Unauthorized Maintenance on Water Heater - Bill the Tenant?

Question

Apparently there was a 'hiccup' with the gas the other day, and my tenants needed to relight the stove, fireplace, and hot water heater. They told me that on the heater they removed the door with the sticker that said 'Do NOT Remove' and tried to relight it. But this didn't work and it looks as though some of the wires are melted.

I sent a guy out and he can't find parts to fix it, says it would be $600 to fix, and it's a 14 year old tank so I should probably just spend the $1650 for a new one. OK, price is a little high, but not too bad. The real issue is, should I hold the tenants liable? He says that this damage is almost certainly brand new and done by the tenants in an attempt to relight. Pictures are coming soon...

I think the obvious answer is 'Yes, bill the tenants for the new hot water heater'. But, how? Bill them full price of a new water heater with next month's invoice? Offer to spread payments over the next three months to be nice? Tell them to get out and find new renters, since they breached the lease?
The lease is fairly general, it simply states that they should not do anything other than routine maintenance like light bulbs, furnace filter, etc. Perhaps this could be considered routine under those terms.

Natalie Kolodij · Answer

I don't think you get to bill them the full amount f the hot water replacement.

They didn't break the whole heater- they caused something that would be $600 to repair. Choosing to upgrade/replace at this point is your decision.

They can only be held liable for the least expensive repair I believe.

I think this is a gray area in terms of what's routine.  I lived in a house where our pilot light went out all the time and the landlord would have been super annoyed to get that call all the time. However they were contacted the first time and showed us how to relight it.

I'd weight it to how good of a tenant they are, and how likely it was to need replacing soon any way.

Nathan Gesner · Answer

I'm in a small community in North West Wyoming and replacing a water heater generally runs less than $1,000. you should be able to get a better price in Colorado.

It sounds like the tenants were trying to do the right thing and screwed up. Whether or not you decide to charge them for the mistake would depend upon what kind of tenant they are. If they've been there for 6 months or longer, always pay on time, and are trying to take care of the property, then I may suck it up and handle the cost myself. If they were mediocre tenants or bad tenants, then I would be more likely to charge them for the expense.

The next question is how much do you charge them? It is not fair to charge the tenant the cost of full replacement when the unit is already 14 years old. If a new one cost $1,000 and had a life expectancy of 15 years, then I would divide $1,000 by 15 and charge them for the remaining year of life expectancy.

To make a long story short, my recommendation would be to charge the tenant for the trip charge required for the plumber to come out and evaluate the water heater. Then suck it up and pay for replacement on your own dime.

Jerry W. · Answer

@Garry C., when you get 14 years on a water heater you are on borrowed time.  I do not believe a judge would ever give you the price of a new water heater for a 14 year old one.  The tenants were trying to do the right thing, keep that in mind.  I have replaced dozens of water heaters and have a hard time believing they could do $600 of damage with a barbecue lighter or match.  Have a new water heater installed and pay for it yourself, but let them know what the plumber said.  I agree with getting a second opinion.  That price sounds really high.  A new water heater should be around $450 to $650 depending on type.  There are some special models that cost a lot more.  Get the info off the old heater and run it online to check what you need to replace it.  Two sharkbite flex hose fittings with ball valve shutoffs are not only quick, they can save you a ton of money later on if you have a tank develop a leak and the tenant needs to turn the water off to it.  Good luck.

Bill S. · Answer

@Garry C. ain't landlording fun? All you do is sit back and collect the checks. Lowes will install a water heater for $300 plus the cost of the new heater (~$500) depending on the size and the "warranty" you get with it. The 12 yr ones cost more than the 6 yr. BTW it's the exact same pieces of metal. Figure out who you want to bet with on that one.

So my take is this. The re-light and associated damage could be over looked but the fact that the "do not remove" was ignored puts him on the hook for at least the install ($300) in my mind. I probably would start with the install plus half the water heater cost. Let's me come down so he can think he got something.

Also a note on the Lowes install, if there are code issues that need to be addressed, it's an extra. For example some areas now require an expansion tank where as 14 years ago it was not. You are now on the hook for the expansion tank install. That might be where your plumber is getting the $1,650 for a new one. That said, plumbers are notoriously outrageous in their prices when they have you over the proverbial barrel.

Shaun C. · Answer

Installing a water heater is super easy if you are a little handy, and even if you aren't with sharkbites. That drops your cost down to $600. I would take the estimate that it would be $600 to repair the damage your tenant did, purchase one, and install myself. They are definitely on the hook for the $600, if you want you can discount it a little bit but at the end of the day; they caused the repair, not you.

Daniel Massicotte · Answer

However you choose to handle the issue, don't forget to add a paragraph in future tenant contracts so it's clear to future ones.

Johnson Jacks · Answer

Relighting a gas hot water heater seems pretty routine to me.  The first time I had to relight a gas  water heater I was able to do it with no experience or instruction other than the pictures on the tank.  If I had been them, I would have assumed relighting it was routine maintenance I was responsible for.  Not sure what I would have done if there were no instructions though.  I guess look for a youtube video.

Unauthorized Maintenance on Water Heater - Bill the Tenant?

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