When you rent out a property long-term, there will be occasional damages. This is one of the inevitabilities of being a landlord or property manager. But who pays for the damage to be fixed?
The issue of who pays for what is a common theme with rental properties. Renters tend to earn less than homeowners. This is further borne out by statistics indicating economic issues as the main reasons they do not own property, but instead rent their homes.
So, can a landlord make a tenant pay for repairs? Should you expect that of your residents, and what does landlord/tenant law say about this? We delve deeper into this issue in the article below.
Landlord/Property Manager's Responsibilities
The landlord or property manager bears the brunt of maintenance and repair costs.
There’s a good reason behind this. They are legally responsible for providing residents with a safe and habitable property. This is set out under the implied warranty of habitability, which applies even if the lease does not expressly mention these responsibilities.
This includes things like fixing leaky faucets, and repairing faulty appliances (if said appliances form part of the rental property) and faulty HVAC systems. A property owner may not hold a resident responsible for these costs unless the residents broke them intentionally, or through improper use.
Resident's Responsibilities
Although property managers are responsible for most maintenance and repair work, residents have certain responsibilities, too. they are expected to keep the rental property clean, perform minor maintenance tasks as they arise, and avoid damages.
This includes tasks like changing faulty lightbulbs. It also means repairing any damage the residents themselves have caused.
Take note that residents are not responsible for and it doesn’t fall under the umbrella term of ‘fair wear and tear’. This describes a decline caused by ordinary aging or reasonable and consistent use. An example would be a worn carpet or faded curtains.
Let the Lease Agreement Be Your Guide
The landlord’s responsibility is governed by the implied warranty of habitability. Therefore, the property owner/manager is liable for major maintenance and repairs, regardless of whether or not this is indicated in the rental agreement (see above).
It would be very difficult to escape liability for such repairs unless the resident caused the damage. However, a reference to the residents' duties must be included in the lease. This offers two benefits:
- It clarifies the tenant’s responsibility for cleaning and maintenance. Residents know exactly what is expected of them. Allow them the opportunity to clarify these expectations before the lease agreement is signed.
- Residents cannot argue later that they did not know what they were responsible for. Property managers who handle multiple rental properties concurrently often forget what the lease terms are for specific properties. Let the lease agreement be your guide in such instances.
When Can Landlords Charge Tenants for Repair Costs?
Certain costs go hand-in-hand with rental property. Property managers are responsible for providing renters with habitable properties. Thus, the property owner or manager must deal with most maintenance and repair costs.
Property managers can charge residents for repair costs when damage to property or fixtures therein exceeds what can be described as normal wear and tear.
They can also hold residents liable for the costs of repairing damage to a property or fixtures therein resulting from resident negligence, wilful destruction, or improper use. The security deposit is designated for this purpose. Quotes, invoices, and receipts must be retained as proof.
The Security Deposit and Dispute Resolution Process
Should the property damage be severe, the security deposit does not cover the costs, and the residents must pay the difference. Documentation of these costs must be offered if the property owner paid these costs and expects the resident to reimburse them.
Residents may also arrange the necessary repairs themselves. Should they refuse to do so, the property owner can sue the residents in small claims court for the costs of the damages.
When the residents are liable for damage, the security deposit is used to cover the costs. Any funds that remain are refunded to the resident after they move out. If the security deposit is not sufficient to cover the costs, the resident must pay the balance of the repair costs.
If they agree to do so, there will be no further dispute. But unfortunately. Disputes often ensue. In such a scenario, where residents deny causing damage and claim it was there when they moved in, you need to prove them wrong.
Every state has its own guidelines for determining security deposits, and when to return the deposit after the rental agreement ends. Such laws also dictate how to address repair cost disputes. If in doubt, consult your local authorities.
Avoiding Disputes Before They Happen
Few issues cause as much strife between property managers and residents, as security deposits that are not refunded because of damage to a property.
Disputes will happen from time to time, but that does not mean you have no way of preventing them. Perhaps the simplest way of avoiding disputes over damage and who will pay for repairs is to refer back to the move-in inspection report.
You can avoid costly repairs and disputes over damage, how it was caused, and by whom, with regular property inspections at every step of the rental property cycle.
This means inspecting the property before and when residents move in, before and when they move out, and even during their residency. Property management software makes this and other property management duties a whole lot easier and more convenient.
RentCheck’s customizable inspection lists and automated reports allow residents to conduct inspections anytime, at the property manager’s request. This can include itemized lists, photographs, and videos with 360-degree capture.
RentCheck gives property managers a record of the state of the property so that they immediately know if new damages have occurred.
What Happens When a Resident Makes Unauthorized Repairs?
We’ve dealt with who pays for major maintenance and repairs, and wear and tear. It’s the property owner. We’ve also discussed what residents are responsible for. It’s the cleaning and minor maintenance tasks associated with rental property living. But what happens when residents make unauthorized repairs?
Can a landlord make a resident pay for repairs if they did not consent to, or were unaware of, those repairs? What happens if they neglect their maintenance duties, and the residents have no choice but to pay for the repairs themselves?
Some residents choose to pay for repairs themself, and then deduct it from their next rental payment. This ‘repairing and deducting’ issue is a common practice, but they should consult the property manager or the local housing authority beforehand. Even when allowed, they must provide quotes, invoices, and receipts.
However, if residents make unauthorized alterations to the property (for example, a lean-to structure), they will be expected to restore the property to its original state. This typically violates the terms of the lease and could cause potential damage to the property.
This will be at the residents’ expense. If they refuse to remove the alteration, the owner may commence an unlawful detainer action, more commonly known as an eviction lawsuit.
Let RentCheck Handle Your Rental Property Inspections
Unfortunately, there will be times when there is excess damage, more expensive maintenance, or complicated repair work to see to. But can a landlord make a tenant pay for repairs?
Yes, but only in certain instances. Examples include repairs residents did that were unauthorized and/or unnecessary, or repairs necessitated by residents’ damage and/or neglect. Most often, it is the property owner/manager who is responsible for maintenance and repairs.
RentCheck’s property inspection app reduces disputes over property damage while offering convenience to both property managers and residents.
Sign up for free today!
