How to tell tenant they are losing deposit...

How to tell tenant they are losing deposit...

Jacksonville, FL · Member since 2017 · 16 posts · 2 votes

Hey all!  Been a while since I posted on here but I did have a quick question...

My tenant has neglected some routine maintenance on the home I rent to them (has not been changing the A/C filter) and this has directly contributed to repair costs on the A/C unit.  Granted the unit is older, but from all accounts it is running fine.  

The tenant has also left cat food outside when it specifically states in the rules not to.  This can lead to problems with rodents and other pests.  So if course they then complained about rodents and we paid to have an exterminator come in.  

What is the best way to tell them that they will not be getting some of the deposit back?  

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Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
8y

@Chris Hughes Dont tell tenants before they move out they wont be getting their deposit back . You might as well say " Hey trash my house before you go " .  Address  the issues at hand , the AC and leaving cat food out   . ( the cat food and the exterminator is pushing it a bit IMHO )

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  • Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes
    8y

    Write a letter to your tenant that specifically cites the damage, cost to repair and section(s) of the lease Tenant violated.  Include copies of the repair receipts and ask Tenant to reimburse you the cost within 30 days.  Tenant pays you or you take the funds from the security deposit.  It is best for Tenant to pay you directly so you don't lose security in the deposit.

  • Jacksonville, FL · Member since 2017 · 16 posts · 2 votes
    8y

    My idea was to wait until they informed me that they would not be renewing their lease (I’m assuming they won’t be).  And then once they move out return the remainder of their deposit with a letter citing damages and the sections of the lease they violated along with receipts.

  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    8y

    @Chris Hughes Dont tell tenants before they move out they wont be getting their deposit back . You might as well say " Hey trash my house before you go " .  Address  the issues at hand , the AC and leaving cat food out   . ( the cat food and the exterminator is pushing it a bit IMHO )

  • Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
    8y
    I would not count on tenants to check filters. Instead I would change them yourself if you self manage or the PM to change the filters. It saves you from a damaged system and it allows you to check on the property without being intrusive. You could potentially catch problems before it gets out of hand checking out the property to change filters.
  • Jacksonville, FL · Member since 2017 · 16 posts · 2 votes
    8y

    Just an update... We decided to replace the entire AC system.  The tenants ruined the compressor by not changing the filter according to the AC company.  The cost to replace the compressor was almost $3000 which is way more than their deposit.  And it was around $5000 just to replace everything which is what we elected to do.  

    The portion I feel the tenants are responsible is the $3000 for the compressor.  Not to mention staining on the quartz countertop in the kitchen and ruining the new paint in many of the rooms.

    $3000 plus the other damages is well more than their $2000 deposit covers.  Should I let it go at that or is it worth pursuing further in your opinion?

  • Rental Property Investor · Plymouth, MN · Member since 2018 · 14 posts · 5 votes
    8y

    @Chris Hughes before getting into the details and giving my opinion. Just curious but when was the ac system/compressor installed or mfg date?

  • Jacksonville, FL · Member since 2017 · 16 posts · 2 votes
    8y

    Compressor and AC unit were a little bit older.  They were the ones that were installed when we purchased the home back in 2015.  But according to a couple different AC companies the compressor and air handler have been working great up until this.  Just a couple minor repairs here and there.  If I had to guess I would say they were about 10 years old when we purchased the home.  That being said, AC units (in my experience) can last up to almost 20 years if they are well maintained (which this one has been up until these particular tenants moved in) and by all accounts it has been running strong up until this happened.

    Aside from the AC, the stains on the new quartz countertops are concerning.  If I can’t get them out myself it could be several hundred dollars to have a company come in to try and remove the stains.  Not to mention to the time and labor to fix all the paint that has been ruined.  They used the hangers that stick to the wall to hang stuff.  Every single one has pulled up a big patch of paint on removal from the wall.

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    Chris Hughes make the repairs and take t out of their deposit. Paint repair and some AC unit stuff doesn’t sound like that big of deal. Maybe the stains on the countertops wasn’t great. What’s the total deposit? If it covers the repairs who cares then, that’s what deposits are for
  • Jacksonville, FL · Member since 2017 · 16 posts · 2 votes
    8y

    The cost of the compressor by itself would have been almost $3000.  The compressor is the component that their negligence in over-looking a very clearly defined agreement in the lease was cause to fail.  They admitted they didn’t change the AC filter for almost their entire tenancy. I even reminded them at times and they did not accomplish it.  

    I’m not a nincompoop.  I have flipped houses and done plenty of construction work in my time.  I’ve done high-end and “budget” remodels.  It could cost up to $800 to have the stained quartz professionally cleaned and refinished if it isn’t something I can accomplish myself.  And the paint is more of a time thing to me personally, I’m not that bent out of shape about it.  It’s  basically just the icing on the cake at this point.

  • Jacksonville, FL · Member since 2017 · 16 posts · 2 votes
    8y

    That is where my frustration lies.  In my opinion they are responsible from anywhere between $3000 and perhaps $3500 in damages in my opinion.  Yet their deposit is only for just shy of $2000.  Pretty big gap.  

    I have had some interesting tenants in the past, but these take the cake as far as damages are concerned.

  • Rental Property Investor · Haverhill, MA · Member since 2017 · 290 posts · 185 votes
    8y

    You can’t charge them the full value of a brand new compressor when yours was old to begin with.  Also, why tell them anything now?  Wait until they move out.  Best policy is to bill for damages as you go, save the deposit for the end.

  • Olathe, KS · Member since 2018 · 148 posts · 207 votes
    8y

    It's unlikely that the air filter by itself caused the system to fail UNLESS it caused the system to literally freeze up and not work while they tried to run it for multiple days (basically, air flow not getting through causing freezeup) It was old, it was going to happen at some point.

  • Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    8y
    @Aaron Taylor Yep and besides the landlord should be changing the filter not relying on the tenant . I’d be surprised if the tenant didn’t sue and Id bet they would probably win . Judge is going to want to see evidence /proof that the tenant is proven to have destroyed that old ac unit and it’s not going to be a dirty filter . The judge will ask how old that ac unit that died was and when you say 10-15 years your going to be laughed at and charged for three times the deposit amount after your scolded for keeping the guys money . So now it comes down to cat food left out for mittens . ...Cat food .. really ?thats kind of petty
  • Rental Property Investor · Raleigh, NC · Member since 2018 · 179 posts · 192 votes
    8y

    @Chris Hughes I'm sorry to have to tell you this, mate, but the AC company was bull-sh...ing you!  Not changing out a filter does not cause a compressor to fail!  Worst case scenario when you have a dirty filter is that the evaporator coil on the air handler inside the house will freeze over and the unit will stop blowing cold air.  If the AC unit was, as you say, "about ten years old", it should have had about another 5 to 8 years of good service left on it.  

    From what you have stated above you can't claim the cat food/rodents issue or the AC against the tenants' security deposit.  You can only claim for what is above and beyond "normal ware and tear".  If they have ruined the quartz countertops and you need to have them repaired or replace, then that is one item you can use.  If the paint job in all the rooms is truly "ruined' (above normal stains and ware and tear) then you can claim that.  However, do not tell them that before they leave.  Give them the opportunity to paint the rooms in the original color before they move out.  In Florida "if the landlord does not intend to impose a claim on the security deposit, the landlord shall have 15 days to return the security deposit together with interest if otherwise required, or the landlord shall have 30 days to give the tenant written notice by certified mail to the tenant’s last known mailing address of his or her intention to impose a claim on the deposit and the reason for imposing the claim."  http://www.leg.state.fl.us/statutes/index.cfm?App_...

  • Jacksonville, FL · Member since 2017 · 16 posts · 2 votes
    8y

    Thank you for the replies all.  I discussed the issues with the tenants and we came to an agreement.  

  • Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    8y

    Have you written a warning letter? 

    BTW:  I have not seen a renter motivated to service the filter, drain water from H2o heater, lube garage chain, fix leaky faucet. That is what the annual inspection and maintenance is all about.

  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    8y

    You wont "win" on the HVAC. Any charges you could even consider would be heavily pro-rated based on the current age of the unit vs the average life expectancy which is typically cited to be around 15 years.

    And then you need to prove that the lack of filter change caused the unit to die prematurely before average life expectancy....good luck with that.....

    The "change your filter every 6 months or it will kill your HVAC" is WAY overblown....a marketing ploy by HVAC repair and filter salesmen. Unless that filter is heavily clogged, the impact on the unit will be very small.

    HVAC units die..... they don't last forever...... its part of your Capex, and should not be passed on to the tenant unless they really did something negligent

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    8y
    Originally posted by @Chris Hughes:

    Thank you for the replies all.  I discussed the issues with the tenants and we came to an agreement.  

    Can you share the agreement with us? It is helpful to see how disputes are resolved.

    If you got money for that compressor, consider yourself lucky. AC compressors generally last 10-15 years in a warm climate. Not changing a filter is probably not the cause of the compressor failing. Usually a leak leaks to the compressor working harder and failing. Not changing the filter can cause your squirrel cage fan to fail. 

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