It would be best to prepare yourself for the possible tenant damage to property when you start your rental property business. It will range from light to normal wear and tear. However, there are times that the damage can be as heavy as it can be.
As tenants reside on your property, they will leave marks, scratches, holes, and leaks. However, the problem and expenses start when the damage is not reported. And another reason is that the damage is extreme and long-term.
But it’s not the end of the line. There are several ways to prevent tenant damage to your rental property.
How to Prevent Tenant Damage to Property?
Here are the ways to prevent tenant damages to property.
Tenant Screening
It will help if you select your tenants thoroughly. As a landlord, the essential part you do is to select the right tenants. However, no matter careful you do it, it will still fail.
Picking the right tenant for your rental property will limit the issues of property damage. The most effective way to get a responsible, ideal quality tenant is to have and follow a strict standard when screening tenants.t
Here are some areas that you should focus on:
- Previous rental history- Contact and interview previous landlords to know if the potential tenant has violations and destroyed property. And this information will allow you to establish if a tenant is troublesome before signing a lease. If there are damages in their last rental unit, there would be a probability that they have the same behavior in your rental unit.
- Eviction History- If the potential tenant has a prior eviction, it’s undoubtedly a red flag. However, if you look closely at a tenant’s past actions, you can get an idea of how they will treat your rental unit. And it’s a waste of time, energy, and money to deal with the results of bad behavior. Moreover, there’s a good chance they won’t pay the rent or will damage the property.
Ask for a Security Deposit
Certainly, a security deposit will serve as protection in several ways. They will offer a cash reserve that can be useful in repairing tenant damage to property.
It will also serve as an indicator of potential tenants’ financial status. They’re not financially stable if the potential tenant can’t afford the security deposit and the first month’s rent.
It will also motivate the tenants to take care of the rental unit. They will probably report urgent issues so that the repairs will not be left unhandled. Additionally, it will give a sense of obligation to tenants to preserve the good condition of their rental unit.
When discussing security deposits, you should include the deductions on security deposits on lease agreements. And it would help if you were more specific regarding the deductions for property damage. So that the tenant will pay more attention to it. Awareness of the consequences will result in a more responsible tenant behavior. Nevertheless, we all know that everyone wants a full security refund at the end of the lease. Therefore, they will take care of and prevent damage to the rental unit.
Creating a Clear Lease Agreement
A good lease agreement will give the tenant a specific number of policies to follow. It will also serve as your property protection under the law, yet it should comply with the Fair Housing Act. You can indicate in the lease the tenant’s responsibilities to the rental unit, like:
- Keep the rental unit clean- The tenant should observe hygienic practices to not accumulate mold growth and keep away pest infestation in the rental property. You should also include proper trash disposal to get rid of foul odors and maintain the unit comfortable and fit to live in. And failure to do the abovementioned responsibilities can be considered tenant neglect.
- Outline the procedure in reporting repairs- Reporting rental property issues is also a tenant’s duty. Therefore the landlord can provide sufficient attention to the problems before they become worse, and it will maintain the rental property values over time. It’s essential to include the procedure or steps for filing maintenance requests to be aware of the tenant.
Regular Inspection of the Rental Property
Keeping an eye on your rental property will maintain its good state. As a landlord, you must have a frequent inspection of the rental property, particularly at the end of the season.
You should also set a standard of maintenance and care of the property. Keeping vacant units in a good state for your tenant will set an example that they must follow by keeping their unit in excellent condition.
You will encounter first-timer tenants who may not understand the extent of care required in maintaining a property. Providing tenants maintenance checklist will help them to eliminate any doubt. It will also help to conduct an orientation at the start of your tenant’s lease to lessen misunderstandings.
Be Responsive For Property Repairs
When a tenant reports a problem like a drippy faucet or roof leak, you must appreciate them for letting you know before it gets worse. In that way, it encourages them to report to you. Also, motivate them to be good tenants every time they hear the appreciation coming from you.
Develop a Good Relationship with Your Tenants
A good landlord-tenant relationship will make your rental business stress-free. By, complying with the lease agreement policies shows that tenants respect their landlord. And as a landlord, your customer or tenant is satisfied with the service and will likely renew their lease.
It would help if you respected your tenant’s privacy and gave them a peaceful home. Discuss your expectations and look out for proper boundaries in the relationship. Providing enough notice when there’s a need to enter the unit and respond to their concerns on time.
How to Respond to Tenant Damage to Property?
If you have a good tenant and see damage to rental property that they’re responsible for. You must handle it immediately. Some prefer that the advice will be in writing, but others would rather have it personal.
The conversation should not be confrontational and must be kind. Listen to them when they have a response. Then be firm to explain the extent of the damage. And discuss with them that it must be repaired at their expense. However, you must still show them the value of working together as landlord and tenant to resolve the issue.
Most tenants caused property damage by mere accident. As humans, we commit mistakes and be accountable for the outcome. But if it is intentional, you must file an eviction immediately.
Here are other things to consider in responding to tenant property damage.
Filing Insurance Claims
Consider filling a property insurance claim when the tenant moves out without paying the damage. And the repair cost is higher than the security deposit. However, it will cause your premiums to be higher.
Documentation of Tenants Damage to Property
Keeping a photo of the rental property before the tenant move-in and taking pictures of the property with damage will be helpful in court. Furthermore, it will also help you with the written estimate of the repair cost. This repair estimate costs will showcase the extent of the tenant rental property damage in court.
Consider Taking Legal Action for a Money Judgment
Although you evict a tenant for property damage reasons. But, you still have to file a separate money judgment for the property damage. And when you win on that, you will be able to collect the money judgment. You can hire a collection agency to take care of that.
The Bottomline
The most important asset in this industry is not your rental property but your tenants. The quality of your tenants will reflect the quality of your returns, and bad tenants can tear down your property completely.
Your property is no longer an asset if you don’t have tenants or you have bad tenants. If you want to achieve your goals, you need to have good tenants. It’s better to keep the good tenants and let go of the bad ones. Your tenants must know that you appreciate them.
However, getting rid of rental property damages is impossible, but there are ways to lessen the high costs of maintenance and repairs. Make sure that you have a quality tenant thru stringent tenant screening. Therefore, you can also avoid severe tenant damages if you have a set of policies. And to be followed by your tenant or discuss them as well as your expectations from the tenants to avoid any miscommunications upon moving in.
Both tenants and landlords are responsible for keeping the rental property in good condition. What they need are constant communication and good relationship.
Hiring a property management company like Pro Realty is also one key to helping you prevent property damage. An experienced property manager can effectively and efficiently screen tenants. They can also handle repairs and maintenance. Respond to tenant’s concerns 24/7. Conduct regular rental property inspections.
