The secrets to distinguishing deterioration from dilapidation in the rental management of your property
As a landlord, managing your real estate property can be a significant challenge. Between finding reliable tenants, collecting rent and making any repairs, it’s crucial to use an experienced real estate broker to help you effectively manage your investment. When you entrust your property to a real estate broker for property management, it is essential to understand how to differentiate damage from dilapidation in order to guarantee financially viable and hassle-free management.
Differentiate between deterioration and dilapidation:
It’s common for rental properties to suffer damage over time. However, it’s important to recognize that not all the degradation are not equal, and they should not all be attributed to tenants. The confusion between deterioration and simple obsolescence can lead to financial management issues and create tensions between the owner, tenant, and real estate broker. Here are our tips for making the distinction:
- Degradation: This term typically refers to intentional or negligent harm caused by tenants, such as holes in walls, broken faucets, or damaged floors. These repairs are usually the tenant’s responsibility and can be deducted from their security deposit at the end of the lease.
- Wear and tear: Wear and tear refer to the natural wear or gradual deterioration of a property due to its age or regular use. It may involve issues like cracks in plaster, faded paint, or appliances no longer functioning correctly. Wear and tear are the responsibility of the property owner and should be factored into the property’s maintenance costs.
Now that you are aware of the importance of differentiating between deterioration and dilapidation in the property management of your property, it’s crucial to engage an experienced real estate broker to ensure seamless management. We have a team of highly qualified real estate brokers ready to take charge of managing your rental property. Contact us now to benefit from professional property management and optimize the return on your real estate investment.
