It’s every landlord’s worst nightmare to walk into a newly vacated unit, only to find ruined carpets, broken appliances, and scuffed-up walls that cost more to fix than the tenant’s security deposit. Tenant negligence is one of the most expensive issues to deal with and can put a damper on your rental income. However, most of the time, serious property damage doesn’t just happen out of nowhere. It’s often the result of poor screening, unclear expectations, and lack of oversight.
By being proactive, you can protect your investment and avoid costly surprise repairs.
Screen tenants to high standards
Your first line of defense against acquiring negligent tenants is careful screening. According to a TransUnion report, nearly a quarter of all rental applicants have a rental history full of late payments or evictions. People with this type of history are more likely to experience similar problems in the future. That’s why it’s crucial to perform thorough credit and background checks to verify financial responsibility and identify red flags.
You can also avoid potentially destructive tenants by verifying all references and speaking directly with past landlords to confirm how the applicant left each property. If anything was destroyed, broken, or missing, that’s a red flag.
Thorough vetting weeds out risky renters before they have a chance to cause problems. If you’ve been struggling with bad tenants or are new to rentals, the easiest way to get good tenants is to hire a property manager. For example, Houston apartment management company Green Residential screens applicants for Texas property investors who know the value of professional screening practices. For them, it’s not worth the risk trying to vet tenants on their own. Property managers have extensive experience that allows them to spot red flags fast and avoid potential problems.
Set clear lease expectations
Your written, signed lease is your first line of defense in protecting your property. For instance, although there is a legal definition of “wear and tear,” it helps to outline specific examples in your lease. Some tenants grossly overestimate what should count as normal wear and tear and honestly believe that extensive carpet stains and holes should be acceptable.
If your tenants are to be responsible for things like cleaning the gutters and changing HVAC filters, that should be spelled out in the lease. Tenants won’t necessarily perform maintenance tasks they aren’t officially told they’re responsible for. If the air filters become too clogged, it can damage the HVAC system and leave you with costly repairs.
Conduct regular inspections
Regular property inspections are essential preventive maintenance on your part and can help you identify water leaks, structural damage, and other issues before they become massive problems. They can also be a deterrent for negligent tenant behavior. Sometimes tenants make an effort to respect property when they know it’s going to be inspected periodically. Use this to your advantage.
Educate tenants on property care
Some tenants ignore responsibilities because they don’t know how to perform the tasks. A simple handout covering trash rules, appliance use, and reporting procedures will go a long way. It helps to demonstrate the basics to tenants, like how to reset breakers, shut off the water valves, or use their HVAC system properly. If there’s ever a water leak and your tenant doesn’t know where to shut off the water, you’ll be looking at costly damage that could have been prevented.
Always require a security deposit and insurance
Never skip collecting a security deposit from a tenant. Not every tenant will damage property intentionally, but damage is costly either way. If you skip deposits, you’ll be paying out of pocket for damage. Even if that damage is small, it will add up over time.
Set expectations of accountability from the start by collecting a fair security deposit that aligns with state and local limits. In your lease, outline examples of what kind of damages will trigger deductions to avoid disputes later. Some tenants have unrealistic ideas regarding what landlords can deduct. For example, if you provided a tenant with a brand new toilet at move-in and a year later you find that toilet cracked, you can deduct the cost of a replacement.
A new toilet plus professional installation might cost you anywhere from $600-$2,000, depending on the model. However, some tenants will fight you on the cost, citing cheap $150 toilets available at the local hardware store and fast DIY installations. Make it clear up front that you will deduct the funds to replace broken fixtures and have them professionally installed at market rates.
Prevention is cheaper than repairs
Negligent tenants are a nightmare, but you can avoid them with due diligence and high screening standards. By being proactive, you can prevent costly problems before they ever start to sprout.
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