A guide to dealing with tenant property damage

Dealing with property damage can be stressful. It can also be costly in some cases, especially if you don’t know the correct steps to take.

This guide outlines what to do if a tenant damages your property and how you can reduce the risk of property damage happening in the future.

Assessing the damage

Before you take action, it’s a good idea to take a step back and assess the situation calmly. Start by comparing the current condition of the property with the original inventory or check-in report.

Determining who is responsible will likely depend on whether the issue is considered fair wear and tear or actual damage.

Determining who is responsible

Property damage is usually classed as either:

Fair wear and tear

This type of damage is not typically the tenant’s responsibility to repair or replace. It usually covers minor issues, such as:

  • Wearing and scuff marks
  • General ageing of fixtures and fittings
  • Minor scratches

Actual damage

In many cases, the tenant can be held responsible for this type of damage. This can be irrespective of whether the damage is classed as accidental or malicious.

Examples include:

  • Broken windows
  • Damaged furniture
  • Burns or stains on the carpet

Check the tenancy agreement

The tenancy agreement will typically outline who is responsible for the damage.

Specifically, it should say:

  • What the tenant is responsible for
  • What the residential landlord is responsible for
  • The process for reporting and resolving damage

Refer to local laws and guidance

You should also check what the law states about the damage you’ve encountered. For example, in the UK, tenants can only carry out repairs if the tenant agreement states they can. You can read more about this here.

You can also read the Landlord and Tenant Act 1985. It can provide guidance on whether the landlord or tenant is responsible for fixing certain types of property damage.

Gather evidence

When you’re sure the tenant is responsible for the damage, you can start gathering evidence to help your claim.

Important evidence includes:

  • A signed inventory with condition reports and photos
  • Evidence of the damage
  • A record of communication with the tenant
  • A clear cost breakdown for repairs or replacements

Communicate with the tenant

Once you’ve gathered the necessary evidence, the next step is to speak with the tenant. Remain calm, clear, and professional throughout the conversation.

Outline the damage, reference the property inventory, and allow the tenant a reasonable amount of time to respond. To help avoid conflict, keep the conversation factual rather than emotional.

It’s also good practice to follow up in writing, summarising the issue, any discussions held, and any agreements reached. This written record can serve as valuable evidence if the matter needs to be escalated later.

Can you sue the tenant for damaging property?

Yes, you can take legal action against a tenant if they’ve caused damage that goes beyond normal fair wear and tear. However, this is usually a last resort, as the process can be time-consuming and costly. There’s also no guarantee of success.

Before considering court, you may want to:

  • Attempt to resolve the issue directly with the tenant
  • Use the tenancy deposit scheme’s dispute resolution if a deposit is held
  • Ensure you have documented evidence of the damage, and any costs incurred

Measures that can prevent tenant damage

Taking preventative measures is an effective way to help avoid damage. Here are some practical steps you can take:

  • Carry out a thorough reference check: Screening tenants can highlight potential issues. If you spot something that may be a problem, you can either find another tenant or take steps to help mitigate the risk, such as asking for a guarantor.
  • Put together a thorough inventory: Not having an inventory makes it much more difficult to dispute claims. That’s why it’s advised to complete a check-in report before a tenant moves in—it means you have essential evidence if there is property damage.
  • Have a good working relationship with your tenants: A good working relationship usually means your tenants are more likely to treat your property with respect and care. Things like being reliable, accessible, and attentive to your tenant’s needs can all help strengthen the relationship.  

Can landlord insurance cover tenant damage?

Whatever measures you take, damage can still happen to your property at any time. If it does and you don’t have suitable insurance in place, you could be left to cover significant costs.

Most policies can protect you against both accidental and malicious damage. Visit our dedicated residential landlords page or call us on 0800 092 9394 to learn more.

Disclaimer:

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

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