Mitigation costs
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Mitigation costs (by Sue [IL]) Jan 17, 2022 6:46 PM
       Mitigation costs (by myob [GA]) Jan 18, 2022 6:53 AM
       Mitigation costs (by Sue [IL]) Jan 18, 2022 10:32 AM
       Mitigation costs (by myob [GA]) Jan 18, 2022 11:02 AM
       Mitigation costs (by Sisco [MO]) Jan 18, 2022 12:36 PM
       Mitigation costs (by Moshe [CA]) Jan 18, 2022 1:11 PM
       Mitigation costs (by myob [GA]) Jan 18, 2022 1:24 PM
       Mitigation costs (by Moshe [CA]) Jan 18, 2022 2:01 PM
       Mitigation costs (by Ray-N-Pa [PA]) Jan 18, 2022 4:42 PM
       Mitigation costs (by LordZen [MA]) Jan 18, 2022 9:14 PM
       Mitigation costs (by Moshe [CA]) Jan 18, 2022 11:09 PM
       Mitigation costs (by myob [GA]) Jan 19, 2022 7:40 AM


Mitigation costs (by Sue [IL]) Posted on: Jan 17, 2022 6:46 PM
Message:

If you are in a state that requires you to mitigate losses when a tenant moves out before the termination date of the lease, what costs have you charged back to the tenant?

I asked an attorney today and he agreed that paid advertising for new tenants would be appropriate. He was unsure how a judge might view time and mileage for showing the property to new prospective tenants.

I'm interested to hear if you have been successful recapturing costs associated with rerenting your property under these circumstances. If there are an WI LLs, I'd particularly like to hear your responses. --67.184.xxx.xxx




Mitigation costs (by myob [GA]) Posted on: Jan 18, 2022 6:53 AM
Message:

we charge because we have it in our minimum charges and fees schedule they sign. Cost of readvertising, showing up to 5 visits at 45.00 per visit. If less than 1 year in the property 600.00 refresh fee and touch up of paint. Change lock charge.Along with re-clean of carpets.

Some judges have questioned it. We simple state if the applicant didn't agree-- then they should have disputed prior to signing. You see here your honor--they signed and agreed. Second is the 600.00 for refresh. We simple explain our rent is based on a 1 year min. occupancy and if the tenant stays that year all the better. Your honor can't expect us to have people moving in and out at this rent rate every 2 or 3 months? We would have used the month to month rate of 300.00 more a month. Have never lost a case using these facts. --99.103.xxx.xxx




Mitigation costs (by Sue [IL]) Posted on: Jan 18, 2022 10:32 AM
Message:

BTW, we do have an early lease termination fee which they refused to pay. Could have saved themselves a lot of money and headaches if they had just paid it! --67.184.xxx.xxx




Mitigation costs (by myob [GA]) Posted on: Jan 18, 2022 11:02 AM
Message:

So Sue why not take the ELT as first draw against DEP? for them. --99.103.xxx.xxx




Mitigation costs (by Sisco [MO]) Posted on: Jan 18, 2022 12:36 PM
Message:

Loss of use while cleaning/repairing is an item to include.

Best to include all of the associated costs of an improper move-out in the lease and have tenant initial it at move in. --149.76.xxx.xxx




Mitigation costs (by Moshe [CA]) Posted on: Jan 18, 2022 1:11 PM
Message:

" He was unsure how a judge might view time and mileage for showing the property to new prospective tenants. "

CA allows such charges. The famous CA CCC 1950.5 specifically states that, when the final statement accounting for isposition of the security deposit is provided, that " If the landlord or landlord’s employee did the work, the itemized statement shall reasonably describe the work performed. The itemized statement shall include the time spent and the reasonable hourly rate charged. " The keyword here regarding both the time spent and the hourly rate is 'reasonable' ".

--47.139.x.xxx




Mitigation costs (by myob [GA]) Posted on: Jan 18, 2022 1:24 PM
Message:

Moshe if you had, in your contract or minimum charges and fees papers, that tenant signed at move in: labor shall be billed at 45.00 per hour--- the judge would allow that under the same understanding as other items agreed to prior to signing.

Another words a schedule of all charges and billing ratio's for work performed and or supplies used. --99.103.xxx.xxx




Mitigation costs (by Moshe [CA]) Posted on: Jan 18, 2022 2:01 PM
Message:

Why do you assume that the Judge would automatically allow whatever the tenant signed for, especially if it violates the law?

The law in CA says "The itemized statement shall include the time spent and the reasonable hourly rate charged." A judgment would consider the reasonableness of the hourly rate, and the time spent would also be judged by the standard of reasonable.

I charge $40 for my time, but I have never had to defend that in court. If required, I would defend it based on my education (what does being a research professor of mathematics have to do with how much to charge for showing an apartment?). Besides, $40 per hour is pretty much a reasonable visiting charge for an amateur handyman around here. Is that true in GA too?

--47.139.x.xxx




Mitigation costs (by Ray-N-Pa [PA]) Posted on: Jan 18, 2022 4:42 PM
Message:

I am fond of MYOBs answer but I would not charge the rekeying fee.

You would have to rekey the place if they terminated early or not.

--24.101.xxx.xxx




Mitigation costs (by LordZen [MA]) Posted on: Jan 18, 2022 9:14 PM
Message:

Mitigation cost? Never heard about it, very good to know! --98.216.xx.xxx




Mitigation costs (by Moshe [CA]) Posted on: Jan 18, 2022 11:09 PM
Message:

Actually, CA has changed their law to a much more modern characterization which does not REQUIRE mitigation of lost rent.

CA law says that landlord is entitled to recover "The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that the lessee proves could have been reasonably avoided". Thus, landlord is NOT REQUIRED to mitigate his loss, but it is in his own interest do do so.

and also, "Any other amount necessary to compensate the lessor for all the detriment proximately caused by the lessee’s failure to perform his obligations under the lease or which in the ordinary course of things would be likely to result therefrom."

--47.139.x.xxx




Mitigation costs (by myob [GA]) Posted on: Jan 19, 2022 7:40 AM
Message:

Moshe you mentioned anything illegal. We try to be way inside of what others charge. You charge 40.00 per hour we do 45.00. We do try to be reasonable because we do go after damages and it has to be acceptable to the court.

Ray we don't rekey. we change locks.

We try to charge for anything out of the norm for a less than agreed to lease term. With the understanding the rent charged for say annual rent will cover everything that needs to be done after the year is up. (we shouldn't have to do this every 1 or 2 months) --99.103.xxx.xxx





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