Question-Selling Tenant Items

I just had a quick question if anyone else has run into issues with this. We have some USDA RD properties where we do not provide A/C units in. When the tenants move-out, we are looking at romving the A/C units if left, then selling them, while reinvesting the profits into the property. We have done this in the past with washer & dryers that were left behind. Does anyone know of any legal or comliance with Rural development issues this may cause, or do you think we are ok to do this. Thanks.

I have done this in my past. I let the maintenance teams and leasing teams keep the money though, they were allowed to use it for social events - a team lunch. I don't know if you are exposed to any recourse, I doubt it. I see people selling A/C units all the time at garage sales. The MFR will cover product liability I suppose. My only suggestion would be to test the appliacnes first to make sure that they are running and safe. If you sell a defective appliance and something bad happens you may be named in the suit but quite frankly I have to believe that the suit will be targeted at the MFR who has deeper pockets than you or I.

Matt,

You may want to check with USDA RD to be on the safe side or your state Landlord-Tenant Act. The legality will probably hinge on the tenants method of departure. If they were evicted you may have a harder time legally selling personal items. If a resident moves out and you have performed a move-out inspection with the resident you are more likely to be in the clear.