How To Mitigate Property Damaged From A Tenant

As a property owner, protecting your investment is a priority. Though most tenants are respectful and responsible, property damage, whether intentional or accidental is an unfortunate part of the rental experience. The good news is that there are proactive steps that can significantly reduce the risk of tenant related damage.

Regardless of the rental type offered, here are 5 ways to remain one step ahead and safeguard your property.

1. Screen Tenants Thoroughly

Tenant screening is you first line of defense. A comprehensive process includes:

• Credit and background checks
• Employment and income verification
• Rental history with landlord references

In Ontario, landlords must adhere to the privacy guidelines set out by the Ontario Human Rights Code, avoiding questions that could be considered discriminatory. In Michigan, similar fair housing laws apply under the Michigan Civil Rights Act.

2. Document the Property's Condition with Inspections

Performing a detailed move-in and move-out inspection is a must. Use a checklist and take timestamped photos or videos of each room. Integrating this best practice strategy provides a critical layer of protection for landlords and property managers. Here are a few other reasons why inspections matter:

• It provides a clear record
• It helps set expectations with the tenant
• It makes damage claims easier to prove
• It can save time and reduce cost
• It helps you catch minor issues sooner

A well-documented inspection protects both the landlord and tenant. It provides transparency, reduces disputes and fosters a professional rental experience. Consider it like a legal safety net.

  3. Document the Property's Condition with Inspections

A clearly written lease agreement is critical. It should include the following:

• Tenant responsibilities for cleanliness and minor maintenance
• Rules about pets, smoking and alterations to the to the property
• Penalties or procedures for property damage

If you're in Ontario, ensure your leases are following the Standard Lease Agreement introduced by the province. If you're in Michigan, there's more flexibility but clarity is key. Regardless of the state or province, it's always best practice to outline what constitutes "normal wear and tear" versus "damage as well as what tenants are liable for.

4. Conduct Routine Property Inspections

Schedule routine inspections every 3-6 months and provide sufficient notice (24 hours in Ontario and reasonable notice in Michigan). Remember to always look for signs of:

• Unauthorized pets or occupants
• Water damage or mold
• Broken fixtures or unauthorized changes to the unit

The goal is to catch issues in advance and avoid costly repairs.

5. Encourage Open Communication

Cultivating and maintaining a good landlord-tenant relationship encourages tenants to report problems early and to treat the property with care.

• Be responsive to maintenance requests
• Use software to help maintain communication
• Let your tenants know you value their honesty and cooperation

Through fostering open communication, you build trust, reduce misunderstandings and create a more peaceful rental experience helping you to solve problems before they start.

6. Consider Landlord Insurance

Having basic homeowner insurance won't cover tenant related damages. Invest in landlord insurance tailored to rental properties, which typically includes:

• Protection against intentional damage by tenants
• Liability coverage for tenant or guest injuries
• Loss of rental income in case of significant damage

In both Ontario and Michigan, various insurers offer policies designed for landlords. This is a step you shouldn't omit.

Tenant damage is a risk, but it's not an inevitability. The key lies in prevention and protection: screen well, inspect often, document everything and stay legally informed. Taking these steps can preserve the value of your rental property and provide you with peace of mind.