Rental Property Investor · Springfield, MO · Member since 2018 · 32 posts · 6 votes
In our contract, we state that tenants are responsible for any damages they cause including ones out of negligence. We also go on to list different examples of negligence such as clogged drains due to improperly disposing of materials such as grease, sanitary napkins, ect AND changing furnace filters, batteries. Our current tenants have clogged the pipes once due to grease. We forgave that one. Now, they did not change the furnace filters resulting in an after hours HVAC call due to the furnace not working for being clogged. What is your thoughts on how to handle these types of situations. We have never had to force a tenant to pay for damages caused (thankfully), but how do you go about it? Or do you not because the problem is so small and not worth the future problems it could cause? I'm wondering if we should even right in that they are responsible for changing the filter, because more than likely they may do it wrong resulting in further damage.
@Jarod Castaneda I'd be wary of waiting until move out to charge there deposit when the tenant is only at 6 months. Doesn't take too many tenant damages to exceed and deposit and once the tenant is out collecting any unpaid bills is far more difficult then when they are still living in the property. Just my 2 cents.
For the tenants excuse with the quarter I would have referenced the property condition catalog and their signature. All of our tenants review the catalog and sign before we hand over keys. They have 3 days to report any issues not already accounted for. We have 3-400 pictures of each property as well. If the garbage disposal worked when you moved them in and they didn't mention it in the 3 days it would be their responsibility.
New to Real Estate · Reno NV · Member since 2020 · 38 posts · 19 votes
6y
That is a tough question. I can understand your pain. I had the same statement in our rental agreement. Our tenet called and said the garbage disposal was not functioning. I called someone in to fix it and they informed me there was a quarter in the old one. When I talk to the tenet about it they said that the quarter could have been in there the whole time (even though they had been in the house 6 months). I then said I will take it out the deposit and referenced the rental agreement. This set them over the edge talking court and everything. We looked at the price of the disposal vs the cost of lawyer fees and let it go. We just did not renew the lease when it came due. That's one way...but when talking thousands that could be a different story and worth pursuing. Just my 2 cents. Hope this helps.
I would specifically include a provision in your lease about the tenant being responsible for any damages as a result of the furnace filter not being changed regularly. I provide 1 years worth of filters and send reminders and some tenants still won't change it. If its the same dated filter I installed at move out I'll charge the tenant for a service of the unit due to the added strain on the system they caused by not following our lease agreement.
With your plumbing situation I would include a lease provision that states tenants are responsible for maintaining all plumbing, excluding root intrusion and the like. If something happens in the first 2 weeks of them living there sure take care of it as it might have been from the previous tenants but beyond that its 100% their responsibility. If you don't stick to your rules it will only make the next time you actually try to charge them for negligence that much harder for you.
Regarding how to most management systems allow you to charge through your system. If your an excel landlord simply generate an invoice for the repairs using an online template and send it to the tenant. I make all repair bills due with the second upcoming rent payment so they should always have more then a month to prepare. If they don't pay apply their rent to cover the damages and send them a notice for unpaid rent. All payments are applied to repair bills, late fees, and rent in that order.
@Jarod Castaneda I'd be wary of waiting until move out to charge there deposit when the tenant is only at 6 months. Doesn't take too many tenant damages to exceed and deposit and once the tenant is out collecting any unpaid bills is far more difficult then when they are still living in the property. Just my 2 cents.
For the tenants excuse with the quarter I would have referenced the property condition catalog and their signature. All of our tenants review the catalog and sign before we hand over keys. They have 3 days to report any issues not already accounted for. We have 3-400 pictures of each property as well. If the garbage disposal worked when you moved them in and they didn't mention it in the 3 days it would be their responsibility.
New to Real Estate · Reno NV · Member since 2020 · 38 posts · 19 votes
6y
@Michael Peters you are absolutely right. I did not do that as I was very green. You definitely bring up a good point and it will be something I put into practice!
Real Estate Broker · Denver, CO · Member since 2017 · 54 posts · 30 votes
6y
@Jarod Castaneda I don’t blame you for letting it go, though. Property management is all about picking your battles. One call to my attorney is more expensive than a garbage disposal.
Certainly enforce the lease, but there are scenarios to move past issues.