Burned down house/want deposit back?

[swrdmbo]

What is the name of your state (only U.S. law)? Ohio

We had a call from our tenant this morning at 1 AM saying our rental house was on fire. My husband went over immediately and the damage was substantial. The Fire Marshall said the fire was caused by someone cooking on the stove,who they believe then fell asleep.

Our actual tenant was asleep when this happened, but the person that started the fire ( the Fire Marshall and investigator are sure this guy is the cause) was a guest in his home and quite inebriated.He claimed he was cooking an egg on the stove earlier in the evening (yeah...just before he fell asleep).

Our lease specifically states that the tenant is responsible for the the actions of their guests.
Even though we strongly suggest all our renters get renters insurance, and have them initial this suggestion in the lease agreement, he had no insurance.

Enter the red cross which gives him $500.00 and tells him to ask us for his deposit back!!

I find this incredulous! We are going to be out our $1,000.00 deductible from the get go.
Our tenant had yet to pay his $ 450.00 rent. He gets a monthly check and we allow him to pay on the 6th. We figure he can use that rent and the $ 500 to get himself situated in a new house. He already has one lined up that rents for $400/month.

I feel bad that he lost all his possessions but as a landlord I am really tired of always taking the financial hit when things go wrong for our tenants.

Is there a legal precedence for this? Are we required to return his deposit? Thanks in advance for any legal advice you may be able to shed on this.

 

[Zigner]

Make sure you follow (precisely) your state's laws regarding withholding of the deposit and also bill him for your deductible.

 

[ecmst12]

You shouldn't feel sorry for him. He should have had insurance, this is his own fault. You have every right to retain his deposit and sue him for any other out of pocket costs you incur. You can bet your insurance company will be going after him for anything THEY end up paying out.

 

[FarmerJ]

Get a copy of the fire marshalls findings and use a copy of the report when you send your deposit disposition, BUT right now learn if your state has any statute that speeds up deposit return times when a home is not habitable , likely the fire damage is going to cause the house to be condemned so no one can live in it till it is repaired or rebuilt, If your state has a law that speeds up deposit dispositions make sure to send your notice with in the time frame given.

 

[swrdmbo]

Thanks.

Thanks for your replies. I have to wonder about the absurdity of having to deal with the return of a deposit due to a house being uninhabitable when the TENANT CAUSED the house to be uninhabitable.

We are not returning the deposit and he understands. We do feel sorry for the guy and will not pursue him for the deductible...he wants to move back in when it is restored...hmmm...not without having renter's insurance ...if at all.

 

[FarmerJ]

SW I understand how you feel about returning a deposit , but my suggestion to search your state laws for any requirement to return it when a unit is not habitable are only so you can self protect from any penalty for failing to follow a law.

 

[swrdmbo]

Thanks for the advice. I cannot seem to find anything specifically dealing with deposits when the tenant has damaged the property WAY beyond the deposit.We do have in our rental agreement that the tenant is responsible for any damage he or any of his guests may cause.

It was determined that his friend did cause the fire, and it was in no way the fault of any wiring,furnace etc. so we are off the hook.

However, the insurance company totaled it out so we will not be rebuilding. We offered to give him 50% of his deposit back and he has agreed.My husband felt sorry for him.I do too but it also really bugs me.The tenant seems to think NONE of this is on him because he was asleep.He either doesn't comprehend (or pretends not to) that since it was a n invited guest of his,he is responsible!!

So now we have the mess of demolishing the house and removing the slab it sat on.YEAH!!
And this guy is still crying about how all his stuff is gone(his fault) and he has no house to live in (his fault) although he claims HE didn't do...his friend did so he is not responsible!!!

Meanwhile I guess it is our fault we are out our deductible,and whatever it costs to have all this stuff removed as it comes out of our proceeds.Our renter sure sees it that way.

I never fail to be amazed And disgusted!

Thanks for the advice folks!

 

[Gail in Georgia]

Your tenant can sue his friend for what he lost in the fire.

The point that was trying to be made is to get your decision regarding giving the tenant back half his deposit IN WRITING.

Landlords often forget that even when tenants do terrible things to their rentals; (sneaking away in the middle of the night leaving the place a wreck) that failure to make the attempt to notify said deadbeat about the status of their security deposit within the legal guidelines of their particular state can often come back to bite the landlord in a delicate body part.

It's not unusual that a tenant will leave the rental a complete wreck, then turn around and sue the landlord for not receiving notification regarding their security deposit. In many states, not only will failure to notify regarding this deposit negate the landlord from using such to pay for these damages but the landlord may end up having to pay double or triple the security amount BACK to the tenant.

In other words, GET IT IN WRITING that both you and the tenant agree to this security deposit amount being returned.

Gail

 

[swrdmbo]

Thanks for the reminder Gail. We will definitely get it in writing. We could actually sue the tenant for our deductible(if he had insurance this would have been a done deal)
but of course no such luck.

We won't though...he has lost so much already....but I guess that's what really gets me...he wants his lousy deposit back and we are out our deductible the minute it caught fire.

We have explained he could go after his friend but his friend has NOTHING .Might explain why he was in tenants (our) house at 1AM cooking an egg!

But thanks for the reminder...with all this craziness it never hurts to be reminded of something so basic. This would NOT be a good time to mess up! Thanks again.