Do you report to credit bureau if they don't pay repairs?

Question

Hi all. I just bought this 8-plex, where pets are only allowed if approved, deposit paid, etc. Well, we did the inspection for purchase and one lady, who just moved in a year ago May 1, has 2 unapproved cats and her place smells like a litter box. They've also ripped a hole in the carpet when she must have locked them in a bedroom. Her deposit is only $300, so that's not going to cover much. I sent her a letter to get rid of the cats and have the carpets professionally cleaned. I'm sure she won't do it. She was planning on moving out the end of May anyways.
If I bill her for the repairs and she doesn't pay, can I report it on her credit? Do you all do that? How would I go about doing that? Thanks much!

Rolanda Eldridge · Answer

@Jennifer Rysdam...I don't report, but file a small claim, if amount owed over $500. Min amounts I LET GO!  It all works out in the end.  Whenever I think, I lost, I win in other ways....Keep it moving!

Jennifer Rysdam · Answer

Account Closed Thanks for the advice. I think a collection agency might be the way to go for the bigger damage bills. I don't have a ton of income on this property and every little bit will help.

Marcia Maynard · Answer

@Jennifer Rysdam, if the carpet is old and past it's life span, then don't charge for the damage. If the carpet would have had some more years in it, then prorate the replacement cost by how many more years you could have gotten out of it, if it hadn't been damaged.

Typically we charge by the inch (usually $10 per inch) for damage in materials that we're not fully repairing or replacing. Take a photo showing the damage and put the tape measure in the photo. This can be stains, tears, scratches, holes, etc...  in floor coverings, counter tops, doors, tub surrounds, walls, woodwork, etc. If we repair we charge the exact repair cost. If we replace, we prorate the cost to take into account ordinary wear and tear, and the life expectancy of the item.

If the cats sprayed their urine in the residence, then the damages could be significant. Be prepared for damage as deep as the sub floor. You may need to use odor blocking and stain blocking paint on the subfloor, walls, trim. Cats tend to scratch door trim and bust window blinds, so look for damages in those areas too.

Good luck!

Marcia Maynard · Answer

Congratulations on your purchase! Tell me about the rental agreement and the move-in checklist. That's key. Charge for damages as they happen or as you discover them, as the security deposit is rarely enough. If she doesn't remove the cats and pay for the damages after you have served her with the proper legal notice to comply with terms of the rental agreement, then you can move to evict her.

But evictions are costly, time consuming and stressful. Also more damage is likely to occur to the unit if the tenant gets angry during the move-out. We prefer negotiating a move-out plan, which results in a faster and cleaner process for vacating the unit.

At the end, when you do your final report on the apartment condition and deductions for damages (and other money owed), she will likely come up owing money to you. After proper notification (demand letter) and reasonable time to pay, if she doesn't, you have two choices:

1. File a claim with small claims court. If you get a judgement in your favor and she doesn't pay, contact the credit bureaus and inform them of the debt.

2. Turn it over to a collection agency. If she doesn't pay after they contact her about the debt, ask them to report it to the credit bureaus.

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Here are a few key clauses from our rental agreement that have proved useful over the years:

PETS AND ANIMALS.This agreement specifically prohibits keeping pets/animals, or allowing the pets/animals of others on the premises, even temporarily, without the prior written consent of Landlord.“Pets/animals” include, but is not limited to, both warm- and cold-blooded animals, such as dogs, cats, fish, rabbits, hamsters, rats, birds, snakes, lizards, and insects.Tenant agrees to pay immediately for any damage, loss, or expense caused by such pets/animals.If Landlord grants permission for keeping a pet, Tenant must sign a Pet Agreement addendum for each pet, which may require additional monthly rent and/or additional security deposits. Service animals are allowed for people with qualified disabilities upon request and completion of a Service Animal Agreement addendum.If Tenant allows a pet/animal in the residence, even temporarily, without Landlord’s consent, Tenant agrees to pay a penalty fee of fifty dollars ($50) per violation, per pet/animal.

INSPECTION OF PREMISES. Tenant and Landlord have inspected the premises and have found it ready for occupancy.Tenant agrees the unit and its contents are in satisfactory order, as are the electrical, plumbing, and heating systems. Tenant agrees to take care of the property and at end of tenancy return it in a condition as good as upon move-in, ordinary wear and tear excepted. Tenant and Landlord will complete a Property Condition Report addendum that will become part of this rental agreement.

MAINTENANCE OF PREMISES.Landlord will maintain all electrical, plumbing, heating, and other facilities and appliances supplied by Landlord in good working order.Landlord will perform periodic inspections of the premises, no less than once a year, for the purpose of property maintenance and repair.Landlord will notify Tenant in advance of the inspection. Tenant agrees to allow Landlord timely access to premises to do maintenance and repair.Tenant will notify Landlord in a timely manner of any damages or problems as they arise, including damages caused by Tenant, malfunction of appliances or fixtures, and water/moisture leaks and spots.Tenant will take care of the premises, keeping them clean and clear of debris. Tenant will use appliances and fixtures in accordance with manufacturer instructions.

DAMAGES. Tenant agrees to pay for repairs of all damages that they or their guests have caused.Landlord agrees to initiate repairs in a timely manner following discovery of the damage or can choose to defer repair until Tenant has vacated the premises. Repairs done by a professional will be billed at the professional rate.Repairs done by Landlord will be billed by the job or as labor plus materials.

Jennifer Rysdam · Answer

@Rolanda Eldridge Thanks for the info and advice. I will definitely do that :)

Jennifer Rysdam · Answer

@Marcia Maynard Thank you for the information. I will definitely use your wording in my leases. Her mother has contacted us and is going to remove the cats and get the carpets cleaned so we can come and reinspect the apartment. There's nothing they can do about the hole in the carpet, so I will let her know then that she'll be billed for the replacement after she moves out. She changed her move out date to the end of this month. We were going to completely remodel with laminate or vinyl plank anyways, so if she pays for the damage that would be great and if not we won't get too bent out of shape about it.

Thanks again for the wording. I want my new leases to be much more thorough than the last guy.

Jennifer

Do you report to credit bureau if they don't pay repairs?

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