Tenants forcing trivial maintenance requests via Rent Escrow

[Han T.]

[Advice needed]

Tenant has made multiple trivial maintenance requests and are forcing the maintenance request to be done via rent escrow in the court, we have fixed some, and some of the others, we are in the midst of fixing.

However we did not agree with all the issues they have raised. For example, they are making repair request for paint peel (see picture below), and a hole in the vanity board (see pic below). These does not affect the quality of life (safety, hygiene, security) and are mainly aesthetics. We have explained to them previously that these are not urgent issues, and its the landlord's prerogative to decide to fix now or later.

I plan to appeal but as an out-of-state investor, it is very challenging. Are there any advice for out-of-state investor? My last resort would be to engage a Property Manager to handle this, but even so, I'm not sure how can the Property Manager help. Tips from experienced landlords or Property Managers?

Furthermore, tenant has made multiple requests to purchase the home. When rejected, they then start to make multiple trivial maintenance request, its like death by a thousand cuts. In 2 months, I have already spent more than $5K on trivial repairs and breakdown, even on new equipment, i.e. AC broke down, despite being 2 years, Hot water heater was reported not working, after 3 bouts of plumbers going out assuring them that the hot water heater was working, it mysteriously started leaking and need to replace the pressure release valve (Point 1). Tenants lease ends Next May. I have reached out to them for the happy clause but they refused. Is there a way to sort of get them out of the lease?

In case you are wondering why is there such a long list. I would like to clarify that tenants are really very picky. They are picking at every small issue. We have spent quite a fair bit of money to make it rent ready, of course we did missed out some (our own fault), hence we heard tenant and did up quite a fair bit after they came in, but yet they are still asking for more maintenance request.

My gut sense is, after we fix this round, they will come up with another list of items to be fixed.

So in summary, my question is:

1. Any tips from experienced landlords or property managers how to handle such non-urgent, trivial maintenance requests with the court?

2. Is there a way to get them out of the lease?

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This post is expanded/continued from the previous post.

https://www.biggerpockets.com/...

Point 22: Minor Paint peeling, there were water damages in the past but the leak has been fixed. No evidence of active leak, this is an aesthetics repair.

Point 23: Hole under the vanity - behind the hole, is the toilet wall. Why should I be rent escrowed to fix this up?

[J Clayton Durham]

A document that appears to provide the process is here:
http://www.fcmcclerk.com/docum...

I notice it also mentions "Mediation", and that mediation can be done over the phone (and possibly by Zoom or FaceTime, I would think).  I suggest check further into the Mediation option, which might even be "Free" since I notice the court keeps 1% of rent deposited as their fee.  If you can have the same mediator for each occurrence, it could work in your favor, if you come off as the reasonable one.

I did notice that "Peeling paint" was listed in the escrow program document as a hazard.  However, innocuous holes in sheetrock inside vanity cabinet was not mentioned. 

Since your tenants still have to pay rent on time, to the court escrow, their incentives to pursue frivolous claims would seem limited.  Beyond that, other motives could include just jerking you around, out of general resentment at stuff not working and having to be fixed.  Perhaps even their hope is that getting you frustrated will cause you to seriously consider selling--to them.  Ultimately, their motivations don't really matter.

Having recently dealt with failed AC (in Florida in June!) and a water leak near the water heater, it seems that failed appliance fixit BS comes in bunches, and you've just been unlucky, as I have at times.

I'd say the best thing you could do is get the matter in front of a mediator (preferred) or judge ASAP.  As a saving grace, it seems like the process is largely set up to operate without requiring attorneys so that could help keep your expenses down.  Get the issues into the process, and make sure you a) Listen open-mindedly to their complaints, even those that seem petty, and do your best in the session to restate their concerns (without necessarily agreeing with them; "What I hear you saying is..."; b) commit to promptly fixing or setting a schedule for those items the mediator/judge deems valid for rent escrow; then c) follow through timely on anything you agreed to.

The good news is you will get your rent under this program, 99% of it anyway, when the disputes are resolved; the bad news is that cash flow sucks in the meantime.

I suggest grin and bear the seeming unfairness and commit to working the process sincerely and promptly, and consider it a better, less expensive alternative compared to getting attorneys involved.