The tenant from #3 just moved in just one month ago, but since then he had called numerous times to complain about the noise coming from the apartment upstairs.

The tenant upstairs has lived there for 10 years and in all of that time there had never been a complaint about her from any of the adjoining units. We wrote letters to all of the tenants, asking them if they had in any way been disturbed by noises from other units that might be effecting the “quiet enjoyment” of their tenancy. We received no replies.

Faced with what appeared to be a “he-said-she-said” situation, with nothing we could prove one way or another, we elected to take no action.

The tenant from #3 breached his lease and moved out. We made the appropriate deductions from his security deposit for lost rent, advertising, and cleaning, and sent him the balance along with copies of the invoices.

His attorney returned the check, demanding an additional $12,000.

Whether this claim has any merit is not the point. The point is that this is a veiled threat of a lawsuit. And it’s not the amount of a possible judgment that concerns us now. IT’S THE LEGAL FEES !

Suppose this ex-tenant does sue us. Suppose also that that the lawsuit requests attorney fees. Suppose further that the court ultimately awards the ex-tenant

$100 in damages.

Supposing the ex-tenant’s attorney claimed that she spent just 25 hours on the case, and suppose she asked for $400 per hour. That would be $10,000, and you could just bet that there would be a judge out there who would find that to be reasonable. And you can also bet that there’s an attorney or two out there who would be very happy to take on such business.

So here’s the solution that was recommended to us several years ago. Change your rental agreement to read that the prevailing party, whether owner or tenant, “….shall receive reasonable attorney fees, not to exceed $1500…”. For your existing tenants, we recommend doing a 30-Day Notice of Change of Terms, making this new language part of your Rental Agreement. It has worked well for us.

Dear Readers: This article is the 254th in a series based on the lessons we have learned the hard way. The contents of these articles are merely opinions of the writer. They are not intended as specific legal advice and should not be relied

upon for that purpose. Our practice is in constant refinement as we adjust the way we operate to an ever- changing market. I appreciate your questions, comments, suggestions, and solutions. Contact C. Finley Beven, JD, CPM, CCAM, 99 S. Lake Avenue, Pasadena. (626) 243-4145.

Fin.Beven@BevenandBrock.com. www.BevenandBrock.com