How to deal with a wealthy co-signer parent that is a financial bully

Question

I had a tenant for two months. They got evicted for not paying rent and eventually left, but on their own terms. It's a 20-year old rich kid that has zero accountability. His dad is very wealthy and is a bully

His son left owing 18 days of rent, cleaning fee, late fees and some lawn maintenance fees because he didn't mow the lawn for 30 days and mowing the lawn was part of the lease.

The dad wants a full deposit return minus the cleaning fee, which is not even connected to reality. He also mentioned that he thinks there is a gas leak in the rental unit and his son had to go to the doctor twice to get treated for head aches. This is a totally made up story. It never happened. I interpret this as a threat and intimidation. I have all the documentation needed to show that he gets zero deposit back and still owes an extra $1500.

All deposit disputes are handled in small claims court in my state, no exceptions. If we go to small claims court, I win. He doesn't have a chance. As a result, I think he is going to try alternative methods. I am expecting a threatening letter from a lawyer in 1-2 weeks. Any ideas or suggestions on how to handle bullies?

Greg M. · Answer

Send the demand letter for the $1500 and the breakdown of security deposit deductions. Give them 14 days to pay and make it clear that on day 15 you file suit.

If not paid, on day 15, file a small claims suit.

Stop worrying about everything else.

Russell Brazil · Answer

He was evicted, they get none of the deposit back. Deposit covers the rent they didnt pay.

Nathan Gesner · Answer

I think you're being too generous. If they broke the lease, there should be a penalty. At a bare minimum, they should be held liable for rent, utilities, and other expenses until a new tenant takes over. Then you tack on the cleaning, repairs, landscaping, etc.

You are correct that the dad is trying to intimidate you. Block his number, email, etc. You are under no obligation to communicate with him, particularly if he's being unprofessional. Follow your process according to the law and the lease. Don't respond to bullies.

In the future, consider not allowing cosigners. It's easy to find people willing to cosign, but they become a real pain in the backside when it comes time to pay for Little Johnny's mistakes.

Caroline Gerardo · Answer

Small claims by Zoom- upload all your proof AND have it ready to show as jpegs or power point to the "judge." Format matters as the judge isn't a real judge just an appointed attorney. The judge might not have access to the papers uploaded so be ready and research by calling the court to find out the backup.

You have to accept the failure that a rich kid going there for a surf holiday was NEVER going to mow a lawn, he has no idea how to start the mower, this part is a FAIL on your screening process. He had no job? The judge is going to ask you WHY you rented to him, have a businesslike answer.

Get the gas company inspection done today, they may not come for weeks AND a plumber to write a report that there is no leak, save this for the actual zoom call at judgement day to show live if they have some gas leak accusation. Get neighbor above to say his headaches are from partying in writing- smell was weed and he was seen at local bar...  Go full on Magnum PI (not the one selling Reverse Mortgages lol) to prepare but these papers you hold as your cards.

I don't know Hawaii law but I believe the Dad will be allowed to appear and he's going to sling mud. Do not lose your cool. Son probably won't appear and you win. Hopefully the judgement also goes on Daddy Warbucks.

No more talking to Dad or son - only emails. Do you have Dad's address to serve him?

The amount of money is small. This is a great learning experience, do not lose sleep, get every fact on paper with illustrations.

After it's over let us know how it went and how Hawaii courts run the virtual hearing.

Adam Christopher Zaleski · Answer

You are correct. This was a mistake of screening on my part. I found the problem with my screening process and it has been corrected. I've been a landlord for 16 years and I have 3 properties (4 doors). This is my first bad tenant. I'm usually really good at tenant screening and why I don't use a PM.

The kid tenant moved out on December 18th. I sent a demand letter to the kid tenant and co-signer parent for $1522 on December 22nd, to be paid by January 6th. If he doesn't pay by January 6th, I will be filing a claim in small claims court. The claim is for 18 days of rent, cleaning fee, lawn maintenance fee, late fees and 13 days of vacancy.

If they don't pay $1522 by January 6th, the price goes up to $2800 + court fees because as a landlord, I might be entitled to 30 days of vacancy, even if no vacancy actually occurs. I first ask for 13 days of vacancy because that is what actually happened. However, if I go to court, I'm going to try to get as much as I am legally entitled, which could be up to $2800 + court fees in small claims court. The rental is in Hawaii on the island of Kauai. Hawaii is a landlord friendly state. I have followed all the rules and regulations.

For context, my rental is a basement 1-bedroom "long-term" rental that is furnished at $2200/month. Market rent is $2500/month, but the tenants gets a discount for mowing the lawn, which they didn't do. I paid the neighbor kid $60/mow, which takes him 1.5 hours per mow. Professional mowers would be double.

The kid tenant rented my long-term rental for 2-months and then bailed. Furnished short-term rentals cost 3-4 times as much. Yes, you read that correctly. Similar units that are zoned for short-term rentals (less than 6 months) cost 3-4 times as much. No, I did not make a mistake. For Kauai County, anything less than a 6 month lease is considered a short-term rental.

As a result, the kid tenant got a huge discounted vacation by renting a long-term rental and then breaking the lease. This is a culturally sensitive topic for Kauai because he is using a long-term rental as a vacation rental. This behavior takes housing supply away from the long term rental pool. In my opinion, a judge would not react kindly to this type of behavior. I am actually hoping that I go to small claims court.

I agree with others that it is small stakes and I'm going to proceed as stated above. I was just curious if anyone else ever experienced a bully. He is trying to intimidate me with the false claims of a gas leak, which didn't work. I am pretty much done communicating with him.

I'm thinking it's going to take another 2-3 months to resolve. I will provide updates.Thanks for the feedback.

Joe Villeneuve · Answer

...all the above and one more thing.  Natural gas has no natural smell.  It has an additive in it that smells so that you know there's a leak.  If you can't smell that additive, there's no leak.

Colleen F. · Answer

@Adam Christopher Zaleski  have the required documentation  send the letter on deductions and know what you can and cannot charge for. If you get a letter be prepared to go to court. (you will have to if you want the $1500 over) and if he reported a gas leak make sure you have the gas company out.

Nothing else you can do besides non-respond. If this is a student rental you should lay out in the beginning that you only want a garauntor on payment and you deal with the tenant, not the parent.

Adam Christopher Zaleski · Answer

It looks like small claims is now 100% on-line. This is not just for filing, it's for the whole process. They use a software program called, "Turbo Court". Has anyone used this software or have any advice?

I gave them until January 6, 2023 to pay, which they are not going to do. I will be filing a small claims case January 7-10.

The wealthy co-signer is doubling down on his threats, in an email, which I will be including in the judgment against him and his son. They have no merit, but he has the resources to bully someone with false claims. I'm guessing his assets are at a minimum of 20 million. After I file in small claims, I am expecting a threatening letter from a lawyer representing him with more false claims.

I'm planning on continuing with small claims because I have a 99% chance of winning. I served him a 10-day eviction notice on November 25th for non-payment of rent. His last day was supposed to be December 5th. He stayed another 13 days past his eviction notice and continued to not pay rent. In my opinion, there is no way I can lose in small claims. However, I was just wondering if I am missing something relevant to my claim or unrelated to my claim.

Jonathan R McLaughlin · Answer

@Adam Christopher Zaleski Interesting that he has "doubled down on his threats" but has not yet engaged any legal professional. He is trying to bluff a weak hand. Doesn't sound like there is a reason for further communication but one additional lever you have is his credit score. A simple factual statement that you will be reporting all deliquencies of both signatories to the bureaus as of X date may be useful? No knowledge of your local requirements for this.

You could also add in the cost for the licensed contractor gas check out due to the frivolous claim if you are already having fun with this....

How to deal with a wealthy co-signer parent that is a financial bully

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