As a rental manager, few situations are more disheartening than discovering that a tenant has damaged your rental. Whether the damage was accidental or intentional, damage disrupts your operations, strains owner-resident relationships and incurs unexpected repair costs. Unfortunately, dealing with renter-caused damage isn't a question of "if." It's a matter of "when." If this is your first time dealing with damage, here's what to do:

1. Inspect And Document Everything

Start with a detailed inspection. Take photos and videos (with timestamps) of anything that's broken, stained, or damaged. Make sure you know the difference between normal wear and tear (which is your responsibility) and actual damage (which the renter may need to cover).

2. Review The Lease Agreement

Review your lease agreement. Look for specific language around renter responsibilities, damage, and repairs. Determine whether the issue qualifies as a lease violation.

3. Communicate with the Renter

Let the renter know what you found in writing. Include photos and reference the specific lease terms the damage violates. Keep it calm and clear. Ask for your renter's side of the story and discuss how they can repair or pay for the damage.

4. Obtain Repair Estimates

Seek estimates from licensed contractors to determine the cost of repairs. Obtaining multiple quotes helps you get fair pricing and quality work. Keep detailed records of all repair work, including invoices and receipts.

5. Handle Financial Recovery

In some states, owners may deduct repair costs from the renter's security deposit for damages beyond normal wear and tear. Provide an itemized statement of deductions to the renter within your state's required timeframe after lease termination. If repair costs exceed the security deposit, consider billing the renter for the remaining amount. If the renter fails to pay, legal action may be necessary.

6. Consult With Your Insurance Provider

Ask your insurance provider if your landlord policy covers the damage. Just remember, filing a claim might bump up your premiums. Do a cost-benefit analysis before you file.

7. Seek Legal Advice If Necessary

If the renter refuses to pay or disputes the charges, it's smart to get legal advice. An attorney can help you decide whether mediation, small claims court, or another route is best.

8. Implement Preventative Measures

Most of the time, severe damage issues come from renters who weren't a great fit from the start. That's why good screening matters. When you take the time to run background checks, verify income, and talk to previous landlords, you're more likely to end up with responsible renters who treat your place with respect. Add in a few regular inspections during the lease, and you'll catch small issues before they turn into expensive repairs.

With these steps, you can effectively address renter-caused damages, comply with your state laws, and protect your rental investments. For more advice, speak with our team at Occupancy Solutions. Since 1986, we've been helping our partners recover from renter damage.