Dispute Resolution

If a dispute arises, the agency will assess the facts based on the available evidence to negotiate a fair and reasonable settlement.

The agency will facilitate a settlement over three (3) attempts or proposals between the parties. If an agreement cannot be reached, the agency will connect the parties to negotiate a reasonable settlement, instructing the agreed terms to the agency once agreed.

The agency reserves the right to withhold monies from all parties engaged in a dispute until settlement is agreed. The agency may also charge additional labour to manage disputes.

Should the parties not come to an agreement, the dispute can be independently resolved through NCAT.

3.5. General Expectation (Historical Experience)

There is almost always something that needs to be replaced, repaired or negotiated (hopefully with good intentions and harmoniously) at the conclusion of a lease or significant period of short term stays. As a general guideline owners/investors and guests/tenants should expect these costs to be approximately the value equivalent to ½ to 1 weeks rent calculated across a 12-month period for each party. Both parties should accept that this is simply a reality and a cost of doing business (for owners this is the cost/benefit and time saving time relevant to moving/storage and for tenants this is the time savings that would be required to sourcing, curating, purchasing the contents themselves).

Rationale:

This policy is designed to support our core value of “Partnership,” ensuring that all parties understand their roles and responsibilities in the management of furnished properties. At Property Providers, we passionately believe that the foundation of our business lies in fostering strong partnerships with clear communication and reasonableness.

By setting clear expectations regarding wear and tear and the maintenance of the property and its contents, we enhance the trust and confidence of our property owners, tenants, and guests.

We understand that adequate time and resources are essential for delivering high-quality management services. This policy encourages a collaborative approach, allowing us to allocate the necessary time and attention to manage each property effectively, ensuring that we meet the expectations of both owners and tenants.

By clearly outlining the responsibilities associated with wear and tear, we can manage effectively manage the value of property and try and minimize any misunderstandings.

This policy contains and limits unreasonable time and investment being committed as all parties’ time is valuable and so we seek to resolve cases quickly, effectively and fairly.

Effective Date: This policy is effective Oct 10, 2024