Tenants failed or delayed to report water leaks
I have a tenant in an SFR with 6 months remaining on their lease. I lived in the home for 5 years before renting it out without major problems. Just a few days ago I received a call from the local utility company regarding a large, past due water and sewer bill. Sent a plumber out who found $5000 worth of work (water main valve leak, hot water tank leak, HVAC condensation pipe removed, main line back up from laundry). Per the utility company the tenant has been behind for more than 4 month. Who is responsible for the repair costs here?
Hi @Heather Yates, double-check your lease there might be language in there about it. If not, I would try and push it off on the tenant. However, if they haven't paid their water bill in 4 months, chances are they don't have $5k to pay for the damages.
Would you recommend I not renew their lease?
Quote from @Heather Yates:It's hard to see how the tenant could be at fault for most of those issues. A leaking water main valve and water heater leak, there's no logical way short of outright vandalism the tenant could have caused those issues. Removing the HVAC condensation pipe, maybe they did that but unless they de-plumbed it completely you're talking about a couple dollars worth of pipe. A main line back up from the laundry, don't see how they could cause that unless they were physically stuffing socks into the pipe.
I have a tenant in an SFR with 6 months remaining on their lease. I lived in the home for 5 years before renting it out without major problems. Just a few days ago I received a call from the local utility company regarding a large, past due water and sewer bill. Sent a plumber out who found $5000 worth of work (water main valve leak, hot water tank leak, HVAC condensation pipe removed, main line back up from laundry). Per the utility company the tenant has been behind for more than 4 month. Who is responsible for the repair costs here?
Other than the condensation pipe, the rest of that looks structural to me and your responsibility. I wouldn't be surprised if your pressure reducing valve was going bad, which contributed to a leaky valve & water heater. How old is the house?
Quote from @Heather Yates:
I have a tenant in an SFR with 6 months remaining on their lease. I lived in the home for 5 years before renting it out without major problems. Just a few days ago I received a call from the local utility company regarding a large, past due water and sewer bill. Sent a plumber out who found $5000 worth of work (water main valve leak, hot water tank leak, HVAC condensation pipe removed, main line back up from laundry). Per the utility company the tenant has been behind for more than 4 month. Who is responsible for the repair costs here?
The only thing I could see the tenant being responsible for is your laundry drain back up (is that what you called the main line back up?) and that's if you can prove they put something down there on purpose or neglectfully.
Unless they went around damaging the other items intentionally as another mentioned, this sounds like it's going to be your bill. But why is it so high? Did they itemize it for you?
Water main valve shouldn't be more than a couple hundred bucks unless there's something special about yours.
Water heater, around 1 to 2k, or cheaper depending who you hire
HVAC line doesn't have to do with your water bill rather, saves damage to your roof and shouldn't be an expensive fix.
Laundry back up shouldn't be much if they can snake it. Now if the pipe has rotted or they have to start excavating stuff that could be different. Get multiple estimates.
Since the utility company called you I take it the water bill is tied to the property making you responsible for it, forcing you to collect it from the tenant (I hate when it's like that).
Quote from @Heather Yates:
I have a tenant in an SFR with 6 months remaining on their lease. I lived in the home for 5 years before renting it out without major problems. Just a few days ago I received a call from the local utility company regarding a large, past due water and sewer bill. Sent a plumber out who found $5000 worth of work (water main valve leak, hot water tank leak, HVAC condensation pipe removed, main line back up from laundry). Per the utility company the tenant has been behind for more than 4 month. Who is responsible for the repair costs here?
I suspect at least one of these necessary repairs would be visible to the tenant. They're not reporting maintenance and they're not keeping up on utilities. This is an red flag that they may get behind on rent soon.
I would not wait until the end of their lease. I would terminate them as quickly as the law allows and also make the repairs now. I don't think you can justify charging the tenants unless you can identify neglect or abuse.
@Heather Yates
In Columbus OH, water charges are tied to the property. I would consult an attorney about the situation. See if you can remove the tenant on non-payment of water. The last thing you want is to probably leave them in there for the remaining 6 months if they are unwilling to pay for the water balance and the repair since water is tied to the property owner. The bill will only accumulate.
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Thank you everyone for your input! I have my attorney consult scheduled and repairs are underway.
Update on the plumbing issue, the plumber found small toys in sink traps throughout the house, one of which was causing backflow problems in a downstairs bathroom. The tenant had also removed the HVAC discharge pipe allowing water to leak all over the basement floor. The water heater was just old and needed to be replaced. Long story short the tenant agreed they were responsible for the pipe and the toys.
@Heather Yates sorry to hear about your troubles (plumbing issues are the absolute worst--I've had plenty).
Obviously, the toys in the sink traps and the HVAC discharge pipe are the tenant's responsibility.
As for the water heater: this depends on whether it was obvious that the heater was leaking, and how long it was leaking for... if it was not obvious to a casual observer that the heater was leaking, then you probably can't hold the tenant responsible for that. Likewise, if the heater just began leaking the day that your plumber found it leaking, you probably can't hold the tenant liable for that. However, if it was obvious that the heater was leaking, and it had been leaking for more than a day or two (enough time that the tenant should have seen it and notified you), then you may be able to hold them liable for not notifying you about the leak (even if the tenant didn't cause the leak, and the leak was just a result of old equipment). A good lease will have terms that require the tenant to notify the landlord immediately when any leaks or hazards are observed, and it will hold the tenant liable for damages that occur as a result of the tenant not notifying the landlord (for instance, if a toilet were leaking and flooding the bathroom, and the tenant didn't notify you for 5 days, and all that water seeped into the subfloor and caused rot and mold, you could potentially hold the tenant liable for their negligence--and have them pay not just to fix the toilet, but also to fix all the damage that could have been prevented if they had notified you quickly).
As for your question about renewing their lease...This partly depends on whether you feel like they were negligent...for instance, if the water heater leak was easily observable, and you think they were negligent in not notifying you quickly, then that suggests they'll continue to be negligent and incompetent in the future--which puts you and your property at risk (a tenant who is so negligent that they don't report an obvious water leak is probably also negligent enough to leave the stove on, leave the doors unlocked, ignore fire hazards, etc., not replace smoke alarm batteries, etc.). On the flip side, if you don't think that the tenant was negligent (for instance, if the water heater were in a crawl space where it would have been impossible for the tenant to see the leak), and if the tenant has an otherwise positive track record of paying on time, keeping the property in good shape, communicating professionally with you, etc.--then you may consider renewing their lease. ...At the end of the day, it comes down to whether you think this tenant will cause more problems in the future...
Good luck out there!
Might be a good idea to do inspections more often.
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Do inspections more often...
And the tenant is only partially responsible, but I would dump them anyway.
Quote from @Bruce Woodruff:
Do inspections more often...
And the tenant is only partially responsible, but I would dump them anyway.
You and I think alike. I do semi-annual HVAC service and also bi-annual inspections. As many noted, I do not think you can charge any of this to the tenant unless there was negligence on their part. I would also contact your insurance company on this but if the deductible is large its not worth it.
I commented on another post the other day on a deal analysis when someone put in $40/mo for repairs and I told them it costs me $500 to service the HVAC 2x per year and do inspections, which I know many people do not do, but peace of mind is a good thing.