Tenant Stopped Paying Rent... Now What?

Oakland, California
General Landlording & Rental Properties
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Tenant Stopped Paying Rent... Now What?

Matthew Lee
New to Real Estate · Oakland, CA · Member since 2021 · 4 posts · 5 votes

Hi everyone, could use your input and help!

I have been house hacking a duplex in Oakland the last year. Tenants moved in January 2022. First few months were fine, but some issues started coming up. They're on a subsidy program, like Section 8, that pays a portion of their rent ($2k of $2700). The tenant stopped paying their share in August. Since then, it's been a nightmare scenario. 

The total balance for unpaid rent portion is up to $4800. The lease ends January 31st, but the tenant has already said that they will stay past that date. Since the lease is ending, it will automatically go month to month. 

The last few months have been an endless chase of the subsidy program (Hamilton Families) and the tenants. My only contact for the program has been the lady in charge of placing the tenant, but she just refers me back to the finance person. All my calls, emails, texts to their finance team have been ignored. Any attempts to find someone else in the company end with a voicemail or email that never gets returned. Eventually, somebody from the San Francisco Cal Works program reached out and said that they will pay the outstanding tenant charges. They will discontinue support after February though. So, even if I get the $4800 back, there's still a possibility that the tenant stays and stops paying their rent, with no subsidy coming in to cover.

My Property Manager hasn't been helpful during this process. At this point, they're recommending that I offer to PAY $2k-$4k to the tenant to get them to leave.  Obviously this is a situation I would like to avoid...
Unfortunately, it seems like this is pretty typical for California / Oakland, and I know there are countless moratorium / laws that help protect the tenant in this situation.

I'm overwhelmed and not sure what options I have left. Has anyone else successfully navigated situations like this in California? Any advice or recommendations are welcome. 

0Reply
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Matthew Lee:

Your PM should be leading the charge on this and they definitely shouldn't have allowed it to go this long before taking action. Prepare to fire them.

Cash for keys is a method of rewarding bad behavior. I would rather spend money on a good eviction attorney than to buy off a bad Tenant.

Start looking for a new property manager. Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Regardless of how you find them, try to interview at least three managers.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact that a tenant is complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

The DIY Landlord Book4.7247 Reviews
WebsiteView Page
5Reply
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33 Replies

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  • Matt Devincenzo
    Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    3y

    Get a good, local, experienced evictions attorney in the area and do exactly what they say. If a payoff is their solution then that is likely the best one (though I dislike the thought immensely). I know various areas up there have their own nuanced rent protections and eviction laws, so you need someone that knows the details of your specific area. Hopefully someone else on the forum from the area can help with a GOOD referral.

    2Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    @Matthew Lee

    Why are you even dealing with this tenant if you have property mgt? That is my first question....

    Offer them cash for keys. That is going to be your cheapest and fastest route to get them out. If they don't accept, then lawyer up as the above post says and do what the attorney tells you to do. You can expect several months before anything happens due to CA eviction laws and how backed up the courts are. 

    Once you are through this whole ordeal....and I mean this in all seriousness: Sell your rental and never invest in CA again. What you are describing is not an isolated incident. I have out of state investors that I work with, most are from CA. I actually can't BELIEVE anyone is investing out there. The stories I have heard from the amount of professional tenants there is absolutely mind blowing and the fact that you can't do anything to them is incredible. 

    3Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    3y

    People talking cash for keys don't have a clue as to how much that is going to cost you. No freeloading tenant is going to leave because you paid them $2K-$4K unless they need quick cash for their next drug fix. Our moronic state still has us under a state of emergency. You're likely many months away from getting an eviction and that's if they don't extend the moratorium again. Los Angeles wants to extend it another 6 months because we're in flu season. God only knows what Oakland would do. 

    Get an attorney. They're the only ones to deal with the fast changing laws. 

    4Reply
  • Anne Goepel
    Member since 2020 · 1 post · 3 votes
    3y

    Bornstein Law, 415-409-7611, top experts on Oakland

    3Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    3y

    You offer a Homeless (Family) a home...the Mom or Dad screws up their job somehow and can't pay the small portion of the rent.

    Homeless Payor Agency recommends offer them $4,000 to become homeless again vs squatting in the unit for ump-teen months under California laws.

    Hmmmmmm Cold rainy doorway somewhere vs indoors for the family---(tough decision???)

    And--there are (((Families))) Homeless in America -- America needs more Nickerson Gardens type things to house these people.

    It didn't used to be like this.

    Good Luck!

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    Looked at a similar situation about a year ago for San Francisco. 

    Do everyone an education post.  Post your Oakland tenant rules.  If like San Francisco it’s really hard to evict. Then based on your reading develop a plan.

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Now you take them to small claims court. Don't waste your energy. 

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Matthew Lee:

    Your PM should be leading the charge on this and they definitely shouldn't have allowed it to go this long before taking action. Prepare to fire them.

    Cash for keys is a method of rewarding bad behavior. I would rather spend money on a good eviction attorney than to buy off a bad Tenant.

    Start looking for a new property manager. Remember: cheaper doesn't mean you'll make more money.

    Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Regardless of how you find them, try to interview at least three managers.

    1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their staff qualifications.

    2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

    3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

    4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

    5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

    6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact that a tenant is complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

    7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

    This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    5Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    3y

    @Matthew Lee why didn't you start the eviction process back in August? Why not since then? 

    What kind of PMC did you hire? Obviously not a full service one if you are making all these calls and they haven't started the eviction process yet!

    If you're trying to be cheap to save money, how much has hiring this PMC cost you in time & money?

    Recommend you find a new PMC.

    Even if someone give you a referral, what meets their expectations, may not meet yours.

    In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

    It's often a case of not doing enough research, as they don't know what they don't know!

    Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

    So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

    EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

    This also leads owners to ASSUME simpler is better when it comes to management contracts.

    The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

    We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

    We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

    https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

    We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

    EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

    P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

    Please send us any feedback via email, as we do not use the DM feature here.

    [email protected]248-209-6824
    Logical Property Management4.9459 Reviews
    WebsiteView Page
    1Reply
  • Chad HalePro Member
    Property Manager / Investor · San Jose, CA · Member since 2013 · 780 posts · 301 votes
    3y

    @Matthew Lee

    Call the Law Offices of Todd Rothbard  they specialize in evictions.

    https://toddrothbardlaw.com/

    no affiliation etc, just great results.

    0Reply
  • Matt K.
    Walnut Creek, CA · Member since 2015 · 3k+ posts · 2k+ votes
    3y

    Aren't Alameda County and the city of Oakland still both under a eviction moratorium?

    1Reply
  • Danyllene Munoz
    Member since 2022 · 6 posts · 3 votes
    3y

    Begin eviction proceedings take them to court.  If they are letting you know they don't plan on leaving nor paying their porting, I wouldn't waste my time or energy trying to work something out. While it may vary for each state they will look into contacting the subsidy program and letting them know as well.  Good luck!

    0Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    @Matthew Lee   

    Please do all rental investors in California a favor.   Post the rental rules for evictions in Oakland.   Realize you’re asking how do you get them out, but the real question is how did they get in. 

    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Matthew Lee:

    Hi everyone, could use your input and help!

    I have been house hacking a duplex in Oakland the last year. Tenants moved in January 2022. First few months were fine, but some issues started coming up. They're on a subsidy program, like Section 8, that pays a portion of their rent ($2k of $2700). The tenant stopped paying their share in August. Since then, it's been a nightmare scenario. 

    The total balance for unpaid rent portion is up to $4800. The lease ends January 31st, but the tenant has already said that they will stay past that date. Since the lease is ending, it will automatically go month to month. 

    The last few months have been an endless chase of the subsidy program (Hamilton Families) and the tenants. My only contact for the program has been the lady in charge of placing the tenant, but she just refers me back to the finance person. All my calls, emails, texts to their finance team have been ignored. Any attempts to find someone else in the company end with a voicemail or email that never gets returned. Eventually, somebody from the San Francisco Cal Works program reached out and said that they will pay the outstanding tenant charges. They will discontinue support after February though. So, even if I get the $4800 back, there's still a possibility that the tenant stays and stops paying their rent, with no subsidy coming in to cover.

    My Property Manager hasn't been helpful during this process. At this point, they're recommending that I offer to PAY $2k-$4k to the tenant to get them to leave.  Obviously this is a situation I would like to avoid...
    Unfortunately, it seems like this is pretty typical for California / Oakland, and I know there are countless moratorium / laws that help protect the tenant in this situation.

    I'm overwhelmed and not sure what options I have left. Has anyone else successfully navigated situations like this in California? Any advice or recommendations are welcome. 

     I am an expert with sec 8 having done 1ks of move in and out, the simple one work answer is EVICT .

    All the best 

    2Reply
  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    3y

    You can’t just evict in California. 

    0Reply
  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    3y

    @Matthew Lee with all this brain damage, stress, anxiety, financial impact etc. I gotta ask; WHY BE AN LANDLORD IN CA ANY LONGER? 

    Seriously, why? Why deal with it? Why suffer through it? Why RISK it? Why? 

    A person can take a map of the U.S., close your eyes, throw a dart and for most part just go and landlord wherever it hit's and most likely do better with less nightmare items than CA. 

    I know this may come off as snarky but I am serious, I am genuinely curious why to continue in CA vs getting the heck out while one still can. The issues are so over the top now in CA, so extreme, so many, CA has literally made itself the #1 hardest, highest risk, most stressful REI Market in the nation. I used to do stuff in S.Cal., now you couldn't pay me enough to deal with that whole hot-mess.

    Ok, one could lol, but it's a lot, a hell of a lot of $ to deal with it. 

    This whole story here is a PERFECT example of why to get the fogazi out of CA like yesterday. Take your pick of where to redeploy your $, Midwest where eviction is a 15-30 day thing, Ohio, TN, IA, there is a looooooong list of places one can do BETTER ROI for a hell of a lot less risk, stress, heartache and headaches so, why not?

    2Reply
  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    3y

    Keep in mind, paying a tenant to leave is a last resort. It's expensive and oftentimes won't be effective. You'll want to get an attorney involved if you want to take back your rental unit quickly and cost-effectively. With the rapidly changing laws, only an experienced lawyer will know how to navigate through them and get you the best possible outcome. Don't let yourself be taken advantage of by freeloading tenants - hire a professional who can help you make sense of it all!

    [email protected]832-889-5607
    2Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    3y

    @Matthew Lee cash for keys. Today.

    0Reply
  • Ned J.Pro Member
    Investor · Manteca, CA · Member since 2017 · 1k+ posts · 2k+ votes
    3y

    You PM sucks.... hire a lawyer.... NOW..... should have done that MONTHS ago....

    0Reply
  • Jason Bowden
    Member since 2023 · 57 posts · 27 votes
    3y

    Definitely consult EBRHA - East Bay Regional Housing Authority. I just joined and attended a meeting recently, I've been pretty impressed thus far as far as their resources and knowledge. 

    1Reply
  • Matthew Lee
    OP
    New to Real Estate · Oakland, CA · Member since 2021 · 4 posts · 5 votes
    3y

    Thanks so much for all the input everyone, this is super helpful!

    This was my first property, so hindsight is 20/20. Agreed that I definitely need a new PM and should have fired them long ago. As a rookie, I had been trying to get them to take a stronger involvement in this situation for the last few months. Moving forward, I know what to look out for and how I can hold them more accountable. Similarly, I really did think house hacking would be a great way to start investing, but I underestimated the potential risks of investing in California. 

    Part of the challenge is that Oakland has recently extended its eviction moratorium (currently indefinitely). So, until the City Council reverses or modifies this, it's impossible to evict a tenant for nonpayment of rent: the City won't take on any eviction cases, and when they finally start to, there will be a backlog of other cases like mine. This has impacted the Property Manager's ability to do anything other than serve notice and continually ask when rent will be paid. They've also told me that they have other owners who are currently being sued by their tenants for harassment (over asking about the outstanding rent or trying to do anything outside the process that has been followed). 

    At this point it seems like my only option is to get a lawyer and see for myself. Appreciate all the recommendations there!

    2Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    3y
    Quote from @James Hamling:

    @Matthew Lee with all this brain damage, stress, anxiety, financial impact etc. I gotta ask; WHY BE AN LANDLORD IN CA ANY LONGER? 

    Seriously, why? Why deal with it? Why suffer through it? Why RISK it? Why? 

    A person can take a map of the U.S., close your eyes, throw a dart and for most part just go and landlord wherever it hit's and most likely do better with less nightmare items than CA. 

    I suspect you know the answer already, but I'll type it out anyway. For the same reason people invest in junk bonds, buy/write stock options, invest in highly leveraged hedge funds, invest in VC firms, etc. The return is usually much higher thanks to the higher risk. 

    Yes, CA is a pro-tenant / anti-landlord minefield of regulations. It's also an insane place to try and build new units while clueless people want to move here. For everything the government is doing to "promote more housing", it is having very little effect. Their answers to the "housing crisis" are jokes. Mom & pop landlords are getting out of the business in droves. The demand is there, but the supply isn't and won't ever be. Values and rents will continue to increase. 

    I'd like to see the list of places where I can get a better ROI with less risk.

    1Reply
  • James Hamling
    Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
    3y
    Quote from @Greg M.:
    Quote from @James Hamling:

    @Matthew Lee with all this brain damage, stress, anxiety, financial impact etc. I gotta ask; WHY BE AN LANDLORD IN CA ANY LONGER? 

    Seriously, why? Why deal with it? Why suffer through it? Why RISK it? Why? 

    A person can take a map of the U.S., close your eyes, throw a dart and for most part just go and landlord wherever it hit's and most likely do better with less nightmare items than CA. 

    I suspect you know the answer already, but I'll type it out anyway. For the same reason people invest in junk bonds, buy/write stock options, invest in highly leveraged hedge funds, invest in VC firms, etc. The return is usually much higher thanks to the higher risk. 

    Yes, CA is a pro-tenant / anti-landlord minefield of regulations. It's also an insane place to try and build new units while clueless people want to move here. For everything the government is doing to "promote more housing", it is having very little effect. Their answers to the "housing crisis" are jokes. Mom & pop landlords are getting out of the business in droves. The demand is there, but the supply isn't and won't ever be. Values and rents will continue to increase. 

    I'd like to see the list of places where I can get a better ROI with less risk.

     Great answer, seriously, I never thought of considering it like junk-bonds but your dead-on right. 

    Better ROI with less risk, right here brother, seriously. The Midwest, without doubt. And my primary market in Twin Cities. I shifted everything from S.Cal to MN Twin Cities market and only thought is why I ever thought S.Cal was anything special.

    All the metrics are better. The regulatory environment is way better. And, something I rarely hear anyone mention, the tenants are so many times better, the social dynamic is beyond measure better. In MN, most tenant feel guilt for not paying of being a "bad neighbor". It's that whole MN Nice thing I think, IDK. In IA I have outperformed CA, MN, WI, OH, IL, ND, that's all just off top of the head. 

    In CA you get a place for what, $750k and get as much as $5k in rents, maybe. That's kind of a rosy picture. In MN I can get 3+ nice places for that $750k and clear $6k - $7,500 in rents, conservatively. I have a lot of properties hitting or exceeding the 1% rule in MN, how many do that in CA? 

    I was just in Oceanside a matter of months ago and i wanted to find something that made sense, but nothing does. 

    There is a lot of places one can do better or just as well metric with a lot less risk, stress and anxiety. I rattled places I know 1st hand with experience in but many can sing the same song. 

    Grab a flight, take a few days out here, I will show you 1st hand. We have less then 2% rate for non-collection of rents, sub 1% eviction rate. Avg leases of 2/3yrs with avg tenancy of ~5yrs. Econ diversity unmatched. #1 reason for unit vacancy is tenant purchasing a home, that should tell you a lot right there. Sec8 is also viable but I also stepped away from that a time ago because I simply can. If one wants to do crazy $ just do sec8, we have a 10:1 demand/supply relationship. I have commonly seen caps in the high teens low 20's for those. 

    Point is, where is better then CA for a landlord/investor, a lot of places. 

    3Reply
  • Joe Scaparra
    Investor · Austin, TX · Member since 2013 · 680 posts · 1k+ votes
    3y

    If you can't evict for non-payment, can you evict for holdover.  Since they are month to month send them a letter that you are not renewing them next month and you need to be out in 30 days if that is what your lease says.  When they don't move out, file for eviction citing staying past their lease term instead of non-payment.

    0Reply
  • Osazee Edebiri
    Realtor · San Jose, CA · Member since 2015 · 318 posts · 154 votes
    3y

    Reading many of the responses it’s clear many don’t know how things work in Oakland.

    We may be missing details here, but I would be curious why your PM through out a specific number of 2k 4k for cash for keys. I have done cash for keys prior to when Oakland actually came out with specific amounts that you are “supposed” to offer tenants to move. All this information can be found on the city site.

    With that being said if your PM is saying you can offer them that small amount, do it! I believe most people in this chat have never done cash for keys, nor are they thinking of the time where it was regular for tenants to get 20 to 25k to move, so an investor could reposition a property.

    At the end of the day if these tenants are savvy about rent control you may have a major up hill battle. You would hire a lawyer and go through the eviction process, since they are not paying it will work, but it will likely take some time. Definitely start with seeing if they will take the money the PM stated. (And please don’t just give them the money, make sure they move and sign an agreement), you can contact the lawyer for help with this too. Then still collect all the money you can from the subsidy company and wipe your hands clean of the whole thing, chalking it up as a learning lesson. 

    Let go of your PM, you shouldn’t have a PM on a duplex that you live in one side. Maybe if you have more property aside from this one, but really still not necessary. One of the best things about House Hacking is it is super easy to mange as you start since you are right there and it’d doesn’t take that much time. 

    Someone in the early chats mentioned why would any one invest in California because of stories like these. Well it’s simple there is a lot of money in the Bay and while these stories do happen the majority of people pay their rent. Therefore finding solid tenants from the beginning is one of the keys.

    But really another strategy is just making sure you or your or whoever you higher communicates with tenants. I have seen many situations resolved with proper communication. I even had a tenant pay me 6 months past due rent, because I went to talk to him. 

    Lastly, if it is your first time house hacking you get a lot of real estate experience and education from doing it yourself. Then you learn how to manage the people you higher (your team) better because you understand more of what is necessary to operate. 


    1Reply
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