BiggerPockets

Had dinner one night last week with another guy who has had rentals for about 15 years and naturally the topic turned to deadbeats and why it's not their fault that they don't have the rent. The following is a compilation of some that had happened to us or that we had had first hand knowledge of:

Tenant called to say he's on the way over with the rent, I asked "full amount", he said "full amount. Hour and a half later he shows up (it's about a 10 minute drive) but he's about $300 short. What happened? "I saw a cool stereo system at the store and had to have it". I said hold on while I make a receipt for you. I typed him up a "3 day letter". Adios

Tenant said he was short because "dude, I had to get new tires for my 'TA' (that's a Trans-Am), last time I ever rented to anyone that was too much of car guy. Adios

Tenant says he started a new business, as a sheetrocker. I told him "no, you didn't start a new business, I did since you did it with my money". Also since sheetrocking is 90% labor and I figure you're stealing the raw materials from your boss". Besides, if I want to start a business, I'd start something more profitable. Adios

While I was repainted a place after an eviction the former (I was sleeping there) the former tenant came by and tried to steal a window A/C unit. He tried to tell the cops that he had purchased it and therefor he could take it. As he had been in the house 2 years and the unit was about 10 years old the cops told him if he came back around they would arrest him. Adios .

Called the tenant on the 3rd when the money wasn't there, he said "well I had it on the first, but when you didn't call I spent it". Adios.

Had a Realtor show up with a prospect one time, I thought it might be a bit odd that (1) most houses on the MLS were less money than mine, (2) agent had already printed and made copies of the applicants credit report, (3) tenant was driving his own (kind of a beater) car, while agent was in his (nice) car. Looked over the credit report and one of the things on it was a year old GMAC loan and some other stuff that didn't seem to fit the tenant (he looked like a "payday loan" kind of guy. I asked for his license and he handed it over, GUESS WHAT, not even close to the same name as that on the credit report. Adios

These are just a few that came to mind. What are some of your favorites.

all cash

Wow Cash, you've had some real characters as tenants, huh? Well at least you've got some great stories to tell now. I dig the topic, guys. No great stories yet, though.

I had a guy who turned out to be a bum tenant. I inherited him from the previous property owner. He never paid on time and we were finally able to convince him to move out. You should have seen the way he was keeping the place. It was disgusting. Clothing everywhere mixed in with trash. It was a real health hazard. Thank goodness he left. We have to do what we can to boot our bum tenants, that's for sure.

Why bother with tenants? People, lease option the joint! You get a better "tenant," and if they leave or default, you get a huge deposit (your fault if you didn't take one). If they buy the place, you got what you wanted. So, what. Do a 1031 and move the profits to another one, doing the same thing all over again.

For 15 years, I've never had a late payment, never had the guy change his oil from his Harley on my Dining room carpet, etc.

Lease/option----from the seller's/owner's perspective, is the best thing going. Why don't more use it? LACK OF KNOWLEDGE.

I figured this thread would be at least 1,000 posts long by now. Here's some that I heard before I sold all my rentals (seller financed), so now I don't hear excuses for late rent, just for late mortgage payments:

1. Man, I had to buy tires for my TA! I found out TA meant Trans Am, so I quit renting to people who were more in love with their cars than with a roof over their head.

2. I'm a bit short because I started my own (sheetrocking) business! No, YOU didn't start a sheetrocking business, I started a sheetrocking business, and if I wanted to do that I would've already done it with some hard working Hispanics, not with a lazy butt white boy like you. Besides non-payment you're also in vioation of lease for running a business out of the house.

3. Tenant calls and says on the way over with the rent. "It better be full rent" I said, "it's all there" he said. Shows up an hour and a half later (the house is about 2 miles away) but the rent is short $250! Hey you said you had it all, I HAD it all but I saw a cool stereo on my way over"! Let me type you a receipt I said and typed him a three day notice to quit the premises and gave him that with the receipt. I hope you like living in the stereo!

all cash

I eliminate the problem by providing 13 self-addressed #6 envelopes with lease signing...stack of envelopes serve as a reminder and they are addressed to my post office box.

I do maintain a strict policy on collection - pay or quit on the 6th and follow up with eviction on the 11th. I have a $50 per adult late fee AND a $100 per adult "notice" fee so anytime a couple is late with their rent, they owe me $300 in addition to the rent so being late is a VERY EXPENSIVE mistake....

Alright, I have my first stupid tenant excuse, which came in lieu of rent this past weekend. "I just started a new job and they're holding my first paycheck, so I won't get paid until the 15th." This is on the first full month's rent!!! We let this woman move in mid-August, and pro-rated the rent for that month. So, she signed the lease two weeks into August, knowing she wouldn't be able to pay rent come September!!!

We've given her until the 15th to quit the property or pay up.

My question is this..... If we have to evict her, what's the process? Or, do any of you have a better suggestion?

Thanks in advance!

Trisha

LOL makes me want to become a landlord :mrgreen:

We had a guest speaker, (Eviction Lawyer) at our local meeting. Regarding P.O Box, you need to provide tenant the option to mail or drop off rent check at a business address. If you only provide a P.O. Box, good luck collecting any late rent in court. Reason being, the tenant can say he or she mailed the check. You have to give them the OPTION to mail or dropoff rent check.

I would double check that advice in your county. In the counties we have tenants there is no such requirement. In fact, we stipulate in the lease the method and transport of payment requirements.