If you have been a rental property owner for some time now, you have probably faced some challenges with property damage caused by tenants. It is not an unusual challenge, even though you have done everything possible to prevent such issues. Or, you may be a brand new rental property owner wondering how to protect your property so its value doesn't decrease and you won't end up paying thousands of dollars for repairs.
Either way, you can do many things to minimize the risks of damaging your rental property by problematic tenants. But you need to be proactive and take concrete steps. This article will show you how exactly to protect your real estate investment.
Do Extensive Tenant Screening
Yes, you have done that step previously, as it is one of the first steps in getting tenants for your rental property. However, not all tenant screenings will give you the right tenants. The deeper you go in the screening process, the more comfortable you will be with your choices. All you need is a detailed tenant screening process.
Information like prior landlords' references can help determine whether the applicant behaved well during their previous stay and rental property. Plus, you can directly talk to the previous landlord, and they can share their experience by having the applicant as a tenant. They can provide details about whether the renter caused property damage and, if so, how they handled the consequences - whether they arranged repairs for any damages they caused or ignored the problem until the termination of their lease.
You can decide whether to accept the applicant or turn them down based on the information you gather. Moreover, you can assess the tenant's rental history, credit score, income, and employment status to ensure they have the qualifications you seek.
Another thing that you can clearly state when negotiating or discussing the terms of your lease with the applicant is that if they cause any damage, they are responsible for handling it. This way, they will be liable if such an unfortunate situation happens.
Prepare a Solid Lease or Rental Agreement
As we briefly mentioned before, preparing a solid rental agreement can help decrease potential conflicts between landlords and tenants. You must be transparent about your rental policies and explicitly outline each party's responsibilities.
Remember to include clauses covering property damage caused by the tenants. You can also think ahead and think of rules that will prevent property damage, like employing a no-smoking policy. This can prevent an accidental fire from happening.
Be Extra Careful on Move-in Day
There is a strong chance of damage occurring during the tenant's move-in day because that is when they move their furniture and belongings into the property. Scratches or dents on the walls and floors are everyday events during moving days, so reminding the tenants to be careful will be helpful. Also, you can advise tenants to wrap their furniture and belongings in protective coverings when moving in so they protect their belongings and your property, too.
Schedule Regular Inspections
You must regularly inspect the rental unit to ensure that your property is always in top-notch condition. It is one of your primary responsibilities as a landlord to ensure you keep up with all the maintenance and repairs that need to be done. Also, these inspections will reveal any minor issues in the rental unit, like past infestations or leaks, that can threaten the property's safety, health, and structural integrity. Once you spot even minor issues, you can proactively schedule repairs immediately and avoid expensive damages.
Check the doors, windows, HVAC, lighting, and plumbing systems. Categorize the inspections as move-in, move-out, seasonal, and drive-by inspections. This way, the tenant will always know what to expect. However, you must always send a notice as agreed before performing any property inspection.
Fill Vacancies Fast
You need to prioritize finding the right tenants to avoid accruing maintenance expenses when there are no tenants and no rental income. You must be aware that the longer the vacancy, the more risks you are exposed to, so you must make a robust marketing plan to advertise the vacancy.
On the other hand, you must design a plan to protect your rental unit when it's vacant. You need to frequently visit it, check for signs of entry or vandalism, and install an alarm system to secure the entry points.
Keep Your Long-Term Tenants
Building trust takes work. If you have already established a reliable relationship with your tenants, try to keep them as long as possible. They have shown that they can take care of the rental unit as they would if it were their own, so you must ensure that they renew their releases. However, you still need regular inspections to mitigate property damage risks.
Ask for a Security Deposit
Lastly, asking for a security deposit should be part of the lease agreement. The request is to protect your investment when tenants damage your rental property in any way. It will serve as coverage in such situations. The tenants would want a full refund of their deposit, so this will encourage them to take care of the property well. This is a typical act, so tenants are unlikely to dispute this charge. Still, you must check and review local landlord-tenant laws because, in some states, the landlord must put the security deposit in an interest-bearing account.
Conclusion
Avoiding property damage to your rental units can be done if you are proactive about it and have a plan that includes extensive tenant screening, regular inspections, building a good relationship with the tenants and aiming to keep them long term, explicitly outlining clauses in the lease agreement that refer to damage done by tenants, and asking for a security deposit from the tenants.
Remember, doing everything you can to avoid property damage caused by tenants will help you feel at ease about your property investment. Knowing that you have taken all the proactive steps will ensure that your property does not decrease in value over the years and will also be an attractive option.
At Iron Horse Property Management, we take these steps to protect your property seriously. We carefully screen tenants to find responsible renters, regularly inspect the property to catch any problems early and help create clear lease agreements that outline who is responsible for any damage.
We also work hard to build strong relationships with tenants, which helps prevent turnover and keeps your property in good condition. With Iron Horse Property Management, you can trust that your property is well taken care of, helping you maintain its value and protect your investment.
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