Tenant-caused damage is almost inevitable in the rental business, whether accidental or on purpose. In whatever circumstance, you still need to address the issue properly to avoid any problems or legal consequences. There is a right way to deal with it as well as preventive measures you can take.
Preventive Measures to Take
Meticulous Tenant Screening
Thorough background checks can help you determine whether the tenant would behave and treat your rental property with respect. While credit checks and employment verification tell you whether they will be able to pay for the monthly rent, companies like PMI Georgia also conduct national eviction searches, contact previous landlords, and other necessary background checks during tenant screening to ensure they are responsible tenants.
Require a Security Deposit
Include the requirement to pay a security deposit on your lease agreement to provide you with a financial safety net when a tenant destroys property objects, facilities, or structures. Just be sure to only charge within the limits of the local laws. While there is no set limit in Georgia, it's still advisable to charge for a reasonable security deposit amount. The generally accepted price is equivalent to one month's rent.
Regular Property Inspections
One of the basic property management tasks is the routine inspections landlords need to do. It is not only preventive but also allows property owners to find damages earlier before they get worse. You can also see how bad the normal wear and tear is getting so you can provide repairs or replacements to keep your tenants happy.
Writing a Comprehensive Lease Agreement
Your lease agreement should state in detail what the tenant's responsibilities are regarding property maintenance, what is required of them for getting a full security deposit refund, and what the consequences will be if they violate these terms. Don't forget to add terms for replacement and repair costs, as well as which circumstances require you to deduct from the tenant's security deposit.
Handling Tenant Property Damage
Identify the Property Damage
The first step to a systematic approach is to identify the tenant damage. If it is within their dwelling unit, do the courtesy of giving a notice stating that you will be inspecting the damage within the premises, and include a time and date so the tenant knows when it will be conducted. Try to schedule it at times that are convenient for the tenant.
Document the Damages
Once you've identified the tenant damages, you must document them. You can do so by taking photos from multiple angles, as well as making a list of all damaged items such as appliances, furniture, fixtures, and more. You may need this for an insurance claim or an itemized receipt for deposit deductions.
Communicate with the Tenant
Simply sending a notice before the inspection is not enough. You must ask how the tenant damages happened and explain what is required of them as per the rental agreement. You can seek compensation or inform them that you will deduct repair costs from the deposit. With the tenant's permission, try and record the conversation as well.
Assess the Property Damage
When you assess property damage, you have to consider other factors when you seek compensation, not just estimated repair costs. Even if a tenant destroys the carpet, for instance, you need to consider the depreciation caused by normal wear and tear. It would also be helpful to provide tenants with advice to prevent such things from happening again.
Explain the Costs
Provide a detailed explanation to justify the costs you're charging the tenant for the property damage as well as other associated costs. You may also offer payment options if you didn't require a deposit or the tenant chooses to pay instead of deducting costs. It can be a one-time payment or installment, depending on what both parties agree on.
What If the Tenant Refuses to Pay?
Try Talking to Them First
If the tenant damages property that belongs to you and refuses to pay, you could try to talk to them first. If it works, then it'll be an easier way to solve the issue, and both parties will save on legal fees when you pursue legal action. As the property owner, you should still reprimand the tenant's actions wot prevent it from happening again.
Resort to Legal Action
While this must be avoided as much as you can, sometimes legal action is the appropriate course if the tenant damages your property and refuses to pay. File a lawsuit in the small claims court, but be sure to hire or consult an attorney before you do so to avoid violating any landlord-tenant laws during the legal proceedings.
Evicting the Tenant
If it is stated in your lease terms, you may evict a tenant for refusing to pay for costs, especially for significant property damage. You may also opt for this to prevent further damage. It would also be advisable to consult legal experts before initiating eviction proceedings. Shouldering repair expenses in exchange for evicting a reckless tenant may benefit your rental property more.
Property Damage FAQs
What if the damage exceeds the security deposit amount?
Significant damage may mean that the deposit won't cover the cost of repairs. In this case, you can ask the tenant to cover additional costs as it still falls under the tenant's responsibility when they damage rental properties.
Do landlords always win in small claims court?
No. Landlords can sometimes lose in the small claims lawsuit they file. It will depend on the facts and the evidence you present, which is why it's important to document damages and write comprehensive lease agreements discouraging tenant neglect.
What are landlord rights regarding tenant-caused property damage?
Not only does the landlord have the legal right to seek compensation for repair costs or deduct from security deposits, but they also have the right to evict a tenant who refuses to do so when they destroy property.
What should I provide when deducting repair costs from the deposit?
Landlords should provide a detailed breakdown or an itemized list of all the costs so the tenant may review it and dispute any costs they might not agree with. Keep in mind that you are legally required to provide this, and the tenant can pursue legal action.
Have a Property Manager Handle It For You
Dealing with property damage caused by tenants can complicated, especially since there are a lot of fo factors to consider such as security deposits, insurance, costs, and proper procedures. You can always assign the task to a property manager like PMI Georgia.
Our company also happens to have access to high-quality services at reasonable rates with its nationwide network of licensed, bonded, and insured tradesmen, and suppliers. Contact us and we can elaborate on the services we offer that can help your business!
