The best-case scenario when renting a property is that you find quiet, respectful, and attentive tenants who always pay their rent on time and leave your property just the way they found it. It’s rare to establish a relationship this smooth, however. Most of the time, you’ll have to deal with a variety of challenges and hiccups like late rent payments and tenant complaints.
Still, the majority of issues you’ll deal with as a landlord are small and temporary nuisances. In more isolated and extreme cases, you may find your property physically damaged by your tenants.
How can you handle this situation?
First, you should understand that not all types of tenant-related damage are the same, nor should they be treated the same. You’ll need to adjust your approach based on whether the damage is qualified as:
When handling property damage from a tenant, there are several important fundamentals to keep in mind:
With those concepts in mind, there are a few steps you’ll need to take as you navigate this issue.
There are a few different ways you could discover the damage. The tenant might have informed you directly, or you might have seen the damage yourself while attending the property. Either way, the first step is going to be discussing the damage.
Try to remain as open-minded and calm as possible. Confront your tenant about the damage without being accusatory or aggressive and ask them for an explanation. There may be more to the story than you realize.
After talking to your tenant, it’s a good idea to do some further investigating. Make sure you document the damage as thoroughly as possible and collect other forms of evidence; for example, your tenant may have video of the incident unfolding. With the evidence in hand, you may be able to confirm or disprove your tenant’s story. This is also a good opportunity to get multiple quotes from contractors who can repair the damage.
In any case, documentation is vital at this step; leave no stone unturned.
When you have a firmer understanding of the situation, you can enter a negotiation with the tenant. If they’re responsible for the damage, you can ask them to pay for a contractor to repair the damage or ask them to repair it themselves. You may also be able to work out a payment plan if they can’t afford the repairs or charge them a flat fee if they’re only partially responsible for the damage.
If your tenant refuses to pay or if the damage grows worse, you’ll want to escalate the situation. Depending on the circumstances, that could mean sending reminders to your tenants about the money they owe, issuing formal warnings, or even contacting the police.
If your escalation doesn’t spark your tenant to pay you back or make the situation right, it’s in your best interest to talk to a lawyer. You may need to take your tenant to small claims court or evict them from the property entirely.
Managing tenants is stressful, and a bit of a hassle, even in the best-case scenario conditions. When you have a destructive or disrespectful tenant, everything becomes much harder. You can reduce, or even eliminate, the majority of this stress – and improve your tenant relationships at the same time – by working with a property management company. To find out what a property management company can do for you (and your properties), reach out to us at Green Residential today for a free consultation!