All Forum Posts by: Jacob Camilliere

Sorry for the delayed update it’s been a pretty hectic week dealing with this and definitely learned a lot along the way. 

I had the plumber and restoration folks come out to assess the damage and cause of the issue. Plumber found the blockage and it turned out to just be a wad of toilet paper likely due to the eco friendly low pressure toilets. Nothing unusual was found. Restoration folks started the water mediation and tear out immediately. It was an extensive amount of damage, entire second floor master area had to be torn out and the entire first floor ceiling and some of the walls. 

I ended up filing a claim with my insurance company but was not very optimistic it would be covered as there is a broad water damage exclusion. The claims adjuster came out to take a look and let me know that they will not be covering any of the damage because I allegedly declined water damage coverage.

This is where it gets interesting. I will preface this with I have a career as a management liability insurance broker and am familiar with the correct procedures and requirements during the policy quoting, binding, etc process. My homeowners insurance policy was originally placed and then renewed with the builders insurance agency and was worked into the mortgage closing and what not. I had a feeling that I never signed any applications or elected/declined to purchase water damage coverage. I told my homeowners insurance company that I never signed anything and the adjuster told me that would be highly unlikely but he’d check with the agency regardless. 

Turns out I was correct and the adjuster informed me that the agency messed up and they have no choice but to provide me with full coverage for all of the damages. Quite the rollercoaster of emotions that day as I had already expected to have to pay out of pocket and started lining up contractors etc.  That’s same day my homeowners insurance sent their contractors out to the property to finish the tear out and start repairs. 

They are likely going to subrogate against my tenants renter insurance and I won’t have to come out of pocket for anything (not even my deductible!). 

all in it turned out to be around $25,000 of damages and repairs.  I will also be upgrading the carpet to vinyl for a minimal amount out of pocket. Not a bad result and definitely learned an important lesson in the importance of insurance!

Quote from @George Azita:

I am a plumbing contractor, deal with many landlords and I hate it when landlords blame plumbing problems on their tenants. No less than once every week, landlords ask me to tell them what I find in a tenant's drain and I always tell the landlord I can't do that because the crap goes down the drain or sewer when I clean them. Just because hair is found inside a clogged drain the clog is not the tenant's fault when they rent a unit with ancient plumbing that was 99% clogged the day they moved in. the poor drainage system snags the hair and there is nothing the poor tenant can do to prevent the drain from clogging. Landlords accuse tenant of clogging drains when they put baby wipes and feminine napkins in toilets, but those items are supposed to be flushed through toilets and when the pipes are in good condition those items will not clog the drain system. So, when the drains clog it is the landlord's fault and not the tenants'.

The problem I see is it is almost impossible for a tenant to cause a drain or sewer to clog when the pipes are in good condition. The hole inside the toilet bowl is about 2 inches in diameter and everything that goes through that 2 inch hole will absolutely go through a 3 or 4 inch sewer pipe when the pipes are in good  condition. But, when landlords rent units with crappy piping the landlords are prone to putting the blame for all clogs on their tenants and the same goes for shower drains, tub drains and bathroom and kitchen sinks.

A high percent of tenants rent units from landlords because tenants don't want to have to deal with plumbing issues nor do they want to have to deal with expensive maintenance issues. So, to accommodate the tenants wants and needs it should be the landlord's problem to pay for cleaning drains, sewers and making all repairs with the exception of when a tenant grossly and purposely is the cause for maintenance problems and even then I give every tenant the benefit of any doubt.

It sound to me like you have a crappy plumbing system and a sewer pipe somewhere in between the floor clogged and sewer clogs equally for homeowners and tenants regardless of how careful homeowners and tenant try to stop them from clogging. It sounds like you have a routine maintenance problem and should not be anxious to jump all over your tenant just because you are angry about having to pay to maintain YOUR PROPERTY that is not your tenant's property.

It seems to me that you should have insurance company and have your insurance take care of the cleanup and any damage.

I understand what you’re saying but the home is brand new only 1.6 years old and these tenants are the only tenants to live in the property. If the pipes are crappy, the builder may be partially to blame here as the plumbing is still under warranty. I didn’t have an issue with the original unclogging of the plumbing as that was minimal and expected to happen over time. however, the additional damage the tenants caused from their negligence in using the shower after they knew there was an issue should be their responsibility. 

Quote from @Malcomb Stapel:

@Jacob Camilliere  it sounds like it's going to depend on what your plumber finds when he puts the camera down there. How old is the building and what kind of waste water plumbing does it have (cast iron, plastic, etc)? Do your renters have renters insurance? 

Thanks. Yes, I agreed will need to wait to find out what plumber finds. The building is less than 2 years old and has pvc pipes. They do have renters insurance but would that provide coverage for damage to the unit itself or just their belongings?

Hello all, 

I need some urgent advice on how to handle a situation that i am currently in.

The situation: I own a townhome in Tampa, FL with tenants that have been great. They informed me of a plumbing problem on Friday night in which the drains were blocked and toilets were not working on the second floor. I immediately called a plumber and they were scheduled to arrive this evening (Saturday). The situation at this point had been under control, seemed like just a drainage block, no big deal... 

Saturday morning rolls around and the tenants call me to let me know that one of them had showered in one of the upstairs showers late Friday night, and when they woke up this morning (saturday) there was massive amount of water that had been backed up in the other shower and was all over the bathroom and hallways floors. The situation continued to get worse as the water soaked into the floors, and through the walls and ceilings into the first floor. I immediately called a restoration specialist to take a look at the problem and it was quite severe. A 'Category 3' water issued where the water that had leaked everywhere was sewage water containing fecal matter, etc. The entire carpet, baseboards, bathroom tiles, floorboards in the second floor need to be teared out in addition to the ceiling and wall on the first floor. The water clean up and tear down estimate is expected to be around $5k-$7k plus the cost of the plumber to fix the blocked drain. At this point I am just trying to get all the water and damaged areas taken care of as soon as possible. I have contracted the restoration specialists at this point only to remove the water, install de-humidifying equipment, and antimicrobial sprays. i can do tear out the damaged material myself. The plumber also identified the issue and will be fixing it tomorrow morning. His camera 'broker' so i told him to come back tomorrow morning with a camera as it is crucial i identify what the exact cause of the blockage was. 

What recourse do have with respects to my tenants bearing the cost of the damage? What should i be doing to best protect myself in this situation? I use the BP lease template and there is a very clear section of the lease that states the tenants 'shall be responsible for all costs related to any repair or maintenance of any plumbing stopped or slow down caused by Tenant, whether accidental or purposeful'. 

this is my first rental property and the first time i am dealing with a situation of this magnitude. What should i do? Any and all guidance would be appreciated. 

thanks,

Hello - 

I own a rental property in Tampa Florida that has recently seen tremendous appreciation. I am interested in getting a HELOC on the property but am having trouble finding lenders willing to offer a HELOC on an investment property. I have been checking with the local credit unions but have not had any luck.

Does anyone have any feedback or insight on where to look? 

thanks,

I am 23 and just closed last week on my first rental property in Tampa, Florida. I am an out-of-state investor from NYC investing in the tampa market. To my surprise, i was able to find great tenants within 48 hours. I am already starting to look for the next property. 

What are some legal (or borderline legal) strategies or loopholes to increase profits if your building is subject to ETPA (Emergency Tenant Protection Act)? The building is a 6 family owner occupied unit in Westchester NY. 

Looking for some tips specifically from landlords who are familiar with ETPA. 

Rent control laws are complete ******** in NY. We have a tenant that moved in in the 80s and pays $680 a month because we are only allowed to increase her rent by 2% a year and are required to offer her a new lease every year. The rest of the apartments get above $2,200 a month

Good news everyone! After some negotiating with the lender and threatening to use a different lender unless they can give me more closing credits.. they decided to offer me the full $13,000 closing costs credit (typically only offered to residential buyers not investors). This bring my closing costs to close to $0

Woohoo. I close on my first investment property in April!!!!

Just signed the purchase agreement for my first investment property!!! it is a new construction 3 bed/2.5 bath townhome. I have a question regarding what kind of insurance i should get. 

The HOA includes insurance for the outside of the building. What kind of policy do i need as a landlord? HO-6? i am going to make the tenants buy their own rental insurance as well if that helps

I have an idea of how much it will be monthly but if anyone can provide some additional insight on the monthly cost that would be great. its not near the water so flood insurance is not necessary