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Real Property • Landlord-Tenant
PROP#072
Legal Definition
Ameliorative waste results when a tenant improves the leased property in a way that increases its economic value. A tenant that causes such waste is liable for the cost of restoration, unless they are a long-term tenant and the change reflects changes in the neighborhood.
Plain English Explanation
Ameliorative waste is the most counterintuitive form of waste and the hardest to pronounce. It is "waste" that occurs when someone provides unauthorized value to property. For example, imagine if someone rented a small cottage that used to be home to George Washington. Imagine if the property was kept in its original, rustic form. Now imagine if you installed fiber optic internet and air conditioning in it. You've arguably added value to the home, and yet, you've deprived the owner of its original condition.
Ultimately, a tenant has an obligation to return a property in the same condition and state as it was when they originally rented it.
Ultimately, a tenant has an obligation to return a property in the same condition and state as it was when they originally rented it.
Hypothetical
Hypo 1: Amy leases Blackacre, a large cottage in the middle of an old, quaint town. Amy loves the work of a world-renowned graffiti artist named Banksy. Amy constantly comments on Banksy's Instagram and Facebook about how much she loves his work and how much she wished she had one of his originals. Banksy reaches out and offers to paint the side of her cottage. Amy accepts. The next day, Amy wakes up to the entire side of Blackacre painted with a beautiful mural. Art experts appraise it as being worth $200,000. It also draws in thousands of fans from around the community who take pictures near it and drive up the rental value of Blackacre. Unfortunately for Amy, her landlord, Bob, hates it. Bob misses when Blackacre was just a quaint, quiet cottage. Now it attracts visitors and is an eyesore. Result: Amy has committed ameliorative waste.
Visual Aids
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