Repairs exceed tenant's deposit

[Edita D.]

Hey Guys!

It seems our tenant kept unauthorized dogs at our property, and there are extensive pet damages to the house (flooring, fence). We think the repairs will SIGNIFICANTLY exceed tenant's deposit. Of course, we would like to resolve this amicably, however we don't think it will happen (tenant did not send a check for this month once he found out that we may be sending him a bill if his deposit ends up not being enough).

We have a very strong lease with a clause that clearly indicates tenant is responsible for any pet damage. We have been managing the property ourselves from California.

Can we effectively deal with a collection agency (in case we have to send the bill to collection)? Or would you recommend getting a property management company? Initially, we were going to have our (amazing!) realtor from Lubbock  prepare and rent the property for us for a fee.

Thanks!

[Marcia Maynard]

1. Make sure you act in compliance with Landlord-Tenant Law for the jurisdiction of the property.

2. Serve the tenant with notice to Pay Rent or Quit for the rent that is currently past due. Follow through with eviction if they fail to pay the rent. Don't go it alone, hire an attorney whose specializes in Landlord-Tenant Law. 

3. If they are moving out this month and plan to skip, then try to negotiate in a way that will protect your property from further damages. If they are on a month-to-month, show they how to give proper notice. If they are on a long-term lease, let them break the lease without penalty if they do no more damages.

4. Serve the tenant with notice to Comply or Quit (or the equivalent for your location). You need to identify all of the terms of the agreement they have violated. People who are rule breakers tend to break more than one rule. Keep an eye out for other violations of the rental agreement.

5. Bill for damages when they occur or as you discover them. If the tenant can't pay for the damages in full within 30 days of the invoice, then try to negotiate a payment plan. If you can save the tenancy and it is a tenancy worth saving, negotiate a win-win that meets the current needs of the tenant and covers your needs as well.

6. From the beginning, communicate with tenants that the security deposit is reserved in trust until after the premises have been returned to you. Let them know it is your intention to return all of the security deposit if they abide by all of the terms of the rental agreement during the course of their tenancy.

7. Do a thorough inspection of the premises and document the current condition. Keep an eagle eye on the property at this point. If you are not in the area, engage the services of someone qualified to do it for you. You may do well to contract with a reputable property management company.

8. It is very hard to collect on dead-beat tenants. Even the collection agencies rarely have success. That is why it is paramount to screen well, establish good communication and rapport at the start. have a strong rental agreement, inspect often to verify compliance with the rental agreement and to address maintenance needs, follow through in a timely manner with enforcement of the rental agreement, get a sufficient security deposit at the start of tenancy, and collect for damages as they occur or as you discover them.

Good luck!