Entrusting others with your property brings the risk that they won’t care for it as you would. While loaning your car to a trusted friend might bring minimal risk, renting property to malicious tenants could leave you with substantial damages as well as substantial repair bills. Landlords may discover damage during the term of tenancy, or more often, only after tenants leave.
Then the question arises “What can I do?”
Some damage may qualify as a crime. Often local law enforcement will decline to charge tenants criminally, declaring the issue "a civil matter" and directing you to small claims court. In all cases, be sure to document the condition of your property before tenants move in. Photographs and video are especially helpful in demonstrating the condition of the property at move-in.
Typically, damages beyond "reasonable wear and tear" are taken from a tenant’s security deposit, but 2019 changes in the General Obligations Law established a complex process for recovery that could leave a landlord facing substantial penalties in small claims court for failing to follow the law correctly. A trip to small claims court in search of satisfaction against a destructive tenant could boomerang on an unprepared landlord. Tenants armed with New York’s extensive security deposit protections can potentially leave with an award of their entire security deposit back along with twice its value as a penalty against an unprepared landlord.
If your tenant participates in a housing subsidy program, contact the administering agency to explore your options. Subsidized tenants are expected to be good tenants and damaging your property might get them removed from the program. Of course, this option might leave you with problem tenants who damage your property, and now, you are not getting paid by the program.
In some extreme cases, and at great expense, landlords can seek “injunctive relief” or money damages in Supreme Court. Where local law enforcement may not criminally charge tenants for what they consider “minor” damage, courts can order tenants to refrain from certain damaging acts and violating court civil injunctions can result in penalties that, theoretically, include jail time. Of course, small landlords can rarely afford such drastic measures where the court filing fees alone may exceed the cost of the damage. Such cases are rarely resolved quickly, requiring long-term commitments of time, effort, and especially money. In the end, a judgment against a destructive tenant may not be worth the paper it is written on.
Landlords who tell themselves “This will go on their credit report!” will be disappointed that credit bureaus stopped reporting civil court judgments after federal settlements addressing accuracy and fairness concerns regarding this practice.
There is no “one size fits all” solution for destructive tenants. The best option is to thoroughly and uniformly screen tenants as part of a consistent and well-documented Tenant Selection Plan to ensure destructive tenants don’t become your problem.
If you are a landlord or property owner seeking legal assistance with a residential or commercial eviction or dispute, we welcome you to connect with our Landlord Services team for a free initial consultation. MCV Law’s experienced landlord lawyers can help you navigate property damage claims, ensure compliance with security deposit laws, and represent your interests in court if needed. Don’t let destructive tenants cost you more—speak with a trusted legal advisor today.