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Rick Lee's Avatar
 
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Location: Cave Creek, AZ USA
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Calling the landlords, lease questions here.

I have a clause in the lease for my rental property that reads "tenant shall be responsible for the first $50 of any service call" and my tenant fights me on this every time. Last Thurs. night I visited the property for the first time in four years. Tenant said the garage door opener was kind of loud, but it's way quieter than the garage doors in my own house. And that opener in the rental prop. is only four yrs. old anyway. Fri. night, as soon as I walked off the plane and turned my phones on, I got a text from him that the garage door had died. Repair was $185 and he pitched a fit that I told him to pay the guy $50 and I'd pay $135. He seems to think, if he tells me about it in advance, it's something I need to repair before it breaks and isn't considered a service call. Nothing about that in the lease, and the garage door was virtually silent compared to what I'm use to here. I told him, unless it was marked on the walk-through checklist before he took occupancy, he's on the hook for any service call related to it.

And today the fridge died. Probably gonna be $195 for the repair. Obviously, I can't be there to pay the repair guy in person and am expecting a big fight later about the $50 deductible. I kind of want him to move out, as I know I can get $200 a month more for the place, but he's otherwise been a great tenant, always pays on time and keeps the place spotless. Problem is, if he moves out and it takes me a month of no rent coming in before I can rerent the place, even at the higher rent rate, it'd take me 8-10 mos. to make that lost month back and I'm already down $500 a month when nothing at all breaks.

Does this guy have a leg to stand on by refusing to pay this deductible? I can always take it out of his deposit when he leaves. But I'd rather have the money now and not risk his trashing anything or making move-out more difficult.

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Old 02-09-2013, 09:09 AM
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Good renter, pays on time, keeps home spotless? Sounds like gold to me.
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Old 02-09-2013, 09:19 AM
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Originally Posted by HardDrive View Post
Good renter, pays on time, keeps home spotless? Sounds like gold to me.
Yes indeedy...I bend over backwards for the "good ones" and I wouldn't bat an eye over $50...just isn't worth it from my perspective.
Old 02-09-2013, 09:29 AM
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I only make the tenant pay for things that are their fault, like the drain stopping up.
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Old 02-09-2013, 09:32 AM
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Of course, it's not worth losing this tenant over $50 today or the $150 it will have been in the last few mos. But it is in the lease, he initialed it and he signed it. At what point do I just tear up the lease and keep it all on a handshake because I keep letting things in the lease slide? If I made it only things that were his fault, he'd fight me even more, claiming nothing was his fault, regardless of how he treated it or what caused its breakage. I can't prove he didn't drop a spoon down the garbage disposal or didn't change the a/c filter every month or that his wife didn't bang the car into the garage door.
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Old 02-09-2013, 09:36 AM
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I think the idea of the $50 co-pay is to discourage the tenant from calling a plumber every time the toilet stops or other minor issues. For major issues where you should be providing a fully-functioning rental property, for a good tenant I think you should just pay it in good faith.

Explain the point of the co-pay, that you don't want to fight over this, but want to reach a reasonable understanding.
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Old 02-09-2013, 09:40 AM
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Pick your battles Rick..."most" of my tennants have been good ones...but a couple have literally cost me thousands...like you, I don't really want to be in the LL business either . Don't sweat the petty stuff and don't pet the sweaty ...
Old 02-09-2013, 09:41 AM
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Originally Posted by KC911 View Post
. Don't sweat the petty stuff and don't pet the sweaty ...
Best quote.

i instructed my tenants to call me first.

I make the decision when, who and how much.

I've been very lucky and has worked for me.
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Old 02-09-2013, 09:44 AM
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The $50 co-pay is like the co-pay when you go to the doctor. It's not an admission of fault or liability. It's there to make you have some skin in the game. I swear, with this guy, it's all that keeps him from calling a handyman out to change light bulbs and stick me with the bill. He probably can't put air in his tires. I'd repair some of these things myself, if I lived nearby. But that's not an option and so the letter of the lease is all I have. I also don't want to set a precedent by letting it slide once because he'll take that to mean he never has to pay it again. The one thing I let it slide on was the shower drain spout because he mentioned it to me the first week he lived there, but obviously hadn't taken a shower there before he did the walk-through checklist. I think I'm being fair here.
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Old 02-09-2013, 09:45 AM
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Quote:
Originally Posted by Rick Lee View Post
The $50 co-pay is like the co-pay when you go to the doctor. It's not an admission of fault or liability. It's there to make you have some skin in the game. I swear, with this guy, it's all that keeps him from calling a handyman out to change light bulbs and stick me with the bill. He probably can't put air in his tires. I'd repair some of these things myself, if I lived nearby. But that's not an option and so the letter of the lease is all I have. I also don't want to set a precedent by letting it slide once because he'll take that to mean he never has to pay it again. The one thing I let it slide on was the shower drain spout because he mentioned it to me the first week he lived there, but obviously hadn't taken a shower there before he did the walk-through checklist. I think I'm being fair here.

I guess is time to have a talk with your tenant and review the contract.

I will let it slide now.

Not the next one per contract.
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Old 02-09-2013, 09:48 AM
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I would only expect to pay rent, not the maintenance of the place. If the microwave in my rental went out, I'd expect to pay 100% of the repairs.
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Old 02-09-2013, 10:26 AM
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Quote:
Originally Posted by Rick Lee View Post
I also don't want to set a precedent by letting it slide once ....
Oooooh! been there, done that as a landlord. It will bite.

I have a great record of finding quality tenants, so I don't mind getting rid of a trouble maker.

One thing that has worked for me a few times-

Encouraging the resident to leave, as "You obviously are not happy here, perhaps you should consider finding somewhere else where you would be pleased" tends to get people real quiet, really quick.

If he likes your home, and doesn't want to move, that may help him realize he better not be a pest over $50.
Old 02-09-2013, 10:58 AM
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Being a distant landlord is no fun, is it?

I like having rental properties close to me. They call me, I show up, they are very appreciative.
Old 02-09-2013, 11:00 AM
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Hugh is right, and so is Don P. And that is what most people will think.

Az law will control, if no provisions re this in state law (or city or county), then the lease comes next.

But it sounds like you have a drafting problem in the contract. Any renter will think like Hugh, and the 'service call' sounds ambiguous with respect to a break down like this. Ambiguities in contract provision are usually held against the drafter, i.e. you.

Of course, the tenant may not sue and instead could just move out, leaving you to rent to some deadbeat meth addict next time...

Why not just eat the $50 this time, then lay a few 50's on the desk of a RE lawyer to draft a tight contract for you next time?
Old 02-09-2013, 11:10 AM
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I can't imagine making my tenants pay the first $50. That makes no sense at all. Why don't you just require them to get approval first before spending any money they expect to be reimbursed on?
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Old 02-09-2013, 11:45 AM
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Quote:
Originally Posted by Rick Lee View Post
I have a clause in the lease for my rental property that reads "tenant shall be responsible for the first $50 of any service call" and my tenant fights me on this every time.
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Originally Posted by RWebb View Post
Ambiguities in contract provision are usually held against the drafter, i.e. you.
What's ambiguous?
Old 02-09-2013, 11:49 AM
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"any service call"

- define service
Old 02-09-2013, 02:03 PM
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Originally Posted by motion View Post
I can't imagine making my tenants pay the first $50. That makes no sense at all. Why don't you just require them to get approval first before spending any money they expect to be reimbursed on?
Especially being a long distance LL imo. No matter how you slice it, the renter has very little "skin in the game" by comparison, and it's YOUR property. Next time you have a slight leak through no fault on his part, do you think the tennant is going to tell you about it knowing he's gonna be on the hook for $50? Just something to think about...
Old 02-09-2013, 02:24 PM
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I wouldn't even think about charging my tenants a co-pay. When things come up (and they seldom do) I have them take care of it, send me the receipt and deduct it from the rent. I also do minor upgrades from time to time. My tenants have been in for 3 years so far and they are 100% perfect. I wouldn't want to lose them for $50.00
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Old 02-09-2013, 02:42 PM
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Rentals.............

I own a commercial building with four suites in the metro Atlanta area. I pay for any repairs to the building, provide water for all 4 suites and keep the grounds neat. By going the extra mile, I have been able to keep tenants for as long as 20 years! Much easier to deposit a rent check than is is to go find a new tenant! I also keep my rents as low as possible and still be able to make a good return on the investment. In the last 35 years I have only had to run off one renter.

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Old 02-09-2013, 03:56 PM
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