Breaking lease and pest issue

[Robin Evans]

Dear BP freinds we have a upstairs and downstairs duplex and the situation is a mixture of lease termination and bug issue. Both units were rented out last May. Our lease says After the first 10 days of the Term, Tenant shall have sole responsibility for pest control, including, without limitation, prevention and remediation. And there is no pest seen or mentioned on the move-in inspection report. A while back during our routine inspection, the DOWNSTAIRS tenants told us they saw roaches. There was a water leak in the kitchen sink so there was standing water in the basement. We told them they were responsible for pest control per lease and we did fix the leak. We later followed up with them about roaches and they said no more roaches. 3 months later the UPSTAIRS tenant told us he saw a roach. We told him the same per lease. Same day he asked us if he could renew the lease (even agreed about the $ 30 rent increase) but 2 weeks later a PM contacted us to verify info because he applied for another apartment. His lease with us ends end of May. We told him if he broke the lease, he is still responsible to pay rent for the reminder of the lease term. No response till...

10 days later today he sent us a long message claiming "roaches are not his fault but downstairs tenants' fault and we as landlord have not taken any actions either so made the place uninhabitable. Therefore, he has every reason to break the lease now but aware that we can keep his deposit. However, if we can find another tenant within 14 days of his vacating, we have to return the deposit to him. So we either terminate his lease end of March and keep his deposit or he will contact city officials to discuss the unsanitary living conditions that we force him to live in. "

Questions: 

1.  If the lease says tenants are responsible for the pest control, is landlord still on the hook to take care of it? We are in Ohio. Correct me if I am wrong, I don't believe there is any specific law about it. 

2.  I assume tenants can break the lease if the answer to # 1 is yes? If that is the case, we are okay to let him break the lease. But what about the 14 day thing? Do we have to return the deposit to him if we find another tenant within 14 days? 

 There are 3 tenants' issues all going on today so it is one of those days that we would need some encouragement and maybe some wine?! Drive us crazy! What would you guys do in the situation? Thank you very much for any input!

[Randall Alan]

This is always a challenge with a multi-unit property.  Who made the bugs come?  Who knows?!!!  But the pest situation will quickly become yours because you can't re-rent the unit with roaches.  So at the end of the day you will be paying for the service call to resolve the situation in all likelihood if the tenant moves out.  We have the same issue with clogged septic systems... who flushed the wipes? (hint: neither party did it... according to them... they just seem to magically appear at the septic filter!)

There is drawing a line, and then there is sticking to your guns.  The lease 'draws the line'... but then it is up to you to decide if you stick to your guns.  By doing so you are probably cutting off your nose to spite your face by not solving the issue... because now you risk losing income to vacancy when a call to pest control could have prevented the problem.  

Sure, I get it, the lease says it's on them... but I think there is a balance there when you have a multi-unit property.  The way I explain it to my tenants is that roaches are generally attracted to food, and we can't control how tenants maintain their unit (like do they bag put their trash in a trashcan that prevents bugs from being attracted to it?  Do they leave food sitting out in the kitchen, etc.) 

There are 2 types of roaches.  The big ones, typical bug killer will take care of.  The smaller 'German' ones it won't, and where I'm at it's a 2 trip $300 call for service for the Germans.  Most tenants aren't willing to pay that much to solve an issue.  When I see the German ones, I opt to call pest control because just like what you are into, it will likely escalate.  Likewise, for my multifamily properties I would also likely just bite the bullet and call pest control.  If you are netting $500+ a month, a service call isn't going to break the bank, and you likely have a maintenance budget, right?

I don't know Ohio law... but in Florida the tenant landlord laws say that if the property is bigger than a duplex the landlord is responsible.  You should be able to easily look up your tenant landlord laws by just googling "Ohio tenant landlord laws" and see what it says.  

His security deposit is primarily to cover damages - but yes to also abide by the terms of the lease.  I would certainly deduct any damages from his deposit, but given the nature of the problem, I don't think I would fight him on moving out and I would return the balance of his deposit less damages and cleaning.  Yes, it's a cave to what the lease says... but if you want a simple, happy landlording experience, that would be my move.  Or you can take the opposite tack and unless he is willing to get a lawyer, you would probably win by default for the fact he wouldn't be willing to spend the money to fight you keeping his deposit.  

Wish you the best!

Randy  

@Robin Evans