Hi,
I have a client that had a bathroom renovation. Total cost is around $23,615.
Here is the work done for the property:
Remove existing bathroom and linen cupboard, leave old Terazzo floor. Create walkin shower area with niche 1200mm glass panel with suport rail. Supply and install cavity sliding bathroom door. Create a toilet space. Build a new linen cupboard in hallway. Resheet bathroom, waterproof areas as needed. tile floor to height of Terazzo. Tile walls to ceiling. Build two open timber shelves. Install vanity, towel railts, etc. Plumbing and electrical work as needed. Resheet wall behind toilet downstairs. Placed exposed plumbing pipes in wall cavity. Install small vanity. QBCC waranty home insurance.
I told client that the above work is capital works/allownce and must be depreciated.
Client insisted that is it repair. Below is her statement regarding why it should be treated as repair:
At the time of purchase, the building inspection came up pretty good. There was no evidence of water damage in the subfloor area under the bathroom. So the water damage has occurred during tenancy.
So when I had the builder provide a quote for the bathroom and toilet area, he observed what he believed to be evidence of recent widespread damage to walls, bath, cabinet and vanity mirror etc. There was also evidence of recent major water leaks in the bathroom and toilet areas that in his view may have further damaged the walls and floor areas and undermined the bath and toilet flooring. For example, he observed an outside bucket being used to capture leaking water from the toilet area. There was no evidence however that this recent damage had undermined the structural integrity of the bathroom, toilet areas or the house as a whole and there was no need for any structural work to be undertaken. The widespread nature of the damage reflected in his quote to undertake a broad restoration project of the area as a means to comprehensively rectifying the damage.
And further to this, the original flooring on the unaffected areas remains in situ now, as it was.
Please confirm whether the work done should be treated as repair or claim as an immediate deduction or should it be declaredd as improvement which must be depreciated.
Regards,
Antonette
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