Has anyone been extorted/threatened for the deposit back?

Has anyone been extorted/threatened for the deposit back?

Rental Property Investor · NC · Member since 2018 · 29 posts · 11 votes

Team-

We've had a really smooth 5 years of renting until now. My head is still spinning a little over the text we received from our tenant that just moved out. They have been good renters over the year, so I'm really surprised by this. All of this for "up to $200". The simple back story. The renter moves out, we inspect the apartment, it seems fine, we have the apartment professionally cleaned and they tell us the glass on the inside of the vanity mirror is cracked. Our mistake was to not check inside that stupid cabinet when we did the walk thru... So we tell the renter we're going to deduct it from his deposit to replace the unit. It's maybe 200 bones tops. So here's how he responds.

"I sincerely hope we don’t go down this road as I have done as I told you. If we can’t agree then I will also go after the two days of rent reimbursement for the days I turned over the residence to you as to help get you new tenant in the duplex and also seek additional damages for the change of plans with work (that's actually not true, he moved out and the apartment was vacant until the 1st). Shall I keep going. Trust me there are a few other things up my sleeve that you really don’t want me to pull out. Remember we are not the kind of people who fit with you tenants. I have every email and every text and I promise I will do everything possible to make things totally difficult for the future. I have deep contacts that I have developed over the last couple of years and I am done playing. No threats here just proof I have and I saved it all for this time. Please forward the deposit as agreed and I will go away. Please respond as I need to know how to proceed tomorrow."

Is this extortion? It's definitely a threat. We've had no issues either, so him keeping the texts and e-mails make no sense. Great, you have the text I sent you that the dryer repair guy is coming by today... I don't know how to handle this one. 200 bucks here, on a $1500 rental. He claims he didn't break it, but the cleaners are emphatic it was broken when they cleaned. 

Thoughts?

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Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y

Are you renting to Liam Neeson

“ over the years I’ve acquired specialized skills , skills to track you down and find you ...”

See this reply in the discussion

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  • Flipper / Landlord · Tyler, TX · Member since 2016 · 255 posts · 126 votes
    7y

    Yeah i feel you on deducting the damage for the vanity mirror. But it really isnt such a big deal, ITS JUST A MIRROR. Go and find one at a garage sale and move on i'd say.

  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    7y
    Originally posted by @Anthony Wick:

    @Jim Morris

    I think this is a great discussion, as a matter of philosophy. Let me ask this question from a different angle/situation to everybody;

    You have a property manager. Tenant moves out and property manager returns 100% of their damage deposit to them. The next month the property manager sends you a bill for $200 and says; “we had to replace a broken mirror that the last tenant damaged”.

    Does that change anybody’s mind that said don’t charge the last tenant for damage? If not, why? And how often does that happen before you are not ok with it? There’s no wrong answer, as it’s your business. Jay says $200 is a bottle of wine. I say it’s 15 bottles. Just different perspectives is all.

    In this situation, why is there a property manager in the first place if profit is the only motive? You could have saved the $200 mistake and the 8% management fee. Of course another person will argue that without property managers, you limit your scale and spend your time.  

    It is just oversimplifying to say it is about profits only, without factoring in time, risk and reputation. 

    I could drop insurance on all my properties and increase profit, but it increases risk. I could self manage, but I am then spending my time. I could let my properties fall into disrepair, which would increase profits, but hurt my reputation over time. Profits are essential for a business, but too often people look at it short term, so numbers are good today, but the business suffers in the future. 

    There is a lot of ways to run a business. Think about retail stores. Some have very liberal return policies, others don't even allow returns. Which would you rather shop at? The ones who don't allow returns, argue it increases profits. Kohls has a great return policy and recently announced they will also be accepting Amazon product returns at their stores. The reason they are doing this is because it increases foot traffic. So they spend money processing returns, but they make more money on the people it brings in the doors. My point is that the obvious choice to maximize profits is "no returns" but the liberal return policy attracts more customers.

    No right answer here, just different approaches getting different results.

  • Rental Property Investor · NC · Member since 2018 · 29 posts · 11 votes
    7y

    Duct tape... Garage sale... That's not how we roll, not even close. We command top rent for the area, as such, we have to provide an appropriate level of accommodations, so details matter to us. 

  • Rental Property Investor · Royersford, PA · Member since 2018 · 25 posts · 19 votes
    7y

    @Anthony Wick, I was totally kidding about the use of duct tape. But I would question if a $200 charge is appropriate for the damages since this estimate was just a guess. Is it a glued down mirror or a clipped on mirror? I don’t know, there’s not enough info.

    My #1 goal is to make the home tenant ready and so the furniture needs to be fully operational and safe for use. I would consider permanently removing the mirror to prevent this from happening again if that is possible without ruining the furniture and is easy to do. I would also replace the vanity if that was necessary and deduct the exact cost of materials and labor from the security deposit.

    Regardless of the number of homes, I wouldn’t be furnishing each home with vanities with mirrors inside them. This seems like the wrong product for the home. Then again maybe I’m picturing something totally different than the subject vanity.

    Out of curiosity (I’ve only had 1 tenant turnover with no damages and don’t have the experience), do you make up your own repair estimates or do you charge actual repair costs to you? Bc you suggested charging the $200 (which I understood to be the landlord’s guess) when the actual cost to fix can be very low or far exceed $200.

  • Investor · Milwaukee, WI · Member since 2013 · 1k+ posts · 1k+ votes
    7y

    Uhm...if it wasn't caught on the walk-through, there is no way of proving the tenant broke it. In fact, not catching it on walk-through is evidence they did not break it. Maybe the cleaners broke it and blamed it on the tenant.

    Also, we are talking about a stupid vanity mirror. Sounds like wear and tear to me. I'd be glad the mirror did not break when they lived there and caused them bodily harm.

    Yes, the tenant response is over-the-top. However, I think the landlord response to the broken mirror was unreasonable in the first place.

    By admission, the tenants were "good tenants" and as a show of appreciation, the landlord gets petty after the walk-through on a mirror they can not prove was broken by the tenant.

    So...just my two cents on this score...this is a problem created by the landlord that did not have to exist in the first place.

  • Rental Property Investor · NC · Member since 2018 · 29 posts · 11 votes
    7y

    I was quoted up to 200 bones by the contractor to replace it. Fortunately we're doing work on the opposite side of the duplex so this isn't out of his way to plop a new one in, and if you know anything about it, it's 4 screws. The hold up is finding one that's similar in style that matches the rest of the fixtures and such. Another tip. I probably should have just gone with a basic mirror instead of one with some detail to match the light fixtures. BUT the lights and vanity mirror came as a set so it was cheaper than piecing it out. 

  • Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
    7y

    @Eric Lui

    Oh, I absolutely took some liberties and went with more of a philosophical approach as opposed to just talking about this one repair.

    I assumed the fix would actually cost $200. You cannot charge an estimate, or charge for something you have not fixed. If I do cleaning, no charge. Can’t do that. If a cleaning company comes in, it’s a real charge and you can charge that. I follow the law very closely. I do not create charges that have not cost me anything. I’m not making money off damage deposits. But I don’t want to lose money either.

    My last two turnovers were $0 charge to tenants, full deposits back. I did not incur any actually charges for the turn over. Those are very nice duplexes.

  • Member since 2019 · 5 posts · 0 votes
    7y

    @Jim Morris

    If you have a really good attorney and don’t mind forking out the money. Which I believe gets reimbursed if you win as the plaintiff will have to “cover all court fees and lawyer fees”. I believe... not sure on that. But if that’s the case I would certainly do it and get the best of the best and wrap his little behind in litigation so deep his legacy will emancipate.

  • Rental Property Investor · NC · Member since 2018 · 29 posts · 11 votes
    7y

    Sans the VanityGate of 2019 the last four turnovers we had were full prompt refunds. I even gave a 100 dollar bonus to one couple.

    This particular gentlemen and his wife were by far the oldest tenant we've had in any of our properties, I just wonder if there's any correlation with younger folks kind of starting out, saving for a house vs someone that's mid life+ that's renting a 1000sf duplex. Seems there could be some inherent bitterness there maybe... dunno.

  • Member since 2019 · 6 posts · 1 vote
    7y

    @Jim Morris yeah I’d just pay it. Or worth the hassle.

  • Jay HolzbauerBusiness Member
    Property Manager · Hammond, WI · Member since 2019 · 1 post · 1 vote
    7y

    I'm stating this assuming that the tenant did do the damage.  It's important that even if the tenant does not act professionally or communicates emotionally (which this text was VERY emotional), to keep ALL communications professional -- so don't react emotionally to the text.  This is also a good example of why you document all interactions with your tenant -- and I would actually agree that texting is a great way to do this.

    I would fulfill the agreement by sending a detailed list of deductions, along with the deposit minus the $200.  If he decides to take you to small claims court, be sure to bring all supporting documentation and pictures -- and ESPECIALLY the text where he is essentially threatening you but does not say that he isn't responsible for the damage.  I think the judge would find it fascinating.

    Again, making the assumption that the damage was done by the tenant and that the cost of the repair was actually $200, it is important not to reward bad behavior.  This is definitely bad behavior.  Once you deal with one or two of these, it becomes easier to not let them damage your calm and handle it professionally.

    If you aren't comfortable with this, then as always I would recommend contacting an attorney.

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  • Rental Property Investor · Central, FL · Member since 2016 · 950 posts · 821 votes
    7y
    Originally posted by @Jim Morris:

    Whoa-wait you don't text? Sans this one stupid incident (which to some degree we brought it on ourselves for missing it on the walk thru after he moved out-who opens the vanity door to check inside?!!?!?!) I've found texting to be an effective mode of communication for the quick little nuggets tenants need to know every now and then. Of course, we only have 4 rentals. 

    Back to point... I have the freaking Terminator out there stalking us for 200 bucks. 

    I would never give out my phone number to a tenant.  And texting is a heck no for me.  Heck my tenants don’t even know my last name or where I live and certainly we would never be friends enough to chat via text message.  I mean to each their own but I run a business.  I don’t text my dry cleaner to complain about my shirt not being pressed properly. I go to their business or call them on a business phone number.  

  • Member since 2018 · 1 post · 1 vote
    7y

    Worst I've ever had was a tenant tell me that they wanted to see receipts from 'bonded and licensed contractors' or they would discuss with their attorney.  I simply gave them my attorney's contact information and suggested they had their attorney contact mine from here on out.  Needless to say they never contacted anyone.

  • Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y
    Originally posted by @Jim Morris:

    I was quoted up to 200 bones by the contractor to replace it. Fortunately we're doing work on the opposite side of the duplex so this isn't out of his way to plop a new one in, and if you know anything about it, it's 4 screws. The hold up is finding one that's similar in style that matches the rest of the fixtures and such. Another tip. I probably should have just gone with a basic mirror instead of one with some detail to match the light fixtures. BUT the lights and vanity mirror came as a set so it was cheaper than piecing it out. 

    Jim, can you switch out the light fixtures to something else, and that way you can get regular mirror glass in the vanity? How about a pic? We're already into four pages of high-touch people arguing about standing on expensive principles, you've already seen what it's worth, let's focus on helping you now.

  • Rental Property Investor · Wayzata · Member since 2019 · 80 posts · 24 votes
    7y

    @Anthony Wick here's where my philosophy classes in college come in handy since I am not a numbers person -- you're committing a logical fallacy here, I forget which one it's called, but the gist of it is DROPPING CONTEXT.

    Those scenarios are totally different!

    Dude.

    The Property manager company isn't insanely overreacting because they feel persecuted (justifiably so or not). AND Property manager isn't threatening.

    It's not just money it's really a question of how did I get here? - looking inside at processes, mistakes and accepting responsibility - rather than blame and all out war 

    and $200 vs. Major Headache.

    I'd pay and say bye-bye.

    Either the tenant is overreacting because they are innocent or they're insane. Neither of those scenarios sound too good to me. We've had troubles in other areas but have been blessed with wonderful tenants and a decent property management company (I had to fire one, though).  Also, I don't know if I read it correctly but 5 years??? That's a long time! That's normal wear and tear.

  • Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    7y

    Do you mean have I EVER? 

    Yes

    Or just like, in the last few years?

    Yes. 

    Oh. Like this year?

    Yes. 

    In May?

    Yes. 

    Today?

    Yes. 

    I bet I could check my email right now and see a few. 

    Water off a ducks back man. Follow the lease and the property code and let people threaten whatever they want. 

  • Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    7y
    Originally posted by @Anthony Wick:

    @Jim Morris

    Everybody else handled what to do. Now, no texting?! Of course I text! You will actually limit your rental pool nowadays if you don’t. Young people text. What’s next, no advertising on social media? Now, if it needs to be a legal or official matter, I tell them to email or mail me. For example, I send email as official notice for new lease, move out, etc. The other day a tenant text me their shower wasn’t working. We text back and forth a couple times and I determined it was probably the shower diverter. Text them back what I think it is and when I’ll come by to fix it. Easy and quick.

     Correct. No text.

    Tenant communication is done via our tenant portal. 

    Obviously we still use social media and other modern methods to advertise. And txt to arrange showings. Our whole company is paperless.  But we don’t allow managers to txt with tenants about these types of issues or work requests or payment issues. That’s what our management software is for  

    I don’t care if you only have a handful of units. Operate with scale in mind. Are you going to txt with 1000 tenants?

  • Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    7y
    Originally posted by @Nick Bolding:

    @Jim Morris

    I work in Property Managemebt and I hear these emails, texts and phone calls at least 20 times per day.

    In my opinion $200 isn’t worth the head ache.... but on the other side, I like to stick to my guns (morally speaking).

    So if I know I am in the right as long as you did all that was required of you by your state laws with the inspection, notice of repairs, property documentation of property condition before and after and you weren’t a slumlord while renting it out, then they don’t have any trucks up their sleeves and will be stuck paying your court costs when they lose.

    It’s also very dependent on your state and if it’s a landlord friendly or tenant friendly state. Some states are pro tenant which makes general sessions cases a pain for owners.

    Ah. I need to modify my answer. Good point nick. If the property is in a blue state give the deposit back. 

    (Why I don’t own rentals in blue states)

  • Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    7y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Joe Splitrock:
    Originally posted by @Jim Morris:

    Fantastic points of view to the LADIES and gentlemen of the group. We've decided the bigger issue here are the threats, and specifically the threat of making things difficult for us in the future, so to me it needs to be known that he's forever on the hook if there are any issues with the property (fire, vandalism, breakins and so on..) or slanderous comments about me when I run an ad to rent the property in the future (fortunately that won't come up for over a year) or whatever. This is a business, and it's an income stream for us so I don't take this component of the text lightly at all. 

    So today I'm calling the authorities and have a discussion to see what can or should be done to protect our interests, and I'll discuss the threats as well. 

    Calling the authorities over that text? Nonsense. He never threatened any of those things. Now you are accusing him of future actions that never even occurred. There is nothing for the authorities to do.

    He is clearly threatening you, but threats over mistakes YOU made. That is civil, not criminal threats. What does he mean when he says "he doesn't fit in with other tenants". Is the tenant a minority or some protected class? He seems to think you made legal mistakes. You may think he is wrong, but do you really want this to go to court? If you did violate the law, this could get financially ugly for you. 

    There is another option. Give the dude back his $200 and apologize. You will be done with this forever and he won't say a single bad thing about you. It seems you are chasing personal vendettas instead of running a business. 

    I am not saying to never take deductions on deposits, but you need to follow a process and have documented proof of before condition and cost (minus depreciation for age). At the end of the day, fighting over $200 when you have a weak case is bad business. 

    it is amazing the conversations we have on BP with landlords over tiny dollars that are not even worth talking about.. I mean shoot that's the price of a decent bottle of wine for gods sake if one has heart burn over this then landlording is probably a bad choice to begin with .. I mean really  ???  weird. 

    Hey man. After 20 posts about "should I get an LLC?" I'll gladly take a $200 deposit fight thread :-!

  • Rental Property Investor · San Diego, CA · Member since 2013 · 3k+ posts · 4k+ votes
    7y
    Originally posted by @Account Closed:
    Originally posted by @Jim Morris:

    Whoa-wait you don't text? Sans this one stupid incident (which to some degree we brought it on ourselves for missing it on the walk thru after he moved out-who opens the vanity door to check inside?!!?!?!) I've found texting to be an effective mode of communication for the quick little nuggets tenants need to know every now and then. Of course, we only have 4 rentals. 

    Back to point... I have the freaking Terminator out there stalking us for 200 bucks. 

    I would never give out my phone number to a tenant.  And texting is a heck no for me.  Heck my tenants don’t even know my last name or where I live and certainly we would never be friends enough to chat via text message.  I mean to each their own but I run a business.  I don’t text my dry cleaner to complain about my shirt not being pressed properly. I go to their business or call them on a business phone number.  

    Omg I wish I had more than one like to give this comment

  • Rental Property Investor · NC · Member since 2018 · 29 posts · 11 votes
    7y

    and with no further ado.....

  • Specialist · New Cumberland · Member since 2019 · 5 posts · 3 votes
    7y

    @Jay Hinrichs

  • Specialist · New Cumberland · Member since 2019 · 5 posts · 3 votes
    7y

    @Jay Hinrichs what’s your preferred way of communication? Does the tenant have your phone number?

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Brian Brown:

    @Jay Hinrichs what’s your preferred way of communication? Does the tenant have your phone number?

    those that I know do this have a separate tenant phone and don't accept text.. they prefer e mail.  or drop by the office 

  • Sunnyvale, CA · Member since 2018 · 191 posts · 178 votes
    7y

    @Jim Morris if you treat this like a business, you would take the emotions out of it. I agree with the minority. If you did a full walk through and you didn’t catch it while he was there. You learned a lesson. Lots of people giving good advice about taking lots of pictures. If he really was a good tenant for 5 years, I wouldn’t be so petty. You may say it’s about the principle blah blah blah, and yes he may get in trouble if he does something in the future. But good luck actually collecting from him. He got riled up and instead of defusing the situation you played right into a game and started puffing your chest too. The threat is laughable at best.. is $200 really worth the time to talk with authorities, scanning your post later to see if he slanders your name, and the discussions with your wife? I rather use all that time to be productive. Or watch dancing with the stars. You will grow your real estate empire and $200 wont mean anything to you for the peace of mind.

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