What Happens if my Tenant Damages my Property?

20 Sep 2016

by Helen Thring

As a landlord, one of the key aspects of renting out a property is ensuring that you protect your investment. While most tenants respect the property they rent, damage can still occur, and it’s essential to know what to do in such situations. This is where having a clear tenancy agreement becomes vital, as it outlines the responsibilities of both the tenant and the landlord. In this blog, we will discuss the steps you should take if your tenant damages your property, how to protect yourself, and what to do in the event of a dispute.

1. The Importance of a Tenancy Agreement

The first step in ensuring a smooth landlord-tenant relationship is to have a well-drafted tenancy agreement in place. This agreement should clearly state the tenant responsibilities, including those relating to property maintenance, paying utility bills, and ensuring that the property is clean and well-maintained. Without a formal agreement, your rights and responsibilities, as well as those of the tenant, become unclear, which can lead to confusion and potential legal issues. By having a comprehensive tenancy agreement, you can avoid these problems.

The agreement should specify what constitutes normal wear and tear (e.g., scuff marks on floors, faded paint) and what would be considered damage (e.g., broken windows, large stains on carpets, or holes in the walls).

What is Wear and Tear?

It’s important to note that some level of wear and tear is expected during a tenancy. For instance, carpet wear, minor scuffs on the walls, and slight fading of paint over time due to natural light are generally not considered tenant responsibility. However, any significant damage caused by the tenant’s actions, such as broken doors, appliances, or structural damage, is the tenant’s responsibility under the Tenant Act. A reasonable tenant would generally ensure that they adhere to these responsibilities, provided the terms are clearly laid out in the agreement.

2. How to Protect Your Property from Damage

While it’s essential to rely on a tenancy agreement, there are several other steps you can take to safeguard your property from potential damage:

Require a Security Deposit

A security deposit is an essential tool for protecting your property. By requiring a deposit from your tenants, you ensure that funds are available to cover the cost of repairs or replacement of any items damaged during their tenancy. According to UK law, this deposit must be held in a deposit protection scheme, such as the Tenancy Deposit Scheme (TDP), which provides protection for both parties.

Schedule of Condition and Inventory

Before your tenant moves in, it’s a good idea to conduct a schedule of condition and inventory. This document should detail the property’s condition, including photographs of rooms, appliances, and furnishings. It serves as a record of the state of the property at the start of the tenancy and can be referred to at the end of the lease to determine if any damage has occurred.

Both the landlord and the tenant should sign the inventory and schedule of condition to ensure transparency. This will make it easier to identify what damages, if any, occurred during the tenancy. Without this documentation, it’s much harder to prove that the tenant caused the damage, leading to potential disputes. This is especially important for key responsibilities such as garden maintenance, ensuring that external areas are also included in the inventory.

3. How to Handle Damage During the Tenancy

If damage does occur during the tenancy, it’s essential to handle the situation carefully and professionally. Here are the steps you should follow:

Assess the Damage

The first thing to do is assess the extent of the damage. If the damage is minor (e.g., a small hole in the wall or a broken window), it may be something that can be easily repaired. However, if the damage is more significant, such as gas appliances being damaged or pest control issues arising, it’s essential to get professional quotes for repairs to ensure you are getting the best price.

If the damage is caused by something the tenant has done deliberately or through negligence (e.g., broken doors, damage to structural components of the property), the tenant should be held accountable for the cost of the repairs. In this case, you can deduct the cost from their deposit.

Get Quotes for Repairs

Once the damage is assessed, it’s advisable to get quotes for any necessary repairs. It’s a good practice to contact multiple tradespeople to ensure that you’re getting a fair price. After obtaining quotes, share the details with the tenant, along with receipts for any repairs made. If the damage requires specialized repairs, such as pest control or repairing gas appliances, be sure to hire certified professionals.

This step is crucial for maintaining transparency and fairness, especially if the tenant disputes the charges. Having detailed invoices will help demonstrate that the charges are reasonable and justified.

Deductions from the Deposit

Once you’ve determined the cost of repairs, you can deduct the appropriate amount from the tenant’s security deposit. If the tenant has caused damage beyond normal wear and tear, the deposit can be used to cover the cost of repairs.

It’s essential to follow the correct procedures when making deductions. The deposit must be held in a deposit protection scheme (DPS), which ensures that the tenant’s money is protected and that any disputes over the deposit are handled fairly. The tenant must be provided with an itemized list of the deductions made from the deposit.

If the tenant disagrees with the deductions, they can raise a dispute with the DPS, which will then mediate the situation. This provides both landlords and tenants with peace of mind that the process will be handled fairly.

4. What Happens if a Tenant Breaches the Terms of the Tenancy?

If a tenant causes damage or breaches the terms of the tenancy agreement (for example, by failing to pay rent or causing significant harm to the property), you may need to take further action.

Serving Notice

In cases where damage is severe or the tenant refuses to cooperate, you may need to begin proceedings to take possession of the property. Under the Housing Act 1988, you can serve a Section 8 Notice if the tenant has breached the terms of the tenancy agreement. This notice gives the tenant a specified period (usually 14 days) to rectify the situation or leave the property.

If the tenant does not comply with the notice, you may need to go through the courts to regain possession of the property. It’s important to follow the proper legal process to ensure that you don’t violate the tenant’s rights.

Eviction Proceedings

If the tenant continues to refuse to leave, you may need to proceed with formal eviction through the courts. This can be a lengthy and costly process, so it’s always preferable to resolve disputes amicably, but sometimes eviction is the only option.

5. Preventing Damage: Tips for Landlords

To reduce the likelihood of tenant damage, landlords can take a few preventative measures:

• Regular Inspections: Conduct routine inspections throughout the tenancy to identify any potential issues early on. Always provide proper notice to the tenant before entering the property.
• Clear Communication: Maintain open communication with your tenants and encourage them to report any issues promptly. This can help prevent small problems from becoming bigger ones.
• Consider Renters’ Insurance: You might also consider advising your tenants to take out renters’ insurance to cover potential damages to the property.
• Emphasize Tenant Responsibilities: Regularly remind tenants of their key responsibilities, such as keeping the property clean, handling basic property maintenance, and ensuring garden upkeep.

Conclusion

As a landlord, dealing with property damage can be frustrating, but it’s important to approach the situation professionally and within the framework of the law. By having a clear tenancy agreement, requiring a security deposit, conducting a thorough inventory check, and using a deposit protection scheme, you can protect both your property and your interests. If damage does occur, following the proper steps to assess and repair the damage, and ensuring transparency with your tenant, will help maintain a fair and respectful relationship.

For further advice or assistance with property management, don’t hesitate to contact us today.

For more information or to speak to one of our lettings team contact us on 01344 860121.