The Property Management Shop
by Marc Wilson
Q. I just received a tenant’s rent check for 50 percent of the total rent. The tenant’s accompanying letter indicated she withheld 50 percent of her rent because of the inconvenience and hassle associated with painting and other repairs I did in her bathroom the previous month. Can she do this? What should I do?
A. First things first—never, and I mean never, accept a partial rent payment for any reason. Do not accept partial payments because the tenant is temporarily short on cash. Do not accept partial payments because you promised to reimburse the tenant for some new mini-blinds. Do not accept partial payments as compensation for “inconvenience and hassle.” Do not negotiate partial rent payments with your tenants for any reason. Are you getting the picture? If you owe the tenant money or a rent rebate for any reason, always pay the tenant directly. Remember above all else that the payment of rent is a “holy act” —an act that should never be altered, changed or otherwise “soiled” by the tenant for any reason. You never know what will happen once you start accepting partial rent payments. If you accept a partial payment now, what will prevent your tenant from unilaterally promulgating another reduction next month? Your acceptance of partial rent payments is a good way to loose control over the expenses you agree to pay and those expenses you do not agree to pay. You need to maintain control. You must only accept full rent payments.
If you do receive a partial rent payment, immediately return it to the tenant with a 3-Day Notice to Pay Rent or Quit for the entire month’s rent that is due. You should include a cover letter with the returned rent that indicates you never accept partial payments. I also tell the tenant that she or he is, of course, encouraged to file a reduction in services petition at the Rent Board, the generally accepted medium for resolving this kind of dispute. You will not hear from the tenant again 99 percent of the time. She or he will either prove too lazy to file a petition or will learn from the Rent Board that given the facts the probability of prevailing is too low to warrant the time and energy associated with a petition. My experience is that Administrative Law Judges at the Rent Board are usually not too receptive to petitions for reduction in services that involve “inconveniences” incurred by tenants during the performance of ordinary and necessary maintenance and repairs.
Last month, I received a call from a tenant who requested that I pay for four nights in a hotel, all of her meals and a rent credit for one week because we painted her apartment—a paint job done at her request! In my conversation with her, I asked her to step out of the box for a moment and entertain a seriously hypothetical situation. I said, “Let’s pretend you owned your own house and had to perform the same ordinary and necessary repairs. This scenario might seem like a complete impossibility to you, but just try to imagine it.” As I continued, I asked her, “To whom would you submit a petition for compensation? Who would you ask to reimburse you for the costs and inconveniences?” I almost begged her to file a petition at the Rent Board. I have not heard from her since.
The opinions expressed in this article are those of the author and do not necessarily reflect the viewpoint of the SFAA or the SF Apartment Magazine. Marc Wilson has been managing and selling San Francisco apartment buildings for over 15 years. Please send your questions concerning property management issues to Marc Wilson at 1699 Van Ness Avenue, SF, CA 94109. He can be reached at 415-229-1275. © Copyright 2002.