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Post by greatcoastal on Mar 7, 2019 9:49:46 GMT -5
I am writing about this here, on this part of the forum, because it feels like, being stuck in a SM , and being the one to end it, all over again!
Or it's like having to tell an adult child," that it's time for them to start supporting themselves and stop living off of you".
I have a heavy heart today, and a conscience loaded with grief and heavy thoughts.
I was informed several years back by my attorney and other mentors, to get a new tenant. I've been told " you have been far more than patient. I don't know if I could have waited that long". ( it's beyond, strike 3. It's more like strike 12!)
My taxes and insurance doubled (about 2 yrs ago?) due to the value of my property doubling. Hence rental prices have gone up by 50% in my area. ( I've kept my tenants rent the same)
I am getting ready, mentally, to be inundated with excuses, and alibis. Getting hit with all kinds of requests for more time, more mercy. I've done that. ( i've sent texts, letters, and given verbal warnings) And I can no longer continue to be taken advantage of. It's like my SM. It's time to stop all the giving, and start taking. Taking back what is rightfully and equally mine. ( $$$ due to me. Although I expect to take a loss, in the beginning, but recover it in time)
And yet I still feel bad about it. it's like "tough love" for a teenager, all over again.
This too shall pass. It's going to take a season. A season loaded with FOG (Fear, Obligation, and Guilt).
I knew this was going to be part of investing in real estate, and being a landlord. I also knew that it was the part I dreaded the most. And here it is!
My tenants consist of 3 women, one man, two children, and a big dog. We had a decent 4 years together. This last year has consisted of several missed payments, short payments, and damage to the property.
I see this as a good thing. A tribulation, that will teach me to not wait so long, in the future. ( right now I feel terrible about it)
I also plan on 'investing' a couple more grand into my property, for the next tennant, and part of my long term investment. I may end up living there myself in a year or two from now. ( i know it's not my fault, but it still troubles me deeply)
I mow 4 more lawns near the house ( across the street and on both sides) so I have to go there, I don't look forward to having to hold my ground, and continue to say no.
I won't be surprised if I end up having to put their things on the curb, after the eviction. It's really hard for me. I am going to need help, emotionally.
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Post by baza on Mar 7, 2019 21:33:06 GMT -5
In my jurisdiction in these situations there is
(a) - the landlord (ie you)
(b) - the tenant (ie whoever signed the lease)
PLUS (c) - the letting agent (ie the one who is the intermediary between landlord and tenant, the one who the tenant calls if the hot water service blows up or you call up if you need access to the property for some reason. This intermediary collects the rent etc and charges a commission for their role in the scenario)
That's in my jurisdiction.
So in my jurisdiction, I'd be handing the problem to the letting agent to sort out and I would not be having any direct dealings with the tenant at all.
Now, you 'can' have a private agreement between landlord and tenant without a letting agent being involved - and you might save a few bucks in commission in so doing. The downside being that YOU have to deal with the tenants direct. And that's a pain in the arse.
If you plan on continuing your career as a landlord, I would highly recommend that you engage a letting agent to do the appropriate intermediary work. The commission cost is money well spent.
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Post by hopingforachange on Mar 8, 2019 7:29:18 GMT -5
If you have the funds, hire someone else to all the stuff out and give the place an initial cleaning. The reason for this is simple, it lets you detach your feelings and view the property as an income generation tool. This is not a home for you, this is a way to make money. If your going to spend more to improve the tool, think about what will allow to increase the rent the most and provide the best ROI. The listing agent can help provide feedback based on their experiences
Also if there is military base near by, try targeting military personnel. If you get thier commands direct contact info, you will never have a missed payment. Also, often the same properties get passed between personal during transfer season., So as tenets change, you might not even have a missed month, especially if you are known as a good landlord.
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Post by workingonit on Mar 8, 2019 10:05:13 GMT -5
I have nothing of use to add but I wanted to chime in with support. You got this! Having good boundaries and sticking up for yourself is excellent for you and you will find the way to hold your truth and your compassion comfortably. You have worked this muscle so amazingly already and this is just the next step.
Go GC!!
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Post by greatcoastal on Mar 8, 2019 11:57:22 GMT -5
In my jurisdiction in these situations there is (a) - the landlord (ie you) (b) - the tenant (ie whoever signed the lease) PLUS (c) - the letting agent (ie the one who is the intermediary between landlord and tenant, the one who the tenant calls if the hot water service blows up or you call up if you need access to the property for some reason. This intermediary collects the rent etc and charges a commission for their role in the scenario) That's in my jurisdiction. So in my jurisdiction, I'd be handing the problem to the letting agent to sort out and I would not be having any direct dealings with the tenant at all. Now, you 'can' have a private agreement between landlord and tenant without a letting agent being involved - and you might save a few bucks in commission in so doing. The downside being that YOU have to deal with the tenants direct. And that's a pain in the arse. If you plan on continuing your career as a landlord, I would highly recommend that you engage a letting agent to do the appropriate intermediary work. The commission cost is money well spent. Thank you ( as always) for your advice!! A letting agent is called a property manager here in the USA. It's normally ten percent of the rent per month. I have done well to be my own property manager. As you can imagine their are stories of bad property managers and tenants having lawsuits over them. The % of one's ROI can help determine whether or not a 10% property manager is justifiable. When I began my property investments I knew I would have the time, location, and previous experience to manage the property. The day I move out of state, I would then consider a property manager. It's this part, the ousting of a tenant that GETS me, most of all! I always knew it would be hard on me. It's that darn 'giving, caring, sharing' mentality again! |
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Post by greatcoastal on Mar 8, 2019 12:12:10 GMT -5
If you have the funds, hire someone else to all the stuff out and give the place an initial cleaning. The reason for this is simple, it lets you detach your feelings and view the property as an income generation tool. This is not a home for you, this is a way to make money. If your going to spend more to improve the tool, think about what will allow to increase the rent the most and provide the best ROI. The listing agent can help provide feedback based on their experiences Also if there is military base near by, try targeting military personnel. If you get thier commands direct contact info, you will never have a missed payment. Also, often the same properties get passed between personal during transfer season., So as tenets change, you might not even have a missed month, especially if you are known as a good landlord. I've been 'sort of' waiting for this day. An opportunity to improve my investment. kitchen and baths. Some of the damage that has been done leaves me little choice. Since I first began renting this home ,the rent in the area has increased by another $500 a month for comparable homes in the area. My taxes and insurance increased too. I started with one year contracts, including a clause for a 3% annual rental increase at my discretion. Something I chose not to do. The good part about not renewing the one year contracts is that we are on a month to month basis. That gives me leverage when ousting my tennant. No military bases close by. I chose lower income housing, aiming for long term tenants. The home could qualify for section 8 housing. That has it's good and bad as well. I have avoided that for now. ( I am fortunate to have a good 3 yrs with my tennants the last year and a half has been rocky. No fault of mine. Other than me not upping their rent, or getting a new tenant.) Still ,this whole episode reminds me of starting over after a divorce! |
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Post by greatcoastal on Mar 8, 2019 12:22:53 GMT -5
I have nothing of use to add but I wanted to chime in with support. You got this! Having good boundaries and sticking up for yourself is excellent for you and you will find the way to hold your truth and your compassion comfortably. You have worked this muscle so amazingly already and this is just the next step. Go GC!! Fortunately I have a few good mentors in the area of being a landlord! I knew that this would be one of those difficult, emotional parts that I need to toughen up on! Thanks!! |
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Post by Handy on Mar 8, 2019 15:43:09 GMT -5
One of my customers has rental property. Early on when a problem starts to develop, my customer with rental properties goes to the bank and obtains five or so $100 bills. He then goes to the tenant in question on Monday and tells the tenant the $100 bills are his if he leaves in 4 or so days and the property is clean and not damaged.
My customer said it cost money to get someone out of a rental but the $500 + - is lower cost than doing it any other way he has found. My customer said evicting tenants often leads to property damage, which costs more than $500 to repair.
Your mileage may vary.
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Post by greatcoastal on Mar 9, 2019 15:31:20 GMT -5
I recieved a phone call the other day, from a local church. Apparently my tenants are seeking help to pay off their debt.
I am not moved or persuaded. It's not surprising that it took a letter of eviction to get their attention.
Even if they receive enough money to pay off their debt, there is no guarantee that they can continue to pay their regular rental fee.
This doesn't even include the fact of the increase in rent needed to make a profit on the property. Or the fact that I can rent the property for more income, and should not feel guilty about it.
lastly their is the damage cost to the property. Just things I really don't want to deal with any longer with these tenants. Sort of like reaching my tipping point in my marriage.
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Post by DryCreek on Mar 9, 2019 16:19:00 GMT -5
“Don't mistake my kindness for weakness.
“I am kind to everyone, but when someone is unkind to me, weak is not what you are going to remember about me.”
- Al Capone
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Post by jim44444 on Mar 10, 2019 20:57:26 GMT -5
Your story reminds me of why I got out of the rental market. For every good tenant there were 5 bad ones. And sooner or later the good ones became a problem.
Being a landlord is not a good position for anyone who is conflict adverse.
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Post by greatcoastal on Mar 13, 2019 21:38:02 GMT -5
The deadline has come and gone. No check sent to me. Instead just text messages asking me" if we can go over a couple of things".
There's nothing to go over. I presented them the facts. Dates, amounts, and deadlines. I do not respond to their texts. It's all been presented to them, already.
The old me, would have caved, and fell victim to all their alibis and false promises, while continuing to be strung along, while I give them another chance, and another, etc...
I will be calling an attorney who specializes in evictions and I will file suit in the county court.
I have been advised that it is a lot of paperwork that I have no experience with, and I would have a lot of the stress and burden relieved from me by getting an attorney to do most of it. ( the cost of doing business)
So much of this seems like another divorce all over again. With an opportunity of a " new beginning" with a new tenant and stricter boundaries.
I have had other experiences with other tenants where things went smoothly. Contracts expire, tennants end up needing to move to other states and leave the place nicer than they found it. A time to raise the rent ( whatever the current market allows) Tenants who set up automatic payment withdrawals/deposits from their account into mine.
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Post by DryCreek on Mar 14, 2019 2:14:46 GMT -5
You’ll gain the experience and the next time will be easier. Because there will be a next time.
It’s one of life’s ironies that the more flexible you are, the more people try to take advantage of it.
I hold a small note on a little condo sold to casual friends. Very attractive terms but hefty penalties for late payments, with a reasonable grace period. They tested it once early-on, we stuck to the contract; they paid a ridiculous penalty once, and they’ve paid on-time or early ever since.
Then there’s the time a stripper offered a generous deposit and several months in advance for a rental, and also asked if she could pay in cash. Sounded amusing but workable until we did a credit and criminal check, only to discover a pattern of evictions and lawsuits; her M.O. was to never pay rent after move-in. That was the best $35 report I’ve ever paid for.
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Post by jim44444 on Mar 15, 2019 8:51:46 GMT -5
greatcoastal, yep always use an attorney for evictions. They get the timing and paperwork write because of experience. Plus, like it or not, judges are part of the lawyer club and that they tend to rule against DIYers.
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Post by greatcoastal on Mar 21, 2019 8:42:42 GMT -5
greatcoastal , yep always use an attorney for evictions. They get the timing and paperwork write because of experience. Plus, like it or not, judges are part of the lawyer club and that they tend to rule against DIYers. I recently spoke with my divorce attorney and asked for a recommendation. I received a recommendation, and spoke with a real estate attorney. His first question was " did you give your tenants a 3 day eviction notice?" I explained everything that has been done. He told me " you are doing great, you don't need me. You can do the rest by yourself. If your tenants get crazy or out of hand, then call me. I've seen it all! Including tenants that literally had to be dragged out by the Sheriff. " ( I hope it doesn't come to that!) His last advice was " go with the 5 day, and take your loss. You most likely will not be reimbursed." ( it would have started with a $1500.00 retainer fee) It took an entire day to get all my paperwork together. LOTS of copies, over a dozen pre addressed stamped envelopes, forms, etc.... $430.00 later and my tenants will have 5 days to make their payment, or present their case to The Clerk of Courts. I was relieved, after my one visit to get it all done in one day! My next step will be a Motion of Default on the 6th day, and a Writ of Possession. All the forms where handed to me at The Clerk of Courts office. Another, learning experience, and hopefully a step towards a new beginning for the next several years with another tenant. |
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