Strategies for Handling Property Damage Disputes.

Property damage disputes can quickly become difficult.

The landlord may be convinced the renter caused the damage.

The renter may believe it is normal wear, an existing problem or something outside their control.

The property manager’s role is not to immediately take a side.

It is to establish what happened, gather the evidence and work towards a fair and supportable position.

Before deciding who may be responsible, go back to the beginning.

Review:

• the entry condition report

• original photographs

• previous inspection reports

• maintenance history

• earlier reports of the same issue

• any relevant correspondence

The question is not simply:

What does the property look like now?

It is:

How does this compare with its condition before?

Try to understand the cause of the damage.

Ask:

• When was it first noticed?

• How did it happen?

• Was it reported earlier?

• Has the problem become worse over time?

• Is there an underlying maintenance issue?

• Has a contractor inspected it?

• Could age or deterioration have contributed?

Do not make assumptions based only on appearance.

Not every change in a property is renter damage.

Carpet wears.

Paint deteriorates.

Fixtures age.

Materials fail.

Properties experience normal use over time.

Before attributing responsibility, consider the age, previous condition, expected life and cause of the issue.

Where the distinction is unclear, further evidence or specialist advice may be needed.

If responsibility is disputed, evidence matters.

Depending on the issue, that may include:

• entry and current photographs

• condition reports

• inspection reports

• contractor reports

• repair quotes

• invoices

• written communication

• maintenance history

Avoid starting with:

You need to pay $1,200.

First establish why the renter may be responsible and how the amount has been determined.

A damaged item may need replacing, but that does not automatically mean the renter should be treated as responsible for the full cost of a brand-new replacement.

Consider factors such as:

• age

• previous condition

• existing wear

• remaining useful life

• whether repair is possible

• whether the replacement is equivalent

Where compensation is being sought, check the relevant legislation and current requirements in your state or territory.

A landlord may understandably see damage to their property and expect it to be restored immediately at the renter’s expense.

The PM may need to explain that responsibility still needs to be established.

Be clear about:

• what the evidence shows

• what remains uncertain

• what further information is needed

• what outcome can reasonably be pursued

• what formal options may exist if agreement cannot be reached

A strong recommendation is better than simply promising the landlord the renter will pay.

If damage is being attributed to the renter, clearly explain:

• what damage has been identified

• what evidence is available

• why responsibility is being questioned

• what action or cost is being proposed

Then allow them to provide their version of events or further evidence.

This can sometimes uncover information that was not previously known.

Property damage disputes can quickly produce long email chains.

If both sides keep repeating the same position, another email may achieve very little.

Consider whether the matter needs:

• a phone discussion

• further inspection

• contractor advice

• additional evidence

• management review

• formal dispute resolution

The aim is to move the matter forward, not simply add more correspondence.

The rules around renter responsibility, fair wear and tear, compensation, bond claims and dispute resolution differ between states and territories.

Before making a formal claim or taking further action:

• check the current legislation

• confirm the correct process

• check any evidence requirements

• check relevant timeframes

• confirm whether prescribed forms or notices apply

• escalate internally where appropriate

Do not assume a process used in one state applies in another.

Where damage is disputed, record:

• when the damage was identified

• previous property condition

• photographs and reports

• conversations with the renter

• conversations with the landlord

• contractor advice

• quotes and invoices

• recommendations provided

• landlord instructions

• any proposed resolution

If the matter later moves into formal dispute resolution, a clear history can become very important.

Damage disputes become harder when the conversation starts with:

Whose fault is this?

A better starting point is:

What happened, what evidence do we have and what is the appropriate next step?

Sometimes responsibility will be clear.

Sometimes it will not.

The PM’s job is to keep the discussion factual, make a sound recommendation and follow the correct process if agreement cannot be reached.