Please help with the right next step

Please help with the right next step

Member since 2023 · 17 posts · 19 votes

Hi everyone, please help!

I own a duplex, live in one unit, and rent out the unit above mine. My tenants were 12 days late (as of today) for the rent. They used to pay their rent after I reminded them in the past 4 months. This time, however, they told me that they would be late on payment after I reminded them.

In my second reminder, I asked them when exactly could they pay but didn't get an answer. Yesterday, I offered a cash for key (rent free till mid-May, and till mid-May to move out, with full security deposit refunded), but haven't heard back from them.

Another reason (probably the main reason) is because they have been using the washer dryer excessively. Sometimes doing laundry late night like past 11pm.I didn't ask them to reduce the load frequency because I know I have no right to control their lifestyle, and I wasn't experienced enough to add in my lease stating my right to remove the washer if it has been abused.

I don't know what my next step should be, according to the PA law, eviction can be initiated after 10days of late payment, with reminders being sent. But I don't want to go through that tedious steps, which also would ruin their credit. Meantime, I am lost and confused when I get no response even after I offer cash for key option.

Please help!

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Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
3y

You should consult an eviction attorney and post a 3 day's notice to vacate (check what the notice posting process is in your state). If you start the formal eviction process it will force your tenants to give you an answer.

Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
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  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    3y

    You should consult an eviction attorney and post a 3 day's notice to vacate (check what the notice posting process is in your state). If you start the formal eviction process it will force your tenants to give you an answer.

    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    3y

    Unfortunately your tenants are playing you. Don't worry about their credit instead worry about your business. Get with an attorney now and start the eviction. Do not talk to them. All the best!

  • Investor · Philadelphia, PA · Member since 2019 · 618 posts · 430 votes
    3y

    If you are in Philadelphia please utilize the Philadelphia code, not Pennsylvania. I would talk with an attorney asap who primarily handles evictions in Philadelphia. If you need recommendations try searching on the Philadelphia Landlords Connect Facebook group. To my understanding you may have more rights in Philly since you also live in the property. 

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    3y

    You need to start the eviction process pronto. And you shouldn't re-rent until you reset your business, which this is. You shouldn't be asking them what they can pay and reminding them about paying when rent is late. 

    We send a reminder e-mail about rent due dates 1-2 days before the deadline. That's it. Anyone who is late past that gets an unfriendly conversation about the status of the rent and if they want to break their lease early, pay up or be evicted. We have the advantage of fast evictions here where I am, which you may not have, but it doesn't matter. No BSing here. Tenants that smell blood will milk you for all your property is worth. 

    Skyline Properties
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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Tiffany Tan:

    I agree with the others. The fact that you approached them with an offer of cash-for-keys (a method of rewarding bad behavior, in my opinion) shows that you're operating on luck instead of skill.

    I recommend consulting an attorney to see how you can end this lease as quickly as possible. Even if they catch up on the rent this month you should still consider getting rid of them. Small problems grow into big problems when not handled quickly and efficiently.

    I would also consider looking for a good property manager that can keep you out of trouble and handle problems quickly.

    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 Book4.7248 Reviews
  • Member since 2023 · 17 posts · 19 votes
    3y

    Thank you all for the helpful input! 

  • Member since 2023 · 6 posts · 2 votes
    3y

    Good Luck Tiffany! There are a lot of protections in Philly for tenants and it can be hard to get the eviction process moving. I also have heard that the systems used to start the process are continually crashing and making it near impossible to even begin the procedures. I would think the easiest way is just pushing that cash for keys scenario and trying to get them out through conversation the way you have been is the easiest route at the moment!

    Good Luck!

  • Alan AsriantsBusiness Member
    Real Estate Agent · Philadelphia, PA · Member since 2019 · 1k+ posts · 1k+ votes
    3y

    Like others have said here - talk to a Phila attorney. Once being late is ok, twice is a maybe, 3 times and they are just pulling your tail. Time to be strict but professional and move forward with eviction. 

    Alan Asriants - New Century Real Estate 590 Reviews
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