What are ways to avoid rental property damage? Ending the tenure period with a destroyed rental is every landlord’s biggest nightmare. We know we’d hate to come back to the house looking worn down and torn apart. So it’s of utmost importance for every landlord to know the steps to avoiding the damage in the first place.
So how can you battle the inconveniences of rental property damage before it even takes root? Of course, before your tenant moves in, you can use these 4 steps:
1. Create a checklist
2. Do tenant screening
3. Sign a lease agreement
4. Take 3 months deposit
And for after your tenant has moved in, don’t forget to do number 5, quarterly visit.
1. Create a Checklist
This is something you can do before the tenant arrives or even with the tenant. Together, go through the house and check the condition of appliances, items, furniture, wall, flooring, & lighting. You can even take proof pictures & videos together. This will give the tenant a strong message: if the condition takes a turn for the worse, the tenant will definitely have to be responsible.
2. Do Tenant Screening
The best bet to a more secure property is, of course, to pre-screen the tenant. The least you can do before any damage is done to do a thorough background check. What you need to do is to go to your local credit report bureau that can provide your potential tenant’s financial history. Though your tenant may withheld some information from you, the bureau can reveal them easily. Of course, if the history is bad, then you shouldn’t accept the tenant.
3. Sign a Lease Agreement
Signing an agreement with your tenant will always deter the more legal consequences later on. The document should contain what the landlord & tenant side are responsible for. For example, tenants are expected to pay the utility bills on time to avoid service barring. Landlords, then, should be responsible for the maintenance of the house to ensure a comfortable living space.
However, don’t forget to get it stamped so it’s legal! Yes, you must get your tenancy agreement stamped at the nearest Lembaga Hasil Dalam Negeri counter. Find out how much you have to pay to get your agreement stamped here:
How to Calculate Stamping Fee for Tenancy Agreement in Malaysia
4. Take 3 Months Deposit
To ensure a high level of awareness by your tenant, you can require tenant to pay a 3 month’s rental sum deposit. You can check for all the unpaid bills & damaged items in your rental by the end of the tenure period. The deposit can be used to pay for them before you need to return the balance to your tenant.
But did you know, there’s another foolproof way to secure your property even more? That’s right, insurance. So on top of having deposit from your tenant, you can also add a property insurance to your defense system. Never worry at all when you’re protected by both deposit & insurance. How about considering these insurance companies that offer property coverage?
5. Quarterly Visit
As much precaution you may have taken before your tenant moves in, nothing beats visiting the physical place yourself. We’re not saying you should be suspicious of your tenant’s every move but a stitch in time saves nine as they say, right? Deceitful tenants may outright lie about damage for fear of repercussions, and careless or ignorant tenants may not think to mention problem areas that could benefit from swift attention.
Quite easy, right? By upholding a strict governance over your property even before your tenant enters the rental, and you can reduce the risk of damage using the ways listed above.