RESPONSE to You Want the Tenant to Pay WHAT by Cindy Jones Atlanta Metro ODAT Realty CDPE Advanced Buy Lease Sell Buckhead Atlanta GA

Cindy Jones posted a blog after an unbelievable Tenant/Landlord interaction. I was drawn to her post because I have managed leased properties since 1973. Well, Cindy raised a complicated topic. Love those, don't you?

(Follow the link above for the WHOLE story or accept this really SHORT outline:After one week in a home, Tenant reports HVA/C failure.  Landlord wants to collect $75. deductible for repairs from Tenant. Then Cindy asks for opinions...)

 My answer to Cindy - below - an amplified comment after advice from John Juarez.

 Dear Cindy, 
This is a question I am HAPPY to answer!
ODAT Realty manages leased property.  The leases do say that the Tenant is responsible for the first $50. of any repair. That came into play after Tenants would call for light bulbs to be changed - yes - for light bulbs to be changed! Then there are the Plumbing calls because the toilet is not working and it turns out Junior stuffed a tennis ball inside. Or the electricity isn't working and we find that they have overloaded the panel or put pennies in the fuse box! That's our reasoning for putting the Tenant on notice that not everything is the responsibility of the Landlord.

That being said, a Landlord has a responsibility to be reasonable and self-caring at the same time. A Landlord has the option to exempt the Tenant from a charge that is CLEARLY the Landlord's responsibility - such as your example.  In the Atlanta area - pipes bursting when we have our one or two winter freezes often engender the "WHO IS RESPONSIBLE?" question. Our company policy is to analyze each instance. Did the Tenant have the heat on? Then given the age of the pipes, it probably is the Landlord's responsibility.  Did the Tenant go out of town and leave the heat set at 50 degrees even though the Tenant signed the Lease promising not to leave the heat set too low in the winter? 

Then we come to a different response.  Some commenters (thanks, Dick!) said that there should be firm company policies. That would work if you were managing properties that all fit the same category - same age - same systems.  In our case, we have had properties that were built in 1911 at the same time as ones just built that year in the 21st century! No one set of rules would match up for each property.

The $50.00 charge ($75. in the DC area and $100. elsewhere according to a comment Cindy's blog) is a talking point for the big question - "WHOSE RESPONSIBILITY IS IT THIS TIME"?  ODAT Realty will often pay an entire repair call when it is a long-term Tenant or a Tenant that has gone out of the way to take care of the property. Don't we all spend money on Marketing?  If my Tenant tells friends at a gathering how well the Tenant is treated by the Landlord/Management - isn't that Tenant doing Marketing for our firm? 

The reason I said that the Landlord should be "self-caring" above is that the big expense is the turnover between tenants. Keeping the same Tenant is always the most economical manner to lease.  The $75. is nothing if it means avoiding the turn-around expenses.

John Juarez said: " Rental properties are also called business properties. To be successful in business the owner/manager needs to exercise good judgment." 

Cindy -  I usually ask myself if I want to keep the Tenant. I ask myself if the Tenant is likely to bring another Tenant when he/she leaves? If the answers are"yes" - then I have the option to NOT charge for the first $50. and build the relationship instead of "souring" it.

Well - that's my two cents four cents!!

Have a happy day -
Lynn