Coin-Op washer and dryer

[Davon Lowery]

So, finally got the second tenant for the duplex and almost lost them the same day. The tenants are responsible for their own electricity and gas, I pay the water and trash.

My mentors have advised me to either, take out the the washer/dryer hook-ups (cap off) or put in coin-op laundry, protections against countless liability reasons, i.e. laundry business etc...

So, after the applicant, now tenant, signed the lease agreement and the supplemental renters addendum, which clearly states in section 'J' subsection '1', "no personal laundry units shall be installed and or otherwise used by any tenant at any time{....}, landlord reserves the right to discontinue laundry access at anytime for any reason."

The tenant signed everything and when we met today we had a back and forth about what was explained and how I'm not operating fairly, this is bad business, will I reimburse them for the electricity and gas that they use...yada yada yada. To which I promptly responded, everything was clearly articulated in the lease agreement and the renters addendum and if you so choose we can end the application process now and I can refund all of your deposit and first months rent.

The applicant stated that part of the deposit went to the leasing company. I contracted with them to handle screening; they have a no-refund policy once applications are singed and deposits are surrendered. They too informed the tenant that I would be installing my own company washers and they would be coin-op.

I allowed the tenant approximately 3 hours to think it over and decide with the family. When I called the tenant back, I was informed that if they backed out now they would loose their deposit, and again how my business was unfair.

My response was firm and steadfast, you are renting. Laundry is a privilege and not an entitlement, moreover, you are a renter and if you would like to make your own rules then you would have to become a homeowner to be fully satisfied with your living arrangements. Again, I reminded, everything was in the addendum, the response was yeah, I didn't read it.

I thanked them for choosing to do business with DNL Investment Group, and we look forward to having them as tenants. If there is ever any need please contact your property manager and you will receive a response in less that 24 hours.....yada yada yada.

To be honest, after the exchange and the malcontent tone and basically subtle insults, I didn't want them as a tenants anyway and was hoping that they would back out under their own impulse, as we are both bound for the deposit with the leasing company.

My question, to my multi-unit landlords is, what's your take? Unfair? Unprofessional? Anyone can comment, just would like my multi-unti folks to take note.

[Marcia Maynard]

@Davon Lowery Okay, understood. So you are indeed providing a coin-op laundry to the tenants of both units, located in an area that can be accessed by both tenants and you. Then why state in your lease: "Landlord reserves the right to discontinue laundry access at anytime for any reason."?  I don't think it is fair to say that.  If you strike that from your rental agreement, then you will probably gain points with the tenants of both units.

Are the machines in place or just promised at this point? Did the applicants see the machines when they toured the unit? Did the advertising say coin-op laundry on premises, or something to that nature? If you are clear about what you are or are not providing, you will be in a much better position. Otherwise it could be seen as a bait and switch. 

You asked for our take... a candid opinion of someone who owns multiplexes. Well, I think you could have done better. This concerns me: 

"My response was firm and steadfast, you are renting. Laundry is a privilege and not an entitlement, moreover, you are a renter and if you would like to make your own rules then you would have to become a homeowner to be fully satisfied with your living arrangements. Again, I reminded, everything was in the addendum, the response was yeah, I didn't read it." 

I would never talk to our Tenants in that manner. It doesn't sound professional to me and sounds a bit condescending. If you intend to establish a good landlord-tenant relationship, then be polite, firm, fair, and sometimes flexible. Even when the tenant isn't. Seek to understand their position. Go for a win-win. I don't expect tenants to fully absorb all that comes at them when leasing a unit; it's like drinking out of a fire hose. It's human nature to miss some things and have second thoughts. Even buyers remorse.

Could this relationship have been saved? Maybe if both of you hadn't given up on it. Unfortunately, once communication becomes heated, the relationship takes a big hit. Perhaps fatal. Since you gave the tenant the option of ending the application process (rescinding the newly signed lease) and offered to refund their deposit and first months rent, do so and move-on. I think you're doing the right thing there. Then work out a different arrangement with the leasing agent, since the tenant they placed fell through. 

But if there is a glimmer of hope, you and the tenant could decide to revisit this on Monday after you have both had a chance to cool down and reconsider your positions. All the parties involved have invested quite a bit of time, effort and money. The tenant probably doesn't look forward to restarting the home search any more than you look forward to restarting the tenant search. I truly hope it works out for all of you.