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Forum / General Property Management / Damages exceed security deposit
First time landlord here with a question about how to properly handle a security deposit/damages issue. My tenants just moved in last Saturday. The electric co. couldn't get power turned on till Mon or Tues so they moved their stuff in but stayed with a family member for a couple of days. Tuesday was to be their first night in the house. The water in the city the house is located in is absolutely awful so there is a water filtration unit on the kitchen sink. The refrigerator's ice maker line is also attached to this filtration unit. We explained how everything works to our new tenants on the day they moved in. (in retrospect, I should probably add some sort of addendum about using an ice maker, washing machine, etc., but you live & you learn.) Apparently, tenants tried to attach ice maker line to fridge but didn't have the proper fittings so they left the line unattached with no cap on it. When the electricity got turned on, the water started flowing through the ice maker line...and onto the floor!! Since tenants didn't come to the house until Tues. night, they didn't know the water was flooding the house for 2 days or so. I filed a claim with my insurance company & have a $1200 deductible. Tenants paid a $900 security deposit upon move in. So my questions are...can I ask tenants to pay the other $300? What happens if there's any further damage throughout the term of the lease & upon move out? Would I need to collect another security deposit from them now? If not, should I add an addendum to the lease saying they've already used up their security deposit & any damages will have to be paid by them out of their pocket? Thanks in advance for any assistance with this!
William & Stacey B, TX on Thursday, May 5, 2011
RE: Damages exceed security deposit
What a way to start out a new lease term. Personally, I would ask them to pay an extra $100/month for the first year, to cover the cost of the deductible. You don't want to use the security deposit for that, you'll have nothing to cover the damages at the end of the lease agreement.
Posted by Gregory T, CA on Friday, May 6, 2011
RE: Damages exceed security deposit
Those are damages caused by the Tenant. The Tenant should be responsible for any and all damages. You need to make them pay all the costs you accrue due to that disaster. It shouldn't come from the deposit. Don't forget to make em' pay for the increase in your insurance rates too.
Posted by Jason A, WA on Saturday, June 25, 2011
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