Rental Property Damage?

Question

My tenants have caused 5k worth of water damage do to negligence on their part. Their washer leaked. My insurance is paying for the damages except for my 1k deductible. Is it recommended I ask the tenants to pay for the decutible and cost of a plumber to assess the problem. I'm concerned this may cause the tenants to retaliate and damage my place causing me more issues. Any suggestions?

This is directed to _Love_McRedneck's comment: A 1k rental homeowners policy is the lowest deductible State Farm insurance allows for rental insurance. The damage from the tenants was pure negligence that they should take responsibility and ownership for. The house was in perfect prestine condition. 3 months after they moved in, 5k worth of water damage.

Answer 1

if you didnt have pictures of the place before they moved in.....id get some now, and get them to sign a sheet everything is allright now.... this might slow them down for future damage.... then hit them w/ the deductable, of which youll only get whats left, less the dep.....

Answer 2

As a landlord, this is what I would do:

First, you can sue them for any charges out of pocket, but you can't double-dip. So if your insurance coverage covers the plumbers trip, you can't sue them for that too.

Second, just so you know (and your agent will confirm this), you most likely will have your policy cancelled with State Farm after they pay the claim and you will have to take out expensive state-sponsored insurance.

The reason goes back to a South Carolina court case a few years ago, where someone had water damage in their home that caused black mold (which didn't form until months after the original claim, but was directly caused by the water damage)...the insurance company fixed the problem but refused to pay for black mold cleanup...the woman had health issues and sued, and WON to the tune of over $60 MILLION dollars.

What does that mean for you? They will cancel your policy because they state it takes a minimum of FIVE YEARS for a house to fully dry and to ensure black mold will not form...so during those FIVE YEARS you have to get state insurance and this will ALSO apply if you want to sell the home and will have to be disclosed at sale.

They cancel it to ensure they don't have to pay for black mold cleanup because the probability of it forming is very high.

Third, I would evict the tenants for that reason. If they did it once, they will do it again.

PS: Sortega is 200% wrong. A leaking washer should have been discovered and it was most likely improperly connected. You are very correct in calling it negligence because that is what it is...a leaking washer, not leaking pipes.

Answer 3

A few options for you but try and find a local arbiter or legal adviser for a sanity check before you do anything (any calm, independent advice).

Negligence implies that they fitted the washer badly and carelessly, rather than by accident. As a landlord, your insurance company will have taken into account that you have different occupants on a regular basis and there could be the argument that, as you left them to fit water appliances, rather than fit them yourself or have an expert, you granted them a level of competence, so your judgment call is their defense against the 1K you are out of pocket.

Alternatively, the 1K could be covered by the deposit for the place.

You really need to consult your insurance company to see if your policy covers you against tenant negligence, or try a local arbitration service.

Yes, just sending them a bill will almost certainly upset them but if they cause damage for which they will be criminally liable or if they sue you for unfair deductions is up for question.

I'd opt for arbitration, find someone you can both talk to - why did it happen, what caused it, why did it leak. How many of them are there and can you split the costs? If you carried out a quick repair, they might be more happy in paying the difference than if you took a long time over it and complained - and, or course, if they have 1K to spare.

Answer 4

At this point you have a couple of options, the first is to ask them to pay the deductible and the cost of the plumber, and the second is to eat the cost and to adjust the wording of the lease in such a way that clearly states that the renter is responsible for any and all damages and repairs caused by the damages. If you are in fear of retaliation for asking them to pay for the repairs you need to talk with an attorney to find out what your rights as a Landlord are. My advise is have an attorney help you right a new lease agreement which specifically covers damages caused by faulty equipment and such, and when the lease is up present the renter with this new lease.

Answer 5

The fact that the washer leaked does not legally constitute negligence. If they were partying and kicked holes in your house, that's another story.
Accidents in a home happen, and this is why you carry insurance. Wear, tear, and accidental damage is part of having an investment property. It's a risk you take. Unless you can without a doubt prove negligence, you are out of luck.

Answer 6

If you go after your tenants for the deductible, you may have even more problems with your insurance. If it's determined the tenant is responsible for the damage, the insurance company may go after them for the whole amount or the insurance company may tell you no, they won't cover any of the damage.

Talk to your tenants about the damage. I have to say I would be worried if I had tenants I thought would do retaliatory damages.

Answer 7

this may well be a hard one. If that is not unavoidably "spelled out" in the settlement it would desire to be a hard one to enforce. i comprehend while looking into trip leases, the settlement specially states no smoking, no pets, and so on. Smoking interior an condominium or homestead will depart a destructive smell in the homestead & i'm specific you're coping with the certainty that that is tough to do away with. you're in a position to seek for harm to the carpet, counters or demanding floors consequently of cigarette burns, and so on. as an attitude so some distance as actual harm is in contact. i used to be a smoker, yet no remember what, whether there became right into a torrential downpour, I nevertheless got here upon a skill of smoking outdoors to evade that lingering smell indoors. i could definetely attempt coming near your tenant approximately it as quickly as conceivable. She could be comprehend-how approximately it and would understand your undertaking on your condo property. terrific of success to you...wish this helps!

Answer 8

Sometimes accidents happen, that's what insurance is for.
You make it sound like they intentionally did something to cause damage. You and I both know that's not the case.
You made the decision to have a 1k deductible....mine is only 250, but you chose to save a few pennies. That's fine if nothing happens, but it did & now you're paying for it. How is that the tennant's fault?