Tenant damage costs more than deposit and exceeds small claims limit

Tenant damage costs more than deposit and exceeds small claims limit

Member since 2021 · 5 posts · 2 votes

I co-own a house with my sister.  We had a tenant who just moved out.  We knew the house would be messy but were not prepared for the extent of the damage.  Apart from many holes in the walls, the tenant had put screws into all the window frames some of which went all the way through to the outside.  Our lease said no holes in the walls.  We have temporarily filled the holes for a new tenant but it doesn't look great.  The windows are not wood but rather aluminum.  In my financial statement to the tenant concerning the deposit I itemized all the deductions.  The window contractor gave a quote of $13K just for the window replacement.  This exceeds the small claims court's limit of $10K.  I think it is only reasonable for the windows to be replaced.  Can I still go to small claims court and try to get the first $10K there?  Do I have enough of a case to hire a lawyer and sue her outside of small claims court?  We will likely sell the house when the current tenant moves out so leaving the holes (even filled) is not an option.  Thanks in advance

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2y
Quote from @Jeannette Albiez:

1. Charge depreciated value of the windows, not the whole cost of new windows. The contractor can probably help you determine remaining value of the damaged windows.

2. You are unlikely to collect a dime, so don't worry about how big of a judgment you can get. I would charge them for every possible thing, knowing the judge will likely reduce what you can actually claim and you'll end up below the $10,000 limit.

3. You may never collect a dime from them, but you should still take them to court and seek a judgment, then turn that in to a collection agency. It will sit on their credit and prevent them from qualifying for a loan or taking advantage of another landlord. They may try to buy a house a few years down the road and pay you off.

4. Inspect!!! I'm 99.72% certain this damage didn't occur during their last few months of occupancy. Inspect your property regularly and hold tenants accountable before the problems get out of hand. 

The DIY Landlord Book4.7247 Reviews
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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    2y

    With windows, you can't charge them replacement value, only what is left in their normal lifespan.  I have no idea how long those type of windows (or any really) last, but pretend it is 40 years and they are 20 years old.  You can then charge the tenant 50% of the cost.  Itemize the damage factoring in their lifespan and see what number you come up with.  Even if you go to small claims court and win, sadly you are unlikely to see any of the money.

  • Lender · Charleston, SC · Member since 2019 · 1k+ posts · 1k+ votes
    2y
    Quote from @Theresa Harris:

    With windows, you can't charge them replacement value, only what is left in their normal lifespan.  I have no idea how long those type of windows (or any really) last, but pretend it is 40 years and they are 20 years old.  You can then charge the tenant 50% of the cost.  Itemize the damage factoring in their lifespan and see what number you come up with.  Even if you go to small claims court and win, sadly you are unlikely to see any of the money.


     Agreed. Even with a judgment, there's unlikely to be anything of value to go after. MAYBE you could get the court to garnish wages, but that's highly unlikely. 

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    2y
    Quote from @Jeannette Albiez:

    1. Charge depreciated value of the windows, not the whole cost of new windows. The contractor can probably help you determine remaining value of the damaged windows.

    2. You are unlikely to collect a dime, so don't worry about how big of a judgment you can get. I would charge them for every possible thing, knowing the judge will likely reduce what you can actually claim and you'll end up below the $10,000 limit.

    3. You may never collect a dime from them, but you should still take them to court and seek a judgment, then turn that in to a collection agency. It will sit on their credit and prevent them from qualifying for a loan or taking advantage of another landlord. They may try to buy a house a few years down the road and pay you off.

    4. Inspect!!! I'm 99.72% certain this damage didn't occur during their last few months of occupancy. Inspect your property regularly and hold tenants accountable before the problems get out of hand. 

    The DIY Landlord Book4.7247 Reviews
  • Member since 2021 · 5 posts · 2 votes
    2y

    Many thanks for the responses.  I sent the tenant how much she owes and gave her a timeline.  We'll see.  I highly doubt she will pay without me taking her to court but thanks to the above info I'll make sure to depreciate the windows!

  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    2y

    If you wanted to go through small claims to avoid lawyers than you can just lower your claim to the Small Claims max.

  • Attorney · Princeton, NJ · Member since 2021 · 39 posts · 15 votes
    2y

    If you go to small claims court you can’t go back later and get more on the same issue. You waive the excess. But even if you win it will be hard to collect. I agree with those who said just get as much as you can in small claims. 

  • Member since 2021 · 5 posts · 2 votes
    2y

    Thanks!

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