If you’re a landlord or a tenant, you’ve likely heard the legal term “repair and deduct.” But what does it mean? In short, the legal process of repair and deduct allows a tenant to repair damages or defects in a rental property and to then deduct the cost from their rent.
How Does Repair and Deduct Help Tenants?
Generally, tenants are required to report any damage or defects in the rental property to the landlord promptly. The landlord must then, in a timely fashion, either make the repairs or address the issue. If the landlord fails to do this, the tenant may be able to legally use a repair and deduct approach.
This process enables the tenant to take it upon themselves to find the necessary materials and address the issue. From there, the tenant would be able to deduct the cost of the necessary materials and labor from their rent payment. In some cases, a tenant may also be able to recover attorney fees if need be from using the repair and deduct process.
What Are Some Examples of Repair and Deduct?
Let’s say a tenant is renting a townhome and notices a leak in the roof. The tenant then notifies the landlord who fails to address the issue in a timely manner. In this case, the tenant may take it upon themselves to make the repairs or to hire a roofer to do the work. After the repairs have been completed, the tenant could submit the invoice to the landlord and deduct the amount from their rent.
Another example might be if the tenant noticed a broken window in the rental unit. The tenant may purchase a replacement window and hire a window installer to fix the issue. After the install is complete, the tenant could submit the invoice to the landlord and deduct the amount from the monthly rent.
When Should Tenants Exercise Caution When Using Repair and Deduct?
If a tenant is considering the repair-and-deduct approach, it’s important that they know the laws that relate to their rental agreement. Some states limit the amount of money a tenant can deduct from their rent in this manner. Additionally, in some states the tenant is required to give the landlord a certain amount of advance notice before making the repair.
If a tenant is considering the repair-and-deduct option, they may want to seek legal advice from a qualified attorney in their state. The attorney can help them better understand the laws in their state and determine the best course of action.