Minimising the risk of malicious damage
Requiring a blend of physical security, cybersecurity, staff training, policy implementation, and collaboration with law enforcement and industry peers
As always, when it comes to managing your rental property, prevention is better than cure. Fortunately, there are steps you can take to reduce the chance of a tenant maliciously damaging your property.
Malicious damage insurance cover is generally subject to the tenant passing full referencing and credit history checks, and to reduce the risk further you might consider asking the tenant for a guarantor.
Find out more about this option in our article, ‘What is a guarantor and who can be one?’
Carrying out a comprehensive tenant referencing check and making sure that you or your agent meet and interview the prospective tenants before accepting them is vital.
A good reference agency such as TenantVERIFY will process previous landlord and employer references on your behalf, as well as credit history checks.
A four-step tenant reference process is best practice and a requirement at Total Landlord. It should include:
Photographic identification (take a copy and for joint applications make sure you obtain ID from all applicants). You will need this for the right-to-rent checks in any case
• A utility bill or bank statement as proof of residency at the tenant’s current address
• A credit history check will confirm that the prospective tenant is clear of any county court judgements (CCJs), bankruptcy or debt repayment arrangements
• Confirmation of employment through an employer’s reference shows the tenant’s employment status and their earnings capacity, with a salary that should be at least a multiple of 2.5 of the rent.
It’s also a good idea to obtain their email address and a mobile phone number of all prospective tenants and make sure it’s genuine
Always use a comprehensive tenancy application form, which should provide you with all the written information needed to carry out these checks without having to constantly refer back to the tenant.
For more information see our ‘Ultimate guide to tenant referencing for landlords’.
It’s important to be clear and transparent at the outset of a tenancy - a comprehensive and robust inventory will help to safeguard the interests of both you and your tenant should the tenancy end in a discussion over damage caused to the property.
If possible, you should use a good independent inventory company.
At Total Landlord, we are partnered with No Letting Go.
The check-in inventory (along with mid-term inspection reports) and the check-out report, will be the primary pieces of evidence for negotiating.
Without a robust inventory you will have no evidence to negotiate a claim, which makes it much harder to prove that the tenant caused the damage.
Make sure your check-in reports are completed before or when the tenant moves in, and check-out reports are completed ideally at the time the tenant moves out.
List each item and area in the property along with details of its condition
• Include photo and video evidence to support written descriptions; these should be time and date stamped and incorporated into the written report
• Include short but explanatory written descriptions
• Ideally you or the agent should walk through with the tenant making sure they agree with the written inventory
• The inventory should be signed by you or the inventory clerk and the tenant and initialled page by page. At the very least you will need evidence that the tenant received the check-in report and had the opportunity to make any amendments
For more information, see our ‘Ultimate guide to a landlord inventory and schedule of condition’.
If you have a good relationship with your tenants, they are far more likely to treat your property with respect and report any damage to you immediately. It’s important to be attentive to your tenants and well worth taking the time to nurture the relationship from the start, though without being too intrusive. After all, it is their home while they are renting. It’s a good idea to:
• Be accessible by providing your tenants with clear and direct lines of contact
• Communicate clearly about your expectations and listen to your tenants
• Explain what to do if things go wrong
• Be understanding of your tenants’ needs
• Be reliable and deal with any issues promptly
You can get the tenancy off to a solid start by providing a welcome pack.
Regular mid-term external and internal inspections of the property, as agreed with the tenant, will give you insights into how well your tenants are looking after the property.
They will also help you to get a general impression of the level of wear and tear and enable you to schedule maintenance works promptly where needed. You should:
• Agree an inspection schedule when you start the tenancy
• Carry out a first inspection within a month of the tenant moving in and then once every six months, even if you have a long-term tenant
• Provide at least 24 hours’ written notice of an inspection
• Agree a time of day which is convenient to the tenant, ideally when it’s light so that you can inspect the interior and exterior of the property
• Take along the inventory report so that you can compare the condition
• Keep records of inspections, including photographic evidence to show what has been identified and fixed, along with dates of every inspection
• Have an inspection checklist so you don’t miss anything and this provides a good record.
• Make sure tenants sign and date your inspection reports to agree that they’re happy with the findings
Read our ‘Ultimate guide to inspecting your property’ for more information.
Although you don’t have to take a deposit, your tenant is arguably less likely to cause damage if their deposit money is being held.
A deposit also offers you some protection if your property is damaged.
If you do take a deposit from your tenant, you are legally required to protect it in one of the Government’s authorised schemes such as mydeposits, which like Total Landlord is also powered by Total Property, within 30 days of receiving it.
Don’t forget to serve your tenant with the necessary statutory information that goes with the deposit scheme legislation.
Deposits are capped at five weeks’ rent where the annual rent is below £50,000 and six weeks’ rent where the annual rent is £50,000 or more.
See our ‘Ultimate guide to tenancy deposit protection legislation’ for more information.
If you present a neat and tidy rental property which is secure and well maintained, it is more likely that tenants and their guests will treat it with the respect it deserves.
Tenants might be less inclined to look after a property that is scruffy and where repairs have not been carried out.
Choose durable flooring and furnishings that are easy to clean and consider investing in CCTV or security lights to deter vandals.
Our ultimate guide to keeping your property safe and our guide to landlords’ and tenants’ maintenance and repairs responsibilities contain lots of useful tips.
Creating a detailed inventory
Establishing a good relationship with tenants
