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Updated over 1 year ago on . Most recent reply

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James York
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Charging Tenant for a repair

James York
Posted
I have a property under contract to sell and the tenant just contacted me about a sewer pump issue. Turns out it was caused by the tenant and is her financial responsibility per the lease. Expecting that it is unlikely she will pay quickly, how do I handle this? If this isn't handled before closing, would you write it off? Can you still take her to small claims court even if you no longer own the property? Obviously I can't withhold it from security without passing the problem on to the new owner.

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James York
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James York
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Quote from @Michael Peters:

How much in repairs are you talking about?  The tenant should be liable but you should get in contact with the new owner.  You need to balance the cost of the repair with the new owners desire to inherit a hopefully good tenant.  You may be able to split the difference with the new owner.

If you have a clause to apply rent payments to repairs first you may be able to use that to recover the funds, but you may leave the new owner with a past due owner.  You should also weigh the potential profit from the sale against the repair.  Your agent might also have a suggestion on how you could possibly alter the deals structure to cover repairs.

$695. I’m not interested in trying to pass the burden on to the new owner. I’m also the broker and believe I owe them a property substantially similar to what they saw when they wrote their offer. 

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