Tenant threatening to sue and wants to extort money

Member since 2019 · 15k+ posts · 11k+ votes

I'd tell the tenant they are clearly not happy in the house and tell them they are welcome to break the lease (this is the last offer). Give them 72 hours to decide if they are going to break the lease or not. When it comes time to renew the lease, tell them you are not renewing it and they need to find another place to live. Remind them you had professionals out there to inspect the place multiple times and they found no problems.

If they claim that their insurance policy needs your info, tell them to give you their info and you will contact their insurer directly.

5 Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

1y

these guys will know

@Nathan Gesner @James Wise @Drew Sygit

Podcast Guest on Show #222

JLH Capital Partners51 Review

Website View Page

1 Reply

James Wise

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

1y

Quote from @Pankaj Malik:

Hi, My first post so Thanks in Advance.

I have a tenant that moved in and reported Foundation and wobbly toilet upstairs. The contractor I hired finished the Foundation work in 4 weeks and tenant started reporting damages, thefts to items in Garage which contractor denied. While replacing the toilet, a burst pipe caused Cat 3 water damage that rendered large part of downstairs kitchen and upstairs bathroom unavailable and cordoned off for repairs . I involved insurance, remediation, restoration and they all did their part and finished in 2 weeks. Tenant chose to stay in house during repairs citing Renters insurance declined coverage. During this time, tenant complained of cross contamination, claims got nail in foot while in kitchen - all the same time accessing these areas to take pictures etc. Tenant also claimed possible mold, rotted subfloor etc, which Remediation said they found no evidence of. Contractors also saw an unauthorized pet during this time, which tenant confirmed. I offered to break the lease but tenant did not take it.

Months later, Tenant is now claiming close to 10K. Itemized breakdown has ridiculous amounts for damages, thefts of toolboxes, medical claim, loss of use etc. When advised to claim from Renters insurance, Tenant wants my Landlord insurance policy number and claim number, which I am not comfortable giving. Reason given is to file claim with Renters insurance. I offered a month’s rent in addition to what was reasonable for loss of use of 7 weeks of garage and 2 weeks of kitchen/bathroom unavailability (adjusted for back rent for unauthorized pet) but no response from tenant other than pursuing legal option unless I share Landlord insurance details. What should be my course of action- I really don’t see the tenant appreciating what has been done and would rather break the lease.

Thanks!

Stop offering tenant anything. Continue normal duties of rent collection. If they don't pay rent in full, evict them.

9 Reply

Pankaj Malik

OP

Member since 2025 · 8 posts · 1 vote

1y

Thanks Theresa. The tenant already declined the lease break offer even with a free month thrown in. How do I go about evicting them if they are current on rent and unauthorized pet is the first violation. Lease does not end for many more months.

0 Reply

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

1y

Quote from @Pankaj Malik:

Thanks Theresa. The tenant already declined the lease break offer even with a free month thrown in. How do I go about evicting them if they are current on rent and unauthorized pet is the first violation. Lease does not end for many more months.

If they are in violation of the lease, give them a notice to cure. Check your local laws for what rules and paperwork you need to use. That will give them X amount of time to fix the problem. If it is a pet, be aware that they could get paperwork saying it is an emotional support animal (if so tell them it needs to be from a local medical professional not a website) or say that they don't have a pet.

1 Reply

Pankaj Malik

OP

Member since 2025 · 8 posts · 1 vote

1y

Thanks - the unauthorized pet is a stray cat so not emotional support animal. The only reason I am not serving a notice to cure is because I’d rather they take the very attractive offer of lease breakage and move out - which they are not willing to.

0 Reply

Pankaj Malik

OP

Member since 2025 · 8 posts · 1 vote

1y

Lastly, if I have made a note in lease that a 60 day notice is needed on either side to break the lease, can I just give the tenant a 60 day notice and break the lease or is that not allowed in Texas as state law (if any) supersedes anything I write in the lease.

Thanks everyone for helping out a distressed soul!

0 Reply

Nathan GesnerBusiness Member

Moderator

Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

1y

I think the problem stems from your lack of decisiveness, and I'm not saying that as an insult.

I'm with Theresa. When I have a situation like this, I give them a written notice to accept the property in its current condition or get out. I give them a deadline to respond, very clear terms of how we will move forward with the option they choose, and I make it clear this is my final offer. If they insist on staying, then they abide by the contract, period.

Tenants threaten to sue all the time. It doesn't mean they have a case or that they will go through with it. I would take James' advice: ignroe the rent, deal with the unauthorized cat, and move forward. Stop jumping every time he asks for something. Learn to set boundaries and enforce them. Know your responsibilities as a landlord instead of acquiescing to every request or complaint.

The DIY Landlord Book4.7243 Reviews

Website View Page

4 Reply

Gregory SchwartzBusiness Member

Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes

1y

Ask for the name of his lawyer. Tell him you'll give him a call :)

This is one of the reasons why we tell tenants they need to vacate the property for any major repairs.

[email protected]443-812-0357

Schwartz Realty Group5118 Reviews

Website View Page

2 Reply

Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes

1y

@Pankaj Malik Good advice from @James Wise, @Nathan Gesner and @Theresa Harris!

Tenants will push and try to get everything they can from their landlord.

Seems you've done everything possible to be reasonable, yet the tenant is not satisified and wants more.

As already stated, you are too much of a pushover, so the tenant is seeing how much farther they can push you.

Highly advise you to find an experienced residential landlord-tenant attorney ASAP. You will need their advice on your state & local laws to properly proceed. Go to courthouse in city where your rental is, or see if docket is available online, and write down the names of the attorneys with the most landlord-tenant cases. Then interview them.

Now, let's look at your issues:

1) How did replacing a toilet result in a burst pipe and flood?
- Why didn't the contractor's insurance cover this? Guessing you used an uninsured, cheap handyman?

2) Tenant chose to stay in property during repairs.
- You should have required the tenant to sign a Hold Harmless Agreement, indemnifying you against any of their claims. Now the tenant may have a legitimate personal injury claim and more.

3) "Citing Renters Insurance declined coverage"
- So, tenant has Renters Insurance? Did you require this or did they just get it on their own?
- Highly recommend REQUIRING tenants to get Renters Insurance and adding you, as the landlord, as additionally insured. Not only will this lead to you being alerted if the policy lapses, but if their pet bites someone it may protect you from a resulting lawsuit.

4) Unathorized Pet
- Check your lease and state laws to see if you can terminate the lease over this. No warnings, just terminate if possible to gret rid of this problem tenant.

5) Theft of tenant possessions - ignore.
- Have they filed a police report? If not, ignore their claims! They will need police report to file claim with their Renters Insurance.

6) Wanting your insurance info - ignore.
- They do not know they law, but think they can file a claim agaisnt your insurance. Insurance system doesn't work that way. Even if their Renters Insurance company wanted your insurance info, an insurance represetnative would be contacting you for it.

7) You haven't stated if the tenant is current on their rent or withhold rent payments?
- If they are not making their payment, start eviction process with an experienced landlord-tenant attorney.
DO NOT TRY DIY EVICTION!
As a landlord, you are representing yourself to the public as a business.
As a business, a judge will expect YOU to know all the laws and legal procedures.
Make a minor mistake and the judge is unlikely to give you a break and may rule in the tenant's favor.
The judge will see the tenant as a consumer and may give them a lot of leeway in court, even give them borderline legal advice.

You are in over your head, not having the knowledge to properly handle this.

@Jay Hinrichs hope this is what you were expecting:)

[email protected]248-209-6824

Logical Property Management4.9469 Reviews

Website View Page

5 Reply

Pankaj Malik

OP

Member since 2025 · 8 posts · 1 vote

1y

Yes, In hindsight I should have asked the tenant to make a move out temporarily. Lesson learnt.

Tenant is current on rent, produced an ESA letter last night for pet and Tenants insurance was mandated by me in lease so he has that.

I do have a clause that says - 60 days of written notice is required on either side for lease breakage. I just don’t know if that supersedes Texas residency requirement and if I can enforce it in Texas. If yes, I would just serve this notice and wait for 60 days for him to move out.

Lots of lessons learned and greatly benefitting from this wonderful forum. MANY THANKS for your inputs.

0 Reply

James Wise

Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes

1y

Quote from @Gregory Schwartz:

Ask for the name of his lawyer. Tell him you'll give him a call :)

This is one of the reasons why we tell tenants they need to vacate the property for any major repairs.

I understand the sentiment behind this advice. You want to show the tenant you are ready to call their bluff. However, this is not really effective in the real world. What will happen is you'll continue to waste time being drawn into the tenant's circle of drama.

Just stop engaging. Engaging does not make you money. Engaging wastes your time. Do not do anything that does not produce income. If you engage with tenant drama all the time you'll be doing that 24/7 for the rest of your life. These people have no shortage of drama.

Do not engage.

3 Reply

Gregory SchwartzBusiness Member

Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes

1y

@James Wise , I agree that engaging with petty disputes isn’t productive. However, we’ve had great success with a straightforward approach: 'talk to the lawyer.' This was our policy when I was a property manager, and nine times out of ten, it resolved the issue. Usually, there isn’t an actual lawyer, or it’s a family member who doesn’t want to get involved. In other cases, the lawyer quickly realizes there’s no case and advises the tenant to drop it. Either way, the problem tends to disappear after that.

The most important move is to get this tenant out of your investment as soon as possible. I think we all agree to that :)

[email protected]443-812-0357

Schwartz Realty Group5118 Reviews

Website View Page

0 Reply

Patricia Steiner

Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes

1y

What you have is noise...the tenant elected to stay in the property during the repairs which you made promptly. You are not responsible for his failure to secure his personal property. Advise him in writing that - email AND via US postal system with proof of delivery required that the lease remains in effect as is and that you, again, recommend that he file a claim with the provider of his renter's insurance for any losses he felt were sustained. And, that's it. Nothing more. If he fails to pay the rent which is not a legal remedy, send him a Notice of Quit for Nonpayment advising that if not immediately cured, eviction proceedings will proceed.

As soon as you act decisively, demonstrate no fear, do not coward to his threats, and make it clear that you are managing to the lease without concession, he will stop thumbing his chest and making crazy demands.

Cowboy up.

2 Reply

Pankaj Malik

OP

Member since 2025 · 8 posts · 1 vote

1y

Update - Tenant has now requested County mediation to help resolve the dispute. I just got the email notice from County Dispute Resolution.

I am thinking of taking that option and also discussing with a lawyer how I should prep for it.

I’m just really surprised that the tenant is not taking the option to break the lease break with a $ number offered (1 month rent plus reasonable amount for parts of house he wasn’t able to use) that is within a couple thousand dollars of what he wanted anyway.

0 Reply

Nathan GesnerBusiness Member

Moderator

Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

1y

Quote from @Pankaj Malik:

I’m just really surprised that the tenant is not taking the option to break the lease break with a $ number offered (1 month rent plus reasonable amount for parts of house he wasn’t able to use) that is within a couple thousand dollars of what he wanted anyway.

Stick around and you're sure to see crazier things than this. Some people will push to get the maximum, even if it means they may wind up with nothing.

The DIY Landlord Book4.7243 Reviews

Website View Page

1 Reply

Jules Aton

MD/DC · Member since 2024 · 1k+ posts · 1k+ votes

1y

OP, sorry about this it is my least favorite part of REI.

I continue to wonder why Fair Housing has a provision for ESA which are not trained, certified service animals. I have always allowed pets with a small fee and think service animals are crucial but don't want to be forced into ESA. We need a lobbyist to address and push for change.

1 Reply

Mark Cruse

Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes

1y

I agree with others here that you are doing too much to appease them. At least the way you are going about it is too much. They probably see you as someone afraid they and take you for whatever.

Did you inherit this tenant? That is how I have gotten people like this. With my own screening I know how to weed them out.

Sounds like you had a wack contractor. I'd get better people on my team. Also, many may disagree with me here but in my book, a smart and savvy attorney can make the case they are alleging. They may be bluffing and may not do anything, but Id prepare myself. The right attorney on their side can put you in a position with legal fees and everything else until you are just forced to settle. If that is the case, for me, if they actually do bring a case, I'd try to get it wrapped up as soon as possible. Through a competent attorney of my own, id start throwing out reasonable offers to settle. I have seen this before. These dishonest lawyers will start adding on all kinds of BS and start running the cost up so much as time goes on that you have no choice.

Good Luck

Please keep us informed.

2 Reply

Jill F.

Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes

1y

Unless you get a summons from the court, you don't have to address whining. Decide what you are going to do then tell them what YOU are going to do. Then they'll do what they're going do. Since they say they don't want to leave, I wouldn't try to force them out until the end of lease term if they are paying (it might look like retaliation) but if you really don't want a cat you could.

Here's what I would do:

I would tell the tenants that they need to address their issues with the renovations with their own insurance carrier not yours. Their insurance will call you if warranted. Also get rid of the cat or you'll be charged an additional $xxx fee and an extra $xx/month. Have a nice day.

If they get a lawyer, direct the lawyer to your insurance agent.I'd be really surprised if you got a summons or heard from your insurance company.

ALSO, i would non-renew at the end of their lease term.

1 Reply

Mark Cruse

Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes

1y

Quote from @Pankaj Malik:

Update - Tenant has now requested County mediation to help resolve the dispute. I just got the email notice from County Dispute Resolution.

I am thinking of taking that option and also discussing with a lawyer how I should prep for it.

I’m just really surprised that the tenant is not taking the option to break the lease break with a $ number offered (1 month rent plus reasonable amount for parts of house he wasn’t able to use) that is within a couple thousand dollars of what he wanted anyway.

It sounds to me like they could have an attorney in their ear, and they believe they can force so much more out of you. See what happens in mediation. Though we know you are not, an attorney can paint you as negligent and feckless which caused the tenant all kinds of problems. The tenant can make up tons of unfounded accusations and all together it just paints a bad picture. If you don't settle, they will try to paint you as a horrible person in front of a jury. At least that's how it works where I'm from. I had a tenant force me to pay for some dumb azz air quality test where she claimed my air was bad and making her sick.

0 Reply

Ralph Soles

Member since 2024 · 22 posts · 3 votes

1y

I am not an attorney, but it sounds like all the tenant wants is the problem, even if it might cost some money.

I would do this: move the tenant to another apartment free of charge and get a state-certified contractor to fix the problem. I would even take a couple of months off the person's lease for the headache. It does not cost the landlord except for the labor and materials.

0 Reply

Pankaj Malik

OP

Member since 2025 · 8 posts · 1 vote

1y

So I had a session with my lawyer. He advised against mediation as tenant has already become unreasonable with his demands. He browsed through the lease and recommended to use the 60 day notice clause in the lease to send a lease termination notice. Plus, he said let the tenant go to court as burden of proof is on him. Per him, Judge will see how unreasonable he has been in his itemized list and not award a windfall anyway.

0 Reply

Ralph Soles

Member since 2024 · 22 posts · 3 votes

1y

Sometimes, lawyers are like doctors; sometimes, you need a second option before the disease gets too bad or you pay too much.

0 Reply

Nathan GesnerBusiness Member

Moderator

Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

1y

Quote from @Pankaj Malik:

So I had a session with my lawyer. He advised against mediation as tenant has already become unreasonable with his demands. He browsed through the lease and recommended to use the 60 day notice clause in the lease to send a lease termination notice. Plus, he said let the tenant go to court as burden of proof is on him. Per him, Judge will see how unreasonable he has been in his itemized list and not award a windfall anyway.

I think he's right.

The DIY Landlord Book4.7243 Reviews

Website View Page

0 Reply

Theresa HarrisPro Member

Member since 2019 · 15k+ posts · 11k+ votes

1y

Quote from @Pankaj Malik:

So I had a session with my lawyer. He advised against mediation as tenant has already become unreasonable with his demands. He browsed through the lease and recommended to use the 60 day notice clause in the lease to send a lease termination notice. Plus, he said let the tenant go to court as burden of proof is on him. Per him, Judge will see how unreasonable he has been in his itemized list and not award a windfall anyway.

He's right and if it does come to that, stick to the facts, keep a record of when everything happened.

1 Reply

Tenant threatening to sue and wants to extort money

Tenant threatening to sue and wants to extort money

Most Popular Reply

27 Replies