As a rental property owner, few experiences are as disheartening as discovering that a resident has damaged the home you’ve invested your time, energy, and money into. Facing a trashed property can feel overwhelming, but taking the right steps ensures you address the situation effectively. In this article, we’ll talk about how to navigate this frustrating scenario and safeguard your investment.
What to Do If a Resident Is Damaging Your Property
Understanding your rights as a landlord and following proper procedures is crucial when dealing with a resident who is damaging your property. Here are the steps to take:
1. Provide Notice
If you suspect property damage, the first step is to notify your resident that you need to inspect the home. Depending on local laws, landlords are often required to provide written notice—typically 48 hours in advance. Be sure to deliver the notice via certified mail or another verifiable method to ensure compliance with legal requirements.
2. Conduct a Thorough Inspection
On the scheduled inspection date, document the property’s condition in detail. Take clear, time-stamped photographs or videos and write detailed notes about any damages. This documentation will be invaluable if you need to pursue legal action or make an insurance claim.
3. Make an Informed Decision
Property damage constitutes a lease violation. After assessing the damage, you have two main options:
Evict the Resident: Severe damage often warrants eviction. Follow your state’s eviction process to ensure compliance with legal standards.
Live With It: In some cases, the damage may not be severe enough to justify eviction. Renovating between residents can be costly due to the possibility of an extended vacancy, but the eviction process can be lengthy and complex. So, you should weigh whether it’s more practical to address the damages after the lease ends and your resident leaves the home.
Steps to Take After the Resident Moves Out
Once the resident has vacated the property, whether through eviction or at the end of their lease, you’ll need to address the damages efficiently and thoroughly. Here’s how:
1. Document Everything
Even though you may have already completed a thorough inspection, go back through the property and take detailed, time-stamped photos and videos of the damage. This evidence will support your case if you pursue compensation through legal channels or a collection agency.
2. Obtain Repair Estimates
Even if you plan to handle repairs yourself, get estimates from third-party contractors. These estimates provide a fair baseline for calculating deductions from the security deposit or additional damages owed by the resident.
3. Complete Repairs Promptly
Minimize your losses by repairing the property quickly and getting it back on the market. Delays can lead to extended vacancies and further financial strain.
4. Provide an Itemized Accounting
Send the former resident a detailed statement outlining how their security deposit was applied to damages. This must be done within the timeframe specified by your state’s laws (e.g., 60 days in some areas). Missing this deadline could expose you to legal challenges from the resident so be absolutely sure you know the laws in your area and stick to them.
How to Handle Resident Responses
If the Resident Responds
A resident who responds to your communication—even if upset—is more likely to settle their debt. Be patient and transparent, walking them through the charges step by step. This approach can clarify misunderstandings and may even uncover additional compensable items.
If the Resident Does Not Respond
If the resident ignores your communications, act quickly. Collections professionals recommend pursuing payment within 14 days. Inform the resident that failure to respond will result in legal action or referral to a collection agency.
Filing a Lawsuit vs. Using a Collection Agency
File a Lawsuit: Pursue this option if the resident’s income exceeds a threshold (e.g., $30,000 annually) that makes wage garnishment feasible.
Use a Collection Agency: For residents with lower incomes, a collection agency may be more practical. These professionals specialize in recovering debts efficiently.
What Not to Do
Avoid these common pitfalls when dealing with property damage:
Don’t Get Mad
Reacting emotionally can damage your case and credibility. Stay professional and focused on resolving the issue in all communications you have with your resident.
Don’t Waste Time Educating the Resident
If a resident has left your property in disrepair, they are unlikely to value housekeeping advice. Focus on resolving the issue instead.
Helpful Resources
Handling property damage and resident disputes can be time-consuming and stressful–and that’s just a small piece of the landlord puzzle! Here are some resources we recommend finding to help you operate effectively:
Professional Property Management Services
A professional property management company can provide invaluable support by:
Conducting regular inspections to identify and address potential issues early on
Managing the eviction process in compliance with local laws
Handling repairs and communicating with former residents to recover damages
Legal Professionals
Engaging a legal professional can help you navigate complex situations such as lease violations, property damage disputes, and evictions. Key benefits include:
Ensuring all actions, such as eviction notices and security deposit deductions, comply with state and local regulations.
Drafting and reviewing lease agreements to minimize future disputes.
Representing you in court should a resident dispute escalate to legal proceedings.
Final Thoughts
Dealing with a damaged rental property is frustrating, but staying calm, following a structured process, and surrounding yourself with experienced professionals can help you resolve these nightmare situations effectively. By knowing your rights, documenting everything, and taking decisive action, you can protect your investment and move forward confidently.
If you or a landlord you know are looking to minimize the stress of managing resident issues, partnering with a professional property management company like Evernest can make all the difference. We help landlords everywhere manage their properties and the many complexities that come with them.
Learn more about our property management services and get started today!