How to know when it's my expense or the tenant's?

Question

I just recently had a tenant that cost me a lot in maintenance. I rent long term, unfurnished. How do you determine which expenses should be covered by they landlord and which the tenant? And do you stipulate this in the rental contract?

I will be starting an inventory check-list upon move-in and move-out and a maintenance log. But what items can I decline the tenant telling them they have to cover the cost?  I have it already stated that 'major repairs' are on me and 'minor' ones on them. But of course the tenant always tries to get the landlord to cover everything.  I want to be as specific as possible so it's clear to them from the beginning.

Thank you in advance for any guidance you can provide.

Tracey B. · Answer

My lease explicitly states that after 45 days, the tenant is responsible for all minor repairs up to $100. So if they call me 3x a year about their toilet being clogged, the first call is free if within 45 days and the rest I repair then bill them $100. Recently had to do this and tenant paid no problem. I also explain this to them at lease signing so they get it. If the toilet or sink is always stopped up, it means they are doing something wrong (I always have plumber go through house before they move in to make sure no stoppages in lines). I also fill out move in checklist and make tenant sign it during the first week they move in.

Mitch Kronowit · Answer

It should all be spelled out in the lease. Basically, they are to return the premises the way they found it. I use inventory check-lists during the initial walk-through for this very reason. Any repairs, outside normal wear & tear comes out of their security deposit. What is normal wear & tear? Ask 10 people and you'll get 10 different answers. But what I consider normal is:

1. Carpet worn down in high-traffic areas. Slight stains, not terribly noticeable.

2. Scuff marks and small nail holes (from hanging pictures) in walls.

3. Light stains in tile grout.

4. Minor calcium deposits/tarnish around water fixtures (we have very hard water in SoCal).

That's about it. Anything else is almost always a "repair".

Ryan A. · Answer

All great information.

Another great idea I learned from Mr Landlord - 
Work with your tenants prior to move-out so they can GET THEIR SECURITY BACK. Meaning, be pro-active and do a walk-through 2-3 weeks prior to moveout. Point out any deficiencies and discuss them with the tenant. Explain that you want them to get all of their money back so the unit needs to be as it was at signing. Most people will be more than willing to work with you just knowing they will get all their money back.
Also during this period you should start showing the unit to potential tenants. Work with your current tenants to ensure the unit is show-able. A $50 bonus for getting a new tenant signed will motivate even the most stubborn people.

Whats in it for you? 0% vacancy. Don't underestimate the cost of THAT.

Tracey B. · Answer

Claudia, I have done this from the beginning of my rental business and I do not get a lot of maintenance requests. As far as painting, my lease states that they can do whatever they want to the unit as long as they get written permission and pay to bring it back to its original state upon move out or they will be charged to do so. You can send me a PM and I will copy and paste my verbage for you. As far as your questions:
                    1. What does moldy mean? Is there a ventilation issue or mold growing on the walls? If so, I would repair that issue for free.
                    2. Using the toilet for example, she called the repair into my maintenance line, we repaired it and then I sent her a bill for $100 and told her she had to pay it with next months rent.
                    3. All repairs are required to be called into our maintenance vmail or sent to us in writing. My lease states repair payments are due like rent and non payment is grounds for eviction.
                    4. I am a very fair landlord. When people have issues, I always get to it within a few days if non life threatening and immediately if a serious emergency. The types of issues I have had over the last 3 years have been clogged toilet, clogged tub, drippy faucet, broken fridge, broken stove, missing screens, roof leak and busted drain, spray for pests. I repaired all the issues. The only person who had to pay was the clogged toilet because it was a third offense. After I sprayed for pests, tenants were informed that subsequent visits would be billed to them if required. The guy who had the clogged tub had already paid a licensed plumber to snake the line before he called me to come fix the issue so I did not charge him. The reason I do this is to prevent being called every week over dumb stuff. I read my lease line by line and discuss in detail with tenants at time of lease signing so they get the point that they are not going to harrass me over dumb stuff and if they do, I will be billing them. I have recently started doing a lot of government tenants so we'll see how it turns out with them. One thing I check for when screening is to see if they have judgments against them from management companies or landlords and whether they have filed any kind of rent escrow against previous landlords. If so, I will not rent to them. I have one government tenant I am trying to evict right now that had a judgment against them from a previous leasing company and I overlooked it. Now I am paying the price.
One last note is when people move in, they usually mention some things I may have overlooked like screens and I fix it right away.

Tracey B. · Answer

Claudia, sometimes the tenant isnt home when the repair is done so I do not routinely get signatures that work was done but I do try to keep a log of all their requests per tenant in my rental management software; if i think i should get a signature i will but i usually do not. I give the tenants a number that is specifically for tenants and goes to a voicemail.

Jon Holdman · Answer

Claudia, to be able to send someone a PM, click on the "Follow" link below their picture.  That will offer you a choice to "send colleague request". Do that.  After they accept your colleague request, the two of you can send each other PM's.  A "PM" link will appear below their picture in each of their posts and a "Send  a message" link will appear in their profile.  We would love for you to sign up for a Pro membership, but its not required to send PM's.

Claudia Schmidt · Answer

Hi Tracey,

Thank you so much once again for your response. I'm sorry to hear about your current tenant eviction situation. I wish you the best of luck. I guess all us landlords have our stories...I recently had one too.

I'm sorry, I feel silly to say this, but I can't send you a PM for the verbage because I don't find the location on your profile to do this? I think I have to upgrade to Bigger Pockets Pro?

What do you use for vmail?

Do you get your tenants to 'sign-off' that the repair was done satisfactorily? Or is the repair receipt proof enough for you?

Thanks Tracey!

Claudia Schmidt · Answer

Thanks to everyone for you fabulous feedback! Much appreciated!

Tracey you're brilliant! I think this is the best solution for my situation too and will save me a lot of headaches! I really thank you!

Would you kindly be able to share with me this clause/paragraph from your contract? As I will translate and incorporate into my contracts too.

1) Tracey what do you do if the tenant wants to have the rooms painted, just as an example, because they say it's moldy? Do you apply the rule so that "'anything" under $100 they pay (excluding the 45 day-period) and over you pay?

2) How do you bill the client? The next time they come in to pay their rent? Or do you deduct it from the security deposit at the end of their contract?

3) Do you have a kind of maintenance log (online/offline?) where the tenants can submit their repair requests? ...Or do they just call or send you an email?

4) Have you tried other tactics and found this has been the best solution for you too? And I guess with this structure, the tenants think twice before submitting a request because they know they might end up paying for it? In your experience has this also helped you cut down substantially your maintenance costs?

Thank you sooo much for your help...You really helped me a lot with your response!

How to know when it's my expense or the tenant's?

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