Homes in Novi for sale

Novi real estate for saleWithholding of a tenant's security deposit is probably the number one reason a property manager can end up on the other end of a lawsuit or even in court. Implement Minimal Procedures to be Prepared

A prudent property manager has been educated to take the necessary precautions and follow the statutory guidelines for tenant's issues like the return of security deposits. The necessary property inspections, the data collection of the condition of the property, the amount of money a manager is allowed to deduct, the statutory procedure for deductions, and the proper method of communicating all of these steps to the vacating tenant is tantamount to a successful defense against tenant lawsuits. If a property manager has done all of these things with diligence there is a very good chance that they will have the ultimate preparation in the unfortunate occasion when they get sued.

Pre-Tenancy Property Inspections Help Prevent Post-Tenancy Problems

Prudent property managers walk-through the property with the new tenant while there is no furniture or obstacles in the unit. The property manager takes photos, logs inspection data about each and every room in the unit, details the exterior of the property including any issues that exist and gets the new tenant to sign off or agree to the condition report. This same report is used at the end of the tenancy to compare and contrast the pre and post condition status. With photos and a signed inspection report it is difficult for a tenant to claim that conditions that exist now weren't there when the tenancy began. Moreover, in some states notice of a pre-inspection at the end of the tenancy is given to tenants such that they are allowed to take advantage of the pre-inspection to repair or clean the unit which would otherwise be a deduction against their security deposit. This procedure, if properly conducted, actually prevents a lot of post tenancy issues as the tenant is fully aware of any conditions which might result in a deposit deduction, and they are given ample time and opportunity to correct the issues.

Pre-Tenancy Property Inspections Help Prepare Property Managers for Court

In the unfortunate event that a tenant disputes a property manager's security deposit deduction and actually files a lawsuit the manager who has taken the time to takes photos and log inspection data will be amply prepared for the litigation. The manager should prepare their file in chronological order, should print out each and every photograph and date and label each condition. Importantly, each person who witnessed any conditions at the property like the gardener, the painter, the cleaner should all be contacted and asked for a witness statement. It is easy to get a statement via a sworn affidavit and at the same time ask these people to make themselves available to be witnesses in court. To be clear each property manager should have the following in preparation of any hearing:

1)   A complete property file in chronological order including photos, invoices, and paid receipts;

2)   A complete history of the written communications with the tenants included in the property file;

3)   A list of witnesses with contact information;

4)   Sworn affidavits from each witness; and