What would you do?

Question

What would you do if the refrigerator in your rental went out and the tenant just bought about $200 of groceries and they all spoiled?  Would you reimburse the tenants for the groceries?

Account Closed · Answer

Auburnjosh, are you a new landlord, by any chance? Because the old "fridge went out and ruined $200 worth of food" is such an old moldy tenant trick.

As time goes on, you will discover that no tenant ever has $40 worth of food, or $82 worth of food. Always it's $300 worth of meat, to the penny, in the freezer that was ruined. Your tenant hasn't kept up with inflation.

I'd tell them to contact their insurance company because their tenant insurance probably covers it.

I also might ask them why they didn't move their food to a cooler, add some ice, and call me immediately. I can get a refrigerator to any of my units in about 2 hours.

Fridges don't go out very often, and I've never had one just stop with no warning. If the tenant will call me, I'll get their fridge fixed or replaced before they lose their groceries.

(I keep the fridge running in empty units and I keep a couple of ice trays and a couple of 2 liter bottles of water in the freezer. So I can easily check to make sure the fridge is functioning correctly at move-in.)

Richard F. · Answer

Hopefully, your lease has language that minimizes the potential liability for you, but in any event, the tenant always has a duty to mitigate any damage. Was the refer cold at move in? Did they sign off on the condition form that it was OK? What are the circumstances of the failure? Did they "notice" the milk spoiled quickly? Or have any other "telltale signs"? Was a large portion of the spoiled food in the freezer? It takes a long time for a freezer to thaw out. If they didn't notice, or report to you that there seemed to be a problem with cooling, why? Were they absent from the property? Or did they "notice" a problem on Friday, but wait until Monday to call you about it? Better yet, did they "defrost" the freezer themselves...with an ice pick? good! They can buy you a new refer! And finally, if they have ANY claim...they should submit it to their insurance co. They DO have renters insurance, right? You did make them sign a statement that they understand that they NEED renters insurance to protect THEIR property, right? What does your local LL/tenant ordinances say about LL responsibilities and tenant responsibilities?

Josh Bryan · Answer

I forgot to mention that the new tenants just got the keys on thursday.

Allen B. · Answer

Well it is important to keep new tenants happy.  Although I spent 270 on groceries last weekend, I know not all of that went in the fridge or would be ruined if the fridge died.  Milk and meat and frozen yes, but soft drinks, beer and other fridge items would still be ok.

If you think this is a big deal have them submit the receipt for the groceries and add up the items that would have gone bad.   I bet it is less than $100 unless they stocked up on frozen meat.  Plus they probably had eaten some of it anyway.

Allen B. · Answer

In general no we would not reimburse as we had no reason to foresee that the refrigerator would fail.  Now if we repaired it, instead of buying a new and then fridge went out again, then maybe.  In the past we would buy used refrigerators and they would almost always fail.  So now most houses we rent without or we buy a new one and mark up the rent 25 or 50 bucks.