Paraspot AI reposted this
📍 What would you do if $75,000 of security deposits were tied up in litigation—for three years? That’s exactly what happened to a property management company I know. 🔹 They believed their inspection process was solid, assuming their notes, textual reports, and a few pictures were enough. 🔹 They thought that even if they ever faced a dispute, it wouldn’t be anything significant. 🔹 But when the time came to justify deposit deductions, they hit a wall. The issue? They didn’t have proper inspection documentation. 📸 Not all courts require photographic evidence, but having it significantly increases the likelihood of securing deposit deductions in case of a dispute. Without it, property managers are left with two choices: ❌ Fight a lengthy dispute process, which could take years and drain resources. ❌ Forgo the deduction altogether, eating the cost of damages themselves. For three years, this company was stuck in litigation, unable to access $75,000 of deposit funds. That’s money that was supposed to finance maintenance work on the properties to prepare them for the next move-in. Instead, they compensated the maintenance cost out of pocket because they lacked proof of the condition of the property at move-in. 💡 Here’s the lesson: In property management, inspections aren’t just a routine task—they’re your first line of defense. A single missing photo, an incomplete checklist, or an inconsistent process can mean the difference between a smooth turnover and years of legal headaches. And yet, too many property managers still rely on outdated, manual inspection methods that leave them vulnerable. 💬 Have you ever faced a deposit deduction that led to a dispute—or had to forgo a deduction because you didn’t have the necessary proof? Let’s talk in the comments. #PropertyManagement #RealEstateInvesting #SecurityDeposits #TenantDisputes #RentalProperty #MoveInInspection #DepositDeductions #LandlordLife #PropertyManagerTips #PropTech #RealEstateTech #RiskManagement #PropertyInspections #AssetProtection #Turnovers #MultifamilyInvesting