Five Star Equity, Inc.

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Review: My wife and I rented an apartment in Moscow, ID, from August 2010 to the end of July 2013. We had moved to Moscow from Pocatello so that I could attend law school and my wife could finish her teaching degree. We had relatively few problems with the property management company, Five Star Equity, Inc., until we moved out. Five Star has retained our security deposit without cause and even demanded that we pay over $350 in addition to the $775 deposit they retained. They alleged that we had left our apartment filthy and had caused damage to the carpet, among other things, in the apartment. The majority of these claims were utterly baseless. I know this because my wife and I spent five hours deep cleaning our apartment and making minor repairs where needed the night before. Despite these efforts, Five Star claimed that we had to pay for repairs and cleaning that we had already done. For example, I replaced the blinds in our living room and bedroom the night before we moved because our cat had damaged those blinds; the reamining blinds were in essentially the same condition they had been in when we moved in. [redacted], the owner/manager of Five Star claimed that every blind in the apartment was so filthy that they had to be replaced and charged us accordingly. I know this to be patently false because I personally replaced and inspected those blinds the night before, and I have the receipt to prove it. Ms. [redacted] also claimed that we owed for the replacement of a toilet seat and towel bar in the bathroom, even though the towel bar was bent when we moved in and the toilet seat was almost brand new. Ms. [redacted] also charged us full price for redundant cleaning and for upgrades that were needed only due to normal wear and tear (such as replacement of carpet that was already heavily worn when we moved in with tile), despite the fact that landlords are prohibited from charging tenants for normal wear and tear under Idaho law.Desired Settlement: I would consider this matter resolved if half of our security deposit was returned to us immediately. Ms. [redacted] has already acknowledged that some of the charges were invalid and dropped her claim that we owe her additional money, but she insists on charging us full price for repairs needed due only to normal wear and tear. Our assessment of her claimed charges indicates that half of our security deposit will more than cover our portion of any required repairs or cleaning.

Business

Response:

First of all I did not say that some of the charges were invalid. I adjusted and credited the balance of $351.62 as a courtesy so as to close out the file.

If indeed the [redacted]s replaced the blinds no receipt has ever been offered. Therefore, I gave him the benefit of doubt and credited the four (4) blinds charge and installation. It might be noted that were no new tags on the blind pull strings, which would have indicated that they were new

the night before or recently. Please refer to the move-out and after repairs and maintenance pictures attached to substantiate this.

Please refer to the following attached documents:

1. *ESIDENTIAL LEASE dated 5/6/2011 for 8/1/11-7/31/12.

a. Please refer to Clause 5. DEPOSITS AND DEDUCTIONS, and particular notice to (iv) and (ix); last paragraph 3 line states that *esident understands and agrees that all terms and conditions as outlined in the attached Vacating, Cleaning, Procedures and Deposit *eturns agreement are to be adhered during occupancy and upon vacating said property.

b. Clause 9. CA*E, MAINTENANCE AND *EPAI*S. 9 A. Acceptance of Property; 9B. *esident's Duties. *esident further acknowledges the Vacating, Cleaning, Procedures and Deposit *eturns and (i) and (iv).

2. *ULES & *EGULATIONS. Cause 12. Nails, screws etc.

It should be noted that on the [redacted]s' 8/4/10 Move-ln Inventory & Condition *eport that the living room had nail/poster holes in various areas and minor chipped plaster on corners. The dining room, hall, kitchen and bedrooms were noted as "same as above" for the walls. The 8/6/13 Property Move-out Condition *eport is explicit and detailed regarding the condition of unit and number of holes. The 8/12/13 Work Order indicates Tenant Charge and No Charge. Please note that there were no 'alleged upgrades charged back.

3. MOLD & MILDEW ADDENDUM. Detailed and explicit and particularly Clause 5. which is referenced in my 9/10/13 email that the [redacted]s never notified this office of any problem.

4. VACATING, CLEANING P*OCEDU*ES/DEPOSIT *ETU*NS. Again very explicit and detailed and is referenced several places in the lease.

5. PET AG*EEMENT dated 5/6/2011 re ferret

PET AG*EEMENT dated 5/8/12 re cat

There was no increase in the security deposit from $200 to $300 as noted on the 5/8/12 agreement and as commented in my 9/10/13 email #3.

6. 8/29/13 Security Deposit Itemization Statement with attached invoice from Absolute Cleaning and the cleaning checklist filled out by this office with X and their notes; [redacted] and Castle Carpet Cleaning.

7. 8/4/10 Move-ln Inventory & Condition Form. Please note that the Floor/Carpet comment is 'GOOD7 for the living room, hall and bedrooms. Have attached pictures of the two hall cat damaged carpets and the replacement tile.

8. 8/6/13 Property Move-Out Condition *eport conducted and witnessed by the undersigned, [redacted] and [redacted]. The [redacted]s moved out on the 2nd and the inspection was conducted on the 6th.

9. 8/12/13 Work Order with Tenant Charge and No Charge.

10. 9/3/13 @ 7:07pm E-mail from Mr. [redacted] to Five Star Equity, Inc.

9/4/13 @ 6:20pm E-mail from Mr. [redacted] to Five Star Equity, Inc.

9/5/13 @ 9:02am E-mail from [redacted] to Mr. [redacted] 9/10/13 @ 10:30am E-mail from [redacted] to the [redacted]s

For further clarification, [redacted] was the management company when the [redacted]s moved in August 1,2010. I over saw the properties with [redacted] and had our own handyman. I personally inspected this property prior to the [redacted]s taking possession. Between 7/9/10 to 7/14/10 my handyman installed new floors in the kitchen and dining room, installed new window sills & painted the frames, prep/painted the bathroom replaced the toilet seat and re-caulked the tub and sink, painted front living room wall, bathroom and kitchen interior cabinets. I can assure you that if the carpet had been 'heavily worn when they moved in', I would have attended to this as well.

I sincerely believe after your review of all of the enclosed documents it is evident that we did not charge for other items that could have been a charge back nor the additional 20% charge on any and all cleaning, repairs and maintenance and replacement charges caused by the resident's failure to return the unit in an exceptionally clean and move-in condition as stated in the Vacating, Cleaning Procedures/Deposit *eturns on page 4.

An attempt was made to do a pre-inspection before the [redacted]s' vacating date, which was extended from 7/31/13 to 8/3/13 and changed to 8/2/13. Please refer to the enclosed 7/11/13,7/13/13 and 7/14/13 emails with their refusal and the follow-ups. A pre-inspection is not an uncommon policy as this addresses any issues that the tenant(s) should cure before the final move-out inspection date and lessens any misunderstanding. Interestingly enough Mr. [redacted] was a law student and took his bar exam on 7/30 and 7/31. One might believe that Mr. [redacted] would have been more accurate and precise with the condition report then as opposed to now and particularly with the alleged poor carpet condition rather than good, which is contradictory. To reiterate I would have replaced any and all carpet (not just the two halls) after they vacated, if indeed this carpet is in poor condition, which it is not.

I do not understand why Mr. [redacted] feels he is entitled to one half of his $775 security deposit. I am therefore disputing any allegations that this office acted in any inappropriate or unprofessional manner or that any more monies are due the [redacted]s.

In closing and as stated in my 9/10/13 e-mail to the [redacted]s "Upon consultation with my attorney it is agreed that this is more than reasonable and fair".

Sincerely,

Five Star Equity, Inc.

[redacted],

President

Cc: [redacted]. [redacted], Attorney

Enclosures: Listed Exhibit A

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this does not resolve my complaint. For your reference, details of the offer I reviewed appear below.

Nothing that Ms. [redacted] has provided proves that she is entitled to retain all of our security deposit. Her pictures consist primarily of the select few things that did legitimately need further cleaning. We are not disputing those items. But the pictures do not justify retaining our $775 deposit. Ms. [redacted] has yet to explain why she needed to replace all of the flooring in the hallways with costly ceramic tiling, especially if only the corners were damaged. Indeed, she wants us to foot the bill for improvements to a property that was hardly perfect when we moved in (we rented the location for its low price and because we did not have the opportunity to view any others before moving to Moscow from Pocatello). We refuse to accept that we are responsible for ANY improvements to the property for items that were worn due to normal wear and tear.

Ms. [redacted] failed to provide any photographs of the alleged mildew/mold that required scrubbing and repainting of the bathroom. We admit that we had to battle some mildew/mold throughout our tenancy, but we were able to clean it without it immediately returning several times. However, in each case, the mildew/mold eventually returned, requiring further cleaning. We followed all applicable aspects of the Mildew and Mold Addendum, and for her to assert that the entire bathroom required repainting to alleviate a small section of mildew that we had already cleaned is dubious at best.

Ms. [redacted] also has yet to explain why she thinks she is allowed to charge us for cleaning and repairs required as a result of normal wear and tear. Ms. Gilbert's provided materials indicate that she ordered cleaning and repairs redundant to the cleaning and repairs we had already performed, such as wiping down baseboard heaters, walls, countertops, shelves, etc. and replacing blinds, toilet seat, etc. She alleges that many of these things were filthy and required extensive deep cleaning or repair, but conveniently fails to provide photographic evidence of all but the items we already admitted needed cleaning. Under Idaho law, Ms. [redacted] is prohibited from charging for any such repairs and cleaning that are the result of normal wear and tear or portions of such that are attributable to normal wear and tear, and any contract provision that we may have signed or initialed purporting to allow her to do so is void as against public policy. See Landlord and Tenant Guidelines (pg. 27), [redacted] ("The landlord may use the deposit for reasons designated in the lease, such as cleaning or repairs necessary to restore the rental to its condition at the beginning of the tenancy. However, landlords may not use the deposit to pay for ordinary wear and tear resulting from a tenant's normal living activities."). As a result, she cannot require us to clean the apartment to an "exceptionally clean and move-in ready" state, and she most certainly cannot charge a 20% surcharge for doing cleaning and repairs that are patently her responsibility. Instead, she is required to account for the amount of the charges that are attributable to normal wear and tear and deduct accordingly. If she had done this, it would have resulted in a return of a portion of our deposit. This is all we are asking her to do -- follow the law. Because she is trying to keep money that is rightfully ours unless proven otherwise, she has the burden of proving that every single charge is legitimate. She has not done this. Unless she can show 1) that every charge was associated with repairs for damage not attributable to normal wear and tear and 2) that all the additional cleaning was required because things were not reasonably clean, we will not accept her accounting and will continue to demand a return of a portion of our security deposit.

Ultimately, we reject this response because Ms. [redacted] has simply regurgitated the same list of non-responsive statements and half-truths that she provided us with before we made this complaint. Although she has already agreed that the charges beyond the security deposit are invalid and cannot be charged, she has not made a reasonable effort to resolve our remaining issues. Until she does, we will not consider this matter resolved on our end. We are simply asking for a willingness to negotiate in light of the prohibition on charging for reasonable wear and tear. We lived in that apartment for three years and we were good tenants. Ms. [redacted] never mentioned any issues with our maintenance of the property in any previous inspections or visits even though she had ample opportunity to do so. All we are asking is that she reevaluate the charges and account for three year’s worth of normal wear and tear as required by Idaho law.

In the spirit of resolving this matter quickly and beginning negotiations, we would be willing to decrease our original demand for return of half of our deposit and accept a return of $275 of our deposit. Although we feel that we are entitled to more, we are willing to acknowledge for the sake of negotiation and issue resolution that some additional cleaning and some repairs for which we could be liable may have been warranted. We hope that Ms. [redacted] will be willing to negotiate to resolve this issue amicably.

Regards,

P.S. Nothing contained in this letter may be considered an admission for purposes of future litigation.

Business

Response:

In response to Mr. [redacted]'s recent ID [redacted] complaint again, I shall address only a few issues as follows:

1. Pictures - as stated there are approximately 250 on file for the move-out And post maintenance and repairs. A few were presented as proof of some of the conditions upon the move-out.

2. Apparently legal documents have no meaning to Mr. [redacted] although he and his wife read, initialed and signed all, as was presented on October 29, 2013.

3. When Mr. [redacted] emailed me on 9/3/13 "we are still willing to negotiate a reasonable resolution to this dispute. Although we will absolutely not pay anything in addition to our deposit, we do understand that some of the charges may be reasonable." My 9/10/13 email response credited the balance of $351.62 from the security deposit balance and accommodated his statement "will absolutely not pay anything in addition to our deposit."

4. There was no further communication from Mr. [redacted] until 5 % weeks later until this office received a complaint from your office that he was not accepting the credit as a final resolution.

5. I responded to this complaint in good faith with detailed proof and still this is not satisfactory or acceptable. Mr. [redacted]'s redundant and regurgitated accusations regarding issues that were credited is not reasonable nor amicable.

P.S. Nothing contained in this letter may be considered an admission for the purposes of future litigation.

Enough is enough ! Enclosed please find a check payable to [redacted] and [redacted] in the amount of $195 as my final negotiable gesture to settle this matter.

Sincerely,

P.S. Nothing contained in this letter may be considered an admission for the purposes of future litigation.

Consumer

Response:

[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.

Regards,