Damaged tub by tenant. What are my options?

Question

I had an issue with my previous management company who just placed a tenant for me for out of state property. I found a new property mgmt company who inherited the tenant from the previous property mgmt company. We were in transition for one month before the new property mgmt company took over.

When the new property manager went out to meet the tenant and do an inspection, he discovered that the fiberglass in the tub was cracked. The water spout was bent and it almost seemed like someone stepped on it which caused a crack in the tub. He has children living with him. I asked the previous property management company if anything was reported upon move in by the tenant because no tenant would want to jeopardize their security deposit and something like this would be reported right away upon move in. But nothing was reported and the move-in inspection report was not filled out. This is very strange to me. We have pictures and documentation that clearly shows at the house was turned over and clean and safe condition. It cracked fiberglass and damage water spout would not pass safety and clean conditions to be rented.

The new property manager says that the tenant claims that he did report it to the previous property management company, but was told to wait and until he is transitioned to the new property manager and then work directly with the new property manager. Since there is no documentation, we do not want to get into a “he said she said” discussion.

I got an estimate to replace the fiberglass tub. It was few hundred dollars. But I’m not comfortable with that because there’s no warranties against future damages or mold which could lead to bigger issues. People in construction have advised me that a full replacement is a better option. The quote for a full replacement is a couple grand. I’m sure this is not gonna sit well with the tenant. Can he fully deny and not pay for this? What are our options other than going to small claims which is probably a headache?

Mary M. · Answer

Check your local laws, but IMO you cant charge a tenant to replace something that has outlived its “life span” for example say you have a stove that has a 5 year lifespan and your tenant destroys it in year 6. You cannot ask them to pay to replace it because it has already outlived its useful life. So unless this tub is brand new you can not charge them. To find lifespans see the allowable depreciation timelines for whatever item was damaged. ETA. if the item has not outlived its lifespan then you can prorate the amount charged to tenant.

Account Closed · Answer

If it was me, I'd go ahead and do the cheaper tub replacement and not charge the tenant anything. It's too hard to prove one way or the other, in my opinion, and not worth it for a few hundred dollars. They can't use the same story twice and get away with it.

David S. · Answer

I would be skeptical of the tenant’s claim too if there were pictures, especially pictures that are dated right before the tenant move in. Why did you replace the previous property manager? How did the previous property manager respond to the tenant’s claim that he “was told to wait and until he is transitioned to the new property manager and then work directly with the new property manager.” If the previous PM denies this and puts it in writing, you have a strong case that the tenants are taking advantage of the situation. How long has the tenant been there? I could believe the tenant’s story if they just moved in recently, say about a month ago and the old PM knew that the new PM was coming in in a month, but I would be more skeptical if they have been there a few months. You say the tenant is a family with children. What else about the tenant’s profile might suggest whether they are being truthful or not? If you want to keep them as tenants because it may take awhile to find a suitable replacement, you could bite the bullet and then have them sign a current unit condition property form. If you think that the tenants are taking advantage of the situation, you do not trust them going forward and you would not be sorry to see them go, charge them for the fix or replacement (less depreciated value) and see what happens. BTW, how does the new PM suggest you handle this situation? what are their recommendations? just curious as a good PM is suppose to help make out of state investing passive but I have hear this is often not the case.

Jason Y. · Answer

Documentation is there. Jonathan, wouldn’t any tenant report this upon move in if it were damaged?

Jonathan R McLaughlin · Answer

Does your opinion change if they are telling the truth? It's pretty plausible...

Mary M. · Answer

Also, if you dont have a paper (or video) trail of what the condition was of the unit upon move in you are SOL