Best practice guide: Determining refurbishment and fair wear and tear in retirement villages
This guide provides information to residents* and operators about contractual requirements for refurbishment and fair wear and tear. The requirements are set out in residents' occupation right agreements (agreement) and in the Retirement Villages Code of Practice 2008 (the Code of Practice).
Purpose of this guide
The purpose of this guide is to
- provide guidance on the refurbishment clause of the Code of Practice (clause 50)
- provide guidance on what may constitute fair wear and tear
- reduce the risk of complaints and disputes made about refurbishment and fair wear and tear.
Communication is critical to ensure that residents and operators understand what refurbishment work is to be undertaken, when it is to be carried out and who will pay.
This guide is not intended to apply to occupation right agreements where the operator or resident is solely responsible for meeting the costs of refurbishment after termination.
Legal status of this guide
This is a guidance document produced by the Department of Building and Housing to help operators and residents meet their obligations set out in occupation right agreements and the Code of Practice (especially clauses 46 to 54).
The guide has no legal status and does not apply to occupation right agreements entered into before 25 September 2006 or the process set out in the Code of Practice for agreements entered into after 25 September 2006.
Who this guide is for
This guide is for operators and residents.
What this guide is about
This guide explains 'refurbishment' and 'fair wear and tear'. It also suggests a process in checklist and flow chart formats for residents and operators to follow during the refurbishment process. Both the checklist and flow chart follow the complaints and disputes process set out in the Retirement Villages Act 2003, showing how the process may be applied to refurbishment.
The checklist and flow chart outline the main steps involved in the process. Using these tools combined with good communication should reduce the risk of complaints and disputes.
*Throughout this guide 'resident' includes resident representatives.