Move-out Inspection with hostile tenant Wisconsin

[Kevin Forsythe]

I'm in Wisconsin and I have a tenant that will be moving out of apartment in a few days.  As we get closer to them leaving they are getting more hostile and keep threating legal action unless they get 100% of security deposit refunded.  They damaged a window total coast was $100 so not a lot.  At first accepted responsibility but no longer feel that way now (see number 2 below).  The topic of discussion that seemed to push the relationship to a higher level of hostility was getting the carpet cleaned.  They refuse to do so and in the lease I have a non-standard rental provision that I read with them before they signed asking for tenant to clean carpet so they are aware of this provision.  I have read ATCP 134 and WI 704 for guidance and I'm interested in this boards opinions / interpretations of some points below.

1. Tenant is requesting to be present during inspection.  I do not want this because they are hostile and do not feel comfortable with them and would prefer to avoid a conflict verbally or physically.  I do not see anything that requires them to be present.

2. They broke a window on a door and have now refuse to pay for damage because they feel the door was not installed correctly allowing them to damage it.  Their toddler slammed the door into a coat hanger that is installed in the wall behind the door causing glass to break.  They felt the door stopper should have prevented the child from doing this and since it didn't they are not liable.

3. They are requesting 100% payment to them on the day of inspection.  In WI landlord has 21 days post inspection to refund deposit and need to itemize any deductions if any with refund.  I do not plan to honor this request (as far as payment timing) but once new tenant gives deposit (schedule for 5 days after they move out) I will refund their deposit.

Part of me wants to give them the deposit to get them out of my life and move on but on the other hand I don't like being walked on.  Please let me know your thoughts thanks!

[Account Closed]

I have been a Realtor specializing in property management since 2003.  And while the laws are most certainly different here in Florida (and I am not a lawyer), I am happy to share my own experiences with you.  

I have attorneys draw up all of my leases (for $45), and am confident in their ability to provide an awesome "product".   How well your lease is written will go a long way in your situation.  

Because I feel confident in my attorney's ability to provide a great lease, I NEVER allow a tenant to be present for a move-out walk-thru because my attorney has advised strongly against doing so... In part bc the tenants may distract me from damages and try to rush me through so that I am unable to perform a thorough inspection.  

I had a Realtor tell me they allowed the tenant to be present during a move-out inspection... And they said they would never do that again bc after they had promised the tenant a full refund, they discovered a cutting board had been glued to the countertop (among other damages, like a hole in the carpet that they hid by standing over the area during the walk-thru).  But because the tenant had put him on a spot and pushed for a verbal promise of a full refund at the walk-thru, that's what he had to do.  

It's very easy for a tenant to use a landlord/Realtor's high level of discomfort and desire to avoid conflict to their benefit.

When a tenant throws a fit about being told they cannot be present, I simply tell them they are welcome to take video and/or pictures of the property immediately before turning over the keys.   Most are fine with that, but even if they aren't, oh well.  There is no existing law in Florida that requires a tenant be allowed to be present for walk-thrus.

I also NEVER allow a tenant to leave the keys at a property upon move-out.  I tell them rent will continue to accrue until/unless they PROPERLY surrender possession.  

When a tenant gives me their notice, I automatically provide them a list of requirements for the move-out process, to include dropping the keys at my office.  I always EMAIL the list to them so there's a paper trail, which reduces the likelihood that they will say, "But you didn't tell me I had to _____________ in order to get my deposit back."

This move-out list I give them (also) includes the following instructions:

1.  The tenant must have the carpets PROFESSIONALLY cleaned, and a copy of the receipt provided to me with the keys. (This is also specified in all my leases).
2.  They are not to leave any trash/personal belongings behind, or the cost to have it hauled away will be deducted from their deposit.  (Also covered in my leases.)
3.  They must have the interior sprayed/treated for fleas/ticks by a PROFESSIONAL pest control company (and a copy of the receipt provided me to with the keys) IF they had pets on the property at any point.  (Yep, you guessed it... This is also covered in my leases.) 
4.  They must replace the a/c filters.  (In the lease).
5.  They must also provide a forwarding address for their deposit refund/claim.  I NEVER allow them to pick up the check in person, no matter how much they complain.  If they fail to provide a forwarding address, current Florida laws simply indicates I must send the claim letter (or refund check) to the "last known address"... Meaning I send it to the rental property. If they completed a forwarding request with the post office, it should get forwarded to them. If they did not, it will likely get returned to me... At which point I place the UNOPENED letter in their file.  In most cases, the only time a tenant fails to give me a forwarding address is when they know they won't be getting any money back.
6.   If they fail to leave the property in a clean condition, the cost to higher a maid service will be deducted from their deposit (at "MARKET RATE"). 

There are other items on my move-out list, but that's what comes to mind off the top of my head.  If they argue with me about doing something listed on the move-out list, I simply refer them back to the appropriate lease page/item number.

I am curious... When your tenants admitted to breaking the window, was it in writing?   That would go a long way with how I would deal with that situation.  If nothing else, maybe you could split the cost with them (via a deposit claim).  I believe that would leave a good impression with a judge, should the matter ever get that far.  It would show that you were trying to be fair/reasonable.... And it may also get the tenants to back off/calm down, so a lawsuit never even gets filed.  From what you wrote in your original post, I would NOT allow them off clean.

ALL tenants would prefer to receive a deposit refund immediately upon move-out, but that's simply not reasonable.  I explain to tenants that I will get the deposit processed as quickly as I can, while remaining in accordance to the law.  I explain there is a process involved, which takes time... To include performing the walk-thru (alone), and obtaining estimates for necessary cleaning, repairs, etc.  I also explain that Florida law gives me two weeks to refund a security deposit if there is no claim... Or one month if there is a claim, (no matter the amount).  I also explain that due to Fair Housing laws, I must treat all tenants equally in order to avoid the appearance of discrimination.  That means if I don't do move-out walk-thrus with other tenants, I can't do it for them either.

I also tell them the process calls for a claim letter being mailed to them, and if they don't agree with the enclosed claim, the instructions will be included for disputing it.  

If they do follow-thru with disputing a claim (in writing), at that point, you could negotiate with them if you feel like they made good points.

By the way, in Florida at least, security deposit claims must be mailed via CERTIFIED mail.  
I would also recommend mailing a check for the remaining deposit balance WITH the claim letter.  It's not absolutely necessary (in Florida), but doing so will often squash any threats of lawsuits.   A lot of tenants make an assumption that in order to fight for whatever amount I am claiming, that would mean returning check I sent them with the letter (for the remaining balance).  In other words, they inaccurately assume they would have to forfeit the check I mailed them, if they were to choose to dispute the claimed amount.  Having a check in their hand works magic and is often enough to get them to back off, even if it's not for the full amount they had hoped for.  Sending them a stand-alone claim letter with the promise of a future check means an increased likelihood they will become angry for ANY claim bc they see dollars flying out the window, vs having dollars sitting in their hand at that moment.  (I hope that makes sense?)

It costs money for a tenant to file a lawsuit (currently $350 to $450 in my area), and often times, it's simply not financially beneficial for tenants to do so when considering the actual claim amount -- not to mention their time to appear in court, etc.   They may or may not even be aware of the costs when threatening to sue you... But if/when they attempt to file (or speak to an attorney), they will find out.

Contingency-type attorneys aren't likely to waste their time on cases they don't think they can win.  And if they can't locate a contingency fee attorney to take on their case, they would be left to pay out-of-pocket for a flat-fee or hourly rate... Which could obviously get expensive for them.  

The stronger your lease, the better your odds of the tenant's threats going nowhere.  

I obviously cannot help you with writing your leases, but would highly recommend getting future leases drawn up by a local attorney who specializes in that type of work if you aren't doing so already.  Laws are constantly changing, and my attorneys are great about staying on top of making appropriate lease template adjustments (for new leases). 

If you can find an attorney's office that specializes in evictions, they will likely give you the best deal on lease production.

Also.... I cannot stress this enough:   TAKE A VIDEO OF EVERY ROOM (INCLUDING UNDER SINKS, INSIDE EVERY KITCHEN APPLIANCE, AND AROUND THE ENTIRE EXTERIOR OF THE PROPERTY... THEN FOLLOW THAT UP WITH STILL PICTURES!  Do this at move-in (with the tenants present), and again at move-out (without the tenants).  Again, I say, do this at move-in (with the tenants), AND again at move-out (without the tenants present.) 

I also make sure the tenants' presence is SUPER obvious in my move-in walk-thru video and pictures, so they can't say they weren't there, and claim the photos must have been taken months/years prior to their move in.

I also highly recommend you complete a move-in walk-thru sheet WITH the tenant present (while taking the video/pictures), and have them sign it on the spot.

The last suggestion I'll leave with you is to be prepared to change the locks on all the doors during your move-out walk-thru inspection.  Don't put that off even one day more than necessary.  Even if the tenants return all the keys provided at move-in, they may have had copies made.  Also, don't forget to ensure the tenants didn't (intentionally) leave any windows unlocked.

I apologize that this has turned out to be such a long post, but I hope you found it worth your time.  I realize some of my suggestions may only be helpful for future tenants.  I also acknowledge some of advice may not be congruent with the laws in your state, so I would highly suggest you confirm such before acting.  I encourage you to Google "Tenant/Landlord Laws" along with your state's name if you haven't already done so.

Best of luck!  :)