Re: HOW DO I DETERMINE COST FOR DAMAGE? - Landlord Forum thread 186384

Re: HOW DO I DETERMINE COST FOR DAMAGE? by Anonymous on September 7, 2009 @13:16

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.

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Re: HOW DO I DETERMINE COST FOR DAMAGE? by Anonymous on September 7, 2009 @13:22	[ Reply ]

Add to that. I do mean within reasonable value. Depreciation does come into play but how many years is debatable as seen above. I would go with the average fridge warranty. But I dont agree with that myself (the warranty being the lifespan) I have said before that you dont throw your microwave out every year because it only has a 1 year warranty.

Re: HOW DO I DETERMINE COST FOR DAMAGE? by Anonymous on September 7, 2009 @13:24

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Sorry I keep adding to this.

When I say depreciation I dont mean IRS depreciation.
I mean everyday depreciation. The general idea that something is worth less years down the road than it was the day you bought it.

Depreciation is not an IRS term alone. Maybe that is where the confusion comes in for some.

Re: HOW DO I DETERMINE COST FOR DAMAGE? by PAT (MISSOURI) on September 7, 2009 @13:30

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I have a clause in the Lease Agreement:

CLAUSE 11. TENANT'S MAINTENANCE RESPONSIBILITIES
...(3)reimburse Landlord, on demand by Landlord, for the cost of any repairs to the premises damaged by Tenant or Tenant's guests or business invitees through misuse or neglect.

They have damaged before and after I made repairs, I collected from them.