Ask Phyllis: a blog series of frequently asked real estate questions.
Being a landlord is getting more difficult
Dear Phyllis,
I love reading your real estate advice and have a situation I would love to get your input on. I inherited my parents’ La Crescenta home about fifteen years ago, and it has been rented ever since. The first tenant stayed for eight years; the second stayed for five. They were both great, causing no trouble, and always paid their rent on time. The last tenant was more of a problem. Their kids would flush toys down the toilet, and the garbage disposal constantly broke. They were very hard on the home. The home was filthy when they moved, and I had to replace all the carpet because they ironed something on the carpet and burnt it in the living room. The cost of replacing the carpet was more than their deposit, and the house cleaning cost was $750.00. These tenants claimed they should not be responsible for replacing the carpet even after I showed them the receipt. They took me to small claims court, and the judge ruled in their favor and told me I could only deduct the $750.00 for cleaning. As the carpet was two years old when they moved in the judge ruled that the burnt carpet was normal wear and tear. Being a landlord is getting more difficult, and I hope you can weigh in.
STM
Dear STM,
Thank you for being a loyal reader. I feel your frustration. Several of my clients have sold rental properties in the past year because being a landlord is becoming more difficult. I advised them to talk to their accountant about tax ramifications before selling.
I don’t think it is unreasonable that you should have been able to deduct at least a portion of their deposit to replace the carpet. Scorching carpet with an iron doesn’t seem to be “normal” wear and tear.
If you decide to keep your rental, I suggest that the next time you lease the home, you add a clause stating that the tenant is responsible for the first $150.00 of each repair. This would have at least eliminated many of their plumbing repairs.
I wish you luck in whatever you decide to do.
