The duty of care as a prudent manager is the duty of a tenant to use and maintain a rental property with the care required by socially accepted standards while the tenant is renting the property. In rental management, these terms are not simply used to determine that the damage is the tenant's responsibility, but are used to explain the cause of the damage, when it was discovered, whether notice was given, and how it differs from normal wear and tear.
It is important for management companies and owners not to limit the duty of care only to the time of moving out. Only when we have photos taken when moving in, explanations given at the time of contract, contact history during tenancy, and repair records are we able to provide a convincing explanation at the time of moving out.
Key points of this article
- The duty of care is the duty to use the property with the care that would normally be expected of a tenant.
- Whether there is a violation will be determined based on the cause of the damage, the period of neglect, whether notice was given, the contents of the contract, and evidence.
- The idea is not to burden the tenant with normal wear and tear and deterioration over time.
- The management company must link and explain the records when moving in, during the move-in, and when moving out.
- Early notification and evidence of water leaks, mold, equipment malfunctions, pets, and unauthorized renovations are the key to preventing problems.
What is the duty of care of a prudent manager?
Duty of care of a prudent manager is an abbreviation for "duty of care." Article 400 of the Civil Code stipulates the obligation to preserve specific items with the care of a prudent manager, determined in light of contracts, other causes, and social conventions regarding transactions, until the item is delivered.
In the rental field, it is easy to understand that this means that the tenant uses the property with the care that would be expected of a normal resident while the tenant is renting the property. For example, if you notice a water leak but leave it unattended for a long time, if you neglect ventilation or cleaning, causing mold to spread, or if you punch a large hole in the wall without permission, this can easily become a problem.
On the other hand, the duty of care of a prudent manager is not a universal basis for a claim. Sun exposure, minor dents from furniture installation, and the natural aging of equipment may be considered normal wear and tear and deterioration over time and will be covered by the landlord. When handling move-out settlement, consider this together with the practical explanation of restoration to original condition and how to prevent misuse in rental management.
Where does the risk of violation arise?
Problems related to violations of the duty of care of a prudent manager are more likely to occur when it is unclear when the damage was noticed and how it was handled, rather than the damage itself. If the tenant had contacted us immediately, it would have been a minor repair, but if the repair is left unattended and spread to the bottom of the floor or inside the walls, it becomes difficult to explain the classification of the burden.
In management practice, we separate and check the following four points.
| Items to check | Points to look at | Management company records |
|---|---|---|
| Cause | Intentional/negligent, normal use, aging equipment, defect on the building side | Pictures taken when moving in, repair history, equipment age |
| When it was discovered | When was the abnormality recognized? | Contact with tenants, patrol records, inspection records |
| Notification | Did the tenant promptly report | Email, phone memo, chat history |
| Preventing the spread | Has the damage spread due to neglect? | On-site photos, estimates, and comments from the contractor |
If you tell the tenant, ``This is a violation of the duty of care of a prudent manager,'' without sorting this out, the tenant will not be satisfied. First, we will separate the facts, and then explain the classification of burdens. This order is important.
Initial flow when receiving abnormal notification
In determining the duty of care of a prudent manager, the record of the initial response is of great significance. In particular, when it comes to water leaks, mold, and equipment malfunctions, the time lag between the initial report and response directly leads to increased damage.
It will be easier for the management company to explain the following process by standardizing it.
| Initial response | Implementation details | Records to be kept |
|---|---|---|
| Reception | Check when, from whom, and with what symptoms | Reception date and time, contact person, and symptom notes |
| Photo request | Request general and close-up photos from the tenant | Photos, videos, and date and time of shooting |
| Emergency instructions | Convey actions to prevent damage from spreading, such as water shutoff, ventilation, and suspension of use | Instructions and transmission history |
| Arranging a repair company | Arranging a repair company depending on the degree of urgency | Arrangement date and time, scheduled visit, name of the company |
| Confirm cause | Check equipment deterioration, method of use, and length of time left unused | Contractor report, on-site photos, quotation |
| Cost classification | Sorting out the landlord's burden, tenant's burden, and the possibility of apportionment | Judgment memo, contract terms, explanation history |
This trend is not intended to pursue tenants. Both the fact that the tenant contacted us quickly and the management company's prompt response are both important to keep as records. The more records you keep, the less likely it will be emotional when explaining the payment at a later date.
Judgment table for the duty of care of a prudent manager by case
We will summarize the cases that often arise in rental management from the management company's perspective. The following is a practical guideline, as individual judgments will vary depending on the contract details, property condition, and evidence.
| Cases | Examples where the burden is likely to be borne by the tenant | Examples where the burden is likely to be borne by the landlord | Responses from the management company |
|---|---|---|---|
| Water leak | Water leak was left unattended, causing damage to the flooring and lower floors | Main causes were deterioration of piping and equipment failure | First report date and time, photos, and contractor diagnosis saved |
| Mold | Condensation is left unattended and there is little cleaning or ventilation | Causes include insufficient structural insulation or water leaks | Check the indoor environment, ventilation explanation, and repair history |
| Equipment malfunctions | Neglecting noises and abnormalities to cause more damage | Natural failures due to deterioration over time | Keeping contact history and equipment model year |
| Pets | Breeding in violation of the contract, strong odors, scratches on floors and fittings | Minor signs of use that would normally be expected within the permit conditions | Comparison of special pet provisions, explanation at the time of move-in, and photos of move-out |
| Unauthorized renovation | Holes in the wall, installation of shelves, wiring work, etc. carried out without permission | Work that has already been approved by the landlord | Check whether there is a record of approval |
The point is not to broadly place the responsibility of the tenant. Only claim what can be explained, and do not force yourself to claim what cannot be explained. This will protect the trust between the management company and the owner in the long run.
How should the roles of owners, management companies, and tenants be divided?
Talking about the duty of care of a prudent manager sounds unfair if it is directed only at tenants. In practice, it will be easier to understand if the roles of the owner, management company, and tenant are explained separately.
| Position | Main role | Problems caused by shortage |
|---|---|---|
| Owner | Maintenance of equipment, necessary repairs, and sharing of information with the management company | Even aging and defective equipment can easily be seen as the tenant's responsibility |
| Management company | Explanation at the time of contract, reception of communications, records, repair arrangements, settlement explanation | Judgment criteria become individualized, and explanations become blurred when moving out |
| Tenants | Use with normal care, notify abnormalities early, and prevent damage from spreading | Expanding damage due to neglect is likely to become a problem for tenants. |
If you communicate this division of roles at the time of signing the contract or in the move-in guide, it will be easier for tenants to understand what they should do. The management company can also guide you using the same standards from the time you move in, rather than suddenly bringing up legal jargon when you move out.
How do you explain the boundary between normal wear and tear and aging deterioration?
The most easily misunderstood explanation of the duty of care of a prudent manager is the boundary between normal wear and tear. If you live a normal life, your floors, wallpaper, and equipment will gradually become damaged. If the tenant is responsible for such natural changes, moving out will create a strong sense of distrust.
The Ministry of Land, Infrastructure, Transport and Tourism's guidelines for restoring property to its original state also distinguish between normal wear and tear and aging, and wear and tear caused by the tenant's intention or negligence. The management company should not take the stance of billing you because it's dirty,'' but insteadthere is a cause that exceeds normal usage, so we will provide an explanation and provide evidence.''
For example, sun damage to wallpaper is usually considered wear and tear, while tar stains and odors caused by smoking may be considered a liability for the tenant. Light marks left by furniture are not the same as deep scratches caused by dragging heavy objects.
For more information on the scope and costs of restoration work, What is restoration work? Contents, costs, and troubleshooting that rental owners should know may also be helpful.
Trails and notification flow that management companies should leave
To prevent problems related to the duty of care of a prudent manager, the wording in the contract alone is not enough. Explanations that tenants can understand and records that can be checked later are required.
It is a good idea for the management company to standardize the following flow.
| Timing | Implementation details | Records to be kept |
|---|---|---|
| Before moving in | Check interior photos, equipment condition, scratches and dirt | Photos, check sheet, signature |
| At the time of contract | Explain the duty of care of a prudent manager, duty to notify, and prohibited matters | Explanation of important matters, contract, explanatory memo |
| While moving in | If you receive a report of a problem, record the date and time of reception and the details | Email, call memo, repair request |
| At the time of repair | Organize causes, emergency measures, and cost estimates | Contractor reports, estimates, and photos |
| At the time of moving out | Compare with the record at the time of moving in and explain the burden classification | Record of witnessing the move out, settlement details |
It is especially important to not just tell the resident, ``If there is anything unusual, please contact us as soon as possible.'' By clearly specifying contact information, reception methods, and the scope of emergency response, it will be easier to prevent damage from escalating due to neglect.
How can I explain this to tenants so that they will be easily convinced?
When explaining the duty of care to a tenant, it is important not to impose legal terminology on them. In practice, the following expressions can be used:
- Duty of care: “Duty of care to use the property with the care that is generally required during the rental period.”
- Obligation to notify: "We must notify you as soon as possible of any incidents that are likely to cause widespread damage, such as water leaks or equipment malfunctions."
- Normal wear and tear: "As a general rule, the tenant does not have to bear the burden of parts that naturally age through normal living."
- Tenant's responsibility: ``In the event of damage that exceeds normal usage or damage that spreads due to neglect, we may ask you to bear the cost after confirming the basis.''
The purpose of the explanation is not to make it easier to claim when you move out. In order to prevent damage from spreading during occupancy, the landlord, tenant, and management company need to be on the same page. A management company that does this carefully will be trusted not only for troubleshooting, but also for protecting the owner's assets.
The text of the notification will be easier to convey if it is specified as follows.
If you discover water leaks, mold, unusual noises, or damage to equipment, please contact the management company before the damage spreads. When contacting us, please send us a photo showing the date and time of discovery, location, and condition so that we can quickly arrange repairs and confirm the cause. The tenant will not be required to bear the cost until the property deteriorates due to normal use, but if the damage has spread due to neglect, we may ask the tenant to cover the cost after confirming the situation.
The point of this text is not to impose only obligations on the tenant. By telling them in advance that the product does not have to bear the burden of deterioration due to normal use, it will be easier to encourage early contact.
Frequently asked questions (FAQ)
Q1. What is the duty of care of a prudent manager?
A. It is the obligation of the tenant to use and store the rental property with the care required by socially accepted standards while the tenant is renting the property. In rental management, this is the standard for determining the cause of damage and whether property has been left unattended.
Q2. If mold appears, is it always a violation of the duty of care?
A. It is not necessarily a violation. If the problem spreads due to lack of cleaning or ventilation, it is likely to become a problem, but if the cause is due to the building structure, water leakage, or malfunctioning equipment, the landlord may need to take action.
Q3. If equipment defects are left untreated, will the tenant be responsible?
A. If the tenant does not contact us for a long time after noticing something abnormal and the damage increases, the tenant will be considered responsible for the liability. However, if the main cause is aging equipment or initial failure, we will check the records and make a decision.
Q4. What should the management company record?
A. You should leave a series of photos when moving in, check sheets, explanations at the time of contract, contact history during tenancy, report from the repair company, photos when moving out, and payment details. The more records are connected, the more objective the explanation will be.
Q5. Does the duty of care of a prudent manager also apply to owners?
A. Yes. If the owner neglects to maintain the equipment, make necessary repairs, and share information with the management company, it will be difficult to explain how to place the responsibility solely on the tenant.
Related Reading
- What is restoration to original condition? Practical explanation to prevent misuse in rental management
- What is restoration work? Contents, costs, and troubleshooting that rental owners should know
- How have security deposits and restoration to their original condition changed with the Civil Code revision? Practical countermeasures for landlords
References
