Your property is your asset that you should take good care of so it can earn you well-deserved profit and income. However, it would be foolish to think that your property will forever be the same throughout the years of your investing journey. Its condition won’t be the same from the time when your tenants move in and when they move out after the lease ends. Wear and tear can cause some damage to your rental property throughout the times. Thus, you should at least expect a level of wear and tear your rental property would have while it is occupied by tenants.
Different damage on your rental property
As property owner, you also should be aware that wear and tear is not the only factor causing damage to your rental property. There is other factor such as accidental damage. This is important to know the differences between the two because it is related to how your property insurance works. So here are things you should know about this matter about your rental property condition:
Spending money for property insurance is important to protect your property and business. It offers some forms of coverage as you should already know by now. You also must have known that property insurance can cover claims for accidental damage. However, you should remember that the insurance doesn’t cover wear and tear. It is excluded from the coverage and certainly you can’t claim for it.
It is important to define the difference between accidental damage and wear and tear. Accidental damage means it is caused by sudden or unexpected events which cause some levels of damage to your rental property. The simplest accidental damage is when you accidently knocked out your glass filled with wine from the table that it falls gracefully onto the carpet. It is consider as accidental damage.
On the other hand, wear and tear is something that accumulates over time due to regular use. The simplest example (still about carpet) is when the carpet in your rental property has got signs of foot traffic, bare patches, or flattened due to being used by your tenants for years. Thus, it cannot be claimed as accidental damage because it is not caused by accidental or malicious factors. It is reasonable condition happens to your property due to your tenant’s years living in the property.
Other examples of accidental damage include holes in the wall caused by tenant’s activity when they move some furniture, cracked tiles caused by heavy thing is dropped. Other examples of wear and tear include scuff marks on the ceilings, peeling paintwork, hand marks on blinds, etc.
To avoid misunderstanding and misinterpretation, it is important to communicate this with your property manager. It is also important to do regular inspection to your rental property conducted by your property manager under your and your tenant’s permission. Thus, it will be easier to notice accidental damages. This is also important to control sever damage caused by wear and tear. Therefore, your rental property will last longer.