Tenant Causes $14k Damage to IN Rental Property

Tenant Causes $14k Damage to IN Rental Property

Lafayette, CA · Member since 2013 · 91 posts · 45 votes
Thank goodness for BiggerPockets! Hoping you can help me with an issue I have on a tenant-damaged rental property. The property is in Indianapolis IN and managed by a Property Management company; I live in California. The PM screens and selects tenants, manages the property and it's tenants, performs any evictions, etc. I receive a monthly owner statement. The property manager recently evicted the tenants at this Indianapolis property for non-payment of rent. The tenants were there less than a year. I received an estimate yesterday for the damages to the place and work needed to get it ready to rent again, $14,400. Yikes! He's going to get 2 more estimates. The property manager explained to me that the place was trashed by the tenants. When he went to the property after the tenants moved out, he put the key in the front door and it caved in (the top two hinges were either taken off or busted). He also said there are 4 broken windows, all interior doors have been removed and a couple of them were nailed to the wall to cover the busted windows, and a couch was half way out another window. The new carpet that was installed last year was unsalvagable, all the blinds are damaged, there are holes in the wall that require re-sheetrocking, lights are damaged, etc. The property manager says there's really no recourse we can pursue from the tenants that would be worth our while. I questioned this, from a back-rent-payment and a damages-payment perspective, and he discouraged my taking any action. He said he thinks drugs/meth was involved, and we're not likely to ever see a dime of restitution from the tenants since they have no money. What are our rights as landlords in this case? What process do you think I should follow to get a resolution on this issue? Thank you BP community!
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Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
8y

1. Fire your property manager, in fact, fire her twice.

2. You must file for restitution. Normally I recommend cutting losses and running, but this is too much money to pass up, you need a judgment. Your PM is suggesting otherwise because they don't want to deal.

3. You need some friends with boots-on-the-ground around there to help find you a contractor. Nothing you mentioned costs 14K, maybe 5K. Your PM should have good contacts for this

4. land lording long distance requires GREAT teammates in place that have aligned goals and similar interest in mind. It's too difficult to do this with just a transactional hire, you need partners.

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  • Cameron MoorePro Member
    Insurance Agent · DFW, TX · Member since 2021 · 348 posts · 245 votes
    3y

    As a landlord, you have the right to seek reimbursement for damages caused by tenants, as well as for unpaid rent. However, in practice, it can be difficult to collect these funds from tenants who have little or no money.

    In this case, you have several options:

    1. Small Claims Court: You can file a claim in small claims court to seek reimbursement for damages and unpaid rent. However, it's important to note that the process can be time-consuming and may not be worth the effort if the tenants are unable to pay.
    2. Security Deposit: If the tenants had a security deposit, you can use that to cover some of the damages. However, if the deposit is not enough to cover the full amount, you may still be responsible for the remaining balance.
    3. Insurance: If you have landlord insurance, you can file a claim to cover the damages. However, you should check your policy to see if there are any exclusions or limits on coverage.
    4. Screening tenants: You can also work with your property manager to improve the tenant screening process, to help reduce the risk of damages in the future.
    5. Legal Action : You can take legal action against the tenants, but it's important to keep in mind that it can be difficult and costly to collect from tenants who have no money.

    It's important to consult with your property manager and if you have any doubts about the process, you can also consult with a lawyer specialized in landlord-tenant laws in Indiana.

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