Process: Notifying Owners of a Possible Small Claims Suit from a Tenant

Objective:

To proactively inform property owners about a tenant's formal reimbursement demand and potential small claims court filing, while maintaining transparency, professionalism, and control of the situation.

Step-by-Step Guide:

1. Review the Tenant Communication

• Confirm that the tenant has submitted a reimbursement request or made mention of legal action (e.g., citing Texas Property Code or threatening small claims court).
• Review the full timeline of events, including work order submissions, vendor response, communication history, and the lease agreement.

2. Assess the Situation Internally

• Consult with your property manager to determine if the tenant's request is valid or should be denied.
• Confirm if all actions were taken in accordance with the lease, Property Code, and company policy.

3. Draft the Owner Notification Email

Use the following templated format when writing to the owner:

Subject: Tenant Reimbursement Request & Possible Small Claims Notice – [Property Address]

Hi [Owner Name(s)],

I hope you're doing well! I’m reaching out to keep you informed about a recent issue that arose at your property located at [Property Address].

The tenant submitted a request regarding [brief summary of the issue – e.g., an AC outage] and has since followed up with a reimbursement request for [amount] referencing Texas Property Code and the possibility of small claims action.

All appropriate steps were taken to address the issue in accordance with the lease and state law. The repair was completed within a reasonable timeframe, and based on our review, we do not believe a concession is warranted. At this time, we intend to deny the reimbursement request.

This message is strictly informational. If you would prefer to issue a goodwill concession to the tenant to avoid further conflict, we are happy to proceed accordingly—please let us know. Otherwise, we’ll respond with a final decision to the tenant by [Response Deadline, e.g., July 3].

Thank you,

[Your Name]

Treaty Oak Properties

4. Send the Email and Log the Communication

• Send the email to the owner from your official company email.
• Log the communication in AppFolio Include a copy of the email and any supporting documents (tenant email, work order timeline, vendor invoice).

5. Follow Up Accordingly

• If the owner approves a concession, prepare the credit or resolution accordingly.
• If not, proceed with sending the final denial to the tenant by the specified deadline.

Tips for Team Members:

• Remain neutral and professional—avoid placing blame on the tenant or over-apologizing.
• Keep the tone confident and solution-oriented.
• Emphasize adherence to the lease and Property Code.
• Always offer the owner a chance to issue a concession if they prefer.

Wiki Notes from Alex:

• This was uncategorized, so I moved it to PM. Probably needs to be shifted to OSM once hired.