Investing in real estate can be a highly lucrative and profitable business. However, discovering damages in your rental property can feel like a punch to the gut during inspections. There may be a break in the wall, damaged carpets, or worse, a major repair that can potentially affect your rental income. You can still find yourself with a tenant who damages your property, even if you carefully screen potential tenants and carry out regular inspections.
Sometimes, everyone talks about renters’ rights. But no one talks about how you can navigate a tenant damaging an area of your property. Knowing how to handle property damage calmly and fairly is essential to protecting your investment and keeping things professional. In light of this, read along as this post breaks down how to deal with tenants who have damaged an area of your property.
How Common is Tenant-Caused Property Damage?
Normal Wear and Tear vs Actual Damage
Property damage caused by tenants is more common than many landlords expect, but you must know the difference between normal wear and tear and actual damage. Your tenant’s deposit shouldn’t be withheld for everyday wear and tear, like minor scuffs on the walls, light carpet damage, or faded paint from sunlight. These are just part of the property being lived in.
However, actual damage extends beyond everyday use. Imagine missing fixtures, discolored carpets from spills that weren’t cleaned, damaged windows, and big holes in the walls. These are the kind of problems that can be billed to the renter and call for replacements or repairs. If damage is found in the property, it’s best to get professional estimates on repair costs.
While most tenants don’t intentionally set out to damage your property, accidents happen, and a few may neglect your unit entirely. Keeping in close contact with your tenants, carrying out regular inspections, and having clear lease agreements can all help you identify problems early on before they become costly. It’s all about balancing fairness while protecting your investment.
Security Deposit Claims and Setting Legal Action
Property damage from tenants occurs more often than most landlords would want to acknowledge. No matter how thoroughly you screen your tenants, accidental damage like broken fixtures and discoloured carpeting happens. Most of the time, typical wear and tear is covered by your maintenance budget and is expected. However, it is reasonable to utilize the tenant’s security deposit to pay for repairs when the damage is more extensive, such as significant plumbing issues, damaged windows, or massive holes in the walls.
This is precisely why security deposits are in place. Still, disputes can arise if tenants disagree about what counts as “damage” versus “wear and tear.” Bay Property Management Group Texas can help mediate disputes professionally while remaining compliant with local laws. In certain situations, landlords might even file a lawsuit to recoup repair expenses over and above the deposit. Fortunately, proper damage documentation can reduce the likelihood of major legal disputes. To be ready if things get bad, it’s crucial to maintain fairness, keep precise records, and be aware of your rights as the property owner.
Formal Steps to Take When Damage is Discovered
Conduct a Detailed Property Inspection
To assess the degree of damage the tenant committed, it is suggested to do a detailed property inspection with a qualified inspector. Document your findings through photos or video clips to show your tenants as proof.
Proper documentation can also help in estimating repair costs. This should be compared with the move-in checklist that the tenant filled out at the beginning of the lease, which describes the state of the property at that time.
Review Lease Agreement and Move-In Inspection Checklist
Sift through lease conditions to ascertain the tenant’s obligations with relation to property damage. As the lease agreement states, confirm that the tenant is responsible for the damaged item or area. It’s also important to verify whether the tenant is responsible for the damage and associated repair expenses should be indicated on the lease.
To better understand your options for redress, read any terms about upkeep, repairs, or tenant negligence. Keep in mind that the landlord can only repair the damaged area to its pre-damage condition if you expect the tenant to cover the cost of the repairs. The landlord is not allowed to expand the repairs or make them into a significant remodelling project.
Communicate with Tenant in Writing
Notify the tenant in writing of the damage they caused after the property inspection. Make sure to send a written notice to your tenant about the damage, including other details such as the anticipated cost of repairs and timeline for repairs. Landlords can provide invoices, especially if the damage has surpassed the security deposit amount. Provide supporting documentation, such as images or videos, to prove your claim. Lastly, collect all invoices and receipts associated with repairs you do, since these may be crucial for legal or insurance claims in the event of a disagreement.
Final Thoughts
Resolving property damage disputes with tenants can be difficult. Still, it is possible to make the process easier if you are proactive, have good paperwork, and know your rights and obligations. Preventive measures that reduce the chance of damage and help set clear expectations with your tenants include thorough tenant screening, strong lease agreements, and routine property inspections.
Image Credit: depositphotos.com
