How to deal with potential damage before lease expires?

Question

We recently had to do maintenance on a property that has been mostly trouble free for the past two years, and we realized why.  The tenants haven't called to report anything.  We found issues with mold,  generally dirty conditions, and several things that will need repair in excess of wear and tear to make the house ready, should these tenants leave.  The cost will likely exceed the security deposit.

What are some good strategies to deal with this? Do we pro-actively repair and bill the tenants? The lease will expire in June, and we probably won't be renewing. We don't want to go through the hassle of eviction now (They aren't _actively_ destroying things. Just zero upkeep from their side).

I feel we have some leverage now, before the lease expires, but unsure on what to do here. Any advice would be welcome!

Kevin Sobilo · Answer

@Lenny Markus, a few thoughts:

1. You mention dirty conditions. Dirty can be cleaned. So, that may not be a "damage" issue upon move-out. Unless the conditions are unsanitary causing a pest issue or causing long term damage to the property, is this an actual issue or just that is bothers you personally?

2. You are honest in describing the fact that they are not actively destroying the property. It sounds like they are just not living gently in it.

Some tenants honestly feel like they are doing the landlord a favor by not bothering them about smaller issues.

3. You don't mention whether the mold issue is tenant caused or just something you expected the tenant to report. Also, many times a mold issue isn't even a mold issue, often its only mildew.

4. Except for the mold issue, which I don't know enough about, this doesn't necessarily sound like a tenant you should want to get rid of. It sounds like a situation you can work to manage.

5. I would discuss keeping the unit clean with them, ESPECIALLY with regard to food waste and pests etc.

6. With the damage items, I would go through the list and discuss each item with them.

My goal would be to #1, come to an understanding that each item is "damage" and that the tenant is responsible and #2 to discuss whether the tenant prefers the item be fixed NOW or after move-out in the future.

A tenant may prefer an item to be fixed at move-out because then they don't risk damaging the same thing a 2nd time. For example, maybe they have a dog that has scratched up the moldings around the back door. The tenant knows if you repair it NOW it will happen again and they will pay for the repair multiple times. So, they would rather live with the scratches and pay for a repair only once.

The 3rd and final goal would be to come to an agreement as to the repair cost for each item. Since some may be repaired later upon move-out I would discuss, be reasonable and come to an agreement.

THEN, the tenant would be billed for ALL repairs NOW! Any repairs the tenant preferred to happen now would be scheduled and the remaining monies I would have already collected to do the repairs later upon move-out.

7. Any agreements made in #6 would be documented. So, that is was clear each damage item that was covered, which would be repaired now and which would be repaired upon move-out. That way upon move-out there is no discrepancy about which items have already been paid for.

8. I would keep in mind that managing imperfect situations and imperfect tenants is part of landlording. I would also keep in mind how expensive Vacancy/Turnover is.

9. I would also keep in mind that these might be "AVERAGE TENANTS", but that means that my next tenant is just as likely to be WORSE as better and that I would be incurring vacancy/turnover costs to take that risk. This incentivizes me to do better managing situations.

Drew Sygit · Answer

We run into this now and then.

From a business point of view:

1) Address the health & safety issues to avoid a personal injury lawsuit.

2) Document everything with a narrated video. Get the tenants in the video - do NOT be aggressive or combative! Best strategy is to ask why they didn't report anything so they self-incriminate.

3) Do NOT try to bill tenants BEFORE the repairs are done, to avoid them not allowing access and negative escalation.

4) After health & safety repairs done, have a verbal discussion about the costs of the damages they caused. May need a payment plan so they can pay over x months.

5) Start doing annual video inspections!

6) If the tenants cooperate with all of the above, why get rid of them?- It may cost you a LOT in full rehab and vacancy losses!

Janice Carter · Answer

This is usually a lack of inspections issue and not just a tenant issue. If you are two years in and just discovering mold and deferred maintenance, you need to reset control.

Document everything with photos and written notices. Address any health or safety items, especially the mold immediately. For cleanliness and lease violations, issue a formal cure notice requiring corrective action within the timeframe allowed by your lease and state law. If they comply, you stabilize the property until June. If they don’t, you have created a paper trail. Either way, I would not wait as deferred maintenance only gets more expensive.

Jim Johnson · Answer

When you’re seeing conditions that go beyond normal wear and tear, the key is to shift from “observation” to documentation and formal notice.

First, document everything thoroughly — dated photos, written notes, and any vendor assessments (especially with mold). In California, habitability issues like mold can become sensitive quickly, so you want clarity on whether it’s maintenance-related, ventilation-related, or tenant housekeeping-related.

If conditions violate the lease (cleanliness standards, damage, failure to report issues), the usual step is a written notice to cure. That gives them an opportunity to correct the problem before lease end and shows you acted reasonably.

For repairs, it typically depends on the issue:

• If it’s a habitability concern, you may need to address it promptly regardless of fault.
• If it’s damage beyond wear and tear, you can repair and bill — but only after proper notice and documentation tying it to tenant responsibility.

If it’s a habitability concern, you may need to address it promptly regardless of fault.

If it’s damage beyond wear and tear, you can repair and bill — but only after proper notice and documentation tying it to tenant responsibility.

Since you’re not renewing, many owners focus on:

• Documenting condition now
• Sending formal notice
• Conducting a pre-move-out inspection (allowed in CA) to outline potential deductions

Documenting condition now

Sending formal notice

Conducting a pre-move-out inspection (allowed in CA) to outline potential deductions

That pre-move-out inspection can be valuable — it gives tenants a chance to correct issues and reduces disputes later.

The leverage isn’t pressure — it’s process. Clear documentation and written communication now will matter much more than waiting until move-out and arguing over the deposit.

Patrick O'Sullivan · Answer

Hi @Lenny Markus

It sounds like you are in a situation that many landlords eventually run into, and the key really is to protect the property while keeping things professional and organized. The first step is to document everything carefully with photos, notes, and any vendor assessments, especially for things like mold or other health and safety concerns. Even if the tenants aren’t actively destroying anything, letting them know formally in writing about any issues that go beyond normal wear and tear gives them a chance to correct problems and shows you are handling things reasonably. For repairs that are critical for habitability, it makes sense to take care of them promptly, while other damages can often be addressed after they move out with deductions from the security deposit. Scheduling a pre-move-out walkthrough can also be very helpful to create accountability and reduce disputes later. The leverage you have now comes from having everything documented and communicating clearly, which makes the lease-end process smoother and protects the property for the next tenants. Handling it this way keeps things professional without needing to escalate to eviction.

Azeem Mannan · Answer

From my experience working with property owners, the situation you’re describing is fairly common—tenants sometimes neglect reporting minor issues, which can snowball into bigger repairs. Here are a few strategies that might help:

• Document Everything: Take photos, videos, and detailed notes of all issues. This will help justify any deductions from the security deposit and protect you legally.
• Notify Tenants in Writing: Send a formal notice outlining the maintenance issues and explaining that these go beyond normal wear and tear. Give them an opportunity to address or remedy smaller items before the lease ends. This often motivates tenants to cooperate.
• Estimate Repair Costs: Get quotes for the repairs now. If the total cost exceeds the security deposit, you’ll have a clearer picture of whether it’s worth pursuing additional compensation after they move out.
• Proactive Repairs vs. Billing: It usually makes sense to handle essential repairs proactively to avoid further damage. For more cosmetic or tenant-caused damage, document it and deduct from the deposit later. Avoid billing mid-lease unless the lease explicitly allows it.
• Lease-End Walkthrough: Schedule a thorough inspection near the lease expiration. Present the documented issues and provide an itemized list of deductions, if applicable.
• Preventative Approach in Future Leases: Consider including clauses about regular maintenance checks and tenant responsibilities to reduce surprises next time.

Document Everything: Take photos, videos, and detailed notes of all issues. This will help justify any deductions from the security deposit and protect you legally.

Notify Tenants in Writing: Send a formal notice outlining the maintenance issues and explaining that these go beyond normal wear and tear. Give them an opportunity to address or remedy smaller items before the lease ends. This often motivates tenants to cooperate.

Estimate Repair Costs: Get quotes for the repairs now. If the total cost exceeds the security deposit, you’ll have a clearer picture of whether it’s worth pursuing additional compensation after they move out.

Proactive Repairs vs. Billing: It usually makes sense to handle essential repairs proactively to avoid further damage. For more cosmetic or tenant-caused damage, document it and deduct from the deposit later. Avoid billing mid-lease unless the lease explicitly allows it.

Lease-End Walkthrough: Schedule a thorough inspection near the lease expiration. Present the documented issues and provide an itemized list of deductions, if applicable.

Preventative Approach in Future Leases: Consider including clauses about regular maintenance checks and tenant responsibilities to reduce surprises next time.

You don’t need to start eviction proceedings if the tenants aren’t actively destroying the property, but clear communication and thorough documentation now will make the end-of-lease process much smoother.

Hope that helps!

Drew Sygit · Answer

Each to their own, but we actually prefer videos and have for 16+ years:)

So do our clients, as the proper narrated video is the next best thing to them walking through their property😀

Pics can be staged and hard to visualize or ID what's in the pics.

FYI: the videos are private and for our use and court only.

Sean McKee · Answer

Like other have said. Deal with the safety/health issues now. Document the damages, I would not renew their lease if they are as bad as you say they are.

Is the unit a class C or below rental? These kinds of issues are common.

I'd wait until they leave and then bill them. There's a low chance they are going to pay it and don't have as much leverage as you think, especially if they are already planning to leave. If they refuse to pay for the repairs, then you could file for an eviction, but then you have to deal with that......

I think your best strategy for recovery, would be to continue to collect rent, let them move out, and then reassess. If you can prove damages, some collection agencies will take it on without a judgment. You could then have them credit report what is owed. There's still a low chance of recovering the funds, but if they care about their credit you may have a shot.

Sorry this is very common issue. It happens every now and then.

Ebonie Beaco · Answer

I’ve seen this from both sides, as a mortgage professional working with investors and as an investor who has self managed properties. The key here is to protect the asset first and manage the situation strategically, not emotionally.

If the tenants are not actively destroying the property but are simply neglecting upkeep, I would start with formal written notice. Reference the lease provisions regarding cleanliness, maintenance responsibilities, and reporting repairs. Document everything with photos and written records. That paper trail matters, especially if costs exceed the security deposit later.

Any health or safety issue, particularly mold, should be addressed immediately. As investors, we are responsible for habitability. Fix what protects the property and your liability exposure, then reconcile damages at move out. Do not ignore issues just because the lease is ending soon.

Since you already plan not to renew in June, I would focus on three steps: document current condition, communicate clear expectations through lease expiration, and schedule a pre move out walkthrough 30 days prior to lease end. That walkthrough creates accountability and reduces surprises.

If repairs exceed the deposit at turnover, you can pursue the balance according to your state laws. The leverage you have right now is documentation and structure. Protect the property, preserve your position, and exit the lease cleanly.

How to deal with potential damage before lease expires?

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