If you're a landlord, you're certainly part of a substantial and widespread group of property owners. According to a report from Harvard University's Joint Center for Housing Studies, a significant portion of rental properties in the United States are owned by individual investors. This statistic highlights the role of individual investors in the rental housing market and underscores the importance of responsible property management for both landlords and tenants.
That’s about 17 million properties. And there’s a good chance most of those individuals became landlords for the same reason; A desire to build a more stable financial future.
Owning rental property can be a valuable investment, potentially providing a source of income and contributing to a more secure retirement in the future. However, when tenants damage rental property, it can indeed jeopardize these financial goals.
It's true that tenants and landlords may have different perspectives and priorities when it comes to rental property. While landlords often view their properties as investments for financial and retirement goals, tenants may not be aware of these considerations or may have different perceptions.
Landlord Rights When Rental Property Is Damaged by a Tenant
Dealing with a hostile and destructive tenant can indeed be a challenging situation for landlords, and it's essential to address such issues promptly and legally. These tenants may cause significant rental property damage out of frustration or as an act of revenge. When a tenant damages rental property, it can indeed lead to significant financial losses for landlords and impact the property's rental readiness. The extent of the damage can vary widely, from minor wear and tear to severe destruction.
What to Do If a Tenant Damages Rental Property
Before you buy your first property, you should study the landlord-tenant laws that pertain to your property. These laws aren’t just about protecting tenants from unscrupulous landlords.
They’re also designed to spell out landlord rights when a tenant destroys your property. If you haven’t studied these laws before, you should certainly do it now. Better still, hire an attorney who specializes in landlord-tenant issues with an emphasis on the landlord’s rights.
Landlord-tenant law changes on a regular basis and it can be hard to keep up. Hiring an attorney ensures your rights are completely protected and it can also help you avoid missteps in pursuing a damage claim.
Evictions
Indeed, when dealing with an angry and destructive tenant, the priority for a landlord is typically to regain possession of the property. However, the process of removing a tenant must be carried out in compliance with landlord-tenant laws and regulations.
Absolutely, you cannot simply "kick out" a tenant without following the proper legal procedures, especially when it comes to eviction for property damage. These procedures can vary significantly based on the location of your property due to differences in landlord-tenant laws and regulations.
You're absolutely right; eviction can be a complex and time-consuming process, and it's essential for landlords to carefully consider whether it's the best course of action in a given situation
Just be aware your attorney fees can add up pretty quickly. In fact, according to a survey from credit-reporting agency Transunion, eviction-related expenses (that includes filing fees and other legal fees) average about $3,500, but in some cases, they can be much more.
Tenant Abandons Property
When dealing with property damage caused by a tenant, it's important for landlords to take several steps, including consulting with their insurance carrier and potentially seeking legal guidance.
Security Deposits
In most cases when a rental property is damaged, you have the right to keep all or part of the security deposit to offset the repair costs. But again, security deposits are heavily regulated by the landlord-tenant laws in your location.
Sell Your Property — for Cash
Absolutely, rental properties are typically seen as assets, intended to generate rental income and potentially appreciate in value over time. However, when a tenant has caused significant damage to a rental property, it can indeed transform the property from an asset into a liability.
Think about it. Every day your place sits vacant, you’re losing money. Even if the property doesn’t have a mortgage, there are taxes and insurance costs to account for, as well as utilities and the complete repair costs from tenant-induced damages.
Often, the quickest, easiest, and most cost-effective solution is to sell your property so you can offload all those hassles and expenses to focus on enjoying your life again.
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