- Fair handling of property damage starts with a clear, legally-binding tenancy agreement, which sets out the terms
- Landlords need to be fair when differentiating natural wear and tear over time from actual property damage caused by the tenants
- If there is property damage caused by the tenants, landlords should try and talk to the tenants directly to come up with an arrangement before pursuing any legal action.
Handling property damage fairly relies on good communication with tenants, a clear tenancy agreement and regular inspections and property maintenance.
Property damage can happen and all properties are subject to wear and tear over time. So what can you do about it? As a landlord, taking a proactive approach to property damage from the start can save you significant money and could protect you from costly, time-consuming legal consequences later down the line.
At J Property Management London, we help landlords manage their properties, from scheduling regular maintenance and inspections to drawing up watertight tenancy agreements and communicating with tenants to address any issues ASAP. Contact us today to see how we can help keep your properties in great shape and preserve their value.
Property Damage Vs. Wear And Tear
Before addressing property damage, you need to know the difference between natural wear and tear, which occurs over time, and property damage.
Wear and tear is the natural degradation of the property and its fixtures resulting from everyday use, such as worn carpets, loose fixtures, faded and scuffed paint, old appliances wearing out, etc. These things fall under the landlord’s responsibilities as part of their ongoing maintenance.
Property damage, however, goes beyond normal wear and tear and occurs as a result of negligence, accidents or misuse. This could include things such as broken windows, stains on the carpet, smashed surfaces, damage from pets, etc. When there is property damage, the tenant will usually be liable for covering costs, as long as there is clear evidence.
Handling property damage fairly will always start by differentiating what is normal wear and tear and where there has been actual damage to the property. This will help landlords know how to proceed.
What To Do To Handle Property Damage Fairly
To handle property damage fairly, there are a few key steps to follow.
Take An Inventory And Document Property Condition
Before any tenancies, you should document your property’s condition, including photos and videos of every room and an inventory of any furniture and appliances. This can help you keep track of the property’s condition over time and notice any damage to fixtures, walls and floors. At the end of the tenancy, you should carry out a thorough inspection and compare it with the original photos and videos. That way, you can see if there’s anything beyond normal wear and tear that might require compensation from the tenant.
Decide Who Is Responsible
If there is any damage to the property, you’ll need to consider if it’s normal wear and tear (e.g. worn carpets, scratches and scuff marks, tired appliances, etc.) or something more serious.
Property damage may include things such as damaged furniture, stains or burns on the carpet or furniture, damaged walls and broken windows. Whether this was done accidentally or on purpose, this damage may need to be paid for by the tenant.
It’s always worth getting multiple quotes from local contractors to make sure you’re getting the best price for repairs and that you are being fair towards the tenant.
Refer To The Tenancy Agreement
A main part of determining responsibility is checking the tenancy agreement. Clear tenant and landlord agreements are crucial for making sure both the tenant and landlord know what is expected of them and what they are responsible for, with everything laid out in writing.
Regarding property damage, a well-written tenancy agreement should say what the tenant is responsible for, what the landlord is responsible for, and what the process is in the event of property damage.
Having a clearly written tenancy agreement from the start should be the cornerstone of any tenancy, as it helps to clarify things and avoid any conflict. Contact our team if you need help drafting a legally binding tenancy agreement that protects your interests as a landlord.
Collect Evidence
If you’re sure that the tenant is responsible for property damage, you must collect any evidence that supports your claim, including a written report of the damage, photos (ideally before and after), any record of communication with the tenant, a quote for the cost of repairs or replacements.
Communicate With The Tenant
Once you have all the relevant evidence, you’ll need to speak with the tenant to discuss next steps. This should always be handled professionally and politely to keep things productive and avoid any conflict.
Here, you can present evidence of the damage and any quotes for repairs that you’ve received. If the damage was an accident or the tenant is willing to accept responsibility, it should be easy to discuss repairs and financial compensation. Any communication should also be documented in writing in case you need to present a case later.
Good tenant communication throughout the tenancy means that any issues are flagged early on and that tenants are likely to be honest and quick to report problems. If you work with a property management company providing 24/7 support, tenants are looked after around the clock, ensuring that any issues are handled as they arise and minimising the risk of any conflicts.
Next Steps
If the tenant agrees that they are liable, you could deduct money from the tenancy deposit for repair costs, only after you’ve discussed the costs with them. If the tenant refuses to take responsibility for the damage, you may need to get legal professionals involved. Legal action should only be a last resort after reasonably negotiating with the tenant or using the tenancy deposit scheme’s dispute resolution.
How To Prevent Tenant Property Damage
As a landlord, you can take preventative measures from the start of each tenancy to avoid property damage.
Thorough Reference Check
Tenant screening is one of the most important parts of being a landlord. Taking the time to get character references and run background checks can help you make sure that you’re getting trustworthy tenants who will treat your property with care. Using a professional tenant sourcing service can also help you minimise risk without having to do the legwork.
Ask For A Guarantor
Having a guarantor in place means that the cost of any property damage will be covered, regardless of the tenant’s financial situation. It gives valuable peace of mind to the landlord and protects them financially.
Create A Detailed Inventory
Having a thorough inventory, with written notes, photos and videos, makes it easier to make a claim for property damage at a later date. It’s a clear way of tracking the property’s condition over time and determining if there has been any damage.
Good Communication With Your Tenants
Good ongoing communication with your tenants means that they feel well looked after and are more likely to treat your property with care. It also means that issues are flagged early on. Working with a property management company means that tenants are in good hands all year round and are able to have a point of contact 24/7, without you needing to be glued to your phone.
Regular Inspections And Maintenance
Being proactive with your property maintenance, including addressing repairs as soon as possible and scheduling regular inspections, will reduce the chance of any property damage.
Clear Tenancy Agreement
A watertight tenancy agreement will keep tenant and landlord responsibilities clear from the outset. It is also a way to differentiate, in writing, the difference between wear and tear and property damage, to avoid any later disputes.
Handling Property Damage With A Property Management Company
Employing a property management company can help to prevent property damage via regular property maintenance and proactive inspections, 24/7 tenant support to address any issues early on, professional tenant sourcing to seek out trustworthy tenants and legally binding tenancy agreements to ensure accountability and keep everything well-documented from the start.
We can even handle guaranteed rent collection so that you never have to chase payments or deal with difficult situations with tenants.
At J Property Management, we’re experts in property management, ensuring that your property is handled smoothly and that any risks are minimised. Contact us today to see what we can do.
