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HOW DO I DETERMINE COST FOR DAMAGE? - Landlord Forum thread 186263

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HOW DO I DETERMINE COST FOR DAMAGE? by PAT (MISSOURI) on September 6, 2009 @16:27

Iím a landlord in Missouri. My tenant called me yesterday to report that the freezer door to the refrigerator fell on his young sonís head. After accessing the damage we determined that the young boy was hanging on the handle of the freezer door and the door of the freezer detached from the hinges and feel off. The tenant put the door back on the refrigerator, but the refrigerator is now damaged; the door is off track and the hinges that connect to the refrigerator are bent and the regular refrigerator door now squeaks when opened and closed. We bought the refrigerator new in 2005 for $565.12. I donít want to replace the refrigerator because they may damage the replaced one. Refrigerators are known the last around 10 to 12 years. Therefore, would I be wrong to charge him $339.06 for damages? I divided $565.12 by 10 years (life of refrigerator) to get the average of $56.51 and multiplied by 6 years (life left on the refrigerator), resulting in $339.06.
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Re: HOW DO I DETERMINE COST FOR DAMAGE? by Sharon on September 6, 2009 @16:48 [ Reply ]
Talk to the lawyer on this site!!! Sounds like his area because of the possible injury to the child.
STOP!! Do not buy NEW for rentals! Start dealing at a local used appliance dealer. They backup their warranites weather its in your home or a rental. AND IF THEY BROKE A FAIRLY NEW FRIDGE THEY CAN LIVE WITH A USED ONE JUST AS EASY. I personally would charge them the full price of the "USED" replacement. If you buy new no judge is going to allow a full price coverage, because you will be using it for your next tenent. With used, you can use it for just this tenet then put in New after they move.
Re: HOW DO I DETERMINE COST FOR DAMAGE? by OK-LL on September 6, 2009 @17:06 [ Reply ]
I agree with your calcuation, except that I would base the cost pro-ration on the replacement cost, not the original cost. That's the way we do carpet, and that's the way we do any other item with a limited lifespan.
Re: HOW DO I DETERMINE COST FOR DAMAGE? by OK-LL on September 6, 2009 @17:09 [ Reply ]
BTW - Consumer reports shows the average life a refrigerator as between 15-20 years, FWIW.
You are entitled to the...... by Tex on September 6, 2009 @19:32 [ Reply ]
You are entitled to the cost of the repair. No adjustments need to be made for the age of the appliance because the damage was caused by the negligence of the tenant's family member. Do you have an estimate for the cost of the repair.
Re: HOW DO I DETERMINE COST FOR DAMAGE? by Anonymous on September 6, 2009 @22:39 [ Reply ]
Appliances may be depreciated between 5 and 9 yrs per the IRS. Using 9 yrs yields $313.95 if the item is damaged beyond use.
Re: HOW DO I DETERMINE COST FOR DAMAGE? by Anonymous on September 6, 2009 @23:29 [ Reply ]
I don't think you are wrong to charge 339.06 for damages. Take a picture of the damaged one. Prepare a statement that reflects why you are charging what you are charging. Be prepared for tenant to move, or not pay the charge. The refrigerator will have to be replaced, if you do not repair the one that is there.
Is the agreement month to month, or a year lease?
Re: HOW DO I DETERMINE COST FOR DAMAGE? by NY-LL on September 7, 2009 @08:55 [ Reply ]
The only legitimate way to charge for damages is to actually replace the refrigerator freezer. Issue a Notice to deduct from security deposit. The notice should serve as a bill for the replacement or repair costs of the refrigerator freezer door. Consider obtaining an estimate direct from manufacture for cost to replace refrigerator door hinges only, if LL does not intend to replace the appliance.
Re: HOW DO I DETERMINE COST FOR DAMAGE? by Anonymous on September 7, 2009 @13:16 [ Reply ]
The IRS has nothing to do with what you charge for the damage.

Do it like a car insurance company does it.
How much does it cost to repair?
How much does it cost to replace?
If it cost the same to repair to replace, replace and charge the tenant the full cost. If it cost less to repair, do it and charge the tenant.

Now, think about it. Are you sure you will get the money from the tenant for the repair/replacement. If not,(and you will be paying for it) dont repair it if you can get new for just a bit more.

Re: HOW DO I DETERMINE COST FOR DAMAGE? by OK-LL on September 7, 2009 @22:47 [ Reply ]
1. See if the refrigerator can be repaired back to condition before damage was done. If so, do so and charge the tenant for the repair.

2. If refrigerator cannot be repaired back to previous condition, I would replace it and charge the tenant pro-rated as I described earlier. I would do this, because you cannot require him to live with it and then replace it with his SD money at the end of the lease once he has reported it. Different story if he had not reported it and you simply discovered it at the end of his tenancy.

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