Rental Property Investor · ND · Member since 2013 · 7 posts · 1 vote
I'm working on returning a security deposit and am having a hard time deciding what to do with damage to a water heater. I'm hoping those with more experience can shed some light on the decision.
Purchased property two years ago and had a home inspection and natural gas water heater worked good and was complete. Tenants check out at the end of July and natural gas gets turned off because I didn't have a continuous service agreement with utility company at the time. Go to re-light water heater after gas was turned back on and the plastic knob on top of the gas valve where pilot light is turned on is missing. Repair company says they can't get part and need new valve. So $525 later I'm wondering if I should take that out of the security deposit or eat it as "wear and tear". It was there when they moved in.
Nope. You are at fault. Don't take the security deposit. You were responsible for gas. If you could prove the tenant did damage to the water heater, that would be a different story. IMO you will lose in court.
I probably wasn't totally clear about the gas. The gas being turned off did no damage, it was when we needed to restart the water heater we noticed the valve knob was broken off.
Physical damage can be billed to the tenant. Just be prepared for them to deny they did it. That could result in an argument and could even land you in court. It is up to you to figure out what it is worth and what you can prove.
Repair company could of gotten used knob. You could of called number on water heater and gotten one yourself. Honestly don't even need that piece of plastic.
It will be difficult to prove the tenant lost or broke the knob. Same as any other knob in the property, these things wear out. It's your word against the tenant the knob was ever there. Take lots of photographs and complete a move-in condition checklist with the next tenant.
I'm working on returning a security deposit and am having a hard time deciding what to do with damage to a water heater. I'm hoping those with more experience can shed some light on the decision.
Purchased property two years ago and had a home inspection and natural gas water heater worked good and was complete. Tenants check out at the end of July and natural gas gets turned off because I didn't have a continuous service agreement with utility company at the time. Go to re-light water heater after gas was turned back on and the plastic knob on top of the gas valve where pilot light is turned on is missing. Repair company says they can't get part and need new valve. So $525 later I'm wondering if I should take that out of the security deposit or eat it as "wear and tear". It was there when they moved in.
Thanks in advance
I would charge them for it. Especially, since you can provide the receipt for the work. If all you had to do was get a $10 knob, no big deal. But, since it ended up requiring a new part to the tune of $525, heck yes, charge them for it.
Sure, they may sue you, but deal with that if/when you have to. But, in my opinion, yes, you have the right to charge this to the tenant.
There's actually a really good article on the CA Dept of Consumer Affairs website about the difference between damage and normal wear and tear. It's here, if you want to read it. Scroll down to the blue section, about the 2nd half of that section:
But, basically, what it says, is that normal wear and tear happens from using something in a normal manner over time.
So, a worn knob would be normal wear and tear. A missing knob, would not be. In my opinion. Any more than a missing cupboard door would not be normal wear and tear.
I know your property isn't in CA, but it's a good guideline on what a court finds to be reasonable, in a tenant-friendly state.
So, my vote is to absolutely charge them for it. If they sue you, you can settle or even counter-sue them if they did even more damage than what you're charging them for. But, I wouldn't make a decision like that, based on the fact that the tenant might sue, especially since you have a receipt for the work done.
And it's not the kind of charge that would look like a landlord trying to get away with putting in new hardware floors and charge the tenant, for instance. How many landlords try to rip off their tenants by buying new valves for their water heaters?
I'd charge them for it. A knob on a hot water heater shouldn't wear out. Something damaged it.
You were, however, taken by your repair company. Typically new gas valves (depending on your brand of gas hot water heater) run under $200 and often under $150 on online places such as repairclinic.com.