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:
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:
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:
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:
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.
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:
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.