All Forum Posts by: Michael Nahm

 Thank you, I will look into that option.

 I agree, but thought maybe others have had experience with insurance claims and could provide some insight.

Thank you for your response.

Lost rent is covered under my insurance, and each home has its own water meter. The damage appears to have occurred from a burst pipe under the kitchen sink, and later, it was thought that a second burst pipe took place in the main floor's bathroom as well. Because there seem to be two separate sources, it is presumed that it was due to frozen pipes. 

I sent in a request to both the HOA's insurance (via the HOA's rep) and to my insurance requesting their permission to begin repairs until the claim goes through.

I received a response from my coverage, that they are awaiting the decision of the HOA's insurance (I don't know if the adjuster form my insurance didn't understand my message regarding approval for repairs, or simply chose to ignore it). I haven't received a response from the HOA's insurance.

In the meantime, the HOA's insurance now asked for water and gas bills dating back two years.

To me it looks as though they're either stalling or seeking anything to find a reason to deny the claim.

As I’ve received valuable advice from this site, I’m back for more Biggerpockets wisdom.

A rental property of ours had extensive water damage from a burst pipe that took place while the tenant was out of town.

Thankfully, the damage was discovered the same day it began, but the water affected the main level ruining the kitchen, bathroom, hardwood floors, carpets, drywall, and the finished basement which contained the furnace.

A remediation company practically gutted the damaged areas, and we have an estimate from a construction company, which is ready to go when given the go-ahead.    

I filed an insurance claim with my insurer, and they sent out an adjuster to the home.    
   
The adjuster than informed me that the home's HOA policy is the primary, and because of that, my insurer would cover the hefty deductible of the HOA's policy, less my deductible to them.

Since the home is in Minnesota, the insurer suspects the damage is due to frozen pipes. 
 
At the insurer’s request, we provided utility bills proving the home was reasonably heated.  

Now, over two months after the damage, and claim was filed, and apparently because they can’t deny the claim for not heating the home, the insurer hired an investigative firm a few days ago to see whether we neglected to care for the furnace (the furnace stopped working from the water damage, as the water reached the ceiling in the basement).  
 
I need to mention that the tenants are amazing, patient and responsible, and have been very understanding during this time, and their renter’s insurance is providing temporary accommodations for them.  

Another important piece of information is that the immediate neighbor of the home (it’s a townhome with common walls on either side) filed a claim with my liability insurance for some damage to their wall.  

My insurer denied the claim, as they explained it to me, because in order for liability insurance to kick in, either the tenant or me had to have done something wrong. My insurance rep further stated that since their investigation deemed that we had no fault as to the damage, they are denying the neighbor’s claim.
 
Please note that all this insurance jargon is new to me, as thankfully, I haven’t had to deal with these type of matters before.  
 
I’m wondering whether we should begin reconstruction while the insurer is taking their time, whether beginning repairs could affect the claim in any way, and whether what the insurer is doing is reasonable.   
     

As this site hosts so many great minds, I'm back for some advice:

We own a great townhome in MN.

We've had a terrific family in the home for nearly 4 years (and another family that lived there for 4 year before as well).

The HOA's Rules & Regulations specify that in the event of a rental, the owners will pay the Management Company a specific cost for a background and credit check. We abide by that rule and take great pride in following the HOA's Rules & Regulations.

The HOA recently (a little over a year ago) changed the management company that oversees the property.

We just received an email from the management company, asking if our home was a rental (it's in their records along with the current lease), and if so, that we need to pay a $200 fee annually to them for having a rental.

Going over the Rules & Regulations, there is absolutely no word on such a fee. 

We haven't responded to their message and I'm wondering if I can refute it in any way. 

Beyond the high amount they charge for their credit and background check, this $200 a year seems like a money grab.

Would appreciate some insight to see whether I have an argument here or have no choice but to pay them.

Thank you all for the insight and pointers. Definitely a learning experience. I’m going to resend them the balance of their deposit.

By the way, the two techs that came were from two different water heater companies, which I’d obviously not use again. It does make me wonder about everyone’s professional competence now.

As for a pet fee, there wasn’t one. Nor was there a pet deposit, as it was an emotional support animal (though we never charge pet rent anyway, only a refundable pet deposit).

Hello fellow BPers,

Recently, I had great tenants that moved out after 3 years in a townhome. After they moved, in a routine clean-up, we discovered some broken refrigerator drawers that needed replacing (not really something we would see in a normal walk-through).

We purchased new drawers, seeking reasonable prices because the fridge’s manufacturer had outrageous prices for the items, and we were able to save more than half of the cost used from the security deposit.

So far so good. There was also some damage that we withheld a small amount for repair.

We sent the balance of the deposit to their forwarding address.

MN has a 21 day deposit return guideline. We were well within the timeframe.

However, later, it was discovered that there was no hot water in the home. Thinking the water heater was out, we called a tech, who flushed the system and said all is good. Then he couldn’t get it to light. He left.

We then called another company to check it the following day, that tech suggested replacement.

He replaced the unit, then couldn’t light it either.

Turns out, the former tenants called the gas company and requested gas be SHUT OFF to the home.

In other words, the original unit didn’t need replacing.

We called the gas company, who confirmed that they only did what the tenants asked, which was to do a shut off, and can schedule a turn on.

After checking that the security deposit check wasn’t yet cashed by the former tenants, we canceled the check and immediately sent them a message indicating what took place, the expense and time spent due to their actions, and a request to send the balance of our expenses, which now were more than the deposit balance.

Now they hired an attorney and are demanding the balance.

In the meantime, the townhome’s association sent us a complaint stating that the patch of grass in front of the home needs repair at the owner’s expense because the tenants’ pet continuously urinated in the same areas, causing damage. Now while the association covers lawn care, it excludes pet damage.

So now there’s even more damage that they are not even aware of, well beyond the statutory term to return their deposit.

Advice, likelihood of recovering expenses and the like are welcome.

You are correct Bruce, I have never had a smoker in any of our rentals.

I thought of prohibiting smoking in the unit, yet realistically know that it can’t really be enforced.

As for the deposit, Minnesota doesn’t have a limit as to the amount that can be charged.

I’m really torn on this, maybe it really is because I didn’t have to deal with the aftermath.

Once more, seeking wisdom on BP.

I have a potential tenant who has great credit and all looks well, however, he is a smoker.

I realize that I can’t control everything, and to each his own, and he didn’t have to be honest about smoking.

I’d like to approve him, though would like a higher deposit to mitigate potential damage.

Any advice would be appreciated (how much, if there’s anything else I need to account for).

Hi all,

Am again seeking from the wisdom of the forum.

We have three rentals up for rent. A potential tenant saw two of them, likes one and after plenty of back and forth with questions and information, she applied with her sibling.

I personally think application fees are a lot of money to spend, so we routinely stop all showings until an application is processed.

We approved the applicants.

Now the fun part. They made an appointment to see the house again, prior to signing a lease. We wait, they don’t show.

We call, and the applicant says we made plans to meet the following day instead.

Sure. It happens. Our bad.

Next day, no show again, and this time, no response either.

The lease is yet to be signed.

I realize things happen (they also requested a delay in the move in date). But haven’t ever had issues with flakiness after approval.

Wondering what to do.