Your Opinions On Landlord/Tenant Responsibilities

[Jay Flaggs]

Hello BP Community,

I have a rental property in California and have some questions about how other investors approach landlord/tenant responsibilities. I tend to lean towards making things as easy as possible for the tenant. However, I'm finding that it's quite expensive to do so, and I don't quite have the resources to do everything. I didn't lay out every single detail in the lease agreement, but looking to do so next time. So please help to point out some things to add to my next lease! Basically, when a tenant calls with an issue, when do you tell them to "Take care of it yourself" and when do you say, "I'll have it fixed right away"?? Here are just some of the things I'm referring to:

• Pool/Jacuzzi maintenance
• Fireplace maintenance
• Wood Flooring maintenance
• Indoor Appliances (Dishwasher, Oven, etc)
• Outdoor Appliances (AC units, Grill, Firepit, etc)
• HVAC maintenance/inspections
• Lawncare and sprinkler system maintenance
• Pluming issues (toilets, sinks, etc)
• Water heater replacements
• Electrical issues(lightbulbs, ceiling fans, etc)
• ...the list goes on!

There are so many details to consider that it seems the list could go on forever. I haven't seen a lease agreement online that covers all of these costs, so how do you go about specifying what costs are the landlord/tenant's responsibility? If not specified in the lease agreement, how do you handle disputes about who should pay for what?

P.S. My tenant has decades of legal experience, so that is why I'm trying to get my ducks in a row and get things documented properly.

[Max Gradowitz]

This is why I always have my units managed by an experienced property management company, because they've seen everything and their lease agreements address most or all of this stuff. But I'll share what my experience is to your list (I'm in a relatively conservative part of central CA):

Pool/Jacuzzi maintenance - landlord expense.

Fireplace maintenance - I havent dealt with this before honestly, but I would guess landlords typically take care of this.

Wood Flooring maintenance - what maintenance? If the tenant screws up the flooring after their lease is up, take it out of their deposit. Always have before and after pics. I don't know of any regular monthly/quarterly maintenance that floors require.

Indoor Appliances (Dishwasher, Oven, etc) - landlord expense. If the tenant doesn't fix it themselves, you'll need to fix it for the next tenants anyway.

Outdoor Appliances (AC units, Grill, Firepit, etc) - HVAC definitely landlord. Grill??? What rental property has a built in grill??? I don't even know what to say about that lol.

HVAC maintenance/inspections - HVAC is an essential part of the house, landlord expense. BUT tenants should be responsible for replacing the filter every few months, whether or not the landlord or the tenant pays for the filter. That is always specifically addressed in every lease I've seen.

Lawncare and sprinkler system maintenance - monthly gardener bill, landlord. If you put that expense on the tenant and they dont pay it, goodbye lawn, not good for you as a landlord, so just pay it. If a sprinkler blows and needs to be replaced, tenant. Super easy to do (I did this multiple times when I rented homes in my 20s).

Pluming issues (toilets, sinks, etc) - usually landlord, but it depends. Garbage disposal freezes up and just needs to be cranked, tenant.

Water heater replacements - really man???? You expect a tenant to replace a water heater on a home they might be 1 month away from moving out of once their lease is up? Is this really a question?

Electrical issues(lightbulbs, ceiling fans, etc) - this is actually a good question. light bulbs go out, definitely tenant. More complicated issues, it depends on if the tenant what the tenant is asking for.

The general idea here is that major parts of the home, like HVAC, permanently affixed appliances (some homes I've rented out have the tenants bring some of their own appliances), major electrical and plumbing, pool, etc are all part of the house that you need to maintain in order to keep the house sellable or leasable after the tenant leaves. Minor stuff like lightbulb replacement, sprinkler head replacement, stuck garbage disposal, etc are typically tenant expenses/responsibilities. Welcome to landlording, it's not cheap but in the long run it's profitable. Get a good management company with a detailed lease agreement. Good luck!

[Gopichand N.]

@Max Gradowitz - your response is disheartening and truthful for a wannabe landlord like me :-)

[Joe Martella]

You are not going to be able to address ever single issue in the property.  Do you need to identify who has the responsibility to take out the garbage?

Pool maintenance?  I have an in ground pool at one of my rentals. The tenant is responsible for opening/closing and chemicals to maintain the pool.  The opening and closing has to be done by a licensed and insured company.  If the pump breaks, it is on me. 

Fireplace maintenance?   Chimney sweeps would be on you. How often is that needed?   

You can have a clause in your lease that any repairs below a certain threshold like $50 or $100 is the responsibility of the tenant. That should take care of tbe lightbulb issue. 

An attorney could also give you a good lease. Go to your local REIA and use the attorney the other investors use.

As for the property management (PM), it will be awkward at first, but you will get the hang of it.  PM can be quite costly and a deal breaker for some.  Check out my prior posts on self managing.  Don’t let self management get too scary in your hear.  

[Jay Flaggs]

@Joe Martella Thanks for the friendly feedback. Good points. I've heard the $100 threshold rule before on a BP podcast, but this is a really good reminder of a good time to put it to use! Fireplace maintenance depends on use, but typically once every 1-2 years if used mildly. I was asked to perform a fireplace inspection upon move in. As far as getting an attorney to write a lease agreement, it seems like the smart thing to do. However, I can't imagine that there is anything new happening in real estate that would really require this process each time a house is rented out. Wouldn't the attorney be just providing you a copy or template of the same lease they've given every client in that state for the last few decades? I'll definitely look into it!

[Jay Flaggs]

@Max Gradowitz thanks for your response. Definitely considering a PM company when I can afford it each month. For now, I just have to ask questions to figure things out for myself. As a new landlord, I'll inevitably ask questions that more experienced landlords would find silly or obvious. 

To answer your questions (not sure if they're rhetorical or not):

Wood flooring - Some wood floors need to be refinished every few years depending on use. 

Grill - About 70% of the properties I've seen have a built in grill if not a full outdoor kitchen. Maybe it's more popular in my area. 

Water heater -  It might be a real question for a tenant who has never rented a house and doesn't know what to expect. Why leave it ambiguous when I can just throw it in the lease agreement along with the not so obvious things? When it comes to money I don't think anything should be left ambiguous, so I don't think this question should be discouraged or put down. I hope it's helpful for someone else who stumbles across this post later on. 

[Laura Marks]

Quote from @Jay Flaggs:

@Max Gradowitz thanks for your response. Definitely considering a PM company when I can afford it each month. For now, I just have to ask questions to figure things out for myself. As a new landlord, I'll inevitably ask questions that more experienced landlords would find silly or obvious. 

To answer your questions (not sure if they're rhetorical or not):

Wood flooring - Some wood floors need to be refinished every few years depending on use. 

Grill - About 70% of the properties I've seen have a built in grill if not a full outdoor kitchen. Maybe it's more popular in my area. 

Water heater -  It might be a real question for a tenant who has never rented a house and doesn't know what to expect. Why leave it ambiguous when I can just throw it in the lease agreement along with the not so obvious things? When it comes to money I don't think anything should be left ambiguous, so I don't think this question should be discouraged or put down. I hope it's helpful for someone else who stumbles across this post later on. 

IF your wood floors are designed to be refinished every few years, that would be normal wear and tear. I have a clause that states furniture on wood flooring needs to be covered. Scratches etc from furniture are tenant damage. 
I have a fireplace clause that tenants must inspect, if they want to use it. 
Grills aren't a thing here, so I don't have any info on this. If provided, I'd say it needs to be maintained by you. 
Water Heater is ALL you, no question this is a habitability issue.
You shouldn't be writing your own leases and if you do, have an attorney review it or purchase one from Bigger Pockets :) 

[Laura Marks]

Quote from @Jay Flaggs:

@Joe Martella Thanks for the friendly feedback. Good points. I've heard the $100 threshold rule before on a BP podcast, but this is a really good reminder of a good time to put it to use! Fireplace maintenance depends on use, but typically once every 1-2 years if used mildly. I was asked to perform a fireplace inspection upon move in. As far as getting an attorney to write a lease agreement, it seems like the smart thing to do. However, I can't imagine that there is anything new happening in real estate that would really require this process each time a house is rented out. Wouldn't the attorney be just providing you a copy or template of the same lease they've given every client in that state for the last few decades? I'll definitely look into it!

Yes, you can use the same lease over and over after you've had an attorney review it. Keep current with all state and local laws regarding rentals, tenant rights, and owner responsibility. 

[Joe Martella]

@Jay Flaggs, I don't know much about fireplaces.  I was going to purchase a place with a wood burning fireplace, and my game plan was either to convert it to gas or get rid of it completely.  

I would see what your insurance policy says about the fireplace and see if there are any inspection/maintenance requirements.  I would get an estimate from a company, and ensure that maintenance is built into the rent.

As for the lease from an attorney, it is a one-time expense.  Find an attorney that would give you a word version.  I use a lease that I purchased from an affiliate (I forget the name) of TurboTenant, which is the platform I use to advertise my vacant properties. 

I get all the other questions about the water heater, etc...  My approach is that you, as a landlord, have a responsibility to keep the items you provide in good operational order as such:  heat, A/C, water leaks, water heaters, washers, dryers, etc...  The tenant has a responsibility to clean and care for it, but you have a responsibility to repair it, unless it is an item that they can take when they leave (such as a gifted item like a portable grill). 

I know that folks like things spelled out, however, it is impossible to capture everything. 

[Theresa Harris]

Things like light bulbs are definitely up to the tenant.  If you supply the appliances, those are also on you.  Lawn care for a single family-that is up to the tenants.

Anything that goes with the house-hot water tank, furnace, etc is up to you.  

When they tell you something is broken, see what it is and then deal with it.  A burnt out light bulb-tell them to replace it themselves.  A leaky toilet, get a plumber in. 

If something breaks because of something the tenant did and you can prove it (eg hole in the door), then you fix it and the tenant pays for it.

Next time you have them sign a lease, if you are worried about lawn care, increase the rent and say it included lawn care (ie mowing).  Then hire someone to do it using the extra money from the rent-the tenant is still paying for it, but indirectly.

[Curtis Mears]

@Johnathan Flaggs

I would handle most of the items on your list. Do you really want a tenant maintaining a jacuzzi? But more importantly, what does your lease say? Mine says tenant is responsible for lawn maintenance. As for for plumbing, it really depends on the nature of the issue. If tenant clogs the toilet, they are responsible. If any leaks, landlord should handle it. Basically, any issue that requires a contractor, I handle. If not, tenant may be hesitant to fix the issue, which leads to larger issues. I want my tenant to tell me about issues that need repaired. That being said, if they call to replace a light bulb, I would push back. Although I did have a tenant removed the entire light fixture when trying to replace the light bulb, so maybe I need to handle that also.

[Joe Splitrock]

@Jay Flaggs lots to unpack in your question, so I will summarize some of my key points:

- Lease should spell out responsibilities. There is usually general clauses that, although not specific, can apply to the things on your list. There are some things that need to be specifically spelled out like lawn care, because some landlords provide it and others don't. Lawn care should even be spelled out in your property listing, so people know who is responsible before viewing the property. There should be some clause about maintenance, repair, etc. in your lease, so read back through it.

- Your rent rate and local common practices may guide your tenant towards expecting certain things. If most landlord in the area charge $5000 a month for a house and include pool maintenance, then for lack of spelling it out in the lease, the tenant may expect it. That being said, the first time they ask for something is your opportunity to say YES we cover that or NO that is your responsibility. If you hesitate or seem unsure who should pay, the tenant will insist that you pay. Firmness is required in any response. This is true not only in landholding but also parenting, management and generally any time you want to be treated with respect.

- I have heard of the $100 or less is tenants responsibility and I think this is a sloppy landlord policy. It only leads to your tenant not reporting problems or coming up with their own solutions. It could even lead a tenant to make sure the repair costs more than $100! Also keep in mind some policies sound great for a landlord, but annoy tenants and will lead to them moving out. So although you can push a $100 policy, it may not be in your best interest.

- Some things are important to avoid bigger costs later. You could blow off fireplace maintenance or pool maintenance, but that could just result in a more expensive repair later. Preventative maintenance needs to be done by the landlord or have a process to ensure the tenant is doing it. 

- Generally speaking, landlords do not pay for general leaning, damage or consumables. Landlords are responsible for items that are normal wear and tear or things that break due to no fault of the tenant. Landlords are also responsible for preventative maintenance, like HVAC cleaning. Of course be aware that things break, even with normal use and that is not the tenants fault. Here are some examples of cleaning items. Pool or jacuzzi cleaning would be on the tenant. Fireplace cleaning would be on the tenant, but it would be cleaned prior to move in. HVAC filters are generally on the tenant, but furnace/AC cleaning is often done by the landlord. Wood floor refinishing should not be required every few years. I had friends with big dogs that destroyed a wood floor in less than two years, but that is not normal wear and tear. Consumables should be on the tenant, which includes light bulbs, batteries and filters. Just make sure when they moved in that all the light bulbs worked, fresh batteries in smoke detectors and new filters. Same is expected on move out.

[Steve K.]

@Johnathan Flaggs what Joe said. Also, did you say your tenant is a lawyer?! Might want to screen better ;)

[Austin F.]

Here is the exact verbiage from my lease:

Maintenance: All normal household maintenance is the responsibility of the Resident(s). This is broadly defined as maintenance under $100. Maintenance cost is $65/hr. Resident(s) will be charged labor and materials for all maintenance requests. If Resident(s) fails to make repairs or replacement, Landlord may do so at Resident(s) expense. Should a maintenance contractor have to be called Resident(s) will be billed at invoice price of that contractor. Landlord reserves right to choose which contractors resident uses. All costs will be added to rent payable on the 1st.

In another line it is spelled out that all plumbing issues are the responsibility of the resident. Generally if it can be bought at a store, and a normal homeowner can deal with it it's the Residents problem. If you have to have skills to deal with it, its the land lords problem.

[Jay Flaggs]

Quote from @Steve K.:

@Johnathan Flaggs what Joe said. Also, did you say your tenant is a lawyer?! Might want to screen better ;)

 Haha that could get me in trouble! =) 

[Jay Flaggs]

@Austin F. Nice! Thanks for the specificity. Did you go through an attorney or REIA as @Joe Martella suggested?