First Time Landlord, How do I charge them for minor incidents?

Question

I'm currently in the process of renting my Villa in South Florida. We are about to sign a lease agreement with the new tenant. We did a credit check and we are charging them First and Security to move in.

I have a few questions for an experienced Landlord.

If something happens that's minor, for example if they are moving in and a hole gets put in the wall or something like that, do you charge them to fix that or do you fix it? I know if a pipe breaks or the air condition breaks, it's up to me to fix but how about stuff that was the cause of the tenant?

Also, in our lease agreement it says I can visit with 24 hour notice. Is it advisable and/or ok if I go every 3 months or so to inspect the property. I've heard tons of horror stories where the tenant has totally ruined the place.

Thanks for any and all advice.

Answer 1

If the tenant causes damage, they are responsible to pay for the repair or replacement as needed.

You do not allow tenants to make repairs or replace things themselves - you have whatever needs fixing replaced or repaired and then charge them whatever it costs you. Whether you hire it out or take care of it yourself is up to you.

Never, ever make the tenant responsible for the first $50.00 (or any other amount) of any repair because this will cause the tenants to not report any issues - big or small. Small issues will become worse. The tenant will figure, "Why report it, I should not have to pay for normal wear and tear or regular maintenance."

That small drip under a sink ends up being a moldy soggy mess because the tenant did not want to pay $50.00, so they never reported it. Plus, that drippy pipe is a maintenance issue that the tenant should not be responsible for to begin with.

Another reason this is a horrible idea is if the tenant floods the bathroom and causes $thousands$ in damage - your lease makes them responsible for only the first $50.00. Dumb, dumb, dumb. Penny wise, pound foolish.

Your state's landlord tenant laws cover repairs. If the tenant damages it, the tenant is liable for the cost to repair. If it is regular maintenance or wear and tear, the landlord is responsible. Keep it simple.

It is perfectly acceptable and normal for a good landlord to enter to inspect 3-4 times per year, at least for the first year.

You should be checking the batteries in smoke alarms, changing filters and other small maintenance tasks anyways.

It gives you a chance to ASK the tenant if anything needs to be taken care of. It gives the tenant the chance to have open COMMUNICATION with you. It lets the tenant know that you care about and are willing to take care of your property. Screening your tenants has nothing to do with it at all.

You do not want to enter after 6 or 12 months and find the place a mess or with lots of issues. Horror stories happen and you want to prevent it.

You are being proactive - protecting your investment. You can take care of any small issues and address any other issues with the tenants. If there is major damage you can begin the process to get them out ASAP.

Answer 2

You write into the lease agreement tenant is responsible for the first $50 for minor repairs.  

Regarding holes in walls - that is a tenant responsibility to repair.  The property should be returned in similar condition as they received it.  Normal wear and tear is acceptable.

Regarding visitation - you can visit as often as you like, but too much, and your tenants will vacate.  So if you did a good screen, and they are responsible - I would visit the first month, then every 2-3 months there after.

Answer 3

Minor things happen to a piece of property over the years of someone renting.  A ding here, stain on the carpet, so yes you can charge them, but there will be normal wear and tear.  As far as inspecting goes, if you feel the need to visit the property every 3 months than you did not screen your tennants very well.  If they are constantly late on the rent or having return checks, then yes, you should be checking on them as they are probably not taking care of the property.  But if you are receiving rent and not getting complaints from the neighbors, then you probably have no need to check on them.  You should inspect the property with the tennants every year when you renew the lease.  If you become a pain or show up all the time, you will loose your good tennants.  Good luck