Renting out a property comes with inherent risks. Usually, these are late rent payments, as the number of cost-burdened renters reaches a new high. Other common issues are lease violations, and noise complaints from neighbors. These are the realities of renting out property.
You may have to face any or all of these problems at any given time. But one of the worst problems is damage to your property. It takes time to fix, and money to repair. If residents contest your claims, it becomes even more of a nightmare.
What are your rights regarding tenant damage to property you own or manage? How can you prevent residents from damaging the rental properties in the future? We explain how to handle this common problem diplomatically and legally while protecting both your and your residents’ rights.
What Damage Is a Resident Responsible For?
The issue of resident damage to property is so complicated because responsibility for damage implies liability. Residents typically deny causing damages or blame a lack of maintenance by the property manager as the cause. This is to be expected, as they are trying to avoid paying for damages.
This raises an interesting point. A lack of proper maintenance can make damages more likely. Also, any property suffers from reasonable wear in time. However, residents are responsible for wilful neglect and damage while living on the property. They must maintain it in the condition it was when they moved in.
What Damage Is a Property Manager Responsible For?
A property manager cannot be held accountable for deliberate resident damage to property. However, they are responsible for maintaining a safe and habitable rental property.
Therefore, any infrastructure damage to a rental property that poses a threat to the comfort and safety of residents must be addressed. As a general rule, if the resident didn’t cause it, the property manager is responsible for fixing it.
In the case of natural disasters or home invasions, neither the resident nor the property manager can be said to be at fault. However, the property manager must do regular maintenance, ensure the property is sound enough to withstand weather conditions and install security measures in case of attempted break-ins.
10 Steps to Take When a Tenant Destroys Property
Wondering what to do about resident damage to property? Follow these 10 steps.
1. Assess the Damage
Assess the damage and determine if it is resident damage to the property you are dealing with. Rule out the possibility that you are at fault due to a lack of proper maintenance. Consider whether or not the damage falls under the category of wear and tear. Get photographic evidence of the property damage.
2. Review Lease Agreement
If you have established that the damage is not fair wear and tear, and not a result of your negligence, review the lease agreement. Has the damage been caused by a violation of any of the lease agreement terms?
3. Communicate with the Resident
Communicate with the resident/s. Explain that they are responsible for the damage, and liable for the cost of repairs. Show them the photographic evidence, and point out the relevant clauses in the rental agreement covering such scenarios. Discuss how they can resolve the problem.
4. Document the Communication
Document the communication, so residents can’t later claim they did not know about the problem. Write them a letter explaining the issue, and get them to acknowledge receipt of it. This will prove useful should they later contest liability.
5. Request Repairs or Compensation
Request repairs or compensation for the property damage. Some types of damage may be covered by the homeowner’s or renter’s insurance. Good insurance is part and parcel of property management, so if you don’t yet have it, ensure that you get coverage as soon as possible.
6. Use the Security Deposit
Use the security deposit to cover the repair costs, but keep all documentation about repairs. This includes quotes and invoices for the repair work. If the repairs are of such a nature that you can do them yourself, keep an itemized list of the hardware and supplies you had to use.
You’ll have to be able to show that the damage is indeed the fault of the residents and not part of normal wear and tear.
Keep all quotes and invoices/receipts involved. Once the repair costs are addressed, the balance (if anything remains) of the deposit must be returned to them after the restoration of the property.
7. Consider Legal Action
There are definite property manager rights when a resident destroys property. Usually, the resident pays out of their security deposit, and if this is not sufficient, they pay the additional amount. However, when the cost of the repairs far exceeds the deposit amount, they may refuse to pay.
Process in a Small Claims Court
Sometimes, the costs of resident damage to property are higher than the security deposit can cover. If the damages exceed the security deposit amount, they will have to pay the additional costs. If the resident refuses to do so, it becomes a matter for the small claims court.
Bear in mind that small claims cases can take time you can’t afford to spend. Only seek compensation in that way if an insurance claim to cover the damages is not possible.
If you are unsure about what you can claim for, speak to your insurance agent or insurance provider. Policies differ in what they cover, for example, some may cause accidental damage only, while others may cover vandalism.
8. Conduct Regular Inspections to Prevent Future Incidents
There are legal steps you can take to address property damage, but how do you stop it from happening again? When residents move out, the property should be cleaned, and necessary repairs or upgrades done, before you welcome new residents. Before they take up residency, do a move-in inspection.
Do this with every rental property you own or manage, and you’ll drastically reduce resident damage to property. Residents will know there’s evidence of what the property looked like when they moved in, making them less likely to cause damage.
Property managers who use RentCheck for their move-in and move-out inspection need to save time and effort. It’s the simplest way to prevent further damage. Residents can perform the inspections themselves, while property managers monitor reports remotely.
9. Update Your Lease Agreement Forms
When residents don’t uphold their end of the deal and perform minor maintenance and regular cleaning, damages become more likely. Sometimes, this is not because they are stubborn, but because they are not aware of their responsibilities.
Update your lease agreements so that this does not happen again in the future. Set out residents’ responsibilities and the consequences of damages (loss of security deposit and even legal action). Check that they understand these terms before signing a new lease.
10. Keep Detailed Records
Keep records of all property damage and subsequent actions. This is crucial if the security deposit does not cover the cost of repairs and the resident refuses to pay the remaining costs. If you need to file a police report for vandalism or sue for damages, you’ll need to provide these records.
The resident may also move to another rental property and use you as a reference. If asked about any damages they caused while renting from you, you’ll have the evidence to support your response. This will save the next property owner/manager from the same fate.
Resident's Rights and Responsibilities if They Damage Property
Tenant damage to property is usually inconvenient and expensive. If it coincides with the resident moving out, the problem is magnified. You have to get the property repaired before you can advertise it to new potential residents and allow anyone to move in.
However, you must still respect the rights of your residents, even if they admit that they have caused damage to the property.
1. Right to Repair the Damage
In the event of resident damage, property eviction often seems like the best solution. But this is a knee-jerk reaction that might be unnecessary upon further reflection. The damage may very well have been accidental or unavoidable. Allow them to repair the damage before rushing to a legal solution.
2. Responsibility to Return Property to Original Condition
Residents have the responsibility to return the property to the condition it was in when they moved in. They must keep the rental unit clean and do minor maintenance as stipulated in the lease terms.
This does not refer to normal wear, but rather to physical damage to the rental property or its fixtures. If you did an inspection before they moved in, you’ll be able to prove what the condition was at that time.
3. Privacy Rights
Even the most noncompliant resident has the right to privacy. They can’t refuse an inspection when moving out, to assess any potential damage. However, property managers must give advance notice of such an inspection, and the resident has a right to be there at the time.
4. Right to Contest Charges
Residents do have the right to contest charges of damage and vandalism. This is true even if you have evidence of the damage, and follow the proper procedures to lay criminal charges or sue for damages in a civil court. You may ultimately win the case, but it could take time. Residents have the right to a defense.
An example would be if they experienced a fire in a rental unit that was not equipped with preventive measures like smoke detectors, carbon monoxide detectors, or fire extinguishers. Installing such devices falls under the responsibilities of the property manager.
Stop Rental Property Damage Before it Happens with RentCheck's Inspection Software
Resident damage to property is an unfortunate risk of being a property owner/manager. But you can often stop resident damage to property before it occurs, through regular and thorough inspections.
Detailed inspection reports can serve as a record of the property’s condition, limiting future wilful damage and neglect. RentCheck makes inspections and inspection reports simple, fast, and convenient for property owners and managers.
You can request residents to do the inspections themselves. Because everything is automated and customizable to your requirements, you’ll find it suitable for all your rental properties, no matter where they are. Protect your rights and your property.
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