Realtor/Investor · Philadelphia, PA · Member since 2012 · 114 posts · 38 votes
Hi all,
I've been advised to add a clause in my lease stipulating that tenants pay for a portion of repairs. The idea being that such a clause will prevent them from calling in repair people without thought. Historically, I have never had a tenant call a repair person. If there is an issue tenants either submit a maintenance request via our website or call me.
Either way, it seems that we are going to add this clause (unless I hear a convincing reason for not doing so).
As such, I'm looking for a lease clause to have tenants pay the first $x of any repair to appliances etc. excluding major mechanical systems and roof (which are my responsibility.)
Does anyone have a similar clause they wouldn't mind sharing?
I'm also interested in any input from people who have used such a clause and the positive/negative impact.
Tenant will not call repair folks regardless of co-pay or not(we tried both ways) so we do use co-pay now for years, but months before they move, we try to schedule an inspection to see what if anything needs fixing. This is sort of the "best of both worlds".
Realtor/Investor · Philadelphia, PA · Member since 2012 · 114 posts · 38 votes
12y
@Val Csontos Thanks for the input. I like the method that you are using. Coupling intermittent inspections with this policy seems like it may be more effective. At this point we have had leases signed and executed without the repair clause. We may reevaluate in the future.
Investor · Pawleys Island, SC · Member since 2008 · 1k+ posts · 837 votes
12y
If you are a landlord, then you have a responsibility to maintain your property in good repair. It is not the tenant's responsibility to call repair people, it is the landlord's. You don't want the tenant calling the most expensive repair guy when you may already have an established relationship with an appliance repair service or a handyman. When the tenant calls you to report a problem, you can decide to check it out first before you call the repair people.
I don't see how you can make the tenant liable for a portion of a repair cost resulting from normal wear and tear. The tenant is not an owner of the property and has no vested interest in paying for any portion of a repair. If you plan to do this, make sure it is not a violation of your landlord-tenant law.
I have a clause in my lease that requires the tenant to promptly report any repair issues. I also have a tenant abuse clause in my leases that holds the tenant liable for the full cost of repairs or damage due to tenant abuse.
Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
12y
I know MD requires a statement in the lease stating landlord is responsible for all repairs unless caused by abuse from the tenant. So charging tenant can be a violation depending on where your property is. In VA, we tried this out over a decade ago as it sounded like a good idea but found, like Brandon Turner said, that they just will let it sit broken. The worst part was that they were confused thinking it was for any problem, so they didn't report the small leak in the hot water heater because they thought they'd have to pay for some of it. It flooded the laundry room and seeped into the den ruining carpet, padding, etc. before they called to report it. So we took that clause out as it seemed to confuse the tenants and caused more problems than it solved.
Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
12y
Making tenants pay for repairs is a great way for problems to go unreported or to create tenant DIY fixes that cause more harm than good and cost more in the long run than fixing it property the first time.
Let's say a tenant has a small leak under the sink and because they don't want to pay your deductible they just put some duct tape on it and ignore it. After the tenant moves out you come in and find that water has been leaking slowly under the sink for months and all your lower cabinets are ruined. You could have had someone come out and fix it for $40 but you were cheap and tried to put it on the tenant and now you have $2,000 in damage. Was it worth it?
If it's not caused by tenant abuse we fix it and pay for it, if it is caused by tenant abuse we fix it and bill the tenant. I don't want small problems going unreported until they become major issues.
Rental Property Investor · Annapolis, MD · Member since 2014 · 214 posts · 140 votes
12y
Another great way to save money and hassle is to put in your lease: if there is a clog in any of the drains at the rental unit tenant call the plumping company at his or her expense. Unless clog was caused by tree roots or deterioration of the pipes.
This is an amazing clause, it will save you $2-300 year per unit, and on super-ball Sunday night when you get a call/text that toilet is not working you just remind them they are free to call anyone :)
If it's not caused by tenant abuse we fix it and pay for it, if it is caused by tenant abuse we fix it and bill the tenant. I don't want small problems going unreported until they become major issues.
This is my approach as well. Tenants call me, I select the repairman and pay. If it was caused by the tenant, the repair cost is added to their next months rent and is due and payable at that time.