Question for landlords - tenant inconvenience

[The Captain]

As some of you may know DH and I have recently purchased our first two rental properties.

So far, relatively smooth sailing.  Rents collected (mostly) on time.  A few minor repairs that the prior landlords did not get to, or did not do well, etc.  DH has been able to take care of everything so far...

UNTIL last Tuesday when a chunk of the ceiling came loose (lathe and plaster) in the living room.


Tenants called us late Tuesday night, DH was there on Wed with our handyman to inspect and repairs were completed on Thursday.  There was a drop ceiling under the lathe and plaster (which we know was in bad shape and will drywall when we refresh the unit).  DH basically took the panels out of the ceiling, got down any other areas that looked loose, and cleaned up the area.  The handymen finished getting the few last lose areas out, reinforced the ceiling grid, and put in all new panels.

I know this caused some hassle and inconvenience to the tenants.  Should I give them a credit on their rent, and if so - any suggestions as to how much?

On another note, with the cost of the repairs we will "loose" about 3K on our little endeavor this year.  Actually not too bad considering we started late in the year and the amount of acquisition costs I'm deducting (along with operating expenses like depr, utilities, repairs etc.)

[Deleted]

Since it didn't fall on their heads and kill someone, no credit..

You want to be profitable landlords right? 

[Deleted]

Were they not able to live in the unit while the repairs were going on?   

--> if yes credit 

     -->  if no, no credt

[Bonny]

I had a similar issue earlier this year with the condo in San Diego. Leak from unit above soaked wall in dining room. All the lathe was replaced, sealed and painted. Not my fault but during part of the repair my tenants couldn't use the kitchen sink. I gave them a $50.00 credit to go out to dinner that night. Rent is about $100/day.

[Bonny]

Dec 22, 2013 10:13:34 GMT -5 @mmc said:

Since it didn't fall on their heads and kill someone, no credit..

You want to be profitable landlords right? 

And you're getting out of the LL business so you don't care.

There's a fine line between doing what's "right" for good tenant retention vs training your tenant to be "comped" for every little problem.

[Deleted]

Dec 22, 2013 10:19:39 GMT -5 Bonny said:

Dec 22, 2013 10:13:34 GMT -5 @mmc said:

Since it didn't fall on their heads and kill someone, no credit..

You want to be profitable landlords right? 

And you're getting out of the LL business so you don't care.

There's a fine line between doing what's "right" for good tenant retention vs training your tenant to be "comped" for every little problem.

Oh yes, this discredits my opinion entirely.

[Bonny]

Dec 22, 2013 10:54:56 GMT -5 @mmc said:

Dec 22, 2013 10:19:39 GMT -5 Bonny said:

And you're getting out of the LL business so you don't care.

There's a fine line between doing what's "right" for good tenant retention vs training your tenant to be "comped" for every little problem.

Oh yes, this discredits my opinion entirely.

I didn't say that. Your point that you are in business to make a profit is appropriate. But this is a business of relationships as well.

Being too cheap will cost you in the long run. Good tenants will not stay with a LL who is a cheap jerk.

[Deleted]

Dec 22, 2013 11:56:35 GMT -5 Bonny said:

Dec 22, 2013 10:54:56 GMT -5 @mmc said:

Oh yes, this discredits my opinion entirely.

I didn't say that. Your point that you are in business to make a profit is appropriate. But this is a business of relationships as well.

Being too cheap will cost you in the long run. Good tenants will not stay with a LL who is a cheap jerk.

I think we read the same original post. What is your opinion on what the OP should do based on the information given. Your example is not comparable.

What I read was the ceiling above a drop ceiling fell. No mention of tenant property damage.

[justme]

My landlord gives me credits when it affects me. Like my washer broke and he told me to go to a fluff and fold and deduct the price from next months rent  since it took four days for the repair guy to get there and it broke mid cycle with all my clothes in a full tub. 

[Works4me]

I would consider crediting them one days rent because the place was unusable for them during the day of the repairs. I also like what Bonnie did in gifting them money to go out as a treat.

I agree that rentals are a business of relationships. My goal has always been to create a win/win situation in which both parties feel as if they came out ahead.

[Bonny]

Dec 22, 2013 12:11:00 GMT -5 @mmc said:

Dec 22, 2013 11:56:35 GMT -5 Bonny said:

I didn't say that. Your point that you are in business to make a profit is appropriate. But this is a business of relationships as well.

Being too cheap will cost you in the long run. Good tenants will not stay with a LL who is a cheap jerk.

I think we read the same original post. What is your opinion on what the OP should do based on the information given. Your example is not comparable.

What I read was the ceiling above a drop ceiling fell. No mention of tenant property damage.

The O.P. was What do you do when you inconvenience your tenant?

As I read it, a portion of the ceiling dropped into the living room. This resulted into a multi day repair. Presumably the tenant could not use the living room during the time of repair. I know in my situation listed above during the repair period, the area was boxed in with plastic to encapsulate dust and they couldn't use the dining space for a few days and the kitchen sink for one day. I guess you could get really anal and calculate the sq.ft. multiply it by the # of days and deduct that. But I believe it's far more appropriate to give a gift card, reimburse an expense or deduct a round dollar amount. Most people really appreciate the fact that you recognized that there was an inconvenience and that you appreciate their cooperation.

I don't do it for every repair. I do it for multiple day repairs where the repair really does inconvenience them. And I probably wouldn't do it if a tenant was always hassling me about other stuff.

[Deleted]

I'm not a landlord, so no advice here. Just, it's nice that you're even considering giving them a credit to acknowledge the hassle and inconvenience. Even if you decide it's not a good business move for whatever reason, I like it that you thought about it. I guess I've heard too many stories about horrible landlords. lol

[Deleted]

I'm not a landlord or a tenant, but I like Bonny's giftcard approach.  You don't want them asking for a credit every time something has to be fixed, but a gift card isn't a rent reduction.  You absolutely control the amount, and it's really more of "sorry for the inconvenience at this special time of year" sort of thing.

An unexpected $25 gift card to somewhere like Olive Garden or California Pizza would make me happy that my LL really does care about my convenience.

[Deleted]

Dec 22, 2013 16:49:25 GMT -5 Bonny said:

Dec 22, 2013 12:11:00 GMT -5 @mmc said:

I think we read the same original post. What is your opinion on what the OP should do based on the information given. Your example is not comparable.

What I read was the ceiling above a drop ceiling fell. No mention of tenant property damage.

The O.P. was What do you do when you inconvenience your tenant?

As I read it, a portion of the ceiling dropped into the living room. This resulted into a multi day repair. Presumably the tenant could not use the living room during the time of repair. I know in my situation listed above during the repair period, the area was boxed in with plastic to encapsulate dust and they couldn't use the dining space for a few days and the kitchen sink for one day. I guess you could get really anal and calculate the sq.ft. multiply it by the # of days and deduct that. But I believe it's far more appropriate to give a gift card, reimburse an expense or deduct a round dollar amount. Most people really appreciate the fact that you recognized that there was an inconvenience and that you appreciate their cooperation.

I don't do it for every repair. I do it for multiple day repairs where the repair really does inconvenience them. And I probably wouldn't do it if a tenant was always hassling me about other stuff.

We read differently.  I see a 1 day repair after inspection the previous day.  Also, as written, it sounds like the drop ceiling contained what fell.  It would be interesting to know if that was true or not.

[The Captain]

Sorry about the delay in responding.  Still trying to get ready for Xmas.

The drop ceiling did not contain all of what fell.  The tenants had some cleanup to do on Tuesday.

DH came out with our contractor on Wed to assess the damage.  When they determined more of the ceiling was loose DH stayed to get as much down as he could (to save time and money) and he cleaned up after himself.

On Thursday the contractor came out, removed the rest of the ceiling which they felt was loose and re-anchored the grid and put in all new ceiling panels.  The times on Wed and Thursday was around the tenants' work schedule so no one had to take time off from work.

These are not model tenants (they do not keep the unit as clean as I would like) however they do pay on time and, based on what I'm told by the prior owner, generally follow the terms of the lease (except, of course for the dog).

I think we responded very quickly to get the repairs done (as we have with other items). 

Rent for the unit is $800 a month (about $150 under market, but it's in need of a refresh).  That would cover a little more than a week at Bonny's place .  For now, I don't think I'll comp them and see if they ask for something.

[zibazinski]

Two of my tenants owe me as far as I'm concerned so they will never get squat from me regardless of their inconvenience unless its a serious one. The other, I will play nice with, especially because I'm hoping she buys the place!

[Bonny]

Also - every tenant will leave you with 'work' when they leave, that it isn't really fair to charge them for - so this kind of thing is really just a give and take that is implicit in the agreements.

@tbird, Could you explain what you mean by this? Do you mean "ordinary wear and tear"?

[Works4me]

I personally would still do a $25 gift card as a thank you for the inconvenience - and would try to do so before they ask for anything ... but then what do I know ... lol

[The Walk of the Penguin Mich]

If you start down the road of discounting everything, you won't make out too well.

In reality, this isn't 'everything'. One does not expect pieces of ceiling to fall off and the OP was lucky in that there wasn't someone underneath to get hit.

[Bonny]

Dec 23, 2013 9:09:28 GMT -5 The Captain said:

Sorry about the delay in responding.  Still trying to get ready for Xmas.

The drop ceiling did not contain all of what fell.  The tenants had some cleanup to do on Tuesday.

DH came out with our contractor on Wed to assess the damage.  When they determined more of the ceiling was loose DH stayed to get as much down as he could (to save time and money) and he cleaned up after himself.

On Thursday the contractor came out, removed the rest of the ceiling which they felt was loose and re-anchored the grid and put in all new ceiling panels.  The times on Wed and Thursday was around the tenants' work schedule so no one had to take time off from work.

These are not model tenants (they do not keep the unit as clean as I would like) however they do pay on time and, based on what I'm told by the prior owner, generally follow the terms of the lease (except, of course for the dog).

I think we responded very quickly to get the repairs done (as we have with other items). 

Rent for the unit is $800 a month (about $150 under market, but it's in need of a refresh).  That would cover a little more than a week at Bonny's place .  For now, I don't think I'll comp them and see if they ask for something.

Captain,

I agree with your decision BTW. They really don't sound like they were inconvenienced that much (sounds like you worked around their schedule) nor does it sound like they couldn't use a part of their living space while they were there. Sounds more like a routine repair.