What is your opinion of adding lost rent to statement of charges for a tenant?

I have when they move out early or really leave a disaster. Got one like that now. They got “their stuff out” last weekend, but left a huge amount of furniture and trash in the place. I had to hire a guy to haul it out, and you cleaning lady is up to 10 labor hours so far. I took plenty of photos.

In their case, I’m adding it to the bill since they moved out mid-rent cycle. Which they blocked in Clearnow.

When I suffered for a few months as an employee at Enterprise, they always talked about "loss of use" fees if a car was in a wreck for shop time. This was brought up when they were trying to sell their awful damage waiver product... scare tactics..... They rarely ever pursued it when an accident happened and the person didn't buy damage waiver, probably because there was some sort of legal resistance to it. Otherwise, they were out to extract every last cent from their customers.

I wonder what the court would say on this, especially if the issues were thoroughly documented, etc.

for us it's considered hold over rent-- 2X's the daily rent andis spelled out in the contract. Using common sense in your billing it's not unreasonable to charge this because you've had excess down time. Not like its a few days turn time.

Three schools of thought here, at least.

Thought 1 - Don't do it. Get no money 100% of the time.

Thought 2 - Try it. What's the worst that could happen? The judge throws it out. Okay, so you're where you would have been if you tried thought 1. On the other hand, you might get it added. It could depend on your judge's view of how long is the "typical" time it would take for you to turn over a unit for a normal tenancy without damages. Is 3 days cleaning and repair "normal" for an outgoing "good" tenant, or should the unit be returned in rent-ready condition, the same as it was given to them? I would expect the latter since that's what is in my lease.

Thought 3 - Pad your cleaning and repair bill with enough to cover the lost rent as well. For example, you pay your cleaner $20/hour but bill it at $35/hour. Businesses everywhere do this all the time and it is an acceptable practice. They always had the chance to clean it themselves and save the cleaning fee, so I don't see why we that would disqualify us for making a reasonable margin serving as their de facto cleaning contractor, especially if the price per hour is agreed to up front in the lease.

Also, trade professionals often have a line on their invoices that simply reads "Overhead". Usually around 5-15% of the total job cost. I believe that is used to compensate them for incidental supplies and "honey do" tasks that are difficult to specifically quantify, but do impact their profitability.

I use method 2. We agree up front what the cost for cleaning and repairs are. There is a margin built in for the time it takes me to assess the damages, bill, and follow up on the work. It's why I charge $15 to replace a $4 cheap Wal-Mart mini-blind.

Good luck. Let me know what you decide to do!'

I am a landlord and licensed contractor. One client had a tenant who had several cats that weren't fixed and sprayed. The tenant had the carpet shampoo'ed to cover up any trace of damage. But the urine went through the carpet and padding causing serious damage to the hardwood flooring.

In court the tenant sued for refund of her entire security deposit even though we have sent proof of the cost of damages and receipts for the repair.

The judge didn't want to charge the tenant for all of the damages because we took too long to repair. I explained to the judge, with proof, that I began the repairs the day after the tenant moved out. After pulling up the carpet and pad I sanded the floors and replaced any wood that couldn't be salvaged. This process took 3 days. Then the apartment was painted -- taking the painter 5 days. Then I had to screen, apply floor stain and 3 coats of sealer, taking another weeks for drying time between application. This took us into 3 weeks. Then I had to do the basic upgrades, grouting and window treatment. Taking a total of 1 month. Yes normally it could have been done in 2 weeks time, but we didn't charge any lost rent.

The judge allowed up to keep the tenants $2,000 deposit but not a penny more towards replacement of the flooring, lost time or other damages.

I would think that if it was a legal departure, proper notice given, out on time, keys returned, end of lease, that you wouldn't get away with it.

If they leave a mess, I keep track of every minute of cleaning and every penny of repair and bill for all of it, where if the tenant makes an honest effort, I will let some of it slide

" What is your opinion of adding lost rent to statement of charges for a tenant? "

Its probably illegal. Check your local law for the conditions under which you are allowed to deduct from deposit.

Here in CA, as in most states, deductions are allowed for: 1) unpaid rent; 2) repair of damage caused by tenant; 3) cost of cleaning up to level at commencement of lease, when tenant leaves.

Other items are not allowed. Any other cause will require a lawsuit with a different cause of action.

Sisco,

Good point!

Tried it several times. MY court will not allow it. But try it in yours.

I include the TIME in the repair cost of each item. My repair list is full full retail.

ELT helps A TON! and requiring a 60 day notice. My state automatically allows a 30 day notice period if we ask.

My lease is also very clear: rent is for full CALENDAR MONTHS, so we charge for the whole month when they skip in the middle of the month. Most don't show so it's uncontested.

Biggie: Before going to court I complete the DEFAULT JUDGMENT form. If they don't show I simply hand this to the judge and get my judgment WITHOUT any discussion of fees, rent, etc.

BRAD

The default judgement is the norm for me as well. The ELT fee hasn't been challenged as a part of the DJ.

BRAD here's one for you and others. Have the default judgment signed and bring to court -- hand to clerk before court date. Judge will enter it. we tell tenants-- let's agree on this and we'll being to court-- then you won't have to take off from work. It's a winner.