BiggerPockets Podcast #300 - Need Advice to Implement Tips

[Michael Lenahan]

Looking for advice:

One of Tim Shiner's tips in episode #300 was to put the first $100 of repairs back on the tenant. 

I'd like to implement this is my rental business.  

Has anyone done something similar?  What is the legal language you are using in your lease or rules/ regulations addendum?

Thank you in advance.

[Neal A.]

Hey Mike, 

Here is the legal language I use in my lease.

“The tenant will notify the LANDLORD promptly if any part of the property is damaged or destroyed. The tenant is responsible for any damage or destruction done to the property by his/her actions or negligence, or by the actions or negligence of his/her family or guests. The tenant must make all repairs and replacements to fix such damage or destruction. If the tenant fails to do so, the LANDLORD may do so and add the expense to the next month’s rent.“

You could easily insert a dollar amount of your choosing. I will caution to say that I’m not sure I agree with the pod cast and I deliberately leave a dollar amount out of the lease. It also allows me the flexibility of issuing larger damages to tenants if they are responsible. 

I’ve found that if the tenants are worried about paying for a 50-100 dollar repair they just won’t report it. Your 50-100 dollar repair then balloons into something bigger. 

Wouldn’t you rather fix a 100 dollar pipe leak versus the thousand in new drywall and mold remediation 9 months later? 

Small repairs usually translate to big ones.