Our experience as San Mateo property managers has shown us that landlords are especially nervous about two things. First, they fear their tenant will stop paying rent. After that, their next worst fear is that their tenant will cause property damage that’s expensive to repair or exceeds the security deposit.
As a landlord, it is expected that at some point, you’ll have to deal with tenant damage to your property. Whether it’s due to normal wear and tear or a result of tenant negligence, the process of dealing with tenant damage can be frustrating.
There are some preventative things you can do, which we’ll discuss, and there are also some specific steps that you’ll have to take if you walk into your investment property and find unexpected damage. Here’s our advice on preventing tenant damage and our guide to dealing with it if it does happen.
Best Case Scenario: Preventing Tenant Damage
The best way to deal with tenant property damage is to prevent it. We understand that even good tenants can be unpredictable, but here are a few tips and strategies that will help decrease the risk that you’ll end up with a damaged property.
- Conduct thorough tenant screening. Look for evidence that tenants have damaged rental homes before. There might be money owed to other landlords or apartment communities in their credit reports. You might find a spotty rental history. These are red flags; you want to conduct rental references and background screening that tells you a tenant can be trusted to take care of your property.
- Conduct thorough inspections. The move-in inspection report will document the condition of your property before the tenant took possession. This will be important later, when you’re comparing the condition of the property at the end of the lease term, and you notice there is damage. Your inspection report will support that. Schedule a maintenance walk-through while your tenants are in place so you can get inside, take a look around, and see how well the property is being maintained.
- Establish good tenant relationships. This will help you avoid many unpleasant situations such as late rent and tenant damage. When you have a positive and professional relationship in place with your residents, they’re less likely to damage your home.
Always enforce your lease agreement. You want to have a good relationship with your residents, but you also need to hold them accountable when necessary.
Dealing with Tenant Damage in San Mateo Rental Properties
Let’s say a tenant has moved out and there is damage to your property. What can you do and what should you do? Here’s our recommended step-by-step process:
- Step 1: Document the Damage
The first step in dealing with tenant damage is to thoroughly document the damage that you find. Take pictures and video of the damage from different angles, and make sure to include the date and time the damage was discovered. This documentation can be used as evidence when making a claim against the tenant’s security deposit or for seeking compensation in small claims court. Take detailed notes, too, and make sure you’re able to compare the property condition at the end of the lease to the property condition at the beginning of the lease. We always say to take a lot of photos during inspections. This is why.
- Step 2: Assess the Damage
Once you’ve documented the damage, assess the extent of the damage and determine the cost of repairs. You may need to call some of your preferred vendors and service providers to give you quotes. Get the work done quickly, because you’re dealing with strict timelines when it comes to the security deposit. Make sure you collect all invoices and receipts of the work that was done to repair the damage.
- Step 3: Notify the Tenant
After you’ve assessed the damage, send a written notice to the tenant informing them of the damage and the cost of repairs. In San Mateo, you have 21 days from the date that tenants moved out to return the security deposit. You’ll want to send an itemized list of deductions. Tell them what you’ve withheld from the deposit, and why. It’s not a bad idea to include the pictures and videos you took as evidence of the damage. If the tenant disputes the amount of damages or disagrees with the need for repairs, it’s important to communicate and try to reach a resolution before escalating the situation.
- Step 4: Deduct from the Security Deposit
Deduct the required amount from the departing tenant’s security deposit.
If the amount of damage that was done exceeds the security deposit that you’re holding, you’ll have to seek compensation from the tenant, which may be challenging to recover. You may elect to seek compensation in small claims court. Make sure to have all documentation, including pictures and videos of the damage, the cost of repairs, and the written notice given to the tenant. Think about how much your time is worth. While you may be in a good position to win your case, going to court for the $100 of damage that wasn’t covered may not be in your best interests. What you’ll do next really depends on the amount of damage that is outstanding.
For landlords in San Mateo, dealing with tenant damage can be a stressful process. However, by following these steps, you can navigate the process smoothly and with confidence. Always make sure to thoroughly document the damage, assess the extent of the damage and the cost of repairs, notify the tenant, deduct from the security deposit, and seek compensation if necessary. Remember to communicate with your tenants to try to resolve the situation before resorting to legal measures. By taking these steps, you can protect your property and your investment as a landlord.
As we said earlier in the blog – prevention is better. If you’d like some help with that or with anything pertaining to property management in San Mateo, please contact us at Bayside Management.
Founded in 1982 in Marin County, Bayside Management has expanded to offer full-service San Mateo property management to the entire San Francisco Peninsula. We manage single-family properties, multi-unit complexes, commercial properties, and homeowner associations.