Tenant Claiming Damages To Personal Property

Cape Coral, Florida
General Landlording & Rental Properties
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Tenant Claiming Damages To Personal Property

Emmanuel Sanchez
New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes

Hello BiggerPockets fam,

I am wondering how to approach this issue with my tenant. Earlier this month, my tenant uncovered water damage along the baseboards and lower walls of the master bedroom. Immediately, we contacted our home builder (D.R. Horton) since the property is only 10 months old and has a 1 year warranty. Apparently, the concrete slab that houses the water/well system had a crack that served as the intrusion point. The concrete slab/equipment runs along the exterior wall of the master bedroom. Vendors are taking care of the work that needs to be done. All good up to here....

Now, my tenant claims that there is damage to her brand new bedroom set. I have not asked for images yet, because I am unsure as to how to proceed. Who should be accountable for this? Landlord? Tenant? Home builder?

Thanks for the help!

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Richard F.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
3y
Aloha,

Agree, that is exactly why they should have Renters Insurance. Tell them to submit a claim to their Insurer, and provide them the contact info for the Builder.
2Reply
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  • Emmanuel Sanchez
    OP
    New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes
    3y

    I just reviewed the lease and had forgotten about the risk of loss section. What are your thoughts? 

    0Reply
  • Trevor Knorpp
    Member since 2023 · 29 posts · 11 votes
    3y

    The lease clearly says Landlord is not liable for flood damages on Tenants property. I am not a lawyer, but I think you're good.

    2Reply
  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    3y
    Aloha,

    Agree, that is exactly why they should have Renters Insurance. Tell them to submit a claim to their Insurer, and provide them the contact info for the Builder.
    2Reply
  • Account Closed
    Rental Property Investor · Indianapolis, IN · Member since 2020 · 562 posts · 554 votes
    3y

    @Emmanuel Sanchez their personal property is their issue unfortunately. Your insurance doesn’t cover it. They should file a claim with their renters insurance.

    2Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    You can always ask the builder, but the tenant should have insurance to cover it. 

    0Reply
  • Matt Bishop
    Rental Property Investor · Dallas, TX · Member since 2020 · 161 posts · 88 votes
    3y

    @Emmanuel Sanchez, the tenant should have renter's insurance to cover the loss and the tenant should work directly with their insurance company for payment. Your management company does require proof of renter's insurance prior to allowing a tenant to move in. Why isn't your manager handling this? Why are you even being bothered with such minutia?

    0Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    3y

    I saw multiple post stating tenant should have renters insurance.  Our lease mandates the tenants have rental insurance.  It is not only for items like this, but what if there is an event that requires tenant to vacate unit.  This could be termite treatment, plumbing issue, gas issue, etc).  

    Because my lease mandates the tenant have rental insurance, my reply to the tenant would be to make a claim with their renters insurance. 

    Good luck

    1Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Emmanuel Sanchez:

    You aren't responsible for things outside of your control. The Tenant should have renter insurance to cover their personal belongings and losses. I would let them know that. If they want to go after someone, they can try to go after the builder.

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    0Reply
  • Ray Hage
    Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
    3y

    Generally, your insurance policy doesn't cover tenant's personal belongings so that is what renter's insurance is for. If your tenant doesn't have it, she is out of luck. Unfortunately, there was nothing you could have done to prevent this. Now if let's say you were informed of a plumbing issue and toilet overflowed and destroyed her property, she may have a point (and case). Anyhow, rest easy and nicely tell her you are not responsible for personal belongings.

    0Reply
  • Emmanuel Sanchez
    OP
    New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes
    3y
    Quote from @Trevor Knorpp:

    The lease clearly says Landlord is not liable for flood damages on Tenants property. I am not a lawyer, but I think you're good.


     Thank you Trevor!

    0Reply
  • Emmanuel Sanchez
    OP
    New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes
    3y
    Quote from @Richard F.:
    Aloha,

    Agree, that is exactly why they should have Renters Insurance. Tell them to submit a claim to their Insurer, and provide them the contact info for the Builder.

     Thank you Richard! I messaged my tenant yesterday, inquiring if she had renter's insurance but have yet to hear back. 

    0Reply
  • Emmanuel Sanchez
    OP
    New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes
    3y
    Quote from @Account Closed:

    @Emmanuel Sanchez their personal property is their issue unfortunately. Your insurance doesn’t cover it. They should file a claim with their renters insurance.


     Thank you Dave! Appreciate your insight.

    0Reply
  • Emmanuel Sanchez
    OP
    New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes
    3y
    Quote from @Theresa Harris:

    You can always ask the builder, but the tenant should have insurance to cover it. 


     Thanks Theresa. You are right, we lose nothing in asking the homebuilder. 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y
    Quote from @Emmanuel Sanchez:

    Hello BiggerPockets fam,

    I am wondering how to approach this issue with my tenant. Earlier this month, my tenant uncovered water damage along the baseboards and lower walls of the master bedroom. Immediately, we contacted our home builder (D.R. Horton) since the property is only 10 months old and has a 1 year warranty. Apparently, the concrete slab that houses the water/well system had a crack that served as the intrusion point. The concrete slab/equipment runs along the exterior wall of the master bedroom. Vendors are taking care of the work that needs to be done. All good up to here....

    Now, my tenant claims that there is damage to her brand new bedroom set. I have not asked for images yet, because I am unsure as to how to proceed. Who should be accountable for this? Landlord? Tenant? Home builder?

    Thanks for the help!


     This is why tenants should have renters insurance. This is what it covers, if they do not have renters insurance then that is on them. I am very clear with my tenants that if there is a flood, the fridge breaks or the place burns down - they must insure against that. It is amazing how many renters have like $1,000 worth of food in the fridge when the fridge breaks. 

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    1Reply
  • Emmanuel Sanchez
    OP
    New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes
    3y
    Quote from @Matt Bishop:

    @Emmanuel Sanchez, the tenant should have renter's insurance to cover the loss and the tenant should work directly with their insurance company for payment. Your management company does require proof of renter's insurance prior to allowing a tenant to move in. Why isn't your manager handling this? Why are you even being bothered with such minutia?

    Hi Matt! Thank you for your help. This is my first and only deal so far. My brothers and I had decided to manage the property ourselves, so that we could learn the ropes. We hope the tenant has renter's insurance. The management company that we utilized to draft the release, did not make renter's insurance a mandatory requirement (lesson learned).... but with the risk of loss clause I think we'll be ok 
    0Reply
  • Emmanuel Sanchez
    OP
    New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes
    3y
    Quote from @Dan H.:

    I saw multiple post stating tenant should have renters insurance.  Our lease mandates the tenants have rental insurance.  It is not only for items like this, but what if there is an event that requires tenant to vacate unit.  This could be termite treatment, plumbing issue, gas issue, etc).  

    Because my lease mandates the tenant have rental insurance, my reply to the tenant would be to make a claim with their renters insurance. 

    Good luck


     Dan, thank you for your insight. We will definitely be changing the language for the next lease to make renter's insurance a requirement, not optional.  

    0Reply
  • Emmanuel Sanchez
    OP
    New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes
    3y
    Quote from @Nathan Gesner:
    Quote from @Emmanuel Sanchez:

    You aren't responsible for things outside of your control. The Tenant should have renter insurance to cover their personal belongings and losses. I would let them know that. If they want to go after someone, they can try to go after the builder.


     Hi Nathan! Thank you for always lending your expertise. I appreciate the help. 

    1Reply
  • Emmanuel Sanchez
    OP
    New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes
    3y
    Quote from @Ray Hage:

    Generally, your insurance policy doesn't cover tenant's personal belongings so that is what renter's insurance is for. If your tenant doesn't have it, she is out of luck. Unfortunately, there was nothing you could have done to prevent this. Now if let's say you were informed of a plumbing issue and toilet overflowed and destroyed her property, she may have a point (and case). Anyhow, rest easy and nicely tell her you are not responsible for personal belongings.


     Ray, thank you for your response. This issue came unexpectedly. The unit is new construction (only 10 months old). As soon as she brought it to our attention, we immediately actioned on it. 

    1Reply
  • Emmanuel Sanchez
    OP
    New to Real Estate · Hialeah Gardens · Member since 2020 · 43 posts · 13 votes
    3y
    Quote from @Chris Seveney:
    Quote from @Emmanuel Sanchez:

    Hello BiggerPockets fam,

    I am wondering how to approach this issue with my tenant. Earlier this month, my tenant uncovered water damage along the baseboards and lower walls of the master bedroom. Immediately, we contacted our home builder (D.R. Horton) since the property is only 10 months old and has a 1 year warranty. Apparently, the concrete slab that houses the water/well system had a crack that served as the intrusion point. The concrete slab/equipment runs along the exterior wall of the master bedroom. Vendors are taking care of the work that needs to be done. All good up to here....

    Now, my tenant claims that there is damage to her brand new bedroom set. I have not asked for images yet, because I am unsure as to how to proceed. Who should be accountable for this? Landlord? Tenant? Home builder?

    Thanks for the help!


     This is why tenants should have renters insurance. This is what it covers, if they do not have renters insurance then that is on them. I am very clear with my tenants that if there is a flood, the fridge breaks or the place burns down - they must insure against that. It is amazing how many renters have like $1,000 worth of food in the fridge when the fridge breaks. 


     As a first time landlord, now I see why it's so important to make renter's insurance a requirement. Another lesson learned!

    0Reply
  • Adam Martin
    Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
    3y

    This is just one of the reason's to make renters insurance a requirement and it is so in my lease.  Just like I check to make sure utilities are in their name before handing over keys I also check to ensure their renters insurance is active.  Renters insurance not only covers their stuff but you as well.  I just had a tenant hire movers to move out and they left the hoses for the washing machine hanging in the laundry room which was on the second floor.  Unfortunately, my pipes have a slight leak but had they disconnected the hoses like they should have we would have no issue.  The water dripped through the ceiling, through the fixtures, and onto my wood floor causing almost $6000 in damages when you include loss of rent.  I filed on  her renters insurance and they made me whole.  Instead of getting a bill for the leftover amount from her deposit she is getting it all back so we all won on this one.  

    1Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    Have your lease reviewed.  You don’t want to keep “learning” industry standard concerns.  

    Also have your insurance policy reviewed.  Clean up cost, business income loss, etc. 

    0Reply
  • Jonathan G.
    Investor · Marietta, GA · Member since 2015 · 382 posts · 258 votes
    3y

    @Emmanuel Sanchez

    Looks like your lease already had you covered but I would recommend that you reword it to say that “renters insurance is required” as a part of the lease. first of all, renters insurance is cheap, and all Renters should have anyway. It’s similar to driving your car without insurance or not having insurance on your own personal home. This will be a learning lesson for your tenant. 

    0Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    3y

    @Emmanuel Sanchez you have no liability. Move on.

    0Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    3y

    @Emmanuel Sanchez move on. Let the dogs bark. Nothing will happen.

    0Reply
  • Jon Q.
    Investor · Berkeley, CA · Member since 2015 · 1k+ posts · 713 votes
    3y
    Quote from @Emmanuel Sanchez:

    Hello BiggerPockets fam,

    I am wondering how to approach this issue with my tenant. Earlier this month, my tenant uncovered water damage along the baseboards and lower walls of the master bedroom. Immediately, we contacted our home builder (D.R. Horton) since the property is only 10 months old and has a 1 year warranty. Apparently, the concrete slab that houses the water/well system had a crack that served as the intrusion point. The concrete slab/equipment runs along the exterior wall of the master bedroom. Vendors are taking care of the work that needs to be done. All good up to here....

    Now, my tenant claims that there is damage to her brand new bedroom set. I have not asked for images yet, because I am unsure as to how to proceed. Who should be accountable for this? Landlord? Tenant? Home builder?

    Thanks for the help!

    If you don’t already have it in your lease, include a clause in all leases requiring tenant to have rental insurance and include you as an insured.  
    0Reply
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