So, I was talking with Trish--who does not know about my blog, but does know I own a rental home or two. She was telling me her "perfect tenants" have gone crazy.
When they moved in last April, Mr. and Mrs. Perfect were paying a week early. They didn't complain. They loved the house. All was good. Then summer hit.
The house has had air conditioning issues. Each time the Perfects called, Tricia took care of them immediately. However, according to the Perfects, their electric bills are in the $600s. They want to be reimbursed for this.
I am no air conditioning expert, but I happen to think that a $600 electric bill is more than an air conditioning issue. Perhaps they are running heavy machinery? Perhaps they keep leaving doors and windows open? Perhaps Mrs. Perfect, a stay at home mom in her first trimester of pregnancy, wants the house super-duper cold?
My own home is about the same size as Trish's rental. I have had air conditioning issues. And, long ago I have worked for the local electric company and learned a few things about billing. Nope, not buying the $600 electric bill solely from the air conditioner.
In addition, Mr. Perfect is demanding to be reimbursed for taking time off to meet the air conditioning repair man at the rental home. Did I mention Mrs. Perfect is at home all day? And did I mention Mr. Perfect is self-employed?
Last week, Mr. Perfect came to Trish demanding she lower the rent by $500. Why? Because there is a home nearby similar to the one they are living in that is for rent for $500 less than they are paying now. For the record: Arizona is not a rent-control state. Mr. Perfect said if they don't lower the rent, they were leaving Sept. 1.
That's when Trish dropped this bomb on me. The Perfects announced they were using their security deposit for rent this month. Forgetting this was her drama, not mine, I said, "They can't do that."
"Why not?" she asked. "They just said they were going to." And she tells me, she was meeting with them in a few days to have a "pow-wow" over the whole electric bill and lowering the rent issues. She said she just wants to make sure they are "on the same page."
I explained to Trish, there was no "same page." The Perfects just don't have the rent money. They are in violation of their lease. There should be no renegotiating their rent amount. The Perfects decided to rent her home for that price. There is a lease in place that says they will do so. If they find something cheaper later on, that's nice. But, it is like buying a BMW and then deciding they want Corolla. But they are stuck with the BMW payments.
The Perfects should not get reimbursed for their utilities. Trish has no idea why their electric bill is so high, but that doesn't mean it is from an air conditioner being on the fritz for six hours. And, if Mr. Perfect decided to stay home from work and wait for the AC guy, that's nice. But not Trish's problem.
But none of that matters anyway. The Perfects are in big trouble. They don't have the rent. In fact, this is pretty classic signs of someone who is hard up for rent money. So, for Trish, the first step is to start the eviction process. Now, not later.
I recommended a few things. First, no pow-wow. It clouds the lease if she has to go to court. Don't make deals. Trish is the boss. There is no "same page." She has an agreement in place for a reason.
Second, no renegotiating the rent amount. Because at this point, if Trish charged $50 a month, it wouldn't be enough of a break. For whatever reason, these people want out of the lease. And I predicted they were going to get out of the lease one way or another.
Third, if they have to go to court (Mr. Perfect is threatening to sue over missed work and high utility bills), all she has to say is "They are in violation of their lease because they have not paid rent." Plain and simple. The judge won't care about the utility bills. The judge won't care about the missed work. The tenants have not honored their contract.
That's when Trish shared with me this gem: she has gotten two calls this week from people asking for a landlord reference for the Perfects. "Do you think they are moving out?" she asked.
Yes, yes I do. And, she should consider herself lucky to be rid of these people.
Friday, August 14, 2009
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2 comments:
Speaking from a legal standpoint and having appeared in court as a representative of landlords (my bosses) in the past, I have seen tenants try this very same trick numerous times.
Each of them thinks they have come up with a brand spanking new "will not fail" plan to avoid paying rent, but it's always the same song and dance. It's painfully obvious to the Court and everyone else involved that the tenant is only doing this because they don't have their rent.
The law in EVERY state is virtually identical when it comes to the with holding of rent from the landlord. A tenant can indeed with hold their rent if the landlord has not addressed legitimate repair or safety issues or if the landlord has breached his/her contract in some other critical way (critical being the operative word).
However, (this is the kicker) the tenant MUST BY LAW (in EVERY state), put every penny of the rental amount into an escrow account that has been set up either with the Court or a bank. It cannot be mixed in with their other money.
They cannot just keep the money or spend the money instead of giving it to the landlord. They must put that money aside.
If the landlord has not fully addressed the concerns within 60 days (this is the part that varies by state - some states give the landlord 60 days some give them 30 days), then the tenant is within their legal rights to give notice and move without adverse consequences for them. At that time, the tenant can with draw the money in the escrow account and can ask for their deposit(s) back in full and by law should receive them within 45 days (again, states vary on the time frame the landlord has in which to return deposits - here in Alabama it is 45 days maximum before incurring fines).
HOWEVER, if the landlord addresses the items on the tenant complaint list within their allotted time limit, the tenant is bound by law to turn over ALL the money to the landlord and live out the remainder of their contract with the landlord.
I should also say that a tenant cannot enter into this escrow scenario simply because they "think" their electric bill is too high or because they chose to take off work to meet a repairman. It must be issues which affect the ability for the tenant to "enjoy" the premises.
An example would be if the AC had been broken during the heat of the summer for a month or longer and the landlord had made no effort to get it fixed. Or if the roof was leaking and the ceiling has come crashing down on the tenants belongings and the landlord has not adequately addressed the problem, this type of thing.
I 100% agree with the author of this post. They don't have the rent and they are looking for excuses to not pay that will make them look like they are in the right and cast a bad shadow on the landlord.
They have determined that they are dealing with a landlord who isn't as aggressive as they are and who will put up with this behavior.
She needs to show them that they are mistaken.
I say begin the eviction process and let them take their complaints to the Judge. My bet is, they won't show up for court.
Also, I cannot believe they are using her as a rental reference!! These people have nerve, I will say that!! LOTS of it.
Trish is lucky she has someone like you to fill her in!
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