Massive damage caused by a tenant

[Abdelkhalek Saleh]

Hi all

I'm new to the real estate investment and I had my first rental closed with tenants moved in November 1st (in north Dallas).

Three days after move in I received a call at 5 am from the tenant saying the bathroom is overflowing and the water extended in the ground floor. We managed to get it to stop but it continued to overflow every now and then until we got a plumber next morning.

The plumber found that there is a clog caused by flushing good number of wipes in the bathroom. They cleared the issue and charged me $375 which I paid.

The next part is to clean the effect of the sewage. The sewage damaged total carpet size of 300 sf  in the living room and the closed. A contractor took out the carpet and disinfected the contaminated areas and installed 6 fans to dry out the walls for three days. this costed $1900

The next part is to install new carpet and install baseboard trims in the areas previously removed. they quoted me $3500 for that work.

So total damage is around $5900

Since this is my first time rental I need your advice on what to do.

Should I directly bill the tenant that amount and ask them to pay it immediately? If they did not agree what should I do? Should I apply the rent to the damage first and file for eviction?

I called my insurance and reported the matter. (I don't think their renter insurance would cover that type of damage). I'm not sure if insurance will end up paying because it is caused by negligence from the tenant.

If they agreed I have a deductible of about $2400. Shall I bill the tenant for the deductible only or for the full amount knowing that my insurance rate will go up for sure after that.

Please give me your advices in such situations.

Appreciate all feedback

[Nathan Gesner]

1. Contact your insurance company and file a claim. They may cover some of this.

2. Tenant should file a claim with their renters insurance, if they have it.

3. Tenant is responsible for anything not covered by insurance, including your deductible.

When the tenant causes damage through neglect or abuse, they are responsible for the cost of repair. You should have a clause pertaining to this in your lease but the tenant is responsible whether you have a clause or not.

Notify the tenant of the charges and give them 30 days to pay or set up a payment plan. If you accept a payment plan, don't let it go too long. I usually won't accept payments for more than six months.