B unit Tenant filed Department of Health complaint to try and get out of lease early.

[Marc Globensky]

Hey all,

Thought someone would find this story helpful or entertaining at the very least. Also advice is also welcome.

A little bit of background on me my experience and the tenant. I have been managing Retail, Office, Industrial, Section 8, and SFH/MFH properties in Phoenix since 2018 and have seen some wild shhhh-tuff. The craziest thing I've seen though is in my wife's rental. I do not understand it but literally every single thing that I've dealt with in my several years of property management I have had to apply to my wife's home... Yes, we did pay 4k for an inspection prior to close and none of this stuff came up.... Here's a list that totaled to this year alone being 35K and growing worth of repairs:

1) Replaced both furnaces from tenant damages 2 times.

2) Replaced stolen AC units from previous seller stealing them.

3) Repaired duct work in multiple locations from previous owner improper installation plus wear and tear.

3) During covid I went through 3 property managers because they refused to evict a tenant that ultimately didn't pay rent for 6 months and cost us over 10k in unit turns. Part of this was why I went through 1 of the 3 property managers. They decided to make a 5X5 box for a closet in one of the bedrooms instead of knocking a wall out and closing the other sides sliding door that was originally the closet.

4) B unit panel was damaged by someone likely the tenant and has wires dangling out and now we have to replace and update it.

5) A unit didn't have the right switches and amp levels, so a panel upgrade was completed to support the newer AC system that was installed.

6) B unit flushed their childs diapers down the toilet and clogged the unit up and we ended up having to spend 6k on having a plumber come in exuviate adn reinstall a new sewer cleanout.

7) Replaced every toilet due to damages/wear and tear and had multiple roof leaks from upper unit to lower unit. 

8) Due to the leak ended up having sewage remediation company come out and rip out drywall, carpet, faming, and plumbing.

9) Due to the toilets and sewage am still currently working on replacing the carpet which was brand new due to the unit turn... 

10) The tenant in unit B cut holes in the walls of the exterior of the home and because they leave food out in their kitchen, we now have rats in our walls and a random racoon.

Now before I go on to the last major item note that most of these issues are completed and were completed in under a week. The roof leak and toilet repairs have taken quite a bit of time due to insurance company issues but was still done in under a month. The only issues still needing done are the carpet reinstall and following up on the rates and racoon to make sure they aren't back in the home. The rats and racoon issue were as simple as repatching the holes the tenant cut out for them with one-way doors and bate traps. Obviously, there are continues efforts to make sure they don't come back but 6k later the issue was told to us to have been resolved by the licensed contractor...

11) Due to the issues the tenant is experiencing with all the random repairs and constant contractor visits he wanted to break his lease. Unfortunately, the IAR lease we used doesn't have an early termination clause instead it states that should they terminate their lease they are liable for the entire lease duration. Which is over 16k, so I told them if they just gave me a move out date, I would keep their security deposit and call it even... I also informed him that any damages done to his personal belongings are to be covered by him and his insurance as that is what renters' insurance is for and is specifically referenced by an example just like this one in the renter's insurance lease addendum.  Apparently, they didn't like that and filed a complaint with the Department of Health. What they don't know is what this process typically looks like... The DOH won't come in and condemn the property or break their lease unless it's a serious issue. I've dealt with them in the past in Phoenix. What does happen though is the DOH will come in and inspect a bunch and every time they come in and inspect, they find a new bs issue to repair. The issues they gave us weren't that bad either they want us to reinstall the carpet, fix a door the tenant punched a hole through, replace their screen door or remove it, fix a couple of windows that the tenant glued shut, and replace drywall that was completed during the repairs from the toilet leaks (when the DOH inspected the property it wasn't finished yet). If anything, the tenant just pissed me off because they could have brought the issue to me or moved out. Their security deposit is 700 dollars. It's not worth all the drama. I also plan on serving a ten-day notice for all the damages he's caused now. At first, I was going to let it go, but now FUUUUUdge that. Indiana is a weird state though you can't take a tenant to eviction and get the judgement for nonpayment of rent or damages while in eviction court... You have to take them to small claims court and get a judgment. So basically, I'm going to serve him a ten-day notice for the damages for repayment and if he doesn't repair, I'm going to take him to small claims court. either that or he forfeits his security deposit and move tf out.

Also his lease stipulates specifically that the windows are supposed to be able to open and if glued shut or otherwise damaged he is required to pay for the repairs. 

My wife and I have gone above and beyond for this tenant on the repairs and have handled waaaaayyyy more maintenance requests then what's listed here too. I understand his perspective, but he signed a contract. 

[Richard F.]

Quote from @Marc Globensky:

Yes, we did pay 4k for an inspection prior to close and none of this stuff came up.... Here's a list that totaled to this year alone being 35K and growing worth of repairs:

1) Replaced both furnaces from tenant damages 2 times.  WHAT kind of damage? Very hard to believe.

2) Replaced stolen AC units from previous seller stealing them. If the seller stole them, did you make police report, or otherwise hold them accountable? Were they removed prior to closing, or after? If after, your insurance should have covered.

3) Repaired duct work in multiple locations from previous owner improper installation plus wear and tear. What, exactly, is "wear and tear" on ductwork?

3) During covid I went through 3 property managers because they refused to evict a tenant that ultimately didn't pay rent for 6 months and cost us over 10k in unit turns. It looks like Phoenix had an eviction moratorium during the covid period. Is that why they "refused" to evict? 

Part of this was why I went through 1 of the 3 property managers. They decided to make a 5X5 box for a closet in one of the bedrooms instead of knocking a wall out and closing the other sides sliding door that was originally the closet. Were these "improvements" not discussed with you prior to execution? If not, I would not have paid for them...but what does your Management Agreement state about repairs and improvements?

4) B unit panel was damaged by someone likely the tenant and has wires dangling out and now we have to replace and update it. "likely the Tenant", based on what? Wires "dangling out" should have been pretty apparent during any inspection. If you are being required to replace it, then clearly it was improperly rated and/or there are multiple other issues that are not repairable. This does not happen overnight...it should have been discovered during your due diligence and inspections.

5) A unit didn't have the right switches and amp levels, so a panel upgrade was completed to support the newer AC system that was installed. With #4 above, sounds like an upgrade was necessary, has nothing to do with Tenant, everything to do with a proper inspection prior to purchase.

6) B unit flushed their childs diapers down the toilet and clogged the unit up and we ended up having to spend 6k on having a plumber come in exuviate adn reinstall a new sewer cleanout. Highly suspicious and excessive charge. There must be more to the story. Did you have a camera run through the line prior to excavating? Where was the cleanout installed, and how far is that from city main connection?

7) Replaced every toilet due to damages/wear and tear and had multiple roof leaks from upper unit to lower unit. I think you are confusing normal aging with "wear and tear". Old toilets need to be replaced, and should have been obvious at inspection. They also commonly start leaking at the wax ring, and show up as leaks to the ceiling below. (I am assuming you meant ceiling leak in lower unit, NOT actual roof leak from above the upper unit, leaking all the way to lower unit, since you were speaking about toilet issues.)

8) Due to the leak ended up having sewage remediation company come out and rip out drywall, carpet, faming, and plumbing. Yes, that is a "blank check" situation and very costly. Your insurance should have covered if it was worth making the claim.

9) Due to the toilets and sewage am still currently working on replacing the carpet which was brand new due to the unit turn... Who handled the turn? They should have noted the condition of the toilet(s), performed proper maintenance or replacement, and avoided a LOT of damage and headache.

10) The tenant in unit B cut holes in the walls of the exterior of the home WHY? And why would you not immediately initiate non-renewal/eviction for doing so?

and because they leave food out in their kitchen, we now have rats in our walls and a random racoon. Pigs. Why would you not immediately initiate non-renewal/eviction for doing so?

The rats and racoon issue were as simple as repatching the holes the tenant cut out for them with one-way doors and bate traps. Obviously, there are continues efforts to make sure they don't come back but 6k later the issue was told to us to have been resolved by the licensed contractor... 6K for what work? Repairing the holes? Crazy high cost if so.

11) Due to the issues the tenant is experiencing with all the random repairs and constant contractor visits he wanted to break his lease. Unfortunately, the IAR lease we used doesn't have an early termination clause instead it states that should they terminate their lease they are liable for the entire lease duration. Which is over 16k, so I told them if they just gave me a move out date, I would keep their security deposit and call it even... I also informed him that any damages done to his personal belongings are to be covered by him and his insurance as that is what renters' insurance is for and is specifically referenced by an example just like this one in the renter's insurance lease addendum.  You are a glutton for punishment...I can't wait to hear how much more they cost you to actually get rentable again.

Apparently, they didn't like that and filed a complaint with the Department of Health. What they don't know is what this process typically looks like... The DOH won't come in and condemn the property or break their lease unless it's a serious issue. I've dealt with them in the past in Phoenix. What does happen though is the DOH will come in and inspect a bunch and every time they come in and inspect, they find a new bs issue to repair. The issues they gave us weren't that bad either they want us to reinstall the carpet, fix a door the tenant punched a hole through, replace their screen door or remove it, fix a couple of windows that the tenant glued shut, and replace drywall that was completed during the repairs from the toilet leaks (when the DOH inspected the property it wasn't finished yet). Does not sound like a BS list.

If anything, the tenant just pissed me off because they could have brought the issue to me or moved out. Their security deposit is 700 dollars. It's not worth all the drama. I also plan on serving a ten-day notice for all the damages he's caused now. At first, I was going to let it go, but now FUUUUUdge that. Indiana is a weird state though you can't take a tenant to eviction and get the judgement for nonpayment of rent or damages while in eviction court... You have to take them to small claims court and get a judgment. So basically, I'm going to serve him a ten-day notice for the damages for repayment and if he doesn't repair, I'm going to take him to small claims court. either that or he forfeits his security deposit and move tf out. 

Also his lease stipulates specifically that the windows are supposed to be able to open and if glued shut or otherwise damaged he is required to pay for the repairs. Curious, were they glued shut to keep the bugs out, or the outside air? Or was this a "security" measure? 

My wife and I have gone above and beyond for this tenant on the repairs and have handled waaaaayyyy more maintenance requests then what's listed here too. I understand his perspective, but he signed a contract. And as a LL, you are required to provide a unit that meets minimum habitability standards per local laws. It does not sound like that is the case. You need to greatly improve either your rental preps, or your Tenant screening, or both to avoid a repeat of this. Invoke the "happy" clause early, instead of dealing with ongoing aggravation. There are far more Good Tenants, than Bad, but to attract the Good ones, you need to have a quality product for the Tenant pool you are targeting. This means functional, secure, clean, and hazard free.

I would also take a closer look at your choice of vendors, as some may be unnecessarily be upselling you, or just overcharging. I'd be curious to see a link to the report for the 4K inspection, too.