Lions and tigers and … property damage? Oh my.
You’re accepting a level of risk if you walk into the Serengeti with beef jerky as your hiking snack, and it’s no different for property managers. Well, minus the lions and snacks (we can only hope you’re not renting to exotic safari animals).
The point is, owning and operating a rental property comes with inherent risks – like property damage – that you’ll have to accept are a possibility. But, that doesn’t mean there aren’t ways to curb how much damage you’ll encounter. Here are our top 4 ways to prevent damage at your multifamily property!
Screen Prospective Renters
Preventing damage starts with a comprehensive screening of prospective renters. Damage is rarely a case of malicious intent, and more often a case of irresponsibility. You should always run your standard background and credit checks, but also take the time to ask questions. Understanding their previous rental history can be helpful in determining whether or not they’ll be a responsible resident. But don’t just take their own word for it – be sure to ask for previous rental references who can corroborate.
Require a Substantial Security Deposit
While extensive screening is helpful in weeding out irresponsible renters, it doesn’t cover the possibility of accidental damage. Though no matter the cause, securing substantial security deposits from residents during the leasing process is always advised. Not only will they help cover certain damage, they may also act as a deterrent. The beauty of a deposit is that your renters are going to want it back, so they’ll hopefully be extra careful to avoid damage that would prevent you from returning it.
Outline Expectations In Your Leases
Another deterrent, and a great legal safeguard, is to outline your expectations of residents in every lease. Leases should always inform the renter of the condition in which you expect the unit to be returned in when their tenancy is up. It’s important to be as detailed as possible here so they understand what they’re responsible for fixing or repairing, or what they’re obligated to report to you. Just be sure these policies are written and signed for, not just verbalized and shaken on.
Build Strong Relationships with Residents
While a great relationship with residents isn’t a cure-all, it will go a long way in helping you avoid major damage to your property. By being intentional in creating healthy relationships with your renters, you’ll build a foundation of respect. A resident that respects you will be more inclined to respect your property, too. To build a great relationship, prioritize communication, address their concerns when needed, and make their resident experience exceptional.
When it’s all said and done, damage to your property is the risk you take when entering the rental business. With thorough applicant screening, appropriately sized security deposits, clear expectations set forth in your leases, and strong relationships with your residents, you’re more likely to see your property treated with the respect it deserves.
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