Dealing with Property Damage: When to Charge Tenants

Coins in jar spilling out onto table.

The Laws of the Land

Much has been written about the laws which govern the landlord-tenant relationship, and for good reason. Too often, ignorance about these laws can lead one or both parties to underserve the other, which is not only unjust and makes for an unhappy living situation, but can lead to complications with the authorities.

We have addressed many of the laws that property managers are beholden to on our own blog. These ensure that the powers that be within rental property management respect their present and future tenants, according to their:

  • Race
  • Color
  • National origin
  • Religion
  • Sex
  • Sexual orientation
  • Familial status
  • Disability

Utah property management in particular is also covered by laws designed to oversee security deposits, fees, and any other means by which landlords can charge their tenants. This doesn’t get more vital than when a renter reneges on their lease agreement, either by missing agreed-upon pay periods or damaging the property.

Protecting the Property

The goal of every landlord, as well as every tenant, is to protect the property. No one wants to be on the receiving end of damage repair costs or, at the very worst, prosecution due to negligence and/or criminal activity. 

Assigning blame can be difficult to do; the guideline stipulated in most contracts mentions damages that are “beyond normal wear and tear.” Some actions like crashing the car into the corner of the house or allowing grease to catch fire and burn a kitchen wall seem pretty cut and dry — these are levied against the tenant. Other issues like scratches to the countertops or floor tiles can be argued by the tenants as wear and tear.

When it comes to protecting the property (and ultimately the landlord themselves) the more diligent the rental property management can be at the beginning, the easier of a time they’ll have if something does occur. This includes:

  • A thorough inspection of the property before a tenant moves in, marking down existing damages ahead of time.
  • An ironclad lease agreement stating exactly what the security deposit is and how it will be used, in the event of damages.
  • An understanding between landlord and tenant of the ramifications of damages exceeding the total security deposit and the grounds for suing.
  • Contracting the services of a security company to conduct mobile patrols every day.

Once the stage is set to protect the landlord’s actions according to the recompense of damages, all that’s left is to use prudent judgment when assessing who is at fault.

Charging a Tenant

Rental property management is a fulfilling profession but can have its fair share of unwelcome challenges. Conducting an investigation of property damage and notifying your tenants of remedial actions can be scary and unpleasant, especially if the tenant challenges your findings.

Usually, a tenant is charged when certain criteria, already laid out in the lease agreement, are met. They include:

  • Willful or neglectful damage to the structure of the property, including the walls, roof, or foundation.
  • Damage to the amenities, such as broken windows/blinds, broken light fixtures, cracked or scratched flooring, etc.
  • Flood or fire damage caused by tenant action.
  • Damage to the landscaping of the property, including broken garden decorations, injured trees, or destroyed plants. This pertains to fences and retaining walls, as well.

Once it has been established that the tenant is at fault — usually after an extensive inspection and documentation period — you will deduct the estimated damages from their security deposit. If the deposit doesn’t cover all of it, you will have an option to take the tenant to small claims court for the rest. If the tenant is becoming adversarial or exhibits purposeful destruction, you may need to consider eviction.

Dealing with busted property can be a real challenge for everyone involved. A dispassionate, yet honest third party hired to help you might be the best solution. Rhino Property Management is ready to step in and assist landlords in any way we can. Give us a call for a consultation today.