One of the legal obligations that must be understood most clearly in rental property management is the tenant's "duty of care". To prevent disputes related to tenant contracts, move-outs, and restoration obligations, it is important to have an accurate understanding of the scope of this duty, examples of violations, and how property management companies should respond.
What Is the Duty of Care?
The duty of care (the duty of care of a good manager) is an obligation provided for in Article 400 of the Civil Code. It means "the obligation to manage a property with the level of care generally required under social standards". In a lease agreement, this duty is imposed on the tenant throughout the entire period from contract execution until the property is surrendered.
The Scope to Which the Duty of Care Applies
The scope covers the entire exclusive-use area (walls, floors, windows, and wet areas) as well as common areas subject to exclusive-use rights (balconies, private gardens, and exclusive parking spaces). If stains, damage, or defects arise, tenants are expected to address them promptly or report them to the management company and request repairs.
What Situations Constitute a Violation of the Duty of Care?
A violation occurs when a tenant fails to manage the property in the manner generally expected under social standards, resulting in accelerated deterioration or damage to the property. Specific examples include the following.
- Spilled drinks were left unattended, causing mold to grow on the flooring
- Neglecting to clean wet areas, resulting in severe mold or staining
- Leaving condensation unattended, leading to stains or decay
- Making holes in the wall and damaging the backing board
- Failing to clean the air conditioner filter, causing a breakdown
- Failing to clean the drain, resulting in a blockage
- Leaving a water leak to the lower floor unreported to the landlord or management company, causing damage to the building
These issues are also closely related to the rules on restoration obligations for rental properties.
What Happens If a Violation Occurs?
If a violation of the duty of care is recognized, the following two risks will generally arise.
Refusal to Return the Security Deposit and Claims for Repair Costs
Repair costs for damage or deterioration caused by the violation may be deducted from the security deposit. If the damage is substantial, additional costs exceeding the deposit may also be claimed.
Claims for Damages
If serious damage is caused to the building, such as water leakage to the floor below, the tenant may be liable for damages. However, compensation for fire-related damage is generally not sought unless there was intent or gross negligence.
What Is the Difference Between the Duty of Care and the Obligation to Restore the Property?
The two arise at different points in time.
- Duty of care: An ongoing obligation imposed continuously from move-in until completion of surrender
- Restoration obligation: An obligation that arises at move-out to restore the property to its pre-tenancy condition
If the duty of care is fulfilled in daily life, restoration costs at move-out can be kept to a minimum. Special damage (damage caused by a breach of the duty of care) is subject to restoration, whereas ordinary wear and tear and age-related deterioration are not.
How Property Management Companies Can Help Prevent Violations of the Duty of Care
In rental property management practice, the following approaches are effective.
Thorough Explanations in Important Matters Disclosures and Move-In Checks
At the time of contracting, the content of the duty of care should be explained carefully, and confirming and photographing the condition of the room together with real estate company staff before move-in is a basic measure for preventing disputes.
Ongoing Communication and Regular Inspections
It is important to establish a system in which tenants can report issues easily. By identifying and addressing problems early, the risk of major damage developing can be reduced.
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Frequently Asked Questions (FAQ)
Q. Does age-related deterioration also count as a violation of the duty of care?
No, it does not. Age-related deterioration and ordinary wear and tear that occur despite the tenant having fulfilled the duty of care are not the tenant's responsibility and are not subject to restoration.
Q. What is the difference between a violation of the duty of care and the obligation to restore the property?
The duty of care is an obligation that continues throughout occupancy, while the restoration obligation arises at move-out. Damage caused by a violation of the duty of care becomes subject to the restoration obligation.
Q. Does an air conditioner breakdown count as a violation of the duty of care?
If the breakdown was caused by neglecting to clean the filter, it constitutes a violation. A breakdown due to ordinary aging of the equipment is not the tenant's responsibility.
Q. Are scratches and odors caused by pets subject to restoration?
Yes. Even in pet-friendly properties, scratches on pillars and odors caused by pets are treated as special damage and are subject to restoration.
Q. How can a property management company make tenants aware of the duty of care?
Careful explanations in the important matters disclosure, use of a move-in checklist, and sending regular maintenance guidance are all effective measures.
