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

[Jacob Hornberger]

I agree with Randy, you're best-off taking care of the roach problem yourself. You will have to anyway if current tenant moves out. Once the roach issue is resolved, and then tenant still wants to break the lease you could try to keep the security deposit. 

[Nathan Gesner]

Quote from @Robin Evans:

Don't get emotional. This is standard practice for renters. You told him he couldn't break his lease, so he is angry and reaching for straws to try and force your hand. Just stick to the lease and carry on. If he breaks the lease, don't take it personal and get angry. Just stick to the lease and carry on.

Tenants are responsible for the roaches. You were told the problem was handled in the downstairs unit, so you have no obligation to follow up. You aren't responsible for something you don't know about. Even if there were roaches, it is for him and the other Tenant to rectify and they could fix it with pest control. It's not a legit reason to break a lease.

[Marc Rice]

To my understanding tenants can't just break leases but can put their rent in escrow with the city until the maintenance issues have been fixed. You could explain to the tenant that you will have to file an eviction if he fails to pay rent and that it will be permanently on his record and will be very difficult for him to find another apartment. You can even tell other apartment companies that are calling you about the situation what is going on and that if he fails to pay rent you will be evicting them.

Or you could tell the tenant if he wants to move out that he can forfeit his deposit + 1 months rent and then you can start to market the unit and fix the roach issue yourself.

[Theresa Harris]

Upstairs tenant is mad, don't respond immediately.  If you can get it rented out, he is not responsible for the rent (ie you can't collect rent for the same place from two different people).  Let him move out at the end of March, do your normal inspection and move on.  Return any remaining deposit (minus expenses for cleaning and damages). Look up your local laws about how long you have to return the deposit.  What does your lease say about an early terminate fee?  If you don't have one, add one for the next tenant.

I'd have someone come in and treat the building for roaches (you can do it once the upstairs tenant is out and their unit is empty-schedule it now).

There are times when you have multiple things happen with different rentals.  With this guy, let him simmer and don't reply until Monday.

[Robin Evans]

@Randall Alan @Jacob Hornberger @Nathan Gesner @Marc Rice @Theresa Harris

Thank you so much for all you input! We have learned quite a lot from this matter and your perspectives! We have discussed it with an attorney as well and decide to let him move out by end of March and fix the roach problem ourselves. Pest control professional says it is the big kind, also called "water bug" that we can just spray and put some roach baits around to control it. The tenant also signed on a statement that he would surrender his deposit. All in all, we feel like the best is to let him go and put it back on the market and do better screening and solutions if the pest situation pops up again. He kind of played us by not telling us when he plans to move out so we verified the info for him for the next landlord. Soon after that, he played the pest card and told us he planned to leave one month earlier. We were kind enough to rent to him when he just graduated from high school and did not have any renting background. But .... Lesson learned! 

[Jill F.]

Get this stuff: https://www.amazon.com/Syngent... it WILL kill the roaches even german roaches. I give them to tenants no charge anytime they say roach. The roaches eat the bait and go back to their nests and die and then their friends eat them and die too!

[Theresa Harris]

Glad it is working out.

[Robin Evans]

Quote from @Jill F.:

Get this stuff: https://www.amazon.com/Syngent... it WILL kill the roaches even german roaches. I give them to tenants no charge anytime they say roach. The roaches eat the bait and go back to their nests and die and then their friends eat them and die too!

 Thank you for the tip, Jill! Good to hear from you again!