Portland Property Management Damages and Deposits

Today we are talking about damages and deposits. A typical question we get is how do you handle tenant damages and what kind of deposit should be required? We have set screening criteria that dictates our security deposit schedule. Most of the people who apply will pay a security deposit equal to one month’s rent. We will raise that deposit to one and a half month’s rent if the screening warrants a larger deposit. About half of our tenants do end up paying the increased deposit and we also collect additional deposits, such as a pet deposit if they move in with dogs and cats. So, depending on the tenant’s application and pets, he or she could be looking at thousands of dollars in security deposits. It’s called a “security” deposit for a reason. This protects you in case something at your property gets broken or damaged beyond normal wear and tear. The security deposit will enable you to pay for those damages. 

Avoiding those damages is the best case scenario, and it all starts at the very beginning. If you want to avoid damages to your property, you have to do a good screening. Go through the tenant screening process with great attention to detail. You have to look at the credit report, check the landlord

references and make sure those applicants have done a good job living in other rental properties. I tend to think of property managers are an extra layer of protection for you and your property. 

We can help protect your property from damage by doing a thorough tenant screening

and collecting the right security deposit. We always let owners know that when you have a rental for a long period of time, unfortunately when the tenant leaves, you may have a little more to do than the deposit covers. But with investment also comes risk. We give you some protection against that risk. Having a documentation process in place is essential. This will help you determine how to handle damages. Make sure you do a very thorough move out inspection. Check every drawer, every window and every blind. Take a full set of pictures to document the condition. The pictures will be very helpful if you find you have to go to court to dispute the damage. It will also help you if the tenant comes back and insists he left the place clean or removed all his belongings. You can show him the pictures of the barbeque that was left on the back deck or the dirt that was found in the kitchen.  

After a good move out inspection, you can carefully weigh what problems may be simple wear and tear, which the owner is responsible for, and which problems might be damages that the tenant is responsible for. Another way to minimize your damages is to inspect the place regularly. 

When you do annual inspections, conduct a thorough move out inspection and do good screening up front, you will have an easier time managing your deposits and damages. Remember that a good property manager can help you protect your investment and avoid or minimize the risks involved. If you have any questions, please contact us at Fox Management.