What Can You Do If a Tenant Causing Damage To Property: Steps and Legal Rights for Landlord in 2025

Tenant-caused property damage is a stressful situation for any landlord. Whether it involves minor negligence or significant destruction, property damage can result in substantial financial losses and complex disputes. This guide provides a comprehensive overview of how to handle damage caused by tenants, from initial documentation and communication to utilising the security deposit and, if necessary, pursuing legal action.

What Counts as Tenant-Caused Damage?

It is essential to distinguish between "normal wear and tear" and actual "damage." Normal wear and tear refers to the expected decline in a property's condition due to everyday use (e.g., faded paint, worn-out carpets). Tenant property damage, however, is harm caused by negligence, abuse, or intentional action that goes beyond this expected decline. This distinction is a key legal aspect of renting out a home in India, as landlords can charge for damage but not for normal wear and tear.

Steps to Handle Tenant Damage - Quick Info

When you discover damage to property by a tenant, following a structured process is key to resolving the issue fairly and legally.

Step	Action to Take	Why It Matters
Document Everything	Take clear, dated photos and videos of the damage.	These are crucial for any potential legal disputes.
Communicate Formally	Send a written notice to the tenant detailing the damage and referencing the lease agreement.	Formal, written communication establishes a clear record.
Get Repair Estimates	Obtain at least two professional quotes for the cost of repairing the damage.	This provides a fair and verifiable basis for determining the amount to deduct from the security deposit.
Deduct from Deposit	Provide the tenant with an itemised list of deductions and receipts for repairs.	This is the legal and transparent way to use the security deposit to cover the cost of tenant negligence damage.
Pursue Legal Action	If costs exceed the deposit or the tenant disputes the claim, send a legal notice and consider filing a case.	This is your final recourse to recover costs for significant damages and enforce the terms of your lease.

Common Types of Tenant-Caused Damage

Being aware of common issues can help you spot them during inspections. Damage caused by tenants often falls into these categories:

• Wall and paint damage: This includes large holes from nails or screws, unauthorised paint jobs or significant stains on the walls that require more than a simple cleaning.
• Flooring damage: This involves cracked or chipped tiles, deep scratches or water stains on wooden flooring, and burn marks or permanent stains on carpets.
• Plumbing and fixture damage: Broken toilet seats or tanks, cracked washbasins, and damage to faucets or showerheads caused by misuse. 
• Broken doors and windows: This includes cracked windowpanes, broken locks or handles, and damage to door frames or window sills that is not due to age or wear.
• Unauthorised alterations: Any changes made to the property without the landlord's written permission, such as removing walls, changing permanent fixtures, or installing new structures.
• Appliance damage: If you have provided appliances, any damage beyond normal wear and tear, such as a broken microwave door or dents in the refrigerator, is the tenant's responsibility.
• Damage to common property: Damage to common property by a tenant, such as breaking a lobby window or damaging a lift, is also their liability.

Landlord Rights and Responsibilities

When a tenant causes property damage, it is crucial to understand your legal rights and responsibilities to handle the situation correctly.

• What the Lease Agreement Covers: Your rental agreement is your most powerful tool. It should contain clear and specific clauses that define what constitutes "damage" versus "normal wear and tear." The agreement must also explicitly state that the tenant is financially responsible for repairing any damage they or their guests cause.
• Security Deposit Rules: Indian rental laws permit landlords to collect a security deposit at the start of the tenancy. You have the right to use this deposit to cover the costs of repairing any damages caused by the tenant. However, this deduction must be reported, and any surplus returned. 
• Insurance Coverage: It is a landlord's responsibility to have standard home insurance to cover major events like fire or natural disasters. However, for specific tenant damage insurance, you may need to get a specialised rental property damage insurance policy or an add-on that covers malicious damage caused by tenants.

Steps to Take When a Tenant Damages Property

When you discover damage, acting promptly and professionally is key. Here is a step-by-step guide on how to proceed.

1. Document the Damage

As soon as you notice the damage, your first action should be to document it thoroughly. This evidence is your most valuable asset in the event of a dispute.

• Take Clear Photographs: Use a quality camera or smartphone to take multiple, well-lit photos of the damaged area from various angles.
• Record Videos: A short video walkthrough of the damage can be very effective, as it allows you to describe the issue while recording verbally.
• Include Date Stamps: Ensure your photos and videos have a date and time stamp to prove when the damage was recorded.
• Write Detailed Notes: Make a written record describing the nature and extent of the damage, referencing the date and time you discovered it.
• Compare with Move-In Records: Always compare the current condition with the photos and checklist from your move-in inspection to clearly document any changes in condition.

2. Communicate with the Tenant

Open and formal communication is essential. Avoid verbal arguments and create a written record of your communication.

• Provide Written Notice: Inform the tenant about the damage in writing (via email or a formal letter). Do not rely on a phone call or verbal conversation.
• Be Specific: In your notice, clearly describe the damage, attach the photos you took, and reference the clause in your rental agreement that holds them responsible.
• Discuss Solutions: Offer the tenant a chance to respond. They may offer to repair the damage themselves (which you can choose to accept or decline) or agree to have the cost deducted from their deposit.
• Maintain a Professional Tone: Keep your communication calm, factual, and professional. The goal is to resolve the issue, not to escalate the conflict.

3. Deduct from Security Deposit

Using the security deposit is the most common method for covering the costs of repairs. However, you must follow the correct procedure.

• Get Professional Quotes: Obtain at least two written estimates from qualified professionals for the cost of the repairs. This justifies the amount you plan to deduct.
• Provide an Itemised Statement: After the tenant moves out, you must provide them with a detailed, itemised statement listing each deduction from their security deposit.
• Include Invoices: Attach copies of the receipts or invoices for the repairs to the itemised statement as proof of the costs incurred.
• Return the Balance: Return the remaining balance of the security deposit to the tenant within the legally stipulated time frame.

4. Seek Legal Action if Necessary

If the cost of damages exceeds the security deposit, or if the tenant disputes the deductions and refuses to pay, you may need to take legal action.

• Send a Legal Notice: The first step is to have a lawyer send a formal legal notice to the tenant, demanding payment for the damages.
• File a Civil Suit: If the tenant does not respond to the legal notice, you can file a civil suit in the appropriate court to recover the money.
• Eviction: In extreme cases of severe and intentional damage, you may have grounds to evict the tenant for damaging property. This is a complex legal process; therefore, it is advisable to seek expert legal advice.

Preventing Tenant Damage

The best strategy is to be proactive and take steps to prevent damage from happening in the first place.

1. Careful Tenant Screening

The most effective way to prevent problems is to choose the right tenants by following the easy steps to rent a home in India.

• Conduct Background Checks: Verify the identity and background of all prospective tenants.
• Check References: Always speak to previous landlords to ask about the applicant's behaviour and their history of maintaining a property.
• Verify Employment and Income: Ensure the applicant has a stable source of income to comfortably afford the rent, which often correlates with responsible behaviour.

2. Detailed Move-In/Move-Out Inspections

A thorough inspection process creates a clear baseline for the property's condition.

• Use a Checklist: Use a detailed move-in home inspection checklist to document the condition of every room, fixture, and appliance.
• Take Extensive Photos: Take dated photos and videos of the entire property before the tenant moves in.
• Get Signatures: Have the tenant sign the move-in checklist, acknowledging the property's condition at the start of their tenancy.
• Repeat the Process at Move-Out: Conduct a joint move-out inspection with the tenant, using the original checklist to identify any new damage.

3. Strong Lease Clauses

Your rental agreement should be clear and comprehensive.

• Define "Damage": Clearly define what constitutes damage versus normal wear and tear.
• Outline Responsibilities: Specify the tenant's responsibilities for routine maintenance and repairs.
• State Consequences: Clearly state the consequences of causing damage, including the use of the security deposit and potential legal action.
• Include Rules: Include specific rules regarding alterations, such as "no drilling holes in walls or repainting without prior written consent."

4. Regular Property Inspections

Periodic inspections can help you catch small issues before they become big problems.

• Schedule in Advance: Schedule inspections every 3 to 6 months, as permitted by law.
• Provide Proper Notice: Always give your tenant adequate written notice before an inspection, as required by your rental agreement and local laws.
• Look for Early Warning Signs: During the inspection, look for signs of potential problems like small leaks, unauthorised alterations, or signs of neglect.
• Maintain Communication: Use the inspection as an opportunity to have a positive conversation with your tenant and ask if they have any maintenance issues to report.

Legal Considerations for Landlords

When dealing with tenant-caused damage, it is crucial to act within the bounds of the law, as mishandling these situations is one of the key mistakes to avoid when dealing with property in India.

• Know Your Local Laws: Tenant-landlord laws vary by state. Be aware of the specific regulations in your area regarding security deposits, evictions, and landlord responsibilities.
• Limits on Deductions: You can only deduct the actual cost of repairs from the security deposit. You cannot charge for your own time or for improvements that exceed the restoration of the property to its original condition.
• Importance of Written Communication: Always keep a written record of all communication with your tenant regarding damages. This includes notices, repair requests, and any agreements made. This documentation is essential if you need to appear in court.

How NoBroker Can Help with Property Management?

Dealing with a tenant causing damage to the property can be stressful. NoBroker's property management services can help. We handle everything from finding tenants via a free property listing and rigorous screening to creating iron-clad rental agreements and conducting regular inspections. Our professional team acts as your representative, ensuring your property is protected and your investment is secure, giving you complete peace of mind.

Frequently Asked Questions?