Tenant is taking me to Small Claims Court - Help

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Tenant is taking me to Small Claims Court - Help

Bruce L.
NV · Member since 2012 · 144 posts · 6 votes

So, my tenant serve me with paperwork that he wants me take me to small claims court over his $1200 security deposit, after all repairs were made, I gave him back $250, but he wanted pretty much all of it.

Could anyone tell me what to expect as I have never gone to small claims court before?

One thing that I'm concern is that I have the tenant the move-in inspection checklist and instead of having him sign the original with ink, I had him fax it to me. Not sure if that matter or not since he could just write all over it after he moved out, stating an item was already broken and basically lying in court.

I do have documentation and pictures as well and kept a pretty good log as to what happened.

Any information I could get would be greatly appreciated.

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Jon Holdman
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y

When I make deductions from the security deposit, I include copies of the actual receipts. I only deduct for money actually spent. I never charge a tenant for my time. Never. Maybe it would hold up, but I don't want to lose that argument and end up refunding triple damages for that. If I'm going to charge the tenant for painting, I hire a painter. If they're going to be charged for cleaning, I hire cleaners. If you're charging the tenant, say, $500 for 10 hours of your time, I think you're on very shaky ground in front of a judge. A judge could decide that was something you could have paid much less to hire someone to do. For example, the cleaners I use charge me $90 an hour for a three person crew. If they take two hours, its $180. If it took me 8 hours to do the same job, and I charged $50 an hour for my time, that would be $400. A judge may well completely disallow such a charge. If its double damages (that's what I read in Phillip Dwyer's link), that $800 you have to give back. OTOH, if you have $500 of receipts, you're on solid ground.

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  • Mike Osterman
    Specialist · Novato, CA · Member since 2012 · 190 posts · 57 votes
    13y

    Make sure to take your receipts and or documentation to the judge. That's it. Don't get emotional. Just facts.

    1Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    Keep it short and sweet and provide quick and easy to read materials for the judge to look over and digest.

    Let the tenant dig themselves a grave by being dramatic and talking at great length and annoying the judge. It should work in your favor. Emotional control and sticking to only the facts is key.

    No legal advice.

    If it's not to far away you might get something out of spending a day there before your case and seeing how other cases went and what to do an not to do.

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    3Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    13y

    As long as you can document all your claims you should be fine.

    I would think the most likely thing to cause problems is if there are specific laws regarding security deposits and you didn't follow them exactly. In Maryland you can be hit up for triple damages for not following security deposit laws. It might be worth a phone cal or visit to a tenant landlord attorney.

    Good luck - Ned

    0Reply
  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    13y

    http://www.leg.state.nv.us/NRS/NRS-118A.html#NRS118ASec240
    Click on the security deposit section to read up on Nevada law.

    0Reply
  • Ryan M.
    West, MI · Member since 2012 · 674 posts · 182 votes
    13y

    I have had this. IMO try to settle. The one time I did end up in court they determined there was a small amount that needed to be refunded. No big deal, however, it shows up as a judgement on the record.

    The court can and will award triple damages. It's not something worth playing with to prove a point if it can be worked out on the front end.

    0Reply
  • Rachel H.
    San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
    13y

    One thing that helped me was to view some cases presented by attorneys in the same field. Knowing the jargon and terminology they use definitely helps the judge to see your professionalism. The words these attorneys use and the way they present their case to the judge can definitely be a learning experience. Hope that helps!

    0Reply
  • Bruce L.
    OP
    NV · Member since 2012 · 144 posts · 6 votes
    13y

    Thanks guys!!

    Phillip Dwyer, great link to the NRS, as other mentioned about triple damages, I did a quick search and did not see anything about triple damages here in Nevada.

    Section 6B of NRS 118A.242 says "For a sum to be fixed by the court of not more than the amount of the entire deposit."

    But Ryan M. brings up a good point that I'm not aware of in that if I lose, it may show as a judgement on my public record, similar to like foreclosures do? So, does that show up on my credit report under public record?

    0Reply
  • Account Closed
    Investor · San Jose, CA · Member since 2012 · 2k+ posts · 3k+ votes
    13y
    Originally posted by Ryan M.:
    I have had this. IMO try to settle. The one time I did end up in court they determined there was a small amount that needed to be refunded. No big deal, however, it shows up as a judgement on the record.

    The court can and will award triple damages. It's not something worth playing with to prove a point if it can be worked out on the front end.

    Thanks Ryan. I learned something new today. A judgment on the record is definitely not good. How hard is it to dispute it do you know?

    Bruce, good luck. I hope you settle or prevail in court if it comes to that.

    0Reply
  • Rob K.
    Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    13y

    I would write down everything that happened and then go over all of it so you make sure your story is straight. When you get to court, use facts and logic. The tenant can talk in circles and get confused, but you need to stay on point.

    0Reply
  • Bruce L.
    OP
    NV · Member since 2012 · 144 posts · 6 votes
    13y

    Ya, I will do some research and also think about settling.

    Another thing I'm concern is that when the tenant moves in, I have them sign a minimum turnover charge. Things like how much it would cost to replace a floor tile, shower head, etc. that has minimum fixed price.

    Well on that form, I have a general hourly charge of things not covered which is $50/hr. I'm concern that the judge wouldn't allow that charge as it is high and some of the simple repairs was done by me.

    0Reply
  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    13y

    You can collect "reasonable" fees in addition to security deposit at the start of the lease. the no refundable fees you might charge would be a cleaning fee, a app processing fee, filing fee, etc. for deposits you'll still have to follow the procedure outlined in the link I mentioned earlier.

    If anyone has info regarding how a judgement in favor of the tenant can impact the owner's credit, I'd love to know about it. I would think this will only be an issue if the owner doesn't/can't pay, but I'm no credit expert.

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    When I make deductions from the security deposit, I include copies of the actual receipts. I only deduct for money actually spent. I never charge a tenant for my time. Never. Maybe it would hold up, but I don't want to lose that argument and end up refunding triple damages for that. If I'm going to charge the tenant for painting, I hire a painter. If they're going to be charged for cleaning, I hire cleaners. If you're charging the tenant, say, $500 for 10 hours of your time, I think you're on very shaky ground in front of a judge. A judge could decide that was something you could have paid much less to hire someone to do. For example, the cleaners I use charge me $90 an hour for a three person crew. If they take two hours, its $180. If it took me 8 hours to do the same job, and I charged $50 an hour for my time, that would be $400. A judge may well completely disallow such a charge. If its double damages (that's what I read in Phillip Dwyer's link), that $800 you have to give back. OTOH, if you have $500 of receipts, you're on solid ground.

    4Reply
  • Bruce L.
    OP
    NV · Member since 2012 · 144 posts · 6 votes
    13y

    Thanks for the tip Jon Holdman, I will hire someone for repairs from now on.

    Also, I looked at Phillip Dwyer link to the NRS and do not see double damages charges, could you point me to where you see that?

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    I'm not a lawyer and my legalese isn't all that good, but here's what I see:

    That "and" is what I take as allowing double. The court can award up to the amount of the deposit and a sum ... of not more than the amount of the entire deposit. That sounds, to my non-lawyer ears, like the judge can award up to double the amount of the deposit.

    0Reply
  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    13y

    I read it the same way as Jon Holdman, but I'm not an attorney either.
    One more thing to point out here, is that you have to consider what "normal wear and tear" is for this type of dwelling. Certain things just wear out over time, and shouldn't be considered damaged caused by tenants.

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    Good point. I don't have personal experience, but I've heard from a PM in our area that if you try to charge a tenant anything for carpets that are more than three years old it will get thrown out, for example.

    0Reply
  • Xing Zhu
    Durham, NC · Member since 2012 · 498 posts · 48 votes
    13y

    I am not sure if all repair costs should be on the tenant.
    For example, if I provide three TVs, and one of them is dead,
    I need to replaced it at my own cost, unless the tenant physically
    break it.

    0Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y
    Originally posted by Phillip Dwyer:

    If anyone has info regarding how a judgement in favor of the tenant can impact the owner's credit, I'd love to know about it. I would think this will only be an issue if the owner doesn't/can't pay, but I'm no credit expert.

    Philip: I think this is a good question. Court judgments do not show up in the public records section of a credit report unless someone records them. If a tenant were to prevail and was awarded a judgment AND then the landlord paid in full, it most likely wouldn't get recorded. So it wouldn't appear in a credit report. However, if the landlord didn't pay, the tenant could record the judgment and it would show up in the public records section of the a credit report.

    0Reply
  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    13y

    K. Marie Poe Thanks for the insight. That makes sense to me.

    0Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    13y

    Bruce: what types of repairs did you charge for? Carpet life has to be prorated where I am. Paint life is also limited. What can be touched up can't be an entire room repaint and then charged to the tenant.

    What's the tenant's take on why he should get more back?

    1Reply
  • Mike Franco
    Los Angeles, CA · Member since 2013 · 555 posts · 261 votes
    13y

    Sounds like you didn't include receipts with the itemized deposit deduction sheet?

    If you did, it would be hard for tenant to argue.

    I'm going to be doing a turnover at the end of this month, and I'll be charging the tenants the exact cleaning fee backed by work invoices. I don't make a profit from security deposit.

    1Reply
  • Bruce L.
    OP
    NV · Member since 2012 · 144 posts · 6 votes
    13y

    So, the carpets for the entire house was brand new when they moved in on 9/2011, I do have receipts which I plan on bringing with me. There were a lot of thing I even overlooked in regards of the carpet. The only one that I charged them for was the one in the family room. There a big 'L' shape stain that couldn't have been removed, so instead of charging them to replace the carpet, I just tried to spot clean it, which helped a little, but you can still see the stain. The tenant seems to think that's normal wear and tear.

    Note that these pictures were taken after the place was steam cleaned.

    Photo 1 : Wall that needed to be painted

    Photo 2: ‘L’ Shape stain

    Photo 3: Broken Kitchen Countertop Tile

    Photo 4: Tore Carpet in Bedroom 2 (Did not charge)

    Photo 5: Tore Carpet in Bedroom 2 (Did not charge)

    Photo 6: Stains in Master Bed room (Did not charge)

    Photo 7: Broken Kitchen Blinds and handle.

    Photo 8: Missing Bathroom Drain Popup

    Photo 9: Missing Door Latch to lock sliding glass door.

    Photo 10: Landscape Trimming

    Here’s the list of items I charged them for.

    0Reply
  • Ryan M.
    West, MI · Member since 2012 · 674 posts · 182 votes
    13y

    It does get recorded and shows up on every credit report I have pulled on myself or others have pulled.

    It shows paid in full but that was more messing around because the tenant never reported it.

    I had to go back to court and the judge had to approve with supporting data to just have it say paid.

    0Reply
  • Ryan M.
    West, MI · Member since 2012 · 674 posts · 182 votes
    13y

    How long were the people there?

    If that's the only things wrong I would be happy and move along.

    Be sure to follow up on how this plays out.

    0Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    13y

    I think you have a problem. 2 hours to change 2 drain pop-ups? 1 hour to replace smoke detector batteries and light bulbs? No wonder they think you are ripping them off ...

    3Reply
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