Another reason you should have a property manager

[Brandon M.]

backstory: bought a house in Charlotte, NC with 100% financing back in 2006, lived in it for 3+ years, became rental after that. No equity so can't sell. Property became vacant a few months ago, I now live in Clearwater, FL, have managed it myself from afar. 

Between my partner and I we manage more than 150 properties so I figured I could just manage another one from far away. I can do my own background check and lease and online rent collection. I had my parents post a for rent sign and I fielded all the calls. Found someone who wanted it, he met them at the house to give deposit to hold the house. Still didn't have lease in place. While there he asked to have access early so he could paint, someone could just meet him later that day to lock behind him. He was a nice guy and my parents didn't know any better, and didn't ask me, just told me after the fact. 

Long story short finally got lease, took forever to get money to start rent. I'm in town for the holiday and plan on meeting him there to get fully paid and give him the keys. When I get there he hands me keys and tells me he has already changed the locks, yesterday so he says. No one gave him a key, turns out he used a universal garage door opener when he painted to give himself access before the lease was ever signed. That was a month ago! I was astonished but didn't mention it in person yesterday, I'm not confrontational and he is much bigger than me. Basically he has had access for the last month even though I never permitted it and he didn't fully pay until last week. 

What do I do now? (Besides never let my parents act as my PM again). I don't want to evict, costs money plus missed rent. I barely break even if that ($850 PITI payment, $80 quarterly HOA, $1000 rent). He has been very elusive and slow at responding and has already lied about rent check being mailed when it really wasn't. Do you just rip him a new one over the phone and then go with ZERO tolerance from here on out? No leniency on late payments and threaten eviction if payment is even one day late?

Let this be a lesson to all of you who try to manage property from out of state, you might save money on the front end but risk headaches and losses and costs on the back end. 

Would love to hear some opinions on what to do from here. 

[Lynn McGeein]

Just wanted to add that while I understand you are venting your anger on here, you need to be extremely professional in dealing with this tenant.  The "rip him a new one over the phone" statement will likely not work and also may get you in more trouble.  If you manage more than 150 properties with your partner, you likely have good systems in place already to handle trouble tenants -- proper notices, attorney, etc.  I believe your emotions are in the way here as anger and fear of an eviction is not the way to handle it.  I'd keep it all in writing, pay or quit, timely filings if necessary, strictly follow lease terms and landlord tenant rules and don't let tenant see anger in any of it or he'll use it against you.    He might shape up and pay timely and follow the rules once he knows you will follow proper procedures and expect the same from him.  If not, it's better that he goes.  It is an unfortunate situation, but don't let your fear of eviction and lost rents allow you to lose your common sense business practices or you could lose even more in the long run.