cost of tenant negligence

[Ana Vhan]

Tenant in my Washington state rental moved out and we find out an active leak underneath the kitchen sink. It looks like its been leaking for some time now as it has damaged the cabinet underneath. The tenant mentioned that he did notice some pipes coming down from garbage disposal. He should have notified us the first time he noticed this but he did not. 

Also, the water heater tank is leaking in the garage which we noticed at the time of final walkthrough. Again he failed to report it when it first happened. 

How would I handle such situation? How much can I charge him for this negligence? Of course, I need to charge him for the damages but we had a similar leak last year that caused us tearing down entire kitchen and installing a new one. I am terrified thinking of the potential damage/mold in the wall behind the sink cabinet. 

Thank you. Appreciate your inputs.

[Kenny Dahill]

@Ana Vhan, I would pick and choose what is worth going after.

• Sink Leak:  Pipes leak and most people don't consider the long term effect.  My question: is the damage sufficient enough to prevent the unit being inhabitable or hurt your success in renting it out?  If you're having to rip out the entire cabinet to replace it, have the tenant pay.  If it's softened the bottom board, replace it yourself and move on.
• Water Heater:  Water heaters have a limited shelf life of 5-10 years, depending on your market's water condition.  Has the leak caused actual damages?  Also, water heater could be deemed the responsibility of the landlord to inspect and maintain.  This could be a sign of the elements rusting out (if electric) or the body rusting out.  Which is an indication you'll need to replace it.

General note, just because landlords have the legal right to go after any damage (small or large), consider how much more stress you're adding to your life.  For $50-100?  Every rental unit economics are different.  I'd hope you make enough off of the annual lease not to fret over these small issues (again, assuming they're as I described).  If these damages are actually large, I understand.

If you wish to proceed, here's what you could do:

• How to handle:  You have to refund their deposit within Washington's required duration.  Make note of the damages and get quotes.  Then provide them a report indicating how much they will receive from their deposit.
• How much to charge:  Negligence is hard to prove, sometimes.  You can charge actual damages (cost to repair) and potentially lost rent if it's the cause for vacancy (liquidated).  It might require going to court to determine negligence / liquidated damages.
• Inspections:  Based on your past experience and the current, sounds like you need to improve your mid-lease inspections.  Put it into your lease that you want to perform monthly/quarterly/semi-annual inspections.  Unfortunately, tenants don't care as much as the landlord.  If this keeps occurring, be more proactive in inspections.