Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
What would you do?
There is a handyman working on the exterior of the rental and he's doing some repointing brick work. The renters have a new (according to them) window unit AC and the contractors have let mortar drop on top of the unit and dry. They say that dust and debris from grinding out the joints also got in/on the AC unit and some fins were bent.
The tenants ask me why the guy didn't cover the AC unit or ask them to remove it from the window.
They did not say that it's broken, so I assume it's working. What would I, the landlord, be responsible for if anything? Do I just tell them to talk to the handyman? Obviously I can talk to him too. I just don't know who this falls back on for sure in the end.
If it needs a cleaning, do I appease them by offering to bring over my portable air compressor to try and clean it out?
The solution to this is fairly straightforward. As the landlord and the one who hired the handy man, you should take responsibility for the damaged AC unit and have it replaced with a new one of equal value, preferably the same make and model. From here you have a couple of options. You can either file a claim with your insurance company, or dock the handyman for the replacement.. I would opt for the latter. To keep it legal, I would get a quote for the replacement unit and the installation, and then talk to the handyman and tell him that you are reducing his final payment by the amount on the replacement quote. You may want to follow up in writing in case it ends up in small claims court or some kind of mediation. In the future, when hiring people to work on your properties you should be very explicit in demanding that your assets are protected during the work and that the contractor will be held liable for damages. The relationship with your tenants is both contractual and one of trust. In the long run, your action on this situation will either reinforce that trust, or sour the relationship and tarnish your reputation as a good landlord. Good Luck !!!
Hi Nicole- I would call the contractor and tell them the situation. I'd probably say something along the lines of "I know this sounds a bit ridiculous, but..." and ask if they would please clean the AC out to appease the tenant. If they are a good contractor and understand that you are an investor and may be a good source of work for them, I would think that they'd be glad to do some quick and simple clean up for you. If they refuse, they probably aren't a good partner and I'd just suck it up and go clean the AC myself. Best of luck!
The solution to this is fairly straightforward. As the landlord and the one who hired the handy man, you should take responsibility for the damaged AC unit and have it replaced with a new one of equal value, preferably the same make and model. From here you have a couple of options. You can either file a claim with your insurance company, or dock the handyman for the replacement.. I would opt for the latter. To keep it legal, I would get a quote for the replacement unit and the installation, and then talk to the handyman and tell him that you are reducing his final payment by the amount on the replacement quote. You may want to follow up in writing in case it ends up in small claims court or some kind of mediation. In the future, when hiring people to work on your properties you should be very explicit in demanding that your assets are protected during the work and that the contractor will be held liable for damages. The relationship with your tenants is both contractual and one of trust. In the long run, your action on this situation will either reinforce that trust, or sour the relationship and tarnish your reputation as a good landlord. Good Luck !!!
I think Wayne gives good advice. And it sounds like the contractor was indeed sloppy in this instance tho I'm wondering about what's on top of the "new" unit - leaves or rust?
That said, it sounds like they brought in the a/c. I wonder if they have renters insurance (I require that in my leases) and if their insurance covers it with a deductible.
It looks like a window AC that costs maybe $100 if that. See what the tenant "wants" out of this - a new unit or cash to compensate for perceived damage. Does not seem like it is worth battling tenant or contractor for - just take it as an expense. And putting in an insurance claim for damage below typical deductibles is insane.
The stuff on top of the AC is dropped mortar from when they spread it back into the joints, excess falls.
Also, I don't *think* they'd lie to me about it being new, but I do know that I told them about the AC units in the basement that they could use if they worked (AC units are not included in the lease). These units were left there when I purchased the property. I would hope they're not lying about it being a new unit they purchased.
Either way, I do agree that I can clean it up if the handyman doesn't (and I would rethink hiring him in the future). This is assuming the unit still works. Just wanted to hear your thoughts and be sure I was on the same page.
Wayne again. A number of good points have been raised and this is how I would address them.
The value of the AC unit is pretty easy to verify either by a receipt from the tenant or by doing a price check on Amazon. As far as the damage is concerned, it's not so much that it's dirty and the fins are bent (which personally would drive me nuts if it were my" new" AC unit), but if the unit were to fail prematurely or require service, no matter what or when, it will be your fault. Better to get it over with early and be their hero, model landlord. Believe me they will tell their friends about either scenario. The last point I'll make is that if they're like most folks that buy a fairly major appliance, it means a lot to them, and it's pristine newness is psychologically important. It's just human nature. At this point they feel a little "robbed". Making it right will have more psychological value than the monetary expense it will cost. Besides, the expense will be tax deductible for you come tax time. You really can't lose.
I'm a contractor. The above suggestions all sound reasonable, if you're dealing with reasonable people.
Unfortunately, being a contractor has taught me just how few reasonable people there actually are in the world. It's very common to have clients or neighbors claim we damaged something of theirs, and it's amazing how often the claim is total BS because they just want to get free stuff.
The unit in that picture doesn't look new. It's a low-res photo, but that looks like surface rust on the right side, and the paint looks kind dinged up. I'd ask them for a receipt or proof that it was new. Mortar is wet when it's put on, and it normally wouldn't damage an AC. It should also come right off with a putty knife. It certainly shouldn't damage fins.
If this contractor is one you work with regularly and does a good job for you, be careful trying to backcharge him unless you're sure it's his fault. Good contractors are hard to find, and you may end up losing a much more valuable relationship if the tenant is not being honest.
This is exactly why we photo document all of our projects extensively. You'd be surprised how often they swear it was brand new, then we produce a photo from before work that shows it was not.
Regardless, it is extremely important that you give your contractor proper "Right to Cure". This means that you contact the contractor BEFORE MAKING ANY REMEDY YOURSELF and give them the opportunity to:
1. Assess the claim of damages
2. Provide evidence (if they can) or information regarding whether the claim is valid
3. Assume liability and cure at their cost
IT IS NOT appropriate for you to fix it and send them an invoice after the fact. Chances are they can probably remedy the situation cheaper than you can, and it is possible that they could prove themselves not liable. They need to be given the opportunity to perform.
Thanks again everyone. These are all great thoughts and points.
When I text back the tenant, I said, "Good morning. I apologize for that. I will talk to them about this. Does it still work?" This was yesterday and I have not received a response yet.
I'll try to talk in person if they're home next time I stop by to check on the project.
I have not yet asked for the receipt, but planned on it being the next question.