Resident damage is inevitable in the life of a landlord. And it’s more pronounced in rental properties than in a primary residence due to the relatively higher turnover rates.The damage can take either of two forms. It can either be normal wear and tear or unexpected damage.
As a landlord, it’s important to know the crucial differences between normal wear and tear vs. damages. Why? For one, it can help ensure any deductions you make on a resident’s security deposit are legitimate. Wrongful withholdings can have serious repercussions on your bottom line.
Two, knowing the differences can help you differentiate what repairs are liable to each party of the lease agreement. It’d be unlawful, for example, to hold a resident accountable for any pre-existing damage or damage arising from normal wear and tear.
With that in mind, the following is everything you need to know about resident damage and normal wear and tear.
What Is Normal Wear and Tear on a Rental Property?
Generally, any expected deterioration of a property over time is considered normal wear and tear. In other words, it’s the kind of property damage that results from everyday use.
After all, this is a natural consequence of property use over time. You can, for instance, anticipate tile floors to undergo discoloration and dulling over time.
Typical wear and tear occurs during the course of occupancy by a resident. The more residents there are, the higher the rate of normal wear and tear will be. A high turnover rate by renters will also lead to increased normal wear and tear.
Almost all aspects of a property are prone to undergo wear and tear. From doors and windows being opened and closed, to tiles being walked on, to appliance usage, and everything in between.
The following are some examples of damages that are a result of normal wear and tear.
- Chipped, faded, or cracked paint on walls, trim, or doors.
- Slight or faded wallpaper.
- Small nail holes.
- Faded or worn carpet, or minor scuffs or scratches on wood floors.
- Minor dents or scratches on appliances.
- Chipped or cracked caulk around sinks or tubs.
- Minor scratches on window sills or door frames.
As a landlord, you’re responsible for fixing this type of normal wear and tear after the renters move out. You cannot use a residents security deposit for damage that is considered normal wear and tear.
What Constitutes Unexpected Damage?
Unexpected property damage is also known as excessive property damage exceeding normal wear and tear. Excessive property damage can result in multiple ways, including from the resident’s abuse, misuse, carelessness, or negligence. In this case landlords may use their residents security deposits to cover the cost of restoration.
- Holes in walls that are larger than small nail holes, possibly requiring patching and repainting.
- Flooring damage such as deep scratches on wood floors, gouges in vinyl flooring, or ripped carpet.
- Graffiti on a walls, broken windows, or intentional destruction of property.
In some cases, however, unexpected or excessive property damage can also result from landlord negligence.
- Structural issues like a damaged roof or foundation.
- Property damage that results from a faulty structural design.
- Property damage arising from poor maintenance of the premises, such as water damage and mold growth.
As a landlord, you are responsible for ensuring your rental property is habitable. A habitable rental property is one that meets the state’s basic safety, health, and building codes.
That responsibility includes responding to repair requests in a timely fashion. According to Title 29 Chapter 441, Missouri landlords must make requested repairs within a “reasonable” time after resident requests. This is usually taken to mean within one week, or sooner for emergencies.
If you fail to do so, the resident can have some legal options they can exercise. Including, suing you for any damages incurred, obtaining a court order to force you to do the repairs, withholding rent, or terminating the lease agreement without penalty.
Missouri renters, unlike in some states, have a legal right to withhold rent for repairs.
4 Tips to Minimize Rental Damage
1. Respond to Issues Quickly
As a landlord, being proactive is key to running a successful investment. Once a resident makes a maintenance request, make sure to respond quickly. Unaddressed repairs or maintenance issues can (and often do) lead to serious issues.
What starts as a small leaky faucet can grow to become a big problem costing you lots of money. Not only can that lead to the wastage of gallons of water over time, but can also be a recipe for a myriad of other issues as well. Including, mold and mildew growth, pest problems, and flooring damage. If this seems overwhelming, consider hiring a property manager to take care of it for you.
2. Know When to Deduct From a Resident’s Security Deposit
Please note that landlords can only pull from a resident’s security deposit if the damages exceed normal wear and tear.
Security deposit deductions are usually a source of conflicts in many landlord-resident relationships. Ideally, make sure you document the property’s condition when a resident initially moves in. Thereafter, the move-in inspection checklist will be used as a reference point after the resident moves out.
When deducting from a deposit, it is essential to document the type of property damages, cleaning fees, and repair costs. This detailed documentation should be shared with the resident to clearly explain the reason for the cost deduction.
3. Conduct a Walk-Through Inspection
Walk-through inspections are mandatory under the Michigan landlord-tenant law. You must do this after the resident moves out of the unit. The following are important basics to note about walk-through inspections.
- The resident has a right to be present during a walk-through inspection.
- You must notify the resident of the date and time of the inspection.
- You must carry out the inspection during a “reasonable time” or as agreed by both parties.
After you’re through with the inspection, present your findings to the resident. This way, they will know what security deposit deductions they can expect, minimizing security deposit disputes or misunderstandings.
4. Conduct Thorough Screening of Prospective Residents
Screening each prospective resident thoroughly is key to reducing resident damages and protecting your property. Verify their creditworthiness, rental history, background, and employment status to ensure they are financially responsible and likely to care for your property.
A well-vetted resident is more likely to adhere to the terms of the lease agreement, further safeguarding your property from potential issues. Additionally, ensuring that the lease terms are clearly understood and followed by the ressident further minimizes risks.
This comprehensive screening process increases the chances of finding the right renter for your property, reducing the risk of costly damages and ensuring long-term protection for your investment.
Bottom Line
Now you know what constitutes normal wear and tear and the type of property damage that goes beyond it. Your journey to running a successful investment begins by educating yourself on your rights and responsibilities.
For expert help in property management in Grand Rapids, look no further than Compass Property Management. We take pride in our team of trusted and experienced real estate professionals. Get in touch to learn more!
