Tenant Responsible For Repairs?
Is there ANYWAY (in a non-rent-control area in Los Angeles, CA) for a residential tenant to be responsible for repairs - financially and physically? I offered lower than market rent to tenants so they would agree (in writing) to this...making my lease kind of a net lease hybrid. all parties agreed and signed, but is it legal and enforcable? they are to pay for all repairs (material cost) up to $250.00 and i eat it after that. i live outside the usa and don't want to pay my pathetically small positive cashflow to a management co...your thoughts?
You can make them responsible for anything they cause or break, but almost every lease has a porision in it that the landlord must up keep the property. I know that here in Indiana, I don't believe I could get away with that. I would check with your attorney regarding this. And no offense but this makes you seem a little cheap and like you are sucking as much out of the property and tenants as you can. Why should a tenant have to pay for a repair they didn't cause? They don't own the building, you do. IF they cause it sure, they need to pay for it but otherwise I say it is your responsibility financially and physically. All part of the landlording gig.
Joe
Danger Will Robinson, Danger!
Legalities aside, I understand your problem, but I don't think this is a very wise move. I'm less concerned than Joe about the impression this approach might make, but I don't think you're going to be able to enforce this very well, and you might be left with a property in even worse shape when the tenants are gone.
Just ask yourself this question, "What are the chances that the tenants will repair plumbing or other problems using new parts?" Although some tenants are of course very responsible, a great many will either ignore problems for a very long time until they ultimately become very serious, or you'll find rubber band and bubble gum repairs all over the house. If the problems become serious, then you'll end up having to pay for at least part of the repairs, and will likely need to find new tenants when the old ones refuse to come up with $250.
And now the second problem. A large number of tenants live in rented properties because they simply don't want to deal with anything more complex than changing a lightbulb. By involving them in the repairs of the property, you are immediately eliminating that entire group of potential tenants. Also, you mentioned that you are pricing this property below market. Although you didn't say what the rent would actually be, consider what $250 will mean to these tenants. I'm guessing that the first time they're asked to come up with that amount, will be around the same time that you're forced to look for new tenants.
I agree with Alex.
I prefer to know what broke, and know that it was fixed properly. I have one tenant who is great and takes the initiative to fix things himself and he always does a nice, neat job. We set a limit for repair costs he can do without notifying us right away, and we take that off his rent. If it's higher than the limit, we'll take care of it. But people like Bill are hard to come by.
I looked around online and here is what I found fr you regarding this
Quote: Q-Is the landlord responsible for maintaining rental property and complying with local housing codes?
A-Yes. Landlords have the responsibility to maintain residential rental property and repair any defects or problems. Under most state law, there is an implied warranty of habitability; that is, a landlord not only must deliver residential rental property to the tenant in a habitable condition, but s/he remains responsible for maintaining the property in a habitable condition during the term of the lease. Habitability is typically defined in local housing codes. It is usually defined as the minimum standard for decent, safe, sanitary housing suitable for residential purposes. Most communities have local housing codes. The codes are local ordinances or laws that require owners of real property, including landlords, to maintain the property and make any necessary repairs. These codes typically require that any residential rental property offered by a landlord must meet the minimum standards established in the code. The landlord`s responsibility is not only to deliver the rental property to the tenant in compliance with the housing codes but also to maintain compliance with the housing codes throughout the term that the tenant has use and possession of the rental property.
Thanks guys - great advice & i really appreciate the pasted quotes too - very helpful. -C
I think that maybe you need to visit the lease option forum, maybe read a few books on the subject (as well as a few others here that posted replies) because almost every lease option contract has something similiar as to what you described. PLUS, you get HIGHER than average monthly rent, not lower, not to mention the option fee is usually considerably higher than your normal security deposit.
Roger