Normal Wear-And-Tear


Normal Wear-And-Tear

The inevitable physical decline of the condition of a property from time and usage. Normal wear-and-tear increases over the useful life of any property or asset. It results from normal usage by its occupants as well as from weather and other natural forces that surround it.

Normal wear-and-tear cannot be avoided, only slowed in various ways through maintenance. Of course, this can reduce the value of the property over time, although not enough to prevent the owner from making a profit on the sale in most cases. In terms of landlords and tenants, normal wear-and-tear may or may not be deducted from the damage deposit. This usually depends on the nature of the lease and the period of time that the tenant rented the property for.

For corporate properties, wear-and-tear is factored into depreciation.


Investment dictionary. . 2012.


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