Tenant broke lease, didnt pay rent, and now wants to sue
Im not sure what to do at this point. I have exhausted several thousand dollars in attorney fees and many hours tending to this situation. We have a tenant who moved in the 1st of May and in the third week of May the condo flooded. Within 15 minutes of the tenant calling me I was at the unit cleaning it up with my own towels etc. The water was all cleaned up when I left. The following day I made arrangements with a cleaning company to go by the unit to assess the damage and what it would take to dry out the whole unit as there was still water under the hard wood flooring. That same day I also put my flooring guys on notice that I would need to have all the bamboo flooring replaced in the bedroom, kitchen, and living room. In the mean time I tried to coordinate with the tenant to pick a vendor she was comfotable with to move her belongings out of the unit (we were going to pay) and to put her up in a hotel. She did not respond to me. The next correspondence I had was from her attorney and that if I touched her belongings she would call the police and put a restraining order on me. Mind you while all of this is happening we still had not received the security deposit or rent for May. This goes on for several weeks where I thought we were going to have the flooring replaced and the tenant denied us/technicians access to the unit costing us more money for them to conitue to go to the unit. We finally cut off comcast as we were paying for that too. Im not sure where everything broke down but the long in short of it is that there was damage done to the unit, she lived there all through the month of June and didnt pay rent and now she is requesting her FULL security deposit back or she will sue. I dont know how to proceed at this point because she is claiming the unit was uninhabitable for the whole month of June but we had tried SEVERAL times to get in the unit to make the repairs and couldnt. Additionally, there was mold build up as a result of her not letting us make the repairs. Do we just give her back the deposit and call it a day or let her try to take us to court? Im just not sure if its worth it. My blood pressure rises and I cry everytime I talk to her because she has nothing but hurtful things to say and all I ever wanted was for her to be happy. Everything we tried to do for her is in writing.... Im just not sure it will hold up as DC is one of the most tenant friendly locations.
Sorry to hear about your problem tenant. I must be missing something or there is a typo. You say the tenant moved in May 1 and flooding was 3rd week in May AND that you still had not received a security deposit or May rent. Why was the tenant living there without a deposit and first month's rent? Then you say she wants her full security deposit back....but when did she pay it?
Your lease should have language that allows you to enter for necessary repairs in an emergency and with 24 hour notice for other inspections and repairs. It's not a request to enter, it's a notice that you will enter with 24 hour advance posting.
Is the property vacant and did she move out June 30?
Katie,
My heart really does break for you.You sound like a new landlord that is going to learn a very hard lesson.
The tenant doesn't move in until the pay the full security deposit and first months at least.It can't be a check either and the funds have to clear as valid.
You are mistaken about the tenant not letting you in.That is your property and in case of an emergency they have to let you in period.
You can call the police and you will be allowed in.You can't break immediate quite enjoyment for inspections and other mundane items etc.
Did you document in the writing the date and the time the event occurred,actions taken and pictures etc. If not it will be your word against theirs.
What is your landlord insurance deductible for claims like this?? have you contacted your insurance company??
You can do research on the validity of the tenant as to their character of you go to court to show they are not truthful.They get these free attorneys to milk your insurance for a payout to go away and then your premium gets raised.If you have to many the insurance drops you all together.
At this point you might want a litigation attorney to draft a letter that includes a release of any current and future liability or claims in exchange for a return of the security deposit and the tenant and all parties agreeing to vacate the unit.
They don't get nay money until the unit is completely vacated and all property is out.You then change the locks,have them sign the form,and give them the money.
Until they comply you don't give them a cent.
Don't take being a landlord personal.When you do you think with emotion and then start making MISTAKES.
No legal advice.
So sorry to hear about your problems with that tenant. K. Marie and Joel have make some very good comments and suggestions.
Your property now has a mold issue and you need to enter the unit and address this problem. Mold is a health issue and counts as an emergency, therefore as the owner you have the right to correct the problem.
Just commenting on your issue, I am not an attorney and can not give you legal advice.
Katie,
Whether its your attorney, or a property manager, I'd suggest having someone experienced with this to do all communications with this tenant. She knows she has the upper hand.
I would also suggest you hire a property manager to manage the property. They will approach it from a business standpoint. You sound like you have a very caring personality, but your tenant is using this against you. Remember, it takes 'tough love'.
good luck!
Pardon me, I tried to shorten my story and missed a couple pieces. So the tenant at the 3rd week in May had not yet paid rent or security deposit. We had originally said yes to allowing her to pay with her Amex so she could ear points and in doing so we had to set up a google checkout account. That process is a little turbulent as you have to wait so many days before funds can be depositied into my account and it was showing the tenant had submitted payment but we had not yet received it. At the time of the flood she fully tried to cancel the security deposit payment but we submitted the lease to google checkout proving the payment was valid. In total, we received 1/2 may's rent and security deposit - no June rent.
Joel, THANK YOU! I agree and went about the situation the same way. I offered the security deposit back in exchange for an agreement to be signed stating she waives all rights to pursue me any further. I had my attorney draft it and sent via email. I just scheduled payment and sent her a screen shot - she responded with the delivery date is not sufficient and is requesting I meet with her. Im just frustrated. You are correct in stating Im a new landlord. I thought with a property valued at 600K I would get really upstanding tenants and as such went far out of my way to make her comfortable and when threatened with police action I backed off letting her manipulate the situation. I am grateful for each person's response and am eager to learn more via this forum. Again, I kindly thank each of you for the words of encouragement and guidance.
I must be totally oblivious - just never thought I would come across a genuinely mean spirited person.
Originally posted by Katie DeLorme:
... I thought with a property valued at 600K I would get really upstanding tenants ...
Regardless of the value of the property, tenant selection is CRITICAL. The need to use AmEx (or any credit card) to pay security deposit (to earn points - yeah right) is not a good sign IMO. Bad tenants come in all income ranges, unfortunately.
How much rent do you get for 600K worth of property?
I think where it broke down was allowing the tenant to pay first month's rent and security deposit with a credit card when you were not set up to do so. Not a good sign for either the landlord or the tenant, IMO. I still don't understand how you only received 1/2 month rent if she moved in on the first of the month.
How much was the deposit that she is asking to be returned? Again, is the unit fully vacant and is the tenant and all her personal property gone?
Now let's talk tough love. Not for the tenant, but for you. Your communication on this thread so far hasn't been clear or concise. Could it be that the tenant received similarly unclear and imprecise communication? That's not an excuse for her behavior. Rather, that's the kind of thing that's easy for a tenant to take advantage of. It's easy to screw with people you owe money if they are the least bit soft or flakey or trying to hard to please. You are in DC where everyone has a relative or spouse or best friend or college roommate or neighbor who is a lawyer. So, it's easy and cheap to bully you with legal communication when they feel entitled to not paying. It may be that you were lucky that the flood ended the tenancy (assuming it's covered by insurance) because I think your tenant was likely to work you over in the coming months anyway.
Don't let this episode make you give up on rental property. You just got a lesson in tenant screening and leases and insurance claims all in a few short months. You're way ahead of many if you can afford to stick it out for the long term. Get the unit fixed up and get some professional PM help with screening and renting to the next tenant. I'm guessing your unit is very nice. Let a professional PM find you a responsible and appreciative tenant. And let them deal with any problems.
I'll probably not have homes in that price range, but at least now I know, maybe I'm not missing anything either!
It sounds like she is a serious scammer. At least you have good karma on your side. Hopefully a good attorney too :-)
Katie the more you give the more they take.
You were manipulated from day one.The tenant was already telling you a story.
You shouldn't have let them move in without full payment dictated on your terms. Another scam is a tenant wanting to move in quick over the weekend when you can't verify much of anything.
How much rent are you getting on this 600k condo?? Did you buy it for appreciation more than cash flow?? You might not be in the right investment for you depending on your goals.
I always recommend talking to someone before placing money and thinking things out.After I talk to my clients some stick to buying the type of property they were thinking of and others change their strategy completely.
K. Marie I sincerely appreciate your tough love. IMO it's the only way you can get better with handling situations. I suppose my thoughts in writing this thread initially was that if I wrote every detail no one would want to read it. However, from what I've seen so far, this is an incredible network people who truly want to make themselves and each other successful. To clarify, the 1/2 of months rent was a promo my husband decided to do in return for signing 12 month lease. I was never a fan but I think we were reaching the point of desperation to get someone into the unit as the property was on the market for about 4 months with no inquiries. (we had already moved into our new home) This being our first time renting, we did make the mistake of letting her run the show. We thought by bending over backwards it would make the tenant happier. I just thought about all the years I had rented and how much I appreciated a nice and proactive landlord and wanted to emulate their practices. With that said, I think there is a fine line of doing whats right and being taken advantage of.
Joel, you are correct. This tenant called one week, was moving from out of town, and wanted to move in the following week. They had given us a copy of their W2 and it was certainly more than enough to cover the rent. We did a preliminary BG check and all was well. With that said, once things went south we dug a little deeper and the records had revealed the tenant had filed for bankruptcy 1 year prior and had several aliases. The company she owns also had some holes. Her W2 was from 2011 yet I called the state to determine the company registration date and it wasn't a registered business with the state until March 2012. Now, I do understand you can own a business in some states without registering but there are stipulations with that scenario. So even after all that, I suppose I still wanted to give the benefit of the doubt but others in this thread said something that really struck home for me. "Take the emotion out of it - it's business". I think another quote to remember is "don't be stupid" :)
To answer a couple of the rental inquiries in this thread: the rent is 3,500. We are not making money on it but the property value has increased by 30K in 24 months (not huge increase but not bad considering the country's circumstances). Our goal was to hold on to both of our properties for quite some time despite our intentions to move in the near future. However, the situation is complicated by the status of the building, the board and property manager.
The board (which I recently joined (treasurer) as a means to keep up to date on the situation of the building) had no established process for claims such as these and I am not the first person this has happened to. The pipes that were installed in the building 10 years ago, when it was built, were 2 inch pipes connected to 4 units. There is improper venting and as such the pipes back up. Initially the board tried to claim this was not the building's responsibility as the owners must have been negligent with what they put down the garbage disposal thus clogging the pipes. Until this year there was no plan in place to be proactive in changing out the pipes and the board/PM could be liable for neglecting to remedy the known issues.
With all that said, we are considering selling at the end of this lease but are still willing to continue renting out our properties in the future.
These types of issues drive me crazy as an insurance agent because it could have all been fixed in about a week if you just called your insurance company immediately. They would have placed the tenant in a hotel, cleaned and dried the unit in a manner that would have avoided the issues that led to mold growth and likely had the tenant back in within 5-7 days. A professional company like Servpro would have handled the whole thing for you and the insurance company would have been the new target for this scammer instead of you... but they are equipped to deal with her. By being such a nice person you put yourself in a bad spot. As others have said, you need to get a tough and experienced property manager going forward.
Originally posted by Katie DeLorme:
...To answer a couple of the rental inquiries in this thread: the rent is 3,500. We are not making money on it but the property value has increased by 30K in 24 months (not huge increase but not bad considering the country's circumstances). Our goal was to hold on to both of our properties for quite some time despite our intentions to move in the near future. However, the situation is complicated by the status of the building, the board and property manager.
...
Katie DeLorme -
That 30k gain can get wiped out by one tenant trashing the place really badly ...
@ Steve Babiak @ Katie DeLorme - from the looks of it, the tenant did not trash the place. It was a flood...an accident. $30k trashing the place? They'd have to do some serious theft & they would be going to jail.
Regardless,, finding someone to rent a place for $3500/month is probably going to be slim pickings, even in DC. This home should have been sold instead of rented out. So get her out of there, fix it up, sell it, & minimize your loss.
@ Joe Bertilino - I think she handled it okay. Let's face it, no matter what, this professional tenant was going to call her attoney.
Good Lord Katie DeLorme
I feel for you and the hairs on the back of my neck are standing up with rage.
Lawyer up, go to war! She has scammed you. My sage brothers and sisters have given you wise advice.
She didnt pay rent, everything else is moot. Start eviction proceedings and chalk this up to lessons learned.
I have a half a million dollar property out here in Southern California, that I have just rented. Even though the tenant is a senior level executive, I vetted him bigtime, checked every orifice, and made sure that his credentials are solid. . .BEFORE HE MOVED IN!
Also, CASHIERS CHECKS, credit cards can easily be put into chargebacks.
Also, with high value properties, it is prudent to be patient. Easier said than done.
Guns now placed back in their respective holsters,
Tevis
Katie DeLorme, I had a husband and wife tenant once, her brother was an attorney giving them advice (not directly representing them) on how to scam the landlord, they played every bs trick to stay and not pay. Long story short, I found an attorney in my area that specializes in evictions, he's done it for a long time, has several attorneys working for him and evictions is all they do, and their prices are reasonable. And, this is the best part, they walked me through every step of the process, including what notices to give, what to say, what not to say, when to accept rent, when not to accept rent, etc. I was a beginner landlord at the time and that was exactly what I needed. Whatever you think you might save in $ you will more than lose in brain damage if you try to do it yourself.
They played the habitability card by the way ... tenants can't claim something needs fixing and not let you in to fix it, document your efforts well. There was absolutely no habitability issues with the property, all tenants have to do is make the claim and it will stall the process so they can get some more free rent.
I'm sure there is an attorney in your area that specializes in evictions, this is the person you need to find. Talk to property managers in the area, after talking to a few the same name will start popping up...that's the guy you want to use. Don't use an attorney that doesn't make evictions his bread and butter.
I feel your pain. If this thing doesn't kill you, it will make you stronger.
Originally posted by Scott W.:
@ Steve Babiak @ Katie DeLorme - from the looks of it, the tenant did not trash the place. It was a flood...an accident. ...
Originally posted by Katie DeLorme:
...
I am not the first person this has happened to. The pipes that were installed in the building 10 years ago, when it was built, were 2 inch pipes connected to 4 units. There is improper venting and as such the pipes back up. Initially the board tried to claim this was not the building's responsibility as the owners must have been negligent with what they put down the garbage disposal thus clogging the pipes. ...
Scott W. -
the cause of the flooding was not precisely revealed, although @Katie DeLorme did post the other quote that wasn't conclusive; it's quite possible this tenant caused a tub or sink to overflow to result in the flood. I won't speculate, but this was a professional tenant from the sound of things so far ...