Dealing with tenant-caused damage to your rental property can be stressful and costly. As a landlord in Washington, it’s important to know the steps to take to minimize losses and resolve the issue quickly and effectively. Here’s a guide on how to handle property damage caused by tenants and protect your investment.
There is a great deal to learn about the real estate investment business. While everything can look great about your investment property on paper, dealing with people is not so cut and dried as working with numbers. Whatever you do, do not skip any step in screening tenants, especially checking references and contacting previous landlords. Even with the most up-to-date and thorough screening processes, landlords can expect even the best tenants to cause some damage.
Tenants are the life bread of your business plan, and you must understand what kind of trouble you may face if you lack previous property management and don’t have strong people skills. By taking the time to understand the consequences, you will know where to focus your time and energy, and resources to avert damage to your investments before it ever occurs. Read on to discover what to do if your tenants cause damage to your Washington rental property.
1. Assess the Damage and Document Everything
The first step is to inspect the property thoroughly and assess the extent of the damage. Take detailed notes and photographs of any issues, whether it’s broken appliances, holes in the walls, or damaged flooring. This documentation will be essential if you need to make an insurance claim or pursue legal action against the tenant. Be sure to compare the damage to the property’s condition when the tenant moved in, using your move-in inspection report or photos. Unfortunately, accidents happen; even the best of tenants may cause unforeseen damage that goes beyond the normal wear and tear that is a part of the expense of owning rental properties. Other damages can occur when tenants fail to maintain their housing correctly. And while dealing with repairs is a necessary part of rental property management, landlords could prevent damage from angry tenants for tenants.
2. Review the Lease Agreement For Tenant Responsibility
Check your lease agreement to confirm what is considered “normal wear and tear” versus tenant responsibility. Most leases outline the tenant’s duty to maintain the property and avoid damage. If the damage clearly goes beyond normal wear and tear, such as deliberate property destruction or neglect, you’ll need to hold the tenant accountable for the repairs.
Once your tenants cause damage to your Washington rental property and you have determined the cause, you will need to take steps to ensure the tenant pays the repair expenses they are responsible for following the terms outlined in the rental agreement. Often landlords deduct the total costs for such damages from security deposits at the end of the lease agreement. If the damage is extreme, you may need to take legal action against the tenants. Should your attorney or insurance company request the information, you will require photographic evidence and documentation of the damage and keep any estimates and receipts from the repairs.
3. Communicate with the Tenant
Before jumping to conclusions, communicate with the tenant about the damage. There may be a valid explanation or an opportunity to work out a solution. Approach the conversation professionally and respectfully, and ask them for their perspective. In some cases, the tenant may be willing to pay for the repairs or handle them directly. Clear communication can help prevent disputes and encourage a resolution.
4. Use the Security Deposit
If the damage is substantial and falls under tenant responsibility, you can use the security deposit to cover the cost of repairs. Make sure you provide the tenant with an itemized list of the repairs and costs, as required by Washington landlord-tenant laws. Be transparent about the costs, and be sure not to deduct for anything considered normal wear and tear. If the damage exceeds the deposit, you’ll need to pursue other options for recovering the remaining amount.
5. Landlord Responsibility
If your tenants continually cause damage to your Washington rental property, you should examine your property management skills and responsibility in maintaining tenant communications. For example, tenants may learn that you simply do not respond to their calls, causing minor problems to become significant damage. Middle-of-the-night phone calls and disputes over parking spaces can become irksome, but these little things matter more than you may realize. Building solid relationships with tenants can help avoid issues with deliberate damage and help maintain the integrity of your property.
6. Consider Negotiating a Payment Plan
If the damage exceeds the security deposit, or if you don’t want to go through the hassle of withholding it, you can negotiate a payment plan with the tenant. This allows them to pay for the repairs in installments rather than a lump sum. A payment plan can help you recover the costs without the need for legal action, and it can maintain a more amicable relationship with the tenant, especially if they plan to stay in the property.
7. File an Insurance Claim (If Applicable)
Depending on the extent of the damage, you may want to file a claim with your landlord insurance policy. Many policies cover tenant-caused damage, especially if it’s accidental or related to something like a fire or flood. Review your policy to understand what is covered and gather all the documentation needed to file a claim. Keep in mind that filing a claim may increase your insurance premiums, so weigh this option carefully.
8. Seek Legal Action If Necessary
If the tenant refuses to pay for the damages and the cost is significant, you may need to take legal action. In Washington, landlords can file a small claims lawsuit to recover the costs of repairs that exceed the security deposit. Make sure you have thorough documentation of the damage, repair costs, and any communication with the tenant. Consulting with a local attorney specializing in landlord-tenant law can help ensure that you’re following the proper legal procedures.
9. Prevent Future Damage
To protect your property from future damage, make sure you conduct thorough tenant screenings before renting. This includes checking references, running background checks, and reviewing past rental history. In addition, conducting regular property inspections can help you identify any issues early and ensure that tenants are maintaining the property responsibly.
Wenatchee Home Buyers
Handling tenant-caused damage can be a frustrating experience, but by taking prompt and appropriate action, you can minimize the impact on your property and finances. From using the security deposit to negotiating a solution, there are various ways to address the issue and protect your investment in your Washington rental property.
Working with Wenatchee Home Buyers makes it easy to be a landlord. Before your tenants cause damage to your Washington rental property, why not let the pros at Wenatchee Home Buyers help you with your property management game? Wenatchee Home Buyers knows the laws that protect landlords like you and can help you with your screening process, rental agreements, and every other aspect of managing your investment properties, lowering the overall risks of damage ever happening. From real estate investment and exit strategies to locating the best rental properties in Washington, Wenatchee Home Buyers can help you build your skills; Wenatchee Home Buyers makes it easy to be a successful landlord! Wenatchee Home Buyers has a full-service team of the most highly regarded experts from every walk of the real estate industry. Wenatchee Home Buyers can do it all or work with you to help you manage your properties. Let Wenatchee Home Buyers help you keep your tenants happy and reduce your turnovers and repair expenses. Contact Wenatchee Home Buyers at (509) 906-3680.