Renting out your property can be a great way to generate income, but it also comes with risks. Bad tenants can cause significant damage, leading to costly repairs and reduced rental income. It’s essential to consider how to protect your investment.

Designing for Durability

One of the key things you need to ask yourself when preparing your property for rental is, “Is it designed for heavy wear and tear?”. Many properties are built with the intention of renting them out but fail to consider the kind of damage that can be caused.

Here are a few elements to consider when designing your rental for maximum durability:

• Flooring: Avoid fragile materials such as palimanan stone, which stains easily and can be damaged. Instead, opt for durable, easy-to-clean surfaces.
• Wall Coverings: Light-colored, thin wood veneers, while aesthetically pleasing when new, can easily become marked and damaged, especially in high-traffic areas. Choose more resilient materials.
• Fixtures and Fittings: Avoid breakable items like delicate ornaments, especially in traffic areas. Select solid, durable fixtures.

Understanding the Risks

It’s a common misconception that only lower socio-economic groups make bad tenants. The reality is that bad tenancy is more about attitude than income. People may not care for a rental property the way they would their own home. There can be intentional damage caused by anger, jealousy, or just plain carelessness.

Other risks include:

• Accidental Damage: Things get knocked over, doors can be scraped by hinges, tiles get broken.
• Intentional Damage: There have been cases of tenants cutting holes in walls or removing doors.
• Pets: Dogs can cause damage by scratching doors and biting furniture.
• Unforeseen Events: Renters may try to use the property in unexpected ways, like setting up a dartboard on a door.

It’s important to remember that a property’s condition can deteriorate faster when rented compared to owner-occupied homes.

Practical Tips for Protection

Here’s how you can protect your property and minimize the impact of bad tenants:

• Build or renovate with durability in mind: Look to hotels for design inspiration. Hotel rooms are built to withstand regular wear and tear. Use high-quality, washable paints, durable furniture and carpets.
• Secure appropriate insurance: Make sure your insurance policy covers damage caused by tenants.
• Choose your agents wisely: Select a rental agent who will look after your property and conduct regular inspections. Avoid long-term contracts you cannot get out of if necessary.
• Set clear rules: Establish well-defined rules, such as no pets and no dartboards.
• Conduct regular inspections: Independent inspections will help to identify problems early and ensure your property is being well maintained. Regular inspections will help identify the culprits.
• Consider hiring a caretaker: A dedicated caretaker might be helpful to keep an eye on the property.
• Create a maintenance budget: Be sure you are charging enough to maintain a high standard. Consider proactive renovations to prevent major, expensive overhauls.
• Organize a bond: Take a bond from tenants to cover potential damage. If an agent does not respect the bond, then find a new one.

The Bottom Line

Renting your property doesn’t have to be a stressful experience. With careful planning and thoughtful design choices, you can protect your investment and maintain its value. By designing for durability, carefully considering the risks and taking appropriate preventative actions, you can make renting a successful endeavor.