Landlord Expects Tenant To Pay $5,900 Repair

Summary

Podcast Summary: The Ramsey Show Highlights Episode: Landlord Expects Tenant To Pay $5,900 Repair Release Date: March 23, 2025

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Introduction

The Ramsey Show Highlights delivers concise, daily advice on personal finance and life matters. In the episode titled "Landlord Expects Tenant To Pay $5,900 Repair," host Dave Ramsey and his co-host address a caller's predicament involving an unexpected hefty repair bill from a landlord. This detailed summary explores the situation, the advice provided, and key insights discussed during the episode.

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Caller’s Dilemma: Unexpected Repair Costs

The episode kicks off with a caller sharing her situation (00:10):

Caller: "My fiancé and I are getting married in a couple weeks and he is in the process of moving out of the home that he has been renting from one of his friend's parents for the last three or so years. There was a water leak... now they want us to pay or they want him to pay the $5,900 deductible."

The caller explains that a water leak was discovered, initially noticed inside the bathtub but later seen outside the house. A plumber confirmed the leak originated inside the wall. Despite this, the landlord is demanding a $5,900 deductible from the tenant.

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Understanding Tenant Responsibilities

Dave Ramsey responds promptly, questioning the fairness of the demand:

Dave Ramsey (01:15): "I'm sorry. Even if it's inside, even if it's outside, it doesn't matter. Why is it your husband, why is it the renter's fault that the water leaked?"

The co-host reinforces this stance:

Co-host (01:22): "This is why you rent."

They emphasize that tenants should not be held financially responsible for repairs that arise from issues beyond their control or that are part of normal property maintenance.

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Nature of the Rental Agreement

The caller provides additional context, revealing there was no formal contract or renter's insurance, and the rent had been favorably priced due to personal relationships:

Caller (02:22): "Yes. Yeah. So there was no like contract. They didn’t ask him to get renters insurance. And he had been paying like $500 and then $750 more recently."

The co-host interprets the landlord’s demands as informal and possibly leveraging personal relationships to enforce payment:

Co-host (02:43): "So, so they're kind of coming at him not from legally, but kind of like, hey bro, be cool dude and give us $6,000."

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Dave Ramsey's Advice: Stand Your Ground

Dave Ramsey advises the caller and her fiancé to firmly assert their position, highlighting that the landlord's financial expectations are unreasonable:

Dave Ramsey (03:15): "No, he does not. No, he doesn't."

He recommends politely but firmly declining to pay the $6,000, emphasizing the lack of responsibility on the tenant's part:

Dave Ramsey (04:10): "I am not in no time. And I'm getting married in two weeks. No, I can't splurge out. $6,000. I don't have it. And it doesn't end. I'm not responsible for it."

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Co-Host's Reinforcement and Additional Insights

The co-host supports Dave's advice and underscores the importance of clear agreements in rental situations:

Co-host (07:09): "You, Catherine, don't sit there and spin up stories about... be careful when you sign up for stuff and there's not an agreement."

They discuss the landlord's tactic of placing a monetary value on the relationship, which shifts the dynamic from personal to transactional.

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Dave Ramsey on Landlord-Tenant Relationships

Dave reflects on past experiences managing rental properties, emphasizing the balance between generosity and setting clear boundaries:

Dave Ramsey (05:15): "We were able to do that because the house is dead free. But we didn't come back at the end of that and say this, this, this."

He stresses that while being generous is commendable, it's crucial not to undermine the agreed-upon terms of the rental arrangement.

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Final Recommendations and Key Takeaways

1. Understand Your Rental Agreement: Always have a formal contract outlining responsibilities to prevent misunderstandings.
2. Stand Firm on Unreasonable Demands: Tenants should not be held accountable for repairs resulting from normal wear and tear or issues beyond their control.
3. Effective Communication: Politely but firmly communicate your stance, reiterating the terms of the rental agreement.
4. Set Boundaries: Personal relationships should not interfere with financial agreements; maintaining clear boundaries is essential.
5. Seek Professional Advice if Needed: If disputes escalate, consulting with a legal professional may be necessary.

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Notable Quotes with Timestamps

• Dave Ramsey (01:15): "Why is it your husband, why is it the renter's fault that the water leaked?"
• Co-host (01:22): "This is why you rent."
• Dave Ramsey (04:10): "I am not responsible for it."
• Dave Ramsey (07:24): "If that went on for more than 30 seconds, he's, he went on with it..."
• Co-host (07:45): "And it's about 6,000 bucks. And it's not you guys violating some sort of bro code..."

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Conclusion

In this episode, Dave Ramsey and his co-host provide invaluable advice to tenants facing unjust landlord demands. By emphasizing the importance of clear rental agreements, tenant rights, and effective communication, they guide listeners on handling such disputes confidently and ethically. The discussion underscores the significance of understanding one's responsibilities and standing firm against unreasonable financial obligations.

Transcript

[Dave Ramsey]

Brought to you by Y Refi Refinance your defaulted private student loans [e-mail] Ramsey.

[Caller]

My fiance and I are getting married in a couple weeks and he is in the process of moving out of his. The home that he has been renting from one of his friend's parents for the last three or so years. And there was a water leak that he noticed out of the side of the outside of the house. And so he told his landlord about it and basically it's turned into this big situation where like basically the entire bathroom has to get ripped out. And there was a small leak on the inside of the bathtub that like dripped into the bathtub. And he hadn't said anything about that, but then as soon as he saw the outside, he said something. What I'm getting at is now they want us to pay or they want him to pay the $5,900 deductible. And the plumber said that the leak was inside the wall, not outside the wall.

[Dave Ramsey]

I'm sorry. Even if it's inside, even if it's outside, it doesn't matter. Why is it your husband, why is it the renter's fault that the water leaked?

[Co-host]

This is why you rent.

[Caller]

Okay, thank you. That's what I was feeling. But. Oh God.

[Dave Ramsey]

I mean if you, if you're, if your fiance did something that caused the leak or you know, like had a, I don't know, a water bed or something and it got, it got. And they didn't, you know, they caused the mold or they caused the rot, then is there any such thing as a water bed?

[Co-host]

I'm gonna say welcome back.

[Dave Ramsey]

Welcome Back to the 90s, Back to the Future one. Yeah. But anyway, I mean if he had a, a cold plunge. Okay, let's get back. And it leaked. Okay. Something modern and he caused the mold or caused some rot. That's the tenant damaging the property. You would be, he would be responsible for that. But if, if I own a property and I own a bunch of property and the water line breaks or has a leak in it, that's not the tenants financial responsibility.

[Co-host]

Has there been a handshake deals like under market rent or something? Because those. Appearance of a friend.

[Caller]

Yes. Yeah. So there was no like contract. There was no. They didn't ask him to get renters insurance. And he had been paying like $500 and then $750 more recently. And.

[Co-host]

So, so they're kind of coming at him not from legally, but kind of like, hey bro, be cool dude and give us $6,000. Kind of like that, right?

[Caller]

Like, yeah, we've let you live here for this amount, but it's like, now.

[Dave Ramsey]

You have to fix our house when it breaks.

[Caller]

Okay. Thank you. That's what I was feeling. He's just. My fiance is just so wonderful. And he thought because he had seen the leak on the inside that was dripping into the tub and hadn't said something sooner, that he feels he has some bit of responsibility.

[Dave Ramsey]

No, he does not. No, he doesn't.

[Caller]

Okay. Okay. Should we be. I mean, do you have any recommendation on how to approach this conversation with them?

[Co-host]

It's not by your hand, but in your lap. They've. They've chosen to put the relationship on the table, and so they severed their relationship. And so there's not a way that you can. No matter how nicely you say what you need to say, which is no, thank you, or I'm unable to pay or unwilling.

[Dave Ramsey]

I'm not. I'm not responsible for this. I'm a tenant. There's still my agreement with. You did not cover me fixing your broken house because I got cheap rent.

[Caller]

Okay. Thank you. That I have listened to y'all for years, and that's what I thought. And my mom had rental houses, but this. This felt way over the top. And, yeah, he doesn't want to sever the relationship, but I felt.

[Co-host]

They've already severed it.

[Caller]

No, they've already. They already did that.

[Dave Ramsey]

No, they put a price tag on it. It's 5,900 bucks. There you go.

[Caller]

Okay.

[Dave Ramsey]

The. But that's not the issue. I mean, so all you can do is just be kind and smile and say, gosh, I'm so thankful for the rent, but I did not sign up for doing all the repairs for your home. That was not our agreement. You were kind to me. You're generous to me. Thank you for that. But I am not in no time. And I'm getting married in two weeks. No, I can't splurge out. $6,000. I don't have it. And it doesn't end. I'm not responsible for it. I'm so sorry. I hope that doesn't upset you, but if it does, then that's. That's your decision, I guess.

[Caller]

Okay. Thank you all so much.

[Dave Ramsey]

Does that make sense?

[Caller]

Yes, that's exactly what my argument was and what I thought. But just my. Yeah, my fiance is maybe softer hearted than I.

[Dave Ramsey]

And I got to tell you, I. I've been in a lot of situations like where we have a house, and we had one. One of Our rental houses. And the lady got cancer and we let them live there for free while they were, you know, because nobody's working in the house. And it was just a horrible situation. We were able to do that because the house is dead free. But we didn't come back at the end of that and say this, this, this, this.

[Caller]

Right.

[Dave Ramsey]

Even if they had torn up something, we made the decision to be generous. Grace, to extend grace to that family. But then we didn't try to like, take that back.

[Co-host]

Right, right.

[Dave Ramsey]

And so these people are strange is what I'm saying.

[Caller]

Yeah, well, that's what I told my fiance because I've listened to y'all for years and I said, you know, this, they, they treated it all these years like a gift. And Dave has always said, like, if you're going to give somebody something, then you accept. Like, you don't loan somebody something unless you're willing to gift it. And like a family or something. And so I was telling him, like.

[Dave Ramsey]

If their handshake agreement was he does all the repairs and he keeps the house up, then he should do the repairs. But nowhere in the story have you.

[Caller]

Said that that's correct. That was not the case.

[Co-host]

And there's a really fine line between he's so wonderful and spineless. That's a really thin line.

[Dave Ramsey]

Yeah. He needs to be very kind and extremely strong.

[Caller]

Yeah. And what I had. The other thing is that, you know, they're trying to say we've made all these concessions for you, like, you know, let you live here for $500 when they've had the house full of storage and it's a paid off house.

[Co-host]

Yeah. But hey, don't do that. Don't do that. Don't go, don't go.

[Dave Ramsey]

None of that, none of that matters. None of that matters. All that matters is you gave me a deal. Thank you. That was our deal. Our deal was not that I pay for the plumbing brakes. And I not only won't, I not only can't, but I won't. I'm so sorry. And if that makes you angry, that really makes me sad. But then that's your decision to be angry. Goodbye.

[Caller]

Okay?

[Dave Ramsey]

End of story.

[Co-host]

You, Catherine, don't sit there and spin up stories about. Yeah, and they use storage. That is a choice for you to be miserable in the moment.

[Dave Ramsey]

Yeah. And your fiance let them store stuff. That was part of the deal because he didn't change it.

[Caller]

Right.

[Dave Ramsey]

If that went on for more than 30 seconds, he's, he went on with it so that, that you, you Get a deal. But I'm going to store some stuff. Okay, that. That, you know, if. If you don't object to that, then you made the deal. And.

[Co-host]

And going back to what Dave said earlier, I love the way he said it. He said it much more eloquently than me. They have put a price tag on this relationship.

[Dave Ramsey]

And.

[Co-host]

And it's about 6,000 bucks. And it's not you guys violating some sort of bro code by they hooked you up. And then if something goes wrong down the road, they're going to circle back and like, well, you owe us now because we were nice to you. So you got to be. We don't have $6,000. We're going to move on. Yeah, but they're the ones that violated the. The relationship. Kind of bums me out, Dave. I don't like that.

[Dave Ramsey]

I'm just trying to think. I mean, you know what the problem is? Just. Can't. Just occurred to now the house is paid for, but these people have no money probably, and so they're struggling with the $6,000. And before they knew it, they got weird. They might not even be weird people, but they just. For a moment here, when you get.

[Co-host]

Desperate, you do some.

[Dave Ramsey]

They lost their minds.

[Co-host]

Yeah. Desperational.

[Dave Ramsey]

They just got. Because they're talking about a newlywed cup or a couple getting ready to get married in two weeks. And the first thing I'm gonna do is present. Here's your wedding gift. A bill for plumbing.

[Co-host]

Yeah, I can imagine. Like a cancel.

[Dave Ramsey]

I'm gonna help you with your rent, and I'm gonna give you a wedding gift.

[Co-host]

Cancel.

[Dave Ramsey]

Check for a bill for $6,000.

[Co-host]

Yeah.

[Dave Ramsey]

Who does that? Somebody's not thinking. Somebody's not thinking. Somebody's weird. Because that's just so strange, the timing on the whole thing. I mean, golly. Oh, man. Crazy. Crazy, crazy, crazy, crazy, crazy, crazy, crazy. Now, be careful when you sign up for stuff and there's not an agreement. Oh, wait, we didn't sign up first off. Yeah, be careful when there's no agreement. This is the Ramsey Show. Why refi refinances delinquent private student loans for struggling borrowers. Learn [e-mail] Ramsey.