Property managers take a risk in renting out properties to new residents. Despite careful screening of applicants and thorough background checks, there is always the possibility of misconduct. From unpaid rent to breaking the lease agreement, many things can go wrong. A common situation is tenant damages to the rental property.
So, what should you do when your resident is responsible for property damage? Can a property manager sue a resident for damages to the rental property?
Most property managers do their best to avoid legal action and having to sue residents unless strictly necessary. Fortunately, there's a lot you can do to stop damage before it occurs. Read on to learn about the most common rental damages and the best ways to prevent them.
Types of Rental Damages
Here are the most common categories of rental property damage.
Damages the Resident Is Not Responsible For
The resident is not responsible for general wear and tear. These are inevitable consequences of renting out properties. A property manager should not withhold the tenant’s security deposit or sue for minor damage.
What qualifies as reasonable wear and tear? Here are some examples:
- Slight wearing or fading of carpeting
- Small nail holes from hanging pictures
- Scuff marks along the bottoms of doors and walls
Just like the property manager is responsible for most general maintenance costs, it is their responsibility to address normal wear and tear before a new resident moves in.
Damages Warranting a Security Deposit Deduction
Most leases include a section on the tenant’s cleaning responsibility. Property managers usually handle maintenance issues, but the resident may be assigned maintenance responsibilities too. Failure to abide by these requirements doesn’t usually result in a forfeit of the security deposit.
But damage like cigarette burns or large holes in furnishings or flooring does warrant a security deposit deduction when the resident moves out. The same goes for damaged doors and walls or broken mirrors and windows. These are not seen as ‘wear’. They are typically caused by negligence and recklessness.
Damages to a Rental Property That Residents Can Be Billed Extra For
If both the resident and property manager have engaged in proper apartment maintenance, and the resident has been careful not to cause severe damage, all will be well. The resident will receive most if not all of their security deposit back when they move out.
But there are some damages that residents can be billed extra for, besides the forfeiture of their deposit. This happens when the property walls, ceilings, floors, and fixtures are so badly damaged the security deposit alone will not cover the repairs bill.
Damages the Resident Can Be Sued for in Small Claims Court
Despite regular cleaning and preventive maintenance, things can get damaged and broken. Worse still, the damage might be wilful and intentional. When this happens, the repair costs will likely outstrip what the security deposit covers and the property manager will have to charge extra.
The property manager may sue the residents if they refuse to pay the damage costs.
The property cannot be rented out to anyone else for some time even if the resident has moved out. The property manager first has to return the property to a habitable state for the next resident. Therefore, they are also losing out on potential income from rentals, meaning they have the right to sue for damages.
This is typically reserved for extreme cases that require hiring professionals to fix, take time to repair/replace, and are expensive.
How to Take Legal Action for Property Damage
If the damage is so severe that major repairs, downtime, and high costs are involved, suing your tenant can be the best course of action. A property manager can take the resident to a local small claims court for refusing to pay for repairs the security deposit did not cover.
Other options won’t involve a court fee or additional expenses to recover damages to do the necessary repairs. You have the legal right to file a police report where illegal dealings and acts of vandalism are evident. Follow it up with an insurance claim from your landlord or homeowner insurance policy.
An insurance payout will help with the costs involved in repairs, without the need for filing for damages in court.
How to Reduce the Risk of Property Damage
Avoid becoming that frustrated property manager suing a resident for damage, and dealing with the whole court process and court costs, by being more proactive.
Regular Inspections
Take advantage of the different types of rental property inspections, such as pre-leasing, pre-move-in, and pre-move-out inspections. Software like RentCheck streamlines the inspection process for property managers by allowing residents to perform their own inspections.
When there is a record of the exact condition of the property before the resident took up residence, they will be less likely to damage the property. They know that it can easily be proven when they are at fault for property damages. This also protects the resident against faulty damage claims from unethical property managers.
A mid-lease inspection will assure property managers that residents are meeting their obligations in the rental agreement for general cleanliness. However, the lease must stipulate that they may carry out such inspections, in the presence of the resident.
Sharing of Maintenance Responsibilities
Another safeguard the property manager can have in place is the sharing of maintenance responsibilities. Although residents are not necessarily required by law to maintain the properties they rent, minor maintenance duties can be added to the lease requirements.
One mutually fair way to do this is to offer a slight reduction in the rent in exchange for the maintenance. This can save a property manager time, but it also gives the resident a sense of greater responsibility for the property. They are less likely to damage it when they are accountable for the repairs.
Property Inspections Are Made Easy With RentCheck
A landlord can sue a tenant for damages, but it can be a long drawn-out process to recover costs for damages. It’s better to minimize the risk of damage from the start, and not wait to check for damaged property when the resident leaves.
A pre-leasing and pre-moving-in inspection establishes the condition of the property before the resident moves in. Knowing that they will be held accountable for any damages in a pre-moving-out inspection will likely keep them on track with general cleaning and minor maintenance.
One way to increase awareness – and ultimately, accountability if something goes wrong – of move-in conditions is by enabling the resident to perform the inspection themselves. This makes them hyper-aware of what you’ll be looking out for at move-out and encourages them to maintain the property.
You can do all of this and much more with RentCheck. Our software allows residents to complete their own inspections and share them with property managers with a click of a button. Complete with automated reminders and side-by-side reporting, you can rest assured that no stone is left unturned.
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