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Marc Globensky
  • Property Manager
  • Phoenix, AZ
22
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39
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B unit Tenant filed Department of Health complaint to try and get out of lease early.

Marc Globensky
  • Property Manager
  • Phoenix, AZ
Posted

Hey all,

Thought someone would find this story helpful or entertaining at the very least. Also advice is also welcome.

A little bit of background on me my experience and the tenant. I have been managing Retail, Office, Industrial, Section 8, and SFH/MFH properties in Phoenix since 2018 and have seen some wild shhhh-tuff. The craziest thing I've seen though is in my wife's rental. I do not understand it but literally every single thing that I've dealt with in my several years of property management I have had to apply to my wife's home... Yes, we did pay 4k for an inspection prior to close and none of this stuff came up.... Here's a list that totaled to this year alone being 35K and growing worth of repairs:

1) Replaced both furnaces from tenant damages 2 times.

2) Replaced stolen AC units from previous seller stealing them.

3) Repaired duct work in multiple locations from previous owner improper installation plus wear and tear.

3) During covid I went through 3 property managers because they refused to evict a tenant that ultimately didn't pay rent for 6 months and cost us over 10k in unit turns. Part of this was why I went through 1 of the 3 property managers. They decided to make a 5X5 box for a closet in one of the bedrooms instead of knocking a wall out and closing the other sides sliding door that was originally the closet.

4) B unit panel was damaged by someone likely the tenant and has wires dangling out and now we have to replace and update it.

5) A unit didn't have the right switches and amp levels, so a panel upgrade was completed to support the newer AC system that was installed.

6) B unit flushed their childs diapers down the toilet and clogged the unit up and we ended up having to spend 6k on having a plumber come in exuviate adn reinstall a new sewer cleanout.

7) Replaced every toilet due to damages/wear and tear and had multiple roof leaks from upper unit to lower unit. 

8) Due to the leak ended up having sewage remediation company come out and rip out drywall, carpet, faming, and plumbing.

9) Due to the toilets and sewage am still currently working on replacing the carpet which was brand new due to the unit turn... 

10) The tenant in unit B cut holes in the walls of the exterior of the home and because they leave food out in their kitchen, we now have rats in our walls and a random racoon.

Now before I go on to the last major item note that most of these issues are completed and were completed in under a week. The roof leak and toilet repairs have taken quite a bit of time due to insurance company issues but was still done in under a month. The only issues still needing done are the carpet reinstall and following up on the rates and racoon to make sure they aren't back in the home. The rats and racoon issue were as simple as repatching the holes the tenant cut out for them with one-way doors and bate traps. Obviously, there are continues efforts to make sure they don't come back but 6k later the issue was told to us to have been resolved by the licensed contractor...

11) Due to the issues the tenant is experiencing with all the random repairs and constant contractor visits he wanted to break his lease. Unfortunately, the IAR lease we used doesn't have an early termination clause instead it states that should they terminate their lease they are liable for the entire lease duration. Which is over 16k, so I told them if they just gave me a move out date, I would keep their security deposit and call it even... I also informed him that any damages done to his personal belongings are to be covered by him and his insurance as that is what renters' insurance is for and is specifically referenced by an example just like this one in the renter's insurance lease addendum.  Apparently, they didn't like that and filed a complaint with the Department of Health. What they don't know is what this process typically looks like... The DOH won't come in and condemn the property or break their lease unless it's a serious issue. I've dealt with them in the past in Phoenix. What does happen though is the DOH will come in and inspect a bunch and every time they come in and inspect, they find a new bs issue to repair. The issues they gave us weren't that bad either they want us to reinstall the carpet, fix a door the tenant punched a hole through, replace their screen door or remove it, fix a couple of windows that the tenant glued shut, and replace drywall that was completed during the repairs from the toilet leaks (when the DOH inspected the property it wasn't finished yet). If anything, the tenant just pissed me off because they could have brought the issue to me or moved out. Their security deposit is 700 dollars. It's not worth all the drama. I also plan on serving a ten-day notice for all the damages he's caused now. At first, I was going to let it go, but now FUUUUUdge that. Indiana is a weird state though you can't take a tenant to eviction and get the judgement for nonpayment of rent or damages while in eviction court... You have to take them to small claims court and get a judgment. So basically, I'm going to serve him a ten-day notice for the damages for repayment and if he doesn't repair, I'm going to take him to small claims court. either that or he forfeits his security deposit and move tf out.

Also his lease stipulates specifically that the windows are supposed to be able to open and if glued shut or otherwise damaged he is required to pay for the repairs. 

My wife and I have gone above and beyond for this tenant on the repairs and have handled waaaaayyyy more maintenance requests then what's listed here too. I understand his perspective, but he signed a contract. 

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Mo Karim
  • Real Estate Agent
  • Dallas, TX
80
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Mo Karim
  • Real Estate Agent
  • Dallas, TX
Replied

@Marc Globensky Did you consider cash for keys? It sucks but it might be cheaper and less of a headache.

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Marc Globensky
  • Property Manager
  • Phoenix, AZ
22
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39
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Marc Globensky
  • Property Manager
  • Phoenix, AZ
Replied
Quote from @Mo Karim:

@Marc Globensky Did you consider cash for keys?


 Yeah Why would I pay tenant in causing damage to my property money to leave. I'll win in court.

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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
Replied
Quote from @Marc Globensky:

Yes, we did pay 4k for an inspection prior to close and none of this stuff came up.... Here's a list that totaled to this year alone being 35K and growing worth of repairs:

1) Replaced both furnaces from tenant damages 2 times.  WHAT kind of damage? Very hard to believe.

2) Replaced stolen AC units from previous seller stealing them. If the seller stole them, did you make police report, or otherwise hold them accountable? Were they removed prior to closing, or after? If after, your insurance should have covered.

3) Repaired duct work in multiple locations from previous owner improper installation plus wear and tear. What, exactly, is "wear and tear" on ductwork?

3) During covid I went through 3 property managers because they refused to evict a tenant that ultimately didn't pay rent for 6 months and cost us over 10k in unit turns. It looks like Phoenix had an eviction moratorium during the covid period. Is that why they "refused" to evict? 

Part of this was why I went through 1 of the 3 property managers. They decided to make a 5X5 box for a closet in one of the bedrooms instead of knocking a wall out and closing the other sides sliding door that was originally the closet. Were these "improvements" not discussed with you prior to execution? If not, I would not have paid for them...but what does your Management Agreement state about repairs and improvements?

4) B unit panel was damaged by someone likely the tenant and has wires dangling out and now we have to replace and update it. "likely the Tenant", based on what? Wires "dangling out" should have been pretty apparent during any inspection. If you are being required to replace it, then clearly it was improperly rated and/or there are multiple other issues that are not repairable. This does not happen overnight...it should have been discovered during your due diligence and inspections.

5) A unit didn't have the right switches and amp levels, so a panel upgrade was completed to support the newer AC system that was installed. With #4 above, sounds like an upgrade was necessary, has nothing to do with Tenant, everything to do with a proper inspection prior to purchase.

6) B unit flushed their childs diapers down the toilet and clogged the unit up and we ended up having to spend 6k on having a plumber come in exuviate adn reinstall a new sewer cleanout. Highly suspicious and excessive charge. There must be more to the story. Did you have a camera run through the line prior to excavating? Where was the cleanout installed, and how far is that from city main connection?

7) Replaced every toilet due to damages/wear and tear and had multiple roof leaks from upper unit to lower unit. I think you are confusing normal aging with "wear and tear". Old toilets need to be replaced, and should have been obvious at inspection. They also commonly start leaking at the wax ring, and show up as leaks to the ceiling below. (I am assuming you meant ceiling leak in lower unit, NOT actual roof leak from above the upper unit, leaking all the way to lower unit, since you were speaking about toilet issues.)

8) Due to the leak ended up having sewage remediation company come out and rip out drywall, carpet, faming, and plumbing. Yes, that is a "blank check" situation and very costly. Your insurance should have covered if it was worth making the claim.

9) Due to the toilets and sewage am still currently working on replacing the carpet which was brand new due to the unit turn... Who handled the turn? They should have noted the condition of the toilet(s), performed proper maintenance or replacement, and avoided a LOT of damage and headache.

10) The tenant in unit B cut holes in the walls of the exterior of the home WHY? And why would you not immediately initiate non-renewal/eviction for doing so?

and because they leave food out in their kitchen, we now have rats in our walls and a random racoon. Pigs. Why would you not immediately initiate non-renewal/eviction for doing so?

The rats and racoon issue were as simple as repatching the holes the tenant cut out for them with one-way doors and bate traps. Obviously, there are continues efforts to make sure they don't come back but 6k later the issue was told to us to have been resolved by the licensed contractor... 6K for what work? Repairing the holes? Crazy high cost if so.

11) Due to the issues the tenant is experiencing with all the random repairs and constant contractor visits he wanted to break his lease. Unfortunately, the IAR lease we used doesn't have an early termination clause instead it states that should they terminate their lease they are liable for the entire lease duration. Which is over 16k, so I told them if they just gave me a move out date, I would keep their security deposit and call it even... I also informed him that any damages done to his personal belongings are to be covered by him and his insurance as that is what renters' insurance is for and is specifically referenced by an example just like this one in the renter's insurance lease addendum.  You are a glutton for punishment...I can't wait to hear how much more they cost you to actually get rentable again.

Apparently, they didn't like that and filed a complaint with the Department of Health. What they don't know is what this process typically looks like... The DOH won't come in and condemn the property or break their lease unless it's a serious issue. I've dealt with them in the past in Phoenix. What does happen though is the DOH will come in and inspect a bunch and every time they come in and inspect, they find a new bs issue to repair. The issues they gave us weren't that bad either they want us to reinstall the carpet, fix a door the tenant punched a hole through, replace their screen door or remove it, fix a couple of windows that the tenant glued shut, and replace drywall that was completed during the repairs from the toilet leaks (when the DOH inspected the property it wasn't finished yet). Does not sound like a BS list.

If anything, the tenant just pissed me off because they could have brought the issue to me or moved out. Their security deposit is 700 dollars. It's not worth all the drama. I also plan on serving a ten-day notice for all the damages he's caused now. At first, I was going to let it go, but now FUUUUUdge that. Indiana is a weird state though you can't take a tenant to eviction and get the judgement for nonpayment of rent or damages while in eviction court... You have to take them to small claims court and get a judgment. So basically, I'm going to serve him a ten-day notice for the damages for repayment and if he doesn't repair, I'm going to take him to small claims court. either that or he forfeits his security deposit and move tf out. 

Also his lease stipulates specifically that the windows are supposed to be able to open and if glued shut or otherwise damaged he is required to pay for the repairs. Curious, were they glued shut to keep the bugs out, or the outside air? Or was this a "security" measure? 

My wife and I have gone above and beyond for this tenant on the repairs and have handled waaaaayyyy more maintenance requests then what's listed here too. I understand his perspective, but he signed a contract. And as a LL, you are required to provide a unit that meets minimum habitability standards per local laws. It does not sound like that is the case. You need to greatly improve either your rental preps, or your Tenant screening, or both to avoid a repeat of this. Invoke the "happy" clause early, instead of dealing with ongoing aggravation. There are far more Good Tenants, than Bad, but to attract the Good ones, you need to have a quality product for the Tenant pool you are targeting. This means functional, secure, clean, and hazard free.

I would also take a closer look at your choice of vendors, as some may be unnecessarily be upselling you, or just overcharging. I'd be curious to see a link to the report for the 4K inspection, too.

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Marc Globensky
  • Property Manager
  • Phoenix, AZ
22
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39
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Marc Globensky
  • Property Manager
  • Phoenix, AZ
Replied

Yes, we did pay 4k for an inspection prior to close and none of this stuff came up.... Here's a list that totaled to this year alone being 35K and growing worth of repairs:

1) Replaced both furnaces from tenant damages 2 times. WHAT kind of damage? Very hard to believe. Our pm took pictures and inspections with documentation of all mechanical equipment prior to move in and the hvac contractor provided us with detailed proof and documentation that the tenant had clearly damaged the furnaces.

2) Replaced stolen AC units from previous seller stealing them. If the seller stole them, did you make police report, or otherwise hold them accountable? Were they removed prior to closing, or after? If after, your insurance should have covered. It occurred after the sell and luckily our insurance covered it still doesn't negate the time and headache plus deductible to cover this repair.

3) Repaired duct work in multiple locations from previous owner improper installation plus wear and tear. What, exactly, is "wear and tear" on ductwork? Old age and improper use of hvac system without filters. the tenant failed to replace the filters and notify us of the deficiency. Additionally, the tenant started a fire with the furnace and burnt a portion of the duct.

3) During covid I went through 3 property managers because they refused to evict a tenant that ultimately didn't pay rent for 6 months and cost us over 10k in unit turns. It looks like Phoenix had an eviction moratorium during the covid period. Is that why they "refused" to evict? No all states had an eviction moratorium up until August 2022 when it was found unconstitutional. It's also important to note that the moratorium didn't negate a tenant's obligation from rent it simply stated they were required to make up their missed rents in the form of a promise to pay agreement and if the tenant failed to make partial payments to rent the landlord held the right to contest the court's decision and evict the tenant. the moratorium also required a 30 day nonpayment notice as opposed to the 10 day requirement in Indiana (which by the way isn't required if your lease states otherwise. You can evict a tenant on the 2nd of the month if they miss payment.). The PM served 30 day notices 4 months in a row and failed to contest the tenants lack of partial payment. Additionally, the tenant never provided a moratorium notice to the landlord which was a requirement to exempt from eviction. the Tenant was also deemed ineligible for rental payment assistance by the state gov because it was clear they "simply didn't feel like paying rent". or at least that's what the city official put verbatim in their report for declining the request. 

Part of this was why I went through 1 of the 3 property managers. They decided to make a 5X5 box for a closet in one of the bedrooms instead of knocking a wall out and closing the other sides sliding door that was originally the closet. Were these "improvements" not discussed with you prior to execution? If not, I would not have paid for them...but what does your Management Agreement state about repairs and improvements? the management agreement stated work over a curtain dollar amount of 500.00 in repairs was to be approved by the landlord. we did not approve the repair and were threatened with court if we didn't pay them for the labor. in fact, I wrote them an email and specifically told them 

4) B unit panel was damaged by someone likely the tenant and has wires dangling out and now we have to replace and update it. "likely the Tenant", based on what? Wires "dangling out" should have been pretty apparent during any inspection. If you are being required to replace it, then clearly it was improperly rated and/or there are multiple other issues that are not repairable. This does not happen overnight...it should have been discovered during your due diligence and inspections. Correct this is why the electrician informed us the tenant had caused the damages. prior to purchasing the property we paid for an fha approved inspection and the panel was document and reviewed by us, the realtor, a gc, and the pm and no deficiencies, wires, or issues were noted at the time of purchase otherwise we wouldn't have been able to purchase the property as i'm sure your aware on FHA loans, you cannot purchase a home with code violations with and fha loan. it was also personally inspected by me before the tenant moved in and it wasn't like that when I looked at it in September of 2022, which was 5 days before the tenant moved in, which leaves only one party to have altered it... the tenant.

5) A unit didn't have the right switches and amp levels, so a panel upgrade was completed to support the newer AC system that was installed. With #4 above, sounds like an upgrade was necessary, has nothing to do with Tenant, everything to do with a proper inspection prior to purchase. wasn't blaming the tenant on this one I agree it needed to be done just simply complaining... Unit A was an older panel compared to unit B as unit B was an addition to the home.

6) B unit flushed their childs diapers down the toilet and clogged the unit up and we ended up having to spend 6k on having a plumber come in exuviate and reinstall a new sewer cleanout. Highly suspicious and excessive charge. There must be more to the story. Did you have a camera run through the line prior to excavating? Where was the cleanout installed, and how far is that from city main connection? the cost was high simply due to the fact that the plumber rented a tractor did the work overnight and then pulled the permits. We rushed to get this completed because the two units share the same city hookup, and we didn't want to affect another tenant because one tenant thought it a great idea to clog their toilet with diapers. monster homes suck. Additionally, the sewer cleanout was damaged and needed to be replaced regardless we just didn't know until they caused the reason to need it. 

7) Replaced every toilet due to damages/wear and tear and had multiple roof leaks from upper unit to lower unit. I think you are confusing normal aging with "wear and tear". Old toilets need to be replaced, and should have been obvious at inspection. They also commonly start leaking at the wax ring, and show up as leaks to the ceiling below. (I am assuming you meant ceiling leak in lower unit, NOT actual roof leak from above the upper unit, leaking all the way to lower unit, since you were speaking about toilet issues.) Unfortunately, these toilets were only 3 years old as evidence from previous owners receipts for replacement. and yes wax seals do deteriorate however I did mean wear and tear. it was evident that damage was caused by someone. toilets don't get old in 3 years unless they're damaged. at least in my experience. and no I meant the toilet in the upstairs until leaked into the lower unit because the lower unit ripped out the drywall and broke a pipe thus causing more damages to the piping.

8) Due to the leak ended up having sewage remediation company come out and rip out drywall, carpet, faming, and plumbing. Yes, that is a "blank check" situation and very costly. Your insurance should have covered if it was worth making the claim. luckily, they did still doesn't negate the increase in deductible and 1000 deductible made out to the contractor. also complaining about this to its not always about money sometimes its about the time and energy invested that make it difficult. it's also important to note the insurance company would only pay for the repairs to get it put together not the bill to replace the damaged piping or toilet leaking. so we paid to have ripped up and replaced the plumbing while the insurance company paid for the carpet remediation and drywall damages. still came out of pocket for roughly 50% of the total cost.

9) Due to the toilets and sewage am still currently working on replacing the carpet which was brand new due to the unit turn... Who handled the turn? They should have noted the condition of the toilet(s), performed proper maintenance or replacement, and avoided a LOT of damage and headache. the previous pm which is why they were fired. 

10) The tenant in unit B cut holes in the walls of the exterior of the home WHY? And why would you not immediately initiate non-renewal/eviction for doing so? we are dealing with all this stuff now. you cant expect to go to court without evidence. we just obtained pictures and proof yesterday from the pest control vendor from when the vendor caught them recutting the holes. we served them the notice this morning.

and because they leave food out in their kitchen, we now have rats in our walls and a random racoon. Pigs. Why would you not immediately initiate non-renewal/eviction for doing so? yuppers

The rats and racoon issue were as simple as repatching the holes the tenant cut out for them with one-way doors and bate traps. Obviously, there are continues efforts to make sure they don't come back but 6k later the issue was told to us to have been resolved by the licensed contractor... 6K for what work? Repairing the holes? Crazy high cost if so. Yeah thats what had me flabber gasted too. we obtained four quotes and all were in line and damn near the same thing. the cost to remedy this issue stemmed from the amount of holes and rates and the racoon plus baiting. additionally, 50% of the cost is continuous visits to the site for continuous remediation needed to ensure they don't come back.

11) Due to the issues the tenant is experiencing with all the random repairs and constant contractor visits he wanted to break his lease. Unfortunately, the IAR lease we used doesn't have an early termination clause instead it states that should they terminate their lease they are liable for the entire lease duration. Which is over 16k, so I told them if they just gave me a move out date, I would keep their security deposit and call it even... I also informed him that any damages done to his personal belongings are to be covered by him and his insurance as that is what renters' insurance is for and is specifically referenced by an example just like this one in the renter's insurance lease addendum. You are a glutton for punishment...I can't wait to hear how much more they cost you to actually get rentable again. ill let you know.

Apparently, they didn't like that and filed a complaint with the Department of Health. What they don't know is what this process typically looks like... The DOH won't come in and condemn the property or break their lease unless it's a serious issue. I've dealt with them in the past in Phoenix. What does happen though is the DOH will come in and inspect a bunch and every time they come in and inspect, they find a new bs issue to repair. The issues they gave us weren't that bad either they want us to reinstall the carpet, fix a door the tenant punched a hole through, replace their screen door or remove it, fix a couple of windows that the tenant glued shut, and replace drywall that was completed during the repairs from the toilet leaks (when the DOH inspected the property it wasn't finished yet). Does not sound like a BS list. Sorry I forgot the panel and rats but those have already been dealt with... but yeah it is bs I have a feeling the tenant called to complain about how long the insurance CO was taking to get the massive issues repaired and the fact that they had numerus problems the tenant caused and decided to blame us the landlords in an attempt to break their lease. the DOH is just doing their job I will tell you though we got on the phone with them this morning and they gave us 22 days to fix a rat infestation and the other issues and asked that we replace all of the windows the tenant damaged. the DOH was pretty rude when we asked for a reasonable extension to remedy the issue. makes me think this is going to be a pain in the butt.

If anything, the tenant just pissed me off because they could have brought the issue to me or moved out. Their security deposit is 700 dollars. It's not worth all the drama. I also plan on serving a ten-day notice for all the damages he's caused now. At first, I was going to let it go, but now FUUUUUdge that. Indiana is a weird state though you can't take a tenant to eviction and get the judgement for nonpayment of rent or damages while in eviction court... You have to take them to small claims court and get a judgment. So basically, I'm going to serve him a ten-day notice for the damages for repayment and if he doesn't repair, I'm going to take him to small claims court. either that or he forfeits his security deposit and move tf out.

Also his lease stipulates specifically that the windows are supposed to be able to open and if glued shut or otherwise damaged he is required to pay for the repairs. Curious, were they glued shut to keep the bugs out, or the outside air? Or was this a "security" measure? bugs its a nice neighborhood.

My wife and I have gone above and beyond for this tenant on the repairs and have handled waaaaayyyy more maintenance requests then what's listed here too. I understand his perspective, but he signed a contract. And as a LL, you are required to provide a unit that meets minimum habitability standards per local laws. It does not sound like that is the case. You need to greatly improve either your rental preps, or your Tenant screening, or both to avoid a repeat of this. Invoke the "happy" clause early, instead of dealing with ongoing aggravation. There are far more Good Tenants, than Bad, but to attract the Good ones, you need to have a quality product for the Tenant pool you are targeting. This means functional, secure, clean, and hazard free.

I would also take a closer look at your choice of vendors, as some may be unnecessarily be upselling you, or just overcharging. I'd be curious to see a link to the report for the 4K inspection, too. the biggest reason is we use name brand vendors such as pertemen brothers because of their reputation. they are known to be on the more expensive side but we switched to them on purpose when I saw a pattern with the tenants activity and communication style I thought it best to pay the premium for proper craftsmanship and reputation rather than deal with legal back lash should that come. we are getting ready to onboard a pm because I will be likely deploying in 18 days and wont be able to attend to this issue over seas.

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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
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Richard F.#1 Tenant Screening Contributor
  • Property Manager
  • Honolulu, HI
Replied

Wow, sounds like your Tenant is Bat-S..t crazy.

I do still question some of the repair costs however, but obviously I don't know the local market or demand for vendors. My point about the sewer line...how did they try to clear it before digging? Should have been able to cable through a few diapers with a decent 3/4" cable and a proper cutter head. If they ran a camera first and observed a broken, bellied, or root filled section, then I would be digging, but not before.

What were the specific issues with the three year old toilets? I mean, they certainly CAN get incredibly stained in that time, but are also certainly cleanable...by someone! The flush and fill valves are simple and cheap enough to replace. If the tank to bowl gasket was improperly installed, or the tank was not properly secured, you could see cracks of the tank, but very unusual for that new of a toilet. Unless your Tenant(s) are 350+ lbs. each. Wax ring leaks should have been caught, they usually take a long time to do the damage it seems you had. Unless some genius caulked around the toilet base so it could NOT show up on the floor very early in the process.

Sounds like at least your first PM was incompetent or lazy. It is very important to find VERY experienced PM's. Handling a dozen units for a few years does not qualify someone...they should have well over 100 units under management, AND a PM dedicated to PM work, NOT chasing Sales commissions full time, and handling PM when there is nothing more urgent. They should also have reliable, responsible, and reasonable (not cheap!) licensed and insured contractors to handle repairs as required per local law. Handy persons can be fine, IF properly insured, but usuallyare limited by dollar amount or specific types of work absolutely requiring licensing. Also, if your contractors are geared toward "retail", dealing direct with homeowners for additions, kitchens, baths, etc. they will usually be higher priced than those that are more oriented specifically to PM/LL's and less "flashy" finishes or bleeding edge products and materials.

Good luck finding a quality PM in your short time remaining Stateside...and Mahalo for your service.

Bugs...I hate bugs. I had two units that failed at their housekeeping through covid, I will NEVER understand how people can live in that situation...those suckers will crawl into any opening they find, and the warmer and more damp, the better!

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Nathan Gesner
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Agent
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  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
Property Manager
Agent
Pro Member
  • Real Estate Broker
  • Cody, WY
ModeratorReplied

This sounds like a D-class property. I have D-class properties that don't have 1/4 these problems.

It honestly sounds like you may want to consider selling and investing in a better property in a better neighborhood that attracts quality renters.

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Theresa Harris
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Theresa Harris
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Replied

A lot of that stuff your PM should have charged to the tenant (flushing diapers down the toilet), second replacement of the furnace and if the seller took the AC units-you should have gone after them.

Unit B tenant should have never had their lease renewed.  Is the house in an area that attracts low quality tenants or did your PM do a crappy job screening?

And $4K for a home inspection-wow.  Is that what they really cost in the US?

  • Theresa Harris
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    Michael Smythe
    Property Manager
    #4 Off Topic Contributor
    • Property Manager
    • Metro Detroit
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    Michael Smythe
    Property Manager
    #4 Off Topic Contributor
    • Property Manager
    • Metro Detroit
    Replied

    Why don't you evict this tenant and pursue for all the damages?

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    Mickey Petersen
    Pro Member
    • Investor
    • Long Beach, CA
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    Mickey Petersen
    Pro Member
    • Investor
    • Long Beach, CA
    Replied

    Im dealing with the same type of thing. I just acquired a new property. 3 of 4 units took the cash for keys offer to leave so we could renovate. The 4th is not having it. His unit needs a full renovation. 15 years of landlord neglect and tenant created problems that I have inherited.

    The tenant decided to try and make it hard for me and called the health department. And of course they gave me a list of repairs. I will do the repairs as cheaply and most basic possible in order to satisfy them. 

    We are currently in the process of eviction because they also stopped paying lol. Hopefully that part goes quickly.

  • Mickey Petersen
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    Christen G.
    • Rental Property Investor
    • Seattle, WA
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    Christen G.
    • Rental Property Investor
    • Seattle, WA
    Replied

    I'm so confused by all of this. Is this a trailer home? They CUT HOLES in the exterior of the home, put diapers in the TOILET and you didnt evict them?

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    Marc Globensky
    • Property Manager
    • Phoenix, AZ
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    Marc Globensky
    • Property Manager
    • Phoenix, AZ
    Replied

    Hey all here's an update about a month or so later. We were self managing before as property management is what I do in az. We were able to on board a new pm city place Indianapolis realty. We had to due to my army deployment.... Currently overseas... Sigh..... Long story short our pm has been working to train this tenant and take care of the issues. We just paid to have 8 windows replaced for 2400$ and about 4k in these repairs in my experience these ended up costing way less then thought... Of course because the city is involved. They came back and did a second inspection. One of the windows still under warranty wasn't installed correctly so that'll get covered bc it's under a month since they finished the install. We evicted the tenant that damaged our property and took them to court for 10k in lost revenue and damages so they'll never be able to live a good life... And the inspector also said that one of the walls needs to be replaced from water damage. Apparently my pm wasn't tracking the repair so that has to get redone I've I have informed them I want a deduction from the cost because of what was already paid. So I'm expecting to roll into next year with no more problems and healthy tenants. Expecting next year to be a fat cash flow year with all the capex invested from last two years

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    Marc Globensky
    • Property Manager
    • Phoenix, AZ
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    Marc Globensky
    • Property Manager
    • Phoenix, AZ
    Replied
    Quote from @Theresa Harris:

    A lot of that stuff your PM should have charged to the tenant (flushing diapers down the toilet), second replacement of the furnace and if the seller took the AC units-you should have gone after them.

    Unit B tenant should have never had their lease renewed.  Is the house in an area that attracts low quality tenants or did your PM do a crappy job screening?

    And $4K for a home inspection-wow.  Is that what they really cost in the US?


     No I put the current tenants in and they met 3x income 680+ credit and low credit utilization. Unfortunately not everyone is as they seem on paper nowadays also they came into some bad luck and we worked with them on payment plans. Apparently the guy lost his job and was in a wreck. The other issues were inherited.

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    Michael Smythe
    Property Manager
    #4 Off Topic Contributor
    • Property Manager
    • Metro Detroit
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    Michael Smythe
    Property Manager
    #4 Off Topic Contributor
    • Property Manager
    • Metro Detroit
    Replied

    Lessons learned,, unfortunately the hard way:(

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    Jaron Walling
    Pro Member
    • Rental Property Investor
    • Indianapolis, IN
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    Jaron Walling
    Pro Member
    • Rental Property Investor
    • Indianapolis, IN
    Replied
    Quote from @Marc Globensky:
    Quote from @Mo Karim:

    @Marc Globensky Did you consider cash for keys?


     Yeah Why would I pay tenant in causing damage to my property money to leave. I'll win in court.


     Nobody wins in court but the lawyers. 

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    Tim J.
    • Investor
    • Vermont and New York
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    Tim J.
    • Investor
    • Vermont and New York
    Replied
    Quote from @Marc Globensky:
    Quote from @Mo Karim:

    @Marc Globensky Did you consider cash for keys?


     Yeah Why would I pay tenant in causing damage to my property money to leave. I'll win in court.


    Um, you asked for advice here.  And you mocked one of the best pieces of advice regarding evictions.  

    I am going to guess that you have not been a landlord long and have little experience.  Additionally it sounds like you have little to no experience with evictions.



    - "Cash for Keys" is usually a much better course of action (cheaper and less stressful and less time intensive than going through an eviction).  You get the person out sooner.  You have less risk of damage to your unit.  Even if you "win" in court you may not collect any money from a judgement.  

    - Evictions take time.  That is a precious commodity. 

    I could go on...

    Good luck.  Screen your tenants better.  

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    Scott Mac
    • Austin, TX
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    Scott Mac
    • Austin, TX
    Replied
    Quote from @Marc Globensky:


    Also his lease stipulates specifically that the windows are supposed to be able to open and if glued shut or otherwise damaged he is required to pay for the repairs. 


    You have had a renter GLUE windows shut (???)

    That's a new one on me.

    I've seen them painted so they won't open, but glue (???)