Tenant left water on for a week and destroyed my house

Tenant left water on for a week and destroyed my house

Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes

On Friday, the next door neighbor to one of my rentals in Trenton, NJ called me to let me know he had water in his basement, could hear water running in the house, and that he hadn't seen my tenants in over a week. Turns out, the tenants have been staying with other family for about a week, but before they left they "accidentally" left the water on in the bathroom on the 2nd floor. I guess the water comes out faster than it drains.

The water ran down through the upstairs bathroom into the floors, and destroyed the kitchen ceiling downstairs. It kept going and tore up the hardwood floors, got into the kitchen cabinets and appliances and made it's way to the basement. When the water was finally turned off there was 8 inches of water in the basement. The water remediation company had to pump water out for two days, and say it should take at least a week to remove all the water logged damage in the house. They essentially keep ripping things out until they stop finding moisture.

Some lessons learned: 

  • Always have a great insurance policy! Thankfully I have a great one and my deductible is only 2k.
  • Always give your next door neighbors your business cards. If my neighbor had not called, the water would probably still be running. 
  • Always take as large of a security deposit as possible. In NJ, we are allowed 1.5 months as the deposit.

At the end of the day, real estate investing is still a risk, but we protect ourselves against damage like this with insurance policies. This destroyed house is a rare occurrence, but if you own enough rental property and have enough tenants, a damaged house is bound to happen eventually.

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Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
9y

@Justin Fraser for future tenants, require that they list you as Additional Interest on their renter's insurance. That gets you a CC mail whenever their policy changes, renews, lapses, etc.

See this reply in the discussion

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  • Investor · Santa Barbara, CA · Member since 2014 · 96 posts · 23 votes
    9y

    OMG! What a nightmare! You seem to be having a great attitude. Insurance is such a worthwhile investment, I agree. Good luck to you! 

  • Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
    9y
    Lovely, i hate water
  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    Terrible, good luck on the reno. I'd get the dehumidifiers in also asap if they aren't already. Hope your insurance also covers loss of rent while it is being fixed.. obviously the tenants will not be coming back. 

    Even with a water alarm you wouldn't have know what was happening,, nobody around to hear the alarm.. 

    I've seen a house in the winter where the water pipe had burst, vacant house, and  a frozen water ice fall was coming out of building all the way down the side of the house.. 

  • Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes
    9y

    @Account Closed There's a crew in there working as we speak. I'm covered for lost rent also. It's good this didn't happen in the winter, though since it's warm we have to deal with mold/bugs/humidity, etc. I'm not sure which is worse? Either way, neither is a good scenario.

  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    One thing that will help get rid of the humidity is to actually turn the heat on it will help dry things out., also with the dehumidifiers on .. the big industrial ones.. 

  • Kevin SchaeferPro Member
    Real Estate Agent · Emerson, NJ · Member since 2013 · 182 posts · 34 votes
    9y

    @Justin Fraser that sounds terrible but thanks for sharing these are great reminders to us all. I love your attitude you can feel it through your words. Thanks!

  • Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes
    9y

    @Deanna McCormick I think my furnace is dead so that's not going to happen. There was 8 inches of water in the basement. Good idea though!

    @Kevin Schaefer thanks for the support. These things happen- it's all a part of doing business. 

    I do have a video posted via the link in my signature if anyone wants to see the damage.

  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    The video was worth a thousand words.. what a mess

  • Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    @Justin Fraser did you require renter's insurance from your tenant? That may have been able to save the claim against your insurance if you had.

  • NJ, NJ · Member since 2014 · 63 posts · 88 votes
    9y

    thanks for sharing the video, sorry to see what happened to your house.  its terrible what they did to your house after you clearly did nice things like putting stainless appliances, even before the flooding it looks like they were taking poor care of it (what the heck they broke all the blinds like they were always peeping out of them by pulling pieces back with their hand....).  

    I'm curious on a few things if you come back and post updates:


    a) whatever happened to the tenants, did they come back or try to contact you or anything?  looked like most of their stuff was still there. 

    b) you put 'accidentally' left the water on in quotes....could you tell if the drain or overflow was purposely clogged up so that it would flood?

    c) if they did do it on purpose, what do you think they are trying to do...perhaps extort you for relocation costs or get out of their lease early (in a way harder way than necessary), or get revenge on you for some perceived grievance?

    d) how has your insurance company been so far, do they seem cooperative, or seem like they are trying to look for any way out of covering you?  or dropping you right after the claim is made, etc?

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    9y
    I do worry about this especially in the newer bathroom sinks without an overflow but it looks like it can happen with an overflow. Not sure if any alarm could help with this. Are you going to allow them back in?
  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    9y
    Originally posted by @Justin Fraser:

    On Friday, the next door neighbor to one of my rentals in Trenton, NJ called me to let me know he had water in his basement, could hear water running in the house, and that he hadn't seen my tenants in over a week. Turns out, the tenants have been staying with other family for about a week, but before they left they "accidentally" left the water on in the bathroom on the 2nd floor. I guess the water comes out faster than it drains.

    The water ran down through the upstairs bathroom into the floors, and destroyed the kitchen ceiling downstairs. It kept going and tore up the hardwood floors, got into the kitchen cabinets and appliances and made it's way to the basement. When the water was finally turned off there was 8 inches of water in the basement. The water remediation company had to pump water out for two days, and say it should take at least a week to remove all the water logged damage in the house. They essentially keep ripping things out until they stop finding moisture.

    Some lessons learned: 

    • Always have a great insurance policy! Thankfully I have a great one and my deductible is only 2k.
    • Always give your next door neighbors your business cards. If my neighbor had not called, the water would probably still be running. 
    • Always take as large of a security deposit as possible. In NJ, we are allowed 1.5 months as the deposit.

    At the end of the day, real estate investing is still a risk, but we protect ourselves against damage like this with insurance policies. This destroyed house is a rare occurrence, but if you own enough rental property and have enough tenants, a damaged house is bound to happen eventually.

     Yup seen this several times. Sometimes they like to turn on all the water just before they jump town. #Landlordlife

  • Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes
    9y

    @Deanna McCormick yeah, I had a feeling this would be one of those situations I'd want to have on video

    @Bryan O. I did when they signed the lease, but never checked it again when they re-upped after a year. They let it lapse.

    @Jesse M. I bought the house with the stainless - it was my first one and I knew it would rent quickly. I don't think I'm putting stainless in my other properties :) 

    A. They want to continue their lease- which is up in Feb. They took out everything that they absolutely needed and the rest is wet and will get trashed. 

    B. They claim it was an accident, I might believe them, because we've had a good relationship to this point and their lease wasn't up, and they want to move back in after things are fixed, but I'm still not 100%. 

    C. I don't think so.

    D. Insurance has been great, no issues so far. We'll see once the estimates for the rebuilding costs come in.

  • Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes
    9y

    @Colleen F. To be determined

    @James Wise It's pretty messed up, isn't it? They claim it was an accident, and they want to move back once everything is fixed. I'm working with my lawyer to discuss my options. I'm sure they broke at least 2 or 3 clauses in my lease.

  • Specialist · Lakewood, CO · Member since 2014 · 1k+ posts · 1k+ votes
    9y

    @Justin Fraser for future tenants, require that they list you as Additional Interest on their renter's insurance. That gets you a CC mail whenever their policy changes, renews, lapses, etc.

  • Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes
    9y

    @Bryan O. will do, thanks!

  • Brookline, MA · Member since 2017 · 49 posts · 22 votes
    9y

    So sorry to hear this happened, what a mess. Newbie question - how could a wifi enabled water detector sensor in the basement that reports to your phone not have helped in this situation?

  • Rental Property Investor · Fuquay-Varina, NC · Member since 2013 · 381 posts · 308 votes
    9y

    @Julia Ann I'm not familiar with those devices. It sounds like it would require the tenants to have wifi? Also, and I'm assuming how it would work based on your description, it would let me know when water got to the basement, after it made it's way from the 2nd floor, through the first floor? So maybe I would have found out before there were 8 inches of water, but the upstairs would still be damaged.

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    9y
    I am not sure if they also offer water sensors that work off cellular. We use an electrical outage alarm that calls when the electric goes out. The current one is a landline based but i have been looking at cellular. The theory being that your type of flooding is unusual and most flooding could be linked to an electrical outage and no wifi. Not sure if anything besides tenant attentiveness could have helped alot in your situation.
  • Real Estate Agent · Carmel, CA · Member since 2015 · 193 posts · 128 votes
    9y

    well, at least you'll get a whole new house out of it for just $2k...  yay for good policies!

  • Contractor · Milltown, NJ · Member since 2016 · 297 posts · 213 votes
    9y
    Justin Fraser Hey Justin, hope this ends up working in your favor. Was this insurance coverage negotiated with the insurance company or was it part of your standard landlord policy?Side note, I'll be doing my best to make it to next SJREIA meeting.
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    9y

    Have you been inspecting the home? These are not good tenants. The mini-blinds in the kitchen are trashed, they're drawing on walls and doors, the place looks like a mess. I'm willing to bet there was already more damage than you could cover with their security deposit so this flood is probably a blessing in disguise.

    I seriously hope you are not considering keeping them and that you're charging them for the $2,000 deposit.

    Great job keeping your cool and treating it like a business. I would renovate, increase your screening standards, and move on to a higher class of renter.

    The DIY Landlord Book4.7248 Reviews
  • Rental Property Investor · Jersey City, NJ · Member since 2011 · 1k+ posts · 876 votes
    9y

    Gotta say stuff like this happens with even non-evil people. Friends of mine were in a large Manhattan building when the water was out in the area. They made the mistake of leaving the hot tap open in the bathroom, and the entire apartment was steamed to death when the water came on in their absence. The suit got nasty, as it was a rent stabilized place.

  • Investor · Austin, TX · Member since 2017 · 3 posts · 0 votes
    9y

    @Justin Fraser 

    What a nightmare, but sooo glad to hear things are going to work out! 

    Any tips on a "great insurance policy"?  Did you have extra riders that helped cover this particular incident (water damage, loss of rent, etc)?

  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    We always went door to door after a water outage in our buildings.. if people weren't in we checked to make sure the water hadn't been left on. we also had a kitchen sink overflow because of a water repair to the building and tenant hadn't realized tap was left on after checking water and came home to flooded kitchen and ceiling in apt below was a wreck.

    I wouldn't have theses people back, I agree with @Nathan Gesner you could probably do much better with new tenants. 

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