Being a landlord comes with an array of challenges, one of which is differentiating normal wear and tear from property damage. Though it can be complicated to determine where certain instances lie on the spectrum, it’s essential for landlords to carefully evaluate their concerns so that they can make accurate deductions to their tenants’ security deposits.
This article aims to clarify what the difference is between normal wear and tear and actual property damage, who is typically responsible for addressing each incident, and how to prevent damages from occurring.
What is Normal Wear and Tear?
When it comes to rental properties, normal wear and tear can be defined as the expected amount of damage a property might experience as a result of having people residing in it. This gradual deterioration of a property or the components of the property occurs over time due to standard, everyday use. These incidents are seen as natural consequences of living in a rental unit, and they develop without any negligence or intent on the tenant’s behalf. Usually, normal wear and tear doesn’t reduce the property’s overall value, either.
Examples of Normal Wear and Tear
Normal wear and tear is the sort of damage that routine maintenance can usually remedy. Examples of normal wear and tear include:
- Peeling or cracked paint
- Faded wallpaper
- Worn enamel on bathroom appliances
- Faded carpet or hardwood flooring due to light exposure
- Doors or windows that stick due to shifting
- Loose or dirty grout
In most cases, instances of normal wear and tear are the landlord’s responsibility to correct, as they occurred without any neglect or intention on the tenant’s part.
What is Property Damage?
Damage is quite different from normal wear and tear in most instances. This type of damage is usually more severe than wear and tear and it typically develops due to neglect, carelessness, or intent on the tenant’s behalf. Property damage is often more time and labor-intensive to remedy than wear and tear, and depending on the extent of the damage, it can affect a property’s overall value.
Examples of Property Damage
If a tenant leaves a rental unit after causing significant property damage, these instances usually need to be addressed and remedied before a new tenant can move in. This is because, depending on the type and extent of the damage, these issues can make a piece of property less liveable. Examples of this type of damage include:
- Broken windows or doors
- Holes in the walls
- Burns or significant staining on carpets
- Chipped, cracked, or broken flooring
- Cracked or broken enamel on bathroom appliances
- Unapproved paint jobs or wallpapers in the unit
- Pipes that are severely clogged due to neglect or misuse
Having a lease agreement that covers tenant responsibilities can make it easier to determine who is responsible for covering property damage. In most cases, a clear lease agreement and security deposit collection make it clear that negligent or intentional damage is the tenant’s responsibility.
Protecting Your Property from Damage
Though normal wear and tear is just a standard part of renting units to tenants, no landlord wants to see their property damaged or destroyed. For one, it’s a hassle to conduct all of the repairs needed to render the unit ready for a new tenant to move into. In addition, landlords invest time and care into the properties they manage and it’s never pleasant to expose one’s property to someone that’s going to mistreat it.
Because of this, it’s important for property owners and managers to take proactive steps that will help prevent extensive property damage from occurring in the first place.
Here are a few measures that you can have in place that will help protect your properties.
Thorough Tenant Screenings
Tenants don’t usually start neglecting their rental units out of the blue. As such, tenants are more likely to damage your property if they’ve done so with rental units in the past. On the other hand, tenants who will take care of the rental unit tend to have a history of positive behavior.
When evaluating applicants to rent to, be sure to practice due diligence and check up on each person you’re considering. Contact past landlords for reference, and consider renting to individuals with stellar reputations. This way, normal wear and tear will be all that you’re likely going to deal with.
Clear Lease Agreements
Having a clear and comprehensive lease agreement not only helps protect your interests, but it also informs the tenant of their responsibilities when residing in your unit. Be sure to have a section in your lease agreement that covers security deposits, property damage, and what is expected of the tenant throughout and following their residency.
You’ll want to include information about:
- What counts as normal wear and tear vs damage
- Details about move-in and move-out inspections
- What sort of cleaning is expected when the tenant moves out
- The procedures that follow if damage is sustained
- What security deposits may be used to cover
Collecting Security Deposits
When renting a property to a new tenant, collecting a security deposit is essential, as this sum of money can be used to protect the unit against damages done by the tenant. Remember, though, security deposits need to be used to cover repairs for actual damages, missed rent payments, or utility costs. Charging instances of normal wear and tear against a security deposit is inadvisable.
In addition, make sure that the security deposit you require does not exceed the cost of two months’ rent, as this is the limit on security deposits in Virginia.
Move-In and Move-Out Inspections
Finally, to make sure that you’re charging the right tenant for damages done to your property, it’s a good idea to conduct both move-in and move-out inspections of the unit. When one tenant leaves the unit, conduct an inspection. Inspect again when a new tenant is due to move in, and be sure to document your findings by taking photos or recording video footage. You want to be aware of the exact condition your property is in between tenants.
You might also want to conduct routine inspections during the tenant’s stay. This way, you can take notice of any damages that occur before they have time to pose serious concerns.
Understanding the delicate balance between normal wear and tear and property damage is crucial when it comes to maintaining positive landlord-tenant relationships. As such, it’s important to take your time, perform your due diligence, and accurately determine what counts as property damage. The process can be challenging, but with effort and experience, landlords can become better equipped to identify normal wear and tear vs damage and address instances accordingly.
