Who is Responsible for Property Damage?
Homeowners are responsible for both damage and wear and tear for their property but for a rental, the responsibility can be less clear cut. Property damage can be a sticky issue for both Durango property managers and tenants. Deciding what is normal wear and tear and what is damage can result in unexpected costs. Some things, like a hole, punched in a wall, are damage, but others are more subtle such as painting walls without permission. Some things, often called acts of God, cannot be prevented such as hail, heavy snow, flooding, and fires. Fires can be caused by lightning but may also be caused by humans. Many of these can be mitigated by cleaning brush and removing snow before it gets too heavy. The Property Manager understands that accidents happen and will work with homeowners and tenants to prevent them when possible.
Inspections
There are two times when a rental inspection is especially important; when moving in and when moving out. When tenants move in, you should have a detailed initial inspection list that documents any problems found. Pictures of problem areas will also help prove whether or not the problem was there before the tenant was. The same list should be gone over again at move out to document any changes in the condition of the rental property. This list will be used to determine what is wear and tear and what is damage. It is important to be detailed and thorough, especially on the initial inspection. Whether or not the security deposit will be returned to the tenant is often decided on the difference between the two assessments.
Wear and Tear
Plumbing can leak. Faucets and showerheads wear out over time. Appliances have a limited life span. Floors get worn and scuffed and carpets wear high traffic spots. Paint can peel or have sun damage over time. Costs for repairing these should not come from the tenant’s security deposit but the property manager should be made aware of them as soon as they are discovered. For example, a plumbing leak that isn’t taken care of right away can result in expensive damage that could be the tenant’s responsibility if they don’t notify the landlord immediately upon discovery.
Damage
Damage can include holes or tears in flooring, even if accidental. Burns, oil or pet stains, scratches on flooring or walls also count as damage. Doorknobs may cause holes in walls that are normal wear and tear if doors aren’t slammed open or shut but other holes, such as nail holes for picture hanging can be considered damage. Broken windows, missing screens, torn curtains, broken blinds, or missing window coverings also count as damage. Water damage from overflowing sinks and tubs, and burns or cuts to countertops also count. Some things like a broken toilet seat may be an easy fix but a broken toilet tank is more costly damage.
Security Deposits
Security deposits are meant to cover damage, not normal wear and tear. If you have pets, the property manager may also require a pet deposit. Security deposits are usually returned to the renter once the property manager has verified that there is no unexpected damage to the property. However, if they do find damage, the cost of repairing it may come from the security deposit and renters may forfeit all or a portion of it. If the damage was present before move-in, the initial inspection and photos should be proof that the most recent renter did not cause the damage. Keeping detailed documentation, in this case, could save money.
Rental Insurance
Damage to personal property within a rental unit is rarely covered by property management. For instance, a water leak may damage walls, floors, and personal property. The walls and floors would normally be repaired or replaced by property management but any personal property is the responsibility of the renter. Rental insurance may cover the replacement of personal property depending on the policy, which is why it is important to encourage tenants to get rental insurance and read their policy carefully.
The Property Manager can help you professionally manage your rentals. We’ve been established here in Durango, Colorado for almost 35 years. Give us a call to set up a time to talk, (970) 259-0222 or you can also send an email to rentalinfo@rentdurango.com.
This article does not represent legal advice. This is for informational purposes only. Please consult your attorney with any legal questions.
Resources:
https://www.usnews.com/insurance/renters-insurance/what-does-renters-insurance-cover
