How do You Address Missed Repairs/Issues After Tenant Vacates?

Question

I have had this happen many times and I end up paying the cost of the repair/issue since it is caught by the new tenant and the security deposit has already been returned to the old tenant.  Property manager charges 100% of first months rent.  My properties rent for between $2000-$2600.  Would it be fair for me to ask the PM to cover the repair cost since he was the one who missed it?

Examples are cracked window (blinds were closed at the time of inspection), cracked bathroom tiles, carpet stain behind closet door, missing cabinet shelf, hold in drywall behind door.  Each of these issues would have been items covered by the previous tenant's security deposit, but they were all missed during move-out inspection.  These examples span 5 turn-overs.  How do you normally handle these situations?

Karl B. · Answer

I would 100% send the photos to the PM and ask them why they didn't repair and deduct from the security deposit and ask them what they plan to do to make it right.

This is why I self-manage - the average PM doesn't give a rat's behind about me - they just want to collect their 10% with as little work as possible.

Matt M. · Answer

I agree with @Karl B.

PM companies will never ever care like you will about your property. I manage and maintain mine, and when I can’t do it anymore it’s time to sell. Unless @Nathan G. wants to manage my stuff for my wife when I croak.

Theresa Harris · Answer

It is up to the PM to do a thorough check. They may miss things that aren't obvious, but they should be checking all the cabinet doors, opening blinds and windows, etc.  As John said, they should also be holding the deposit until the inspection is complete.  Talk to your PM as based on what you wrote, it has happened for 5 turn overs. After the second time it happened, you should have said something to them.  All of the things you mentioned (aside from perhaps the cracked tile which could be the tenant or another cause) should have been deducted from the deposit.

John Teachout · Answer

Missed items like that are not uncommon. Just get it fixed and factor it into turnover costs. We don't typically return deposits right away. We're allowed 30 days.

Account Closed · Answer

This is exactly why security deposits exist, I would make it clear to the PM you expect better inspections and would like the security deposit to be held until this inspection is completed. Or do the inspection yourself, but regardless the security deposit should be hold until someone does a thorough inspection.

Ray Hage · Answer

Frankly, I would expect the PM company to eat the cost of fixing these things if they are making mistakes like that. Unless you are getting some very great deal in PM fees and service, it sounds like it is not worth using this company. It may be worth exploring your options for a new PM.

Zach B. · Answer

Do you also self manage out of state properties? Care to give any tips if so?

Chris G. · Answer

@James Sun

For our PM company we always hold the tenants security until we do an inspection. Sometimes the owner will ask for pictures or sometimes not. I'll always update the owner on issues found and take it out of the security deposit before releasing it to the tenant. Sometimes we'll even hold a tenants security up to a few weeks until estimates of repairs are complete. You could possibly ask for an inspection a few times during the lease to catch more of these issues before the tenant leaves. I would say the PM company should be at fault since they didn't see the issues.

James Sun · Answer

These issues were over 5 turn-overs and my properties are 2000 sq ft - 3300 sq ft SFRs.  The response I get is that no one is perfect and things will occasionally get missed.  Some are suggesting holding on to the deposit longer, but the move-out w/ old tenant walk-through has already been conducted.  How can I tell him to wait until the next tenant moves in to see if there are any additional damages or issues?  This just isn't practical.

I will kindly ask my PM to spend more time during the walk-through and provide more thorough documentation and pictures in hopes that this helps cut down the number of missed items.

Nathan Gesner · Answer

I can speak from experience as a PM. I am not perfect and occasionally miss things, but you're mentioning a LOT of things and some of them should be obvious:

• cracked window
• cracked bathroom tiles
• carpet stains
• missing cabinet shelf
• hole in wall from doorknob

Your PM just isn't inspecting well. In your situation, I would write the PM a nice letter/email asking them to explain how they missed these items. You can also ask for reimbursement since they are responsible for maintaining your home and they missed some very obvious damage. If they are unwilling to compensate you, then I would seriously consider looking for a new property manager as quickly as possible because these folks sound more like glorified rent collectors.

When I inspect, I document everything with pictures and any damage is photographed up close, sometimes with a hand or foot in the picture for size reference. I look at every wall, ceiling, blinds pulled down, windows and screens, doors (front, back, and spine), cabinets (open and closed), countertops, floors, appliances inside/out, lights on/off, toilet seat up/down, yard from four different corners, every exterior wall, roof (if visible), water heater, furnace, fuse panel, etc.

I start with a walk-through to turn on lights and quickly assess everything and set up for photos. Then I take a 360 photo of every room, hallway, garage, front/back/side yard, etc. Then I go back through and take detailed photos of anything requiring cleaning or repair. On an average apartment, it takes 15 minutes. On the average home, it takes 30 minutes. If there's a lot, I can spend 45 - 60 minutes. If something is blatantly not cleaned or requires a lot of damage, I may just shoot a quick walk-through video or enough photos to prove condition. For example, I just had a tenant move out that had no damages but he didn't clean a thing. I took about 20 quick pictures of dirty appliances, dirty bathroom, dirty flooring.

The point of documentation is to head off any argument from the tenant and protect yourself if it ends up in court. With digital cameras on every phone, there's no excuse. Your PM isn't doing a good inspection and I doubt they're documenting everything with pictures or video to protect you.

How do You Address Missed Repairs/Issues After Tenant Vacates?

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