Fire and my renter owes $2400. What would you do?

[Andy N.]

I am curious how other investors would handle this situation.

One of my renters car caught on fire in the driveway of a duplex.  The car burnt  completely up down to the frame!  There was some damage to my property.  It was in the amount of right at $2400.00.  My tenant had no renters or auto insurance.  My deductible is $1000.00.  I paid for the repairs out of pocket.

I told the tenants that they owed the $2400.00 for the damages.  They seem ok with the fact that they owe the money.  The problem is that they say they can only pay me $50 a month.  How would you handle this situation?

I don't really want to have to wait 4 years to get my money back.  I don't see them staying in the property that long either.

Thanks in advance! 

[Marian Smith]

Why don't they owe you just the deductible? Isn't that what insurance is for? Fire? If you chose to pay out of pocket that is your choice....you choosing not to file a claim is the same as them choosing not to carry full coverage. I only carry collision on my 2001 Silverado w 140k miles... not comprehensive as the truck's value is too low. I think you should file a claim and split the deductible with the tenant...its not like it was intentional. Require your tenants to carry renters insurance if you do not want this to happen again...most apts require it.