Possible problem family in my rental - Steps to prepare for this?

Possible problem family in my rental - Steps to prepare for this?

Chandler, AZ · Member since 2020 · 295 posts · 272 votes

I recently had a tenant family of 5 (3 adults who all signed the contract) move into a property of mine.  I did a background check and called the past landlord who lives out of state.  Landlord gave a good review and the background check showed an eviction filed 5 years ago, but dismissed Credit overall was acceptable.  So far, all is good with this tenant and myself, but they've only been in my place a month now.  I received a call from the previous landlord out of the blue today to pass along some information.  I guess he felt guilty not letting me know everything that went on with him and them when I called him a month ago and he apparently kept my number.  He told me today that he had been asking them to move out of the house for 6 months but had been being too nice and not forcing it.  They frequently were late on rent.  He also said once they moved into my place, they stopped communicating with him and have not returned the keys or made the last month's payment due to him.  Also, his 3 year old and 5 year HVAC systems (2 in homes in AZ sometimes) had both been reported broken at the same time once he got serious trying to get them out.  He called techs out to repair the systems and according to him, the techs refused to work on the property and wouldn't provide a reason.  That's really strange and I'm curious what transpired there to have them deny working on the property.  He called a neighbor to check in on the house and the neighbor noticed the house was full of trash through the windows.  I suggested he get an attorney involved and consider an eviction or look into maybe getting it judged abandoned to see if he can get it back that way.

Now this is all what he has told me.  I have no evidence what did or didn't happen however I can do my best to protect my property.  This unit is a 2 hour drive from my home, but I'm willing to make the drive as this is a nice recently painted home with new tile floors.  I'm not afraid to get an attorney involved as necessary.  A few questions for those with more experience:

1. My contract provides no grace period for late payments.  I found this to be abused in the past.  I used a standard AZ Realtor contract. The rent is considered late if not received by 5PM on the 1st of the month and late fees apply.  No payment on the 1st equals a 5 day notice to "pay or quit" will be mailed out on the 2nd.  If someone continuously pays late, month after month, but within the 10 day window, is there grounds to terminate the contract after a certain number of these events?  (Request the tenant leave or evict if denied)

2. What techniques do you recommend against receiving a partial payment as a stall tactic?  I currently am allowing Zell (and check or money order) but have stipulated I reserve the right to change methods.  The tenant paid the first full month through Zelle.  My understanding is if you accept any amount of payment, even not intentionally, that you implicitly have agreed to the partial payment and you cannot evict the tenant for that month.  So if they send me $500 instead of $2000 on January 1, then I can not send a 5 day notice until February 1.  Is that correct and if so, what are the best techniques to combat this?  It looks like a rent service such as Tenantcolud nay have the ability to reject incomplete payments.

2. I would like to perform quarterly inspections.  Is this a reasonable frequency?  I'd like to do it more often, but don't want it to be considered harassment.

3. I'd greatly appreciate any additional advice on for preparing for this situation.


I have been a long time, small scale landlord for a while and slowly am getting wiser, but generally I've had decent tenants.   I hope these current tenants treat me well and I will be respectful also, but I think there is sufficient reasoning to prepare myself for otherwise.  Thanks!
  

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Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
4y

@Chris B. the tenants are already in, so I would see how they behave for you before passing judgment. The previous landlord calling is obviously not a great sign, but you have them in place now. In the future, I would not likely rent to someone with an eviction filed unless the story really made sense. At least here in Chicago, filing for an eviction is an expensive event (over $1,000 to file normally with an attorney) so this is not done unless you absolutely have to. 

I would not personally do quarterly inspections, but I would find excuses to go through quarterly until you feel comfortable. I would change the filters in the fall, check smoke detector batteries in the winter, etc. Find a valid reason to go through and stay on top of how things are looking. 

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  • Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
    4y

    @Chris B. the tenants are already in, so I would see how they behave for you before passing judgment. The previous landlord calling is obviously not a great sign, but you have them in place now. In the future, I would not likely rent to someone with an eviction filed unless the story really made sense. At least here in Chicago, filing for an eviction is an expensive event (over $1,000 to file normally with an attorney) so this is not done unless you absolutely have to. 

    I would not personally do quarterly inspections, but I would find excuses to go through quarterly until you feel comfortable. I would change the filters in the fall, check smoke detector batteries in the winter, etc. Find a valid reason to go through and stay on top of how things are looking. 

  • Rental Property Investor · Cherry Hill, NJ · Member since 2015 · 626 posts · 495 votes
    4y

    The same landlord that gave you a good review called later and gave you info on how bad of people they are.  First let’s point out the obvious, which is the integrity of the landlord.   They lied to you.  Can you really trust them now?   Know that there are 3 sides to every story.  

    It may be some unsettling things to hear but you can’t act on it.  Does it make sense to you that an HVAC tech wouldn’t service without explanation?  I would imagine they would want to get paid at the very least for their service call.  The landlord that called you didn’t go themselves.  There are lots of flags in what you were told.  Maybe the landlord wronged your current tenants and now he is dirting them after he lied to you.


    The reality is you are in contract with them.  Just keep an eye on the situation, but don’t be hypersensitive.  You don’t want to force the situation to go south.  You accepted them.  Stop doubting yourself and just roll with what you are dealt with. 

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y

    @Chris B. The only reason he called you back is because he's still getting screwed by the tenants, so he's probably hoping you can somehow help him out. If he's that dishonest with you, I suspect he's getting what he deserves.

    The tenants are already in. I see two good options here:

    1. Wait and see. You have your head on straight, procedures are buttoned down, and you're watching them closely. If they misbehave, hit them swiftly and keep them on track or get rid of them.

    2. Let them know the Landlord called back and you're now aware of their problems. Remind them of how you operate and that you run a tight ship. Give them the opportunity to explain their side or even to leave early. They may decide to pull stakes and move on.

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  • Chandler, AZ · Member since 2020 · 295 posts · 272 votes
    4y

    I appreciate all of your feedback on my situation.  Yes, the tenants are in now, and have paid me fully and on time so far and provided all of the documentation I have asked for.   I do like to verify AC air filters are changed regularly and this seems like a perfectly reasonable for a visit seasonally to allow me to stay on top of this.

  • Member since 2020 · 6 posts · 3 votes
    4y

    @Chris B. Inspections of home should be listed on the the contract. That way the tenant knows that you have a right to inspect property. You can decide how many inspections should be done per year. Inspections are important because you or your Maintenace person can inspect the property but also fix any items that might be broken. Like replace ac filters and look for plumbing leaks and make sure there are no issues with the workings of the house. Good luck!

  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes
    4y
    Quote from @Chris B.:

    I recently had a tenant family of 5 (3 adults who all signed the contract) move into a property of mine.  I did a background check and called the past landlord who lives out of state.  Landlord gave a good review and the background check showed an eviction filed 5 years ago, but dismissed Credit overall was acceptable.  So far, all is good with this tenant and myself, but they've only been in my place a month now.  I received a call from the previous landlord out of the blue today to pass along some information.  I guess he felt guilty not letting me know everything that went on with him and them when I called him a month ago and he apparently kept my number.  He told me today that he had been asking them to move out of the house for 6 months but had been being too nice and not forcing it.  They frequently were late on rent.  He also said once they moved into my place, they stopped communicating with him and have not returned the keys or made the last month's payment due to him.  Also, his 3 year old and 5 year HVAC systems (2 in homes in AZ sometimes) had both been reported broken at the same time once he got serious trying to get them out.  He called techs out to repair the systems and according to him, the techs refused to work on the property and wouldn't provide a reason.  That's really strange and I'm curious what transpired there to have them deny working on the property.  He called a neighbor to check in on the house and the neighbor noticed the house was full of trash through the windows.  I suggested he get an attorney involved and consider an eviction or look into maybe getting it judged abandoned to see if he can get it back that way.

    Now this is all what he has told me.  I have no evidence what did or didn't happen however I can do my best to protect my property.  This unit is a 2 hour drive from my home, but I'm willing to make the drive as this is a nice recently painted home with new tile floors.  I'm not afraid to get an attorney involved as necessary.  A few questions for those with more experience:

    1. My contract provides no grace period for late payments.  I found this to be abused in the past.  I used a standard AZ Realtor contract. The rent is considered late if not received by 5PM on the 1st of the month and late fees apply.  No payment on the 1st equals a 5 day notice to "pay or quit" will be mailed out on the 2nd.  If someone continuously pays late, month after month, but within the 10 day window, is there grounds to terminate the contract after a certain number of these events?  (Request the tenant leave or evict if denied)

    2. What techniques do you recommend against receiving a partial payment as a stall tactic?  I currently am allowing Zell (and check or money order) but have stipulated I reserve the right to change methods.  The tenant paid the first full month through Zelle.  My understanding is if you accept any amount of payment, even not intentionally, that you implicitly have agreed to the partial payment and you cannot evict the tenant for that month.  So if they send me $500 instead of $2000 on January 1, then I can not send a 5 day notice until February 1.  Is that correct and if so, what are the best techniques to combat this?  It looks like a rent service such as Tenantcolud nay have the ability to reject incomplete payments.

    2. I would like to perform quarterly inspections.  Is this a reasonable frequency?  I'd like to do it more often, but don't want it to be considered harassment.

    3. I'd greatly appreciate any additional advice on for preparing for this situation.


    I have been a long time, small scale landlord for a while and slowly am getting wiser, but generally I've had decent tenants.   I hope these current tenants treat me well and I will be respectful also, but I think there is sufficient reasoning to prepare myself for otherwise.  Thanks!
      


    Follow your lease regarding late payments to the letter. Don't deviate.  I can't advise you on grounds to terminate because every state has different Landlord/Tenant laws.

    You should have put the quarterly inspections in your lease.  

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