Tenants asking for rent reduction due to Maintenance issues

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Tenants asking for rent reduction due to Maintenance issues

Chris R.
Member since 2021 · 22 posts · 8 votes

Hi BP - I have tenants asking for a $500 rent reduction for one month due to maintenance issues since they moved in, in September. The most recent being a leak in the roof, which caused damage to the living room ceiling.  At times a decent amount of water coming through. They were home and were able to manage the situation, so the water didn't make it's way to the floor, which I'm grateful for. However, they weren't happy  about the leak and disruption. Other issues have include; rodent's, which led to two dishwasher hose replacement, washing machine hose replacement, two garbage disposal fixes (one being tenant's fault), and a frozen pipe. I addressed and mitigated these issues within days of notification.

What have others done in a situation like this? I'm happy to provide some reduction, mainly as appreciation for managing the leak and to help make the ceiling remediation/fix process go smoother. I was thinking around $300. That said, I also don't want to sent a precedent they feel entitled to compensation for every maintenance issues.

Note, I'll be selling this property in the near future, which they will have to move out prior to the lease ending. Will have to navigate this situation in the very near future as well. 

Appreciate the insights, 

Chris

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Mark F.
Rental Property Investor · Northern NJ · Member since 2019 · 673 posts · 677 votes
1y

I’m taking the opposite side and say no compensation should be given. It’s a structure with 4 walls, a roof and a floor with mechanicals all around. Things will break, leak and get damaged. You said you promptly fix the issues when they were brought to your attention so you took reasonable actions. Are these things you could have reasonably prevented? Doesn’t sound like it.  Did they cause damage to their stuff? Same answer as above.

If a tenant doesn’t understand things break and will require fixing now and again, they need to move into a brand new build. You said you’re having them move out at the end of their lease, would they not expect things to break in their next place? 

I’ve had countless maintenance and repair requests over the years. I address promptly and move on. 

No credit should be given. 


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  • John Clark
    Member since 2018 · 1k+ posts · 1k+ votes
    1y
    Quote from @Chris R.:

    Hi BP - I have tenants asking for a $500 rent reduction for one month due to maintenance issues since they moved in, in September. The most recent being a leak in the roof, which caused damage to the living room ceiling.  At times a decent amount of water coming through. They were home and were able to manage the situation, so the water didn't make it's way to the floor, which I'm grateful for. However, they weren't happy  about the leak and disruption. Other issues have include; rodent's, which led to two dishwasher hose replacement, washing machine hose replacement, two garbage disposal fixes (one being tenant's fault), and a frozen pipe. I addressed and mitigated these issues within days of notification.

    What have others done in a situation like this? I'm happy to provide some reduction, mainly as appreciation for managing the leak and to help make the ceiling remediation/fix process go smoother. I was thinking around $300. That said, I also don't want to sent a precedent they feel entitled to compensation for every maintenance issues.

    Note, I'll be selling this property in the near future, which they will have to move out prior to the lease ending. Will have to navigate this situation in the very near future as well. 

    Appreciate the insights, 

    Chris

    $500 seems reasonable under the circumstances. How much did they save you by mitigating the leak before it reached the floor? Don’t be churlish.
    2Reply
  • Jorge Caceres
    Member since 2018 · 62 posts · 37 votes
    1y

    I also agree that $500 seems reasonable. I have given discounts in situations that have been truly inconvenient for the tenant and that I wasn't able to resolve in a timely manner. Just make sure you have proof that they are aware this is a one-time discount and for the reasons you stated.

    0Reply
  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 991 posts · 647 votes
    1y

    I would be very careful with compensating tenant's for maintenance items that were repaired quickly. It would be different if they had to relocate. I have compensated tenants for no heat in cold weather so they could stay in a motel while it was being repaired. Once you offer a compensation such as this, it could be expected. I am not an attorney but would love to hear opinions on whether this practice could set a legal precedent for the remaining lease term?

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    • John Clark
      Member since 2018 · 1k+ posts · 1k+ votes
      1y
      Quote from @Denise Supplee:

      I would be very careful with compensating tenant's for maintenance items that were repaired quickly. It would be different if they had to relocate. I have compensated tenants for no heat in cold weather so they could stay in a motel while it was being repaired. Once you offer a compensation such as this, it could be expected. I am not an attorney but would love to hear opinions on whether this practice could set a legal precedent for the remaining lease term?

      Ordinarily I would agree, but you have to account for the fact that the tenant saved the landlord a boatload of money by mitigating the leaking roof before it caused serious interior damage.

      Also, when I hear of rat infestations, I think of landlords not doing a lot of regular maintenance and housekeeping of common areas.


      Precedent for the remainder of the lease under a course of dealing theory? Doubtful, given the  serious nature of the maintenance items.
      0Reply
    • Chris R.
      OP
      Member since 2021 · 22 posts · 8 votes
      1y
      Quote from @John Clark:
      Quote from @Denise Supplee:

      I would be very careful with compensating tenant's for maintenance items that were repaired quickly. It would be different if they had to relocate. I have compensated tenants for no heat in cold weather so they could stay in a motel while it was being repaired. Once you offer a compensation such as this, it could be expected. I am not an attorney but would love to hear opinions on whether this practice could set a legal precedent for the remaining lease term?

      Ordinarily I would agree, but you have to account for the fact that the tenant saved the landlord a boatload of money by mitigating the leaking roof before it caused serious interior damage.

      Also, when I hear of rat infestations, I think of landlords not doing a lot of regular maintenance and housekeeping of common areas.


      Precedent for the remainder of the lease under a course of dealing theory? Doubtful, given the  serious nature of the maintenance items.

       A bit presumptive, John. Few incorrect details but appreciate the insights. 

      1Reply
  • Mark F.
    Rental Property Investor · Northern NJ · Member since 2019 · 673 posts · 677 votes
    1y

    I’m taking the opposite side and say no compensation should be given. It’s a structure with 4 walls, a roof and a floor with mechanicals all around. Things will break, leak and get damaged. You said you promptly fix the issues when they were brought to your attention so you took reasonable actions. Are these things you could have reasonably prevented? Doesn’t sound like it.  Did they cause damage to their stuff? Same answer as above.

    If a tenant doesn’t understand things break and will require fixing now and again, they need to move into a brand new build. You said you’re having them move out at the end of their lease, would they not expect things to break in their next place? 

    I’ve had countless maintenance and repair requests over the years. I address promptly and move on. 

    No credit should be given. 


    5Reply
  • Bill B.
    Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    1y

    How about a credit against their final month’s rent, assuming all payments are made on time? Otherwise it’s forfeit. If There’s another leak do you want them to “not notice it” or “be out of town” while the damage is done? Or nitpick small things that need repair until it exceeds $500?

    What would it have cost you if they demanded 2-3 days at a property with a working roof during the repair?

    0Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    1y

    @Chris R.

    "But, you did it last time?"    That's what they are going to say with every upcoming maintenance issue, and why was last time different than this time?   If they are struggling, and maybe have a car repair bill, soon they will be more aggressive about complaining in order to get stuff off rent... don't do it!    I'm sorry, stuff happens, my mortgage doesn't get any less because something in my house breaks. 

    3Reply
  • Henry T.
    Member since 2022 · 1k+ posts · 1k+ votes
    1y

    No way. The problem was fixed. Done.

    1Reply
  • Wesley W.
    Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
    1y

    The tenants' goals were aligned with yours when they mitigated the leak; they were not "doing you a favor."  It sounds like regular maintenance issues, some of which were tenant-caused.  Did you charge them for those?  It doesn't sound like it.  Life happens.  Every unfortunate thing that happens to us in life is not someone else's fault or responsibility.  Are they claiming your gross negligence caused the roof to leak?  No credit.  If you give a mouse a cookie...

    0Reply
  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    1y

    Nope- don't do this. They are testing you to see how much they can push you around. Negotiating rent and credits sets a terrible precedent- what purpose does the lease serve if everything is negotiable anyhow?

    You followed your lease, correct? You took care of the issue in a reasonable and professional manner in line with local laws?

    I manage hundreds of properties and these types of things happen fairly regularly for us. We send a card telling them we apologize for the inconvenience and recognize that the situation has been a nuisance- we typically include a gift card for a local restaurant- $50. 

    That's much more than 99% of landlords will do and I think it's plenty.

    1Reply
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