Ask the Attorney – Flood caused by Tenant

ask-the-attorneyThe Landlord Protection Agency®presents John Reno, Esq.,a highly experienced Landlord – Tenant attorney based on Long Island, NY.

Q:  Dear Mr. Reno:

Our tenants contacted us late on a Thursday evening about 11 pm, they told us the pipes had broken and the house was flooded, they said there was water in the office, water in the hallway that they were soaking up with towels but it kept coming. We responded we would get ready and would be over to check the situation out. To which they changed the story then and said it might just be the washing machine, never mind. They would not allow us to come that evening. We then said we would be coming the next morning to which they said no because they had to work. We told them we were coming to check the damage to the house since they indicated it was extensive in their first notice. We checked out the house the next morning, and it was their washing machine. It was pouring out from the bottom. There was almost $10,000 in damages to the house as there was substantial damage down through the subfloor of all surrounding rooms. Renters refuse this is their responsibility to pay for despite contractors and insurance noting that the damage is from their washer. What are we able to go after the renters for payment on? if a claim is filed on the insurance how does that effect what the renters are liable for? In our lease, which we purchased from LPA, it states they must have renters insurance which they did not. The renters asked us to file on our insurance and they would pay the rest. However getting the deductible from them was a fight, and they are now not willing to pay for what the insurance company did not. Can we go after them for the entire bill? And increase the rent since there was a claim on the house which is their fault?
Thank you,
Kristen, IN

A: Assuming the work has been done, they are liable, but only for what wasn’t covered by insurance. But you don’t have to end the relationship. Its a separate (plenary) action. So sue the bastards, any questions?

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The Landlord Protection Agency’s “Ask the Attorney” column is for informational purposes only. The questions answered by Mr. Reno on this site do not constitute an attorney – client relationship and are not to be considered legal advice. Not all questions will be answered and some may appear in the LPA Q&A Forum.
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How to avoid common mistakes of first-time landlords.

For Rent ImageFirst-time home buyers are a declining group. Historically, 40 percent of home buyers have been first-time buyers. However, that number continues to shrink, even if the true home ownership rate among millennials climbed ever so slightly last year. If you’re already a homeowner, your wheels might be spinning right about now, if people aren’t buying starter homes, then the rental market has to be booming. Right? It is in many areas, particularly where unemployment is low, the population is high, and homes aren’t overpriced. You might think you’re ready to become a landlord, but learning how to be one by trial and error is not necessarily the best way. Here are seven things to consider before you take the plunge.

1. Live near your rental property. It is important to check on it periodically, take care of repairs yourself, and show the property when it’s time to re-rent it. Forbes put together a list of the 40 top investment areas, but even if you don’t live in a prime rental region, you can still invest in one.

2. Know landlord-tenant laws. Arizona has favorable landlord laws. However, you still need to follow and know the specific landlord-tenant provisions that cover security deposits, access to the property and notice required when you want to end their tenancy. There also are federal laws you need to know, such as habitability and fair housing laws.

3. Make sure you collect the rent on time. This seems like a no-brainer, but believe me, if you get too friendly with your tenants, you might just let them slide a couple of weeks. You don’t want the tenants getting months behind, because, if they can’t pay the current month, chances are they can’t pay multiple months. You really never want to take a partial payment either because it limits your rights to evict. Also, you really do want to build a good rapport with a tenant because it makes the relationship easier to manage with repairs and access. It is very important to have thick skin if you are going to be a landlord because you are going to have to evict someone in the middle of the summer, eventually.

4. Screen potential tenants. It’s worth the time to do a background and credit check on all potential tenants. You can use an online tenant-screening service for this. Credit score alone is not always a reason to accept or deny an applicant, but it is a useful screening tool. You should also conduct an interview and check their references.

5. Customize the lease agreement. If you don’t hire a property manager, you can use a standard lease form you can find online. For example you want to know how many people are going to be residing at the property, whether or not you will allow pets, who is responsible for landscaping and pool maintenance.

6. Inspect the property regularly. A simple drive by says a lot. If the tenant is maintaining the outside, they are normally maintaining the inside. Always take pictures to establish a base line of what was in the house and the condition of the carpet and other items before they moved into the home.

7. Understand this is not a get-rich-quick scheme. It takes time before the property appreciates and your investment starts to pay off. You’ll need reserves to pay the mortgage when the property sits vacant for a few months, you need to replace the A/C unit, put in new carpet and other basic maintenance. Think of being a landlord as part of your overall investment strategy and realistically aim for getting around a 5 percent return on your investment.