When renting out a property, it’s unreasonable to expect that it will require no upkeep, even if there are no real disasters or tenant damages. Normal wear and tear is bound to show even if your tenants take good care of the property.
When damage attributed to normal wear and tear happens, it is the responsibility of the landlord to fix it. That’s why it is critical to learn how to identify damage caused by wear and tear and damage caused by tenants due to negligence and abuse. Not knowing the difference between the two can lead to paying for damages that should actually fall on the tenant, or falsely demanding payment from tenants for damage that is not their responsibility. The latter can lead to costly legal consequences.
Defining Wear and Tear
Wear and tear can have effects over time on walls, floors, furniture and fixtures. Paint may begin to fade, hinges may begin to squeak, floorboards may warp. This slow, long-term damage can be accelerated if the rental sees multiple tenants with no touch-ups in between tenancies.
Examples of Wear and Tear
- Peeling paint
- Fading wallpaper
- Loose grout
- Dull floors
- Sticky doors and windows
- Worn enamel on sinks
- Mild stained carpet
Defining Unexpected Property Damage
When you encounter damage classified beyond wear and tear, you can deem it as unexpected damage. This damage can be avoided with careful tenant selection and proper education, but accidents and unforeseen circumstances can always happen. This type of damage can also result from abusive or negligent behavior of a renter.
Examples of Unexpected Damages
- Unapproved wallpaper
- Excessive carpet burns
- Unapproved paint color
- Broken doors
- Holes in walls
- Chipped floors
- Chipped enamel in bathtub
Keep in mind that you cannot automatically blame a renter for causing unexpected damage. At times it can also be caused by landlords who ignore the damage even when a renter has reported the issue. In this case, the damage would be the landlord’s responsibility.
Examples of Landlord’s Negligence
- When the landlord does not perform routine inspection and maintenance, especially for HVAC systems
- The bad structural design of the rental remains uncorrected
- Leaks are not attended to right away
It is your duty as a landlord to strive to maintain the condition of your rental to continue making your property livable. You are responsible for ensuring that your unit is safe and you must adhere to building and health codes.
Impact of Property Damages on Security Deposits
If damages are linked to normal wear and tear, renters cannot be asked to pay for them. If excessive damage was caused by the renter, repair fees can be taken out from the security deposit.
A lot of the time, conflict between landlords and renters can spring from the assessment of property damage. This can result in a long court battle that can become costly for the two parties. Make sure to document damages, and conduct a walkthrough inspection before a renter moves in to easily identify existing property damage.
Tracking Rental Property Damage Through Documentation
As mentioned above, performing a property walkthrough can reduce future conflicts with your renters, so make it a part of your property management routine. Prepare a checklist to keep things organized and avoid forgetting vital items. You can also use this opportunity to talk with your renter about damage from negligence or abuse and damage resulting from wear and tear.
Capture evidence by taking photos and videos in case you will need to present proof when the lease ends. A record will make it easy to defend your case if the damage is caused by the renter so you can avoid shouldering the costs of repairs.
Move-out inspections are also useful so landlords can calculate repair fees and deduct them from the tenant’s security deposit for damage beyond wear and tear.
What to Do When You Find Property Damages
- Record the damage through pictures and videos as evidence
- Make a complete list of items and the repair fees
- Calculate the repair expense per damaged item
It is required for landlords to specify the repair cost per item to the renter. That’s why you need to list them down so the renter can understand if their security deposit has deductions or has not been returned at all to cover the repairs.
Extensive Tenant Screening as a Strategy for Preventing Property Damage
Aside from conducting walkthrough inspections, landlords can limit court battles and high repair costs by accepting top-tier residents. Adopting a comprehensive tenant screening process can help eliminate potential bad tenants that can more often cause property damage.
You can limit property damage by choosing the best tenants and checking their rental history, eviction records, and income sources. You can also contact former landlords to learn more information about the renter candidate before you accept them.
Rental Property Maintenance
Maintaining your property is your main duty as a landlord. You can limit costly damage by performing preventive maintenance. Hire an exterminator for pest infestation issues, provide trash bins for proper garbage disposal, and comply with building codes to limit structural damage.
Landlords must not rely on renters to maintain the upkeep of their rental units. Security deposit deductions must also not be made when the damage comes from normal wear and tear.
If you are seeking a trusted property management company to help you deal with damage from normal wear and tear and other critical aspects of managing a rental, contact Keyrenter Denver today!