How To Deal With Water Damage In Your Colorado Springs Rental Property PART 1

Fresh Water

Brought to you by Muldoon Associates, Inc. Exceptional Property Management

This first part is going to cover the lesser of two evils in the water damage world, fresh water.  Some of you may be under the impression that fresh water events are no big deal.  The carpet got a little wet, you can shop vac it dry, and everything is good to go!  Unfortunately this is not the case and you are going to want to make sure this type of work is done right or you could be opening yourself up to lawsuits or health hazards.

Water extraction is a complex business now.  There is specialized equipment, chemicals and training required to properly extract and dry affected areas.  If your affected areas are not properly dried you could be creating the perfect atmosphere for mold growth which will cost much more than just doing it right the first time.  Fortunately, fresh water sources if tended to quickly are less of a health concern than contaminated water.  If drywall is not "too" wet it can be dried, carpets can be peeled back and padding replaced, and there will not be a need for as much removal of materials.

Fresh water can turn into contaminated water if it's not cleaned up quickly enough.  Every minute the water is left in the home it collects more debris, germs, dust and dirt.  It also wicks and soaks more and more areas in your home.  This is why it's so important to act quickly.  As the water gets more contaminated the cost of mitigation goes up.   Most water damage situations will involve humidity readings, specialized drying equipment and time.  The wetter an affected area is the longer it's going to take to dry.  This all seems common sense but you would be surprised how many folks I talk to are under educated when it comes to this type of damage and they are shocked with they get bills that often times range in the thousands.  I suggest contacting your insurance company and checking what kind of water damage coverage you have.  If you don't have proper coverage for fresh or contaminated water damage I suggest purchasing it or finding a company who offers what you need.

That finishes up our post on fresh water mitigation!  Check back soon for the second and final part of this series which we will cover contaminated water mitigation!

Daniel Muldoon

How To Avoid Water Damage In Your Colorado Springs Rental Property

In Colorado we have a semi arid desert climate but during our monsoon season it's not uncommon to have leaky roofs, flooded basements, and other water related issues. The water itself is a big problem but the potential for mold due to the water is an even bigger problem.  In order to avoid these issues it's imperative you take the steps in this blog to protect your rental property from water damage and mold.

At least once per year you should have a roofer come out and inspect your roof.  Many companies will provide this service for free and you should take advantage of it!  They will not only check out your shingles but also the soffit, gutters, flashing, etc.  All of these areas are possible points of entry if they are not totally sealed off.  Many times a roof leak will cause damage to ceilings and it's possible to drip into ceiling fixtures and create a fire hazard.

Window wells are another problem area that can allow water to enter basements or lower levels.  Make sure none of your downspouts empty near or around your window wells.  Place a couple inches of river rock in the bottom so the water can drain without eroding the dirt at your foundation.  Verify your gutters are draining properly to the downspouts and rain water is not flowing over the tops of the gutters.

Last but not least you need to make sure the drainage around your foundation is such that the water runs away and into the street as opposed to pooling up or draining into your foundation.  You will want to make sure your neighbors drainage does not come towards your property also.  In Colorado Springs it's against the law to have your drainage affect another property and water must be diverted towards the street.

I hope this information has been helpful to you and will help avoid issues with water damage or mold.  You will want to check with your insurance company and see if your policy covers this type of damage in case it does happen or if they offer a rider policy that will cover you.

Daniel Muldoon
Muldoon Associates, Inc.

How To Effectively Complete A Move Out Inspection Part 1

DEFINING SECURITY DEPOSIT

Security deposits are probably the most litigous aspect of a tenancy.  The deposit is regulated by Colorado State law and how the deposit is to be handled post move out is dictated by law.  You must be certain you know every aspect of the laws pertaining to security deposits and dispositions in order to limit your legal liability.

In the state of Colorado a tenant is able to sue for treble damages when their deposit is "wrongfully with held".  This could mean a deposit was not returned in the allotted time (30 days by law unless agreed upon in writing by tenant and landlord at which time it will be extended to no more than 60 days.), with holding for damages or repairs that were not beyond normal wear and tear, or a number of other situations.

The security deposit belongs to the tenant but is held by the management company in order to secure the condition of the home at move out.  This means you better not use the deposit for anything during the term of lease.  It cannot be applied to last months rent, late fees, or anything else while the lease is in effect.  These fees can be with held from the deposit post move out if the tenant has not paid the account in full but you must wait for the lease to terminate and handle it on the deposit disposition.  I may sound like a broken record but I can't stress enough how important responsible and legal handling of the deposit is.

Now that we have defined the deposit and the disposition rules we will proceed to the move out inspection itself.  Per Colorado Law your lease must state that wear and tear damage is acceptable and will not be with held from the deposit.  This means nail holes, trim scuffs, carpet wear, blind wear, etc.  At every single move out (and likely more frequently) you need to be prepared to touch up paint, replace door stops, and other repairs as needed.  This is why long term tenancy and keeping your tenant happy is so important.  The longer they stay the less often you are doing touch up work.  Some landlords are under the impression the tenant is responsible for all damage and do not take normal wear and tear into consideration.  This is a complex subject because wear and tear does not apply equally to every situation.  If you have a property with one individual living in it compared to a property with 4 individuals living in it, the wear and tear will be more, typically, with more occupants.  This does not change the fact it's wear and tear and should be handled as such. 

There are things that can be with held from a deposit.  Major damage, abuse, or neglect.  For example the tenants take your brand new carpet and change their motor cycle oil with no oil pan.  The tenant would be responsible for the carpet but only in that area.  If it can be patched it should be patched and not replaced.  Remember, you are trying to avoid legal disputes so "sticking it to the tenant" is not the methodology you will want to use.  You must be fair and you must document thoroughly.

Your move in inspection is your first tool that needs to be taken seriously. Make sure you have pictures and written documentation, or a video with voice over.  If you ever do have a dispute you are going to need a rock solid inspection.  Your move out inspection must be just as thorough in documenting condition.  These are the first things magistrates will look at if you go to court.  The best thing to do is avoid court all together.  Many times it will cost you thousands of dollars in legal fees and many days in court and you may not even get legal fees awarded.

Daniel Muldoon
Muldoon Associates, Inc.