Advice for Landlords: Florida Security Advice for Landlords: Should you buy a Home 2 months ago   05:22

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Morgan Property Solutions Inc.
Sometimes, you may have to make a deposit claim for damage or unpaid rent when a Tenant moves out. Even when you have a good Tenant there still might be a chance they leave some kind of damage that needs to be taken care of. We are not talking about a couple of scuff marks and a few picture holes on the walls here, those are considered normal wear and tear. We are talking about something that the tenant actually broke, a large stain on the carpet, an accidental hole in the wall, etc.

Now before we go into the claim process I want to tell you a little about our Tenant Handbook. This is what we give to our Tenants and have them sign before they move in, it looks pretty but it is full of useful info and disclosures about what is expected of them and the landlord regarding payments and maintenance, plus there is a move out checklist in the back. This checklist goes over all the things the tenant needs to do such as cleaning, paint touch ups, removing trash, etc before they hand the keys in to us. This list makes it very clear what is expected in order to get a full refund of the deposit and therefore there should be no surprises at the end of their lease.

Let me be clear, I don't like deposit claims... Well actually I really don't like damages. Damages cost property managers time, because cleaning and repairs take time away from a unit being shown, time unnecessarily wasted to arrange vendors and repairs. However we must keep our properties in good rentable condition and if damage or wear and tear happens then we need to take care of it.

A day or two before the tenants move in we complete a professional written photo move in inspection, which is saved as a PDF for emailing if needed. After the tenant moves out we do another inspection and can easily compare side by side each area of the house to inspect for visible damages. If damages are spotted we go ahead and arrange the repairs and whatever the cost is we place a claim on the tenants deposit.

We cannot legally just take the monies from the tenants deposit. We have to hold the deposit in escrow and go through a process dictated by Florida Law. The penalty for not doing this can be three times the tenants security deposit. We use a form such as this, which has to be certified mailed to the tenant, and contains the legal language required by Florida Law to disclose to the Tenant that they have 15 days upon receipt of the notice to dispute the claim in writing. How do we know when the tenant has received the notice? We use a return receipt requiring a signature card that is mailed back to us to say when it was physically accepted.

The claim form has to itemize the claims, whether we are deducting for damages or unpaid rent. We also include a check for the left over difference so that the Tenant can accept that without having to spend extra time writing back to accept the claim.

If the Tenant does write back to dispute the claim, expect a long letter. Usually when a Tenant is upset and feels they have been "wronged" by a deposit claim we receive a large package or letter that is more than a page or two in length. We might also get a bad review online. Therefore for each claim we have to make sure we are make a valid deduction which is fair and legal. Plus we want to have proof of the damage with photos and a written report. That means we are not scared into just sending the tenant their whole deposit back when they raise hell. We need to read through their arguments, double check the photos and claim to make sure there were not errors, and finalize the claim. At this point we will let our landlord know there has been a dispute and give them the final decision with our recommendation as what is best to do. We usually write back a final letter to say that we received their comments but the landlord decided after looking at everything to proceed with the claim. Now we can release the monies owed to the landlord.

The whole process usually takes approx. 3 weeks or so from start to finish, and is legally required by all landlords that rent Florida property. And it is covered in our management fees.

If you want to find out more, just drop us a line or visit us on the web at http://www.wemanageorlando.com.

Comments 8 Comments

Lorenzo Johnson
My landlord said I must send a written letter not typed why is that
Alcira Juniper
My tenant left a longI list of broken things, damages and not repair items she should by the the lease. The security deposit doesnt cover the damages so in the formal security deposit balance letter she due me for money. Do I have to wait for a check or deposit or need to start a small claim?
Thank you very much for your advise
Lo U
Can a deposit be kept if the tenant breaks a lease and the lease specifically says that the tenant will owe 2 months rent for breaking the lease early. So basically I, the landlord, keeps the deposit AND the tenant STILL owes me one more month's rent (being that the deposit is also the amount of one months rent)
Kelly M Taylor
can you educate my former dishonest Landlord - Gus Ramirez.  
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Advice for Landlords: Should you buy a Home Advice for Landlords: Florida Security 2 months ago   05:20

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Some landlords love home warranties while others loathe them. So should you buy a home warranty for your rental property?

Many property managers prefer not to have home warranties because warranty companies usually take much longer to make appointments with tenants and repair items, especially if there is a major breakdown such as a total appliance replacement, repairs can often take several days, even a couple of weeks to complete. The easiest way to annoy a tenant is a repair that takes a long time to complete. Tenants often expect that since they are paying the rent that all repairs should be done immediately. Now we know that logistically that is impossible, however that that is the common tenant way of thinking so we must cater as much as possible to that to keep good tenants happy. Wouldn't you want your washing to be fixed in a timely manner if it broke down? Well, we must treat others the same way. Home warranties can hinder this.

Now if you are purchasing an older property that has not been updated in a while, then a home warranty may be able to save you hundreds if not thousands if appliances or air conditioning systems fail. On the flip side, we have known landlords to buy multiple properties and spend so much money on all their home warranties that they really didn't save any money overall after you add up the actual repair costs Bourne by the warranty companies. Remember these home warranty companies are in the business of making a profit, on your dime.

Our recommendation is that if you 'really' feel that a home warranty is the best way to go for your situation, then we provide the tenant with the warranty information and they can call them directly when a repair is needed, so they are completely informed by the warranty company on how long they expect to receive calls back from vendors, or if there is further follow up needed they are actively involved in that process. Also, if there is an emergency such as a refrigerator break down, or the a/c system stops cooling in hot summer weather and there are vulnerable people such as babies or elderly persons in the house, then as a back up, use regular vendors who can get out there asap for immediate repairs.

Orlando Property Management Company
http://www.wemanageorlando.com