Market+value+charges

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Market value charges (by Larry [DE]) Oct 21, 2020 4:30 PM
       (by OPM [OR]) Oct 21, 2020 5:05 PM
       (by Fishsticks913 [IA]) Oct 21, 2020 5:20 PM
       (by Larry [DE]) Oct 21, 2020 5:47 PM
       (by Ray-N-Pa [PA]) Oct 21, 2020 6:16 PM
       (by DJ [VA]) Oct 21, 2020 7:20 PM
       (by Hoosier [IN]) Oct 21, 2020 9:24 PM
       (by Robin [WI]) Oct 21, 2020 9:54 PM
       (by Larry [DE]) Oct 22, 2020 4:23 AM
       (by 6x6 [TN]) Oct 22, 2020 8:48 AM
       (by plenty [MO]) Oct 22, 2020 8:56 AM
       (by Nicole [PA]) Oct 22, 2020 9:23 AM

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Market value charges (by Larry [DE]) Oct 21, 2020 4:30 PM
Message:

Hello Everyone:

I am sure this question has been asked before but I could not find it on the discussion board. How do you determine what to charge a tenant for damage to the property?

Recently, a tenant left without paying rent for over 6 months. Once we had the keys returned we were able to see the damage created by this person. I am in the process of making a tenant statement to show his past rent and damage done to the property. An example tenant damage is the kitchen water facet handle was broken off. The system needed to be replaced. There were also holes in the walls and outlets pulled from the walls. The toilet had so much accumulation of something that we decided just to replace it because it looked so disgusting.

So, does anyone know what can be used to charge fair market value on repairs or replacement of broken items?

Thanks,

Larry --73.141.xxx.xx




Market value charges (by OPM [OR]) Oct 21, 2020 5:05 PM
Message:

CHARGE WHAT THE REPAIR PERSON CHARGES --162.247.xx.xx




Market value charges (by Fishsticks913 [IA]) Oct 21, 2020 5:20 PM
Message:

And take pictures and pictures and more pictures. That way you have proof if it ends up in front of the judge.

I know a lot of landlords have a set fee for things and those charges are included into their lease - so the tenant knows ahead of time what the charges will be. --98.22.x.x




Market value charges (by Larry [DE]) Oct 21, 2020 5:47 PM
Message:

Hi OPM: Thank you for your response. I forgot to mention that we do most of the repairs ourselves. It would be nice if we could have a little increase in cash flow. We plan to take this person to court for back rent and for damages. Will we get paid? I am not sure but we will file.

Hello Fisticks, thank you also for your reply. We do take lots of pictures. We have pictures prior to move in and once they leave. I have taken pictures prior to the repair work and once I am done. I like your idea to put some example repairs or clean up.

But does anyone use a fair market price? If your do, where could I find this information. I am concerned that the judge may say: How did you come up with this amount? I would like to provide a reference.

thanks again

thanks --73.141.xxx.xx




Market value charges (by Ray-N-Pa [PA]) Oct 21, 2020 6:16 PM
Message:

Get estimates from repair techs.

There are many variables you have in your question.

Take a hole in the wall.

I have had simple nail holes and I have had where the girl friend was put thru the wall. The cost of repair a tiny hole is next to nothing, the cost of a caved in wall is very high --24.101.xxx.xx




Market value charges (by DJ [VA]) Oct 21, 2020 7:20 PM
Message:

It really depends on the laws where you are. Your state may or may not allow you to charge for your time. If you don't know, follow the link in the upper left area of this page & download your state's laws for studying.

If they do not, you should hire someone to do the repairs. Do not work for your former tenant for free.

Still, if your state does not allow you to be paid for your labor - then, going forward your judges may allow payment of a predetermined amount - that was agreed to in the lease. (or they may not)

Bottom line: Hire it out & charge the tenant. --70.160.xxx.xxx




Market value charges (by Hoosier [IN]) Oct 21, 2020 9:24 PM
Message:

If you do repairs yourself, use a labor rate that is market-based in your area x number of hours spent, then add material costs. We use $35/hour, but include time spent on travel, parts shopping, and so on. Also check your state landlord laws. --99.92.xxx.xxx




Market value charges (by Robin [WI]) Oct 21, 2020 9:54 PM
Message:

Don't you hire "LDE's Handyman Services, LLC" for your turnovers? It might be handy to have an LLC with a different name from your property management company to hire for projects like that. Charge market rates for the work done, write a check from Larry's Management Services, LLC to LDE's Handyman Services, and bring the invoice marked "paid" to court. Done and done. --104.230.xxx.xx




Market value charges (by Larry [DE]) Oct 22, 2020 4:23 AM
Message:

Hello Robin, Hoosier,DJ and Ray:

Thanks for your great responses. I did check our state laws as you suggested. As a private owner, I cannot charge. As a LLC, I can charge.

Robin and Hoosier, I like your response and terrific suggestions. How do you determine what is fair market value? I like the charge by the hour but i would prefer charge by the project.

Is there a place or book that I can find this information?

Thanks and best wishes,

Larry --73.141.xxx.xx




Market value charges (by 6x6 [TN]) Oct 22, 2020 8:48 AM
Message:

I would try Googling it. Or, as Ray stated get estimates when you need the work done.

One of the problems with pre set figures is that cost keep changing. However it would help in court if you had in your lease where they signed in agreement to pre set charges.

Brad 20000 has a good lease that you can get on this site and it has a list of charges that they use and the tenant signs in agreement at lease signing.

You would probably wan't to adjust those prices periodically for inflation. --73.120.xx.xxx




Market value charges (by plenty [MO]) Oct 22, 2020 8:56 AM
Message:

My sister does the work. She creates a simple statement Barb's Rent Ready. I buy the supplies, ie fauct, toliet,ect. She provides the labor. Take the Barb's Rent Ready Invoice, the cancelled check to pay her, the Lowes Receipt, and Payment check and any other expenses for cleaning, cleaning supplies and create a statement of accounting for the tenant. Starting with the deposit held amount and (using an excel worksheet) start subtracting the expenses paid to Barb's Rent Ready, Lowes, misc items. Total up the amount and either include a refund check or give a date according to lease to pay amount due. If you want a form to help get stated. Search Scott Law in Columbia Missouri. they have many forms online for a good start. Hope that helps. And charge for the new faucet and toliet. Restore your rental to move in condition. Also i document each with pictures. here is the damaged faucet, here is the receipt to replace item and here is the labor. --99.203.xx.xx




Market value charges (by Nicole [PA]) Oct 22, 2020 9:23 AM
Message:

I wouldn't charge by the project. What if the judge wants to disallow some things and you don't have a specific breakdown.

At minimum I'd break out:

patch & repair 9 holes in wall - 1 hour

replace 5 broken electrical outlets - 1 hour

Clean up and take to dump 12 bags of rubbish - 2 hours

I also would have a legit LLC if you were going to bill that way - don't make one up in your mind. You need the cancelled check if proof if required.

--72.70.xxx.xx



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