Can my tenant sue me with the following reasons? She moved out 6 months ago.

Question

My ex-tenet who moved out *7 months ago* texted me today and demand for a partial refund of her total rental payment (80%) she made for 2 years within 30 days or she will get a lawyer and sue me.

#1
She mentioned that she was led to believe that she can use the living room when she first rent the bedroom. (Please note that almost everything are verbal, and we did not specify that you can/cannot use living room, but the rent was specifically for a bedroom, and the use of bathroom/kitchen is allow. she knew this on her first week, she complained about it, but we told her that this is out is it, and then she seems to be OK with it and stayed for...2 years.

#2
She mentioned that she was not allow to bring any guest/friend, we said we are no in favor of having strangers, especially male because...well, i'm a female, and she ignored and still manage to bring her boyfriend up a few times without permission. Now she is making this 1 of the reason of the sue.

#3
She mentioned that i'm bossy and having a landlord attitude, and threathen to evict her. There were serveral occasion that we got into unhappy situation, but i've never threaten to evict her, but i've asked her to move out with a 30 days notice if she can't bind to the rule and if she act immaturely.

#4
She mentioned that i made her made cash payment and she thinks that i've not been reporting it to IRS and she will sue me about this too. Can she use this as one of her point in the civil court? Everything were cash

Update: I'm more worried about #4, because i did not in fact report it to IRS because i think the rent was to cover the maintenance of my apartment, will the judge in favor of the tenet and ask me to refund all of the rental payment because of this? And please note that she moved out 6 months ago, will the judge accept this case since she no longer live here?

Ned Carey · Answer

Yes people can sue over anything. That doesn't mean they will win.

I doubt an attorney would take this on contingency and she probably doesn't have the money to file or pay an attorney. She will probably never sue.

She can report you to the IRS, but no court would award her anything because you didn't report income.

The fact she moved out 6 months ago is irrelevant.

I don't think she has any grounds to get anything from you. It wouldn't worry me.

Matt Devincenzo · Answer

As others have said she can sue for anything, winning is another matter. I doubt very much that she would actually take this to court, and if she did there is not a good chance she'd get anywhere.

I would completely ignore this. I actually think any response is likely to make it worse not better. As you said everything was verbal, and as such as it is right now it's your word against hers. If you respond you're creating a paper trail that could be used in some way to validate her claims. Without knowing the terms around issue #4 it's hard to say what if any basis that has and again I wouldn't respond.

Also I'm no lawyer so take this for what it's worth, but her mentioning the IRS and demanding payment to keep from reporting you is extortion which is a crime in itself. So were she to take this to court I'd make sure your lawyer gets a copy of that text. Again at this point I'd completely ignore her, don't respond at all. If she does decide to attempt a suit at that point get an attorney to handle her if needed and keep you from saying something that could be used by her to justify her claim.

Elizabeth Colegrove · Answer

Do you own or rent the house? If you own the house it is "income" and should be on your taxes. If it is rent to "my" understanding, not a CPA, you are splitting bills and don't have to report it!

As for the others, 7 months is alot of time for those reasons. While everyone can sue for ANYTHING, I don't see how she can get away with anything from what you said. I would stand my ground. Eveyrthing in writing, keep it civili, professional and stand your ground. I would email not txt! but txt is fine too

Dear X,

I hope this finds you well after 7 months. I am sorry that you feel this way. I thought we left under amendable terms. To my understanding everything that you have described is not relevant in what you are asking and any refunds or issues has expired under the applicable statues of limitations. Please note that if you feel the need to take it to a lawyer or court, I will be required to pursue the case to the fullest extent of the law including, the repayment for my legal fees, and other penalties if we win.

Thank you,

X

I have "professional" but standing up for yourself is worth alot. I have had alot of unhappy tenants but if your right. They usually know it, that doesn't stop them from asking.

Elizabeth Colegrove · Answer

Account Closed

From all the research I have done it depends on your relationship to the building per the IRS. Disclaimer, haven't looked into this recently, i thought it was weird enough that it has stuck with me. Mostly because I was ticket I would have to declare income if I house hacked lol

If your renting it, than it is not income because it is splitting the bill. Think sharing a family plan on the cell phones with your family. This isn't income.

On the other hand if you own the house. than you are building equity, that is consider income. That is where the pay tax comes in.

The thing I have heard from others is that you can give 12k (approx.) a year to another person. Not tax applicable. So some people make these payments a "gift" but as a landlord that opens a whole new can of warms. Ie is a lease than applicable, etc. Personally if it is a owned house and therefore needs to pay tax on. I declare it. Make your life easier lol

John D. · Answer

Your best response is no response.  It's highly unlikely she will proceed.  Most likely she is looking for some kind of response, and then will try to shake you down for some amount of "settlement" money.  The entire premise sounds ridiculous.

If it's an email, ignore it.  If it's a text or voicemail, call your cell phone company and have her blocked as a potential inbound caller.

Account Closed · Answer

Thanks! @Elizabeth  Colegrove

Account Closed · Answer

@Jj Yip if she was a "tenant" and you were collecting "rent", isn't that income?  It seems to me it would be but I don't know... I'm just asking.

Steven Hamilton II · Answer

Actually if you did not report the income and the IRS determines you owe them, you will be subject to tax and penalties. Even more interesting is the IRS can and has paid out reward to information informants.

If you were subletting part of your apartment you definitely may have some tax consequences as you can only deduct your cost of repairs and that percentage of YOUR lease payment.

Matthew Paul · Answer

Sounds like an upset lover to me ....................  Just a thought

Chris Martin · Answer

The real question is 'does anyone have experience reporting someone to the IRS?' I'd bet not. Do you know their SSN? EIN? DoB? That's all in Section A. And how do you think they'd answer "... describe the facts of the alleged violation-Who/What/Where/When/How you  learned about and obtained the information in this report."

It would be interesting to see what an accountant like @Steven Hamilton II  thinks. This is (I think) the appropriate form to file: http://www.irs.gov/pub/irs-pdf/f3949a.pdf  if you KNOW with some certainty that someone is indeed cheating...

As for the suit.... and the basis is...   ?  Money owed? Small claims?  I'm trying to figure out the venue and a basis for a suit. Sorry, I can't see it.

Can my tenant sue me with the following reasons? She moved out 6 months ago.

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