#2 Questions About BiggerPockets & Official Site Announcements Contributor
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Landlording ain't always fun... (photos of the FIRE included)
#2 Questions About BiggerPockets & Official Site Announcements Contributor
- Investor
- Maui, HI
So, this post is NOT meant to scare you, newbies. But... this is gonna freak you out :)
This tenant is in the process of being evicted. To make matters worse, he lit his kitchen on fire; accidentally, supposedly. Anyway... this is what I'm dealing with these days. This is the rental I've had the longest. Same tenant for 8 years, suddenly stopped paying and turned into satan.
Below are the "Before" and "After" photos. You'll know which is which...
#ThisIsWhyWeScreenTenants #ThisIsWhyWeHaveInsurance
I'll be writing a LONG post on this when it's all resolved. In the meantime... enjoy!
And here's today's photoshoot:
Sorry to see this, Brandon. I know you got your "stuff together" so you'll be alright. As for your tenant, if it's an accident, then it's an accident, but if it was intentional, may it come back on them 100x over!
Wow, what a mess! Best of luck getting everything straightened out.
So sorry that happened to you
First off, I take it that everyone is(hopefully) fine, physically anyway as the whole ordeal has to be very stressful and weighing heavy on the mind. There were no casualties. Thank God for that.
This is a pretty close replica of the first investment property that I set foot in years back just getting my bird-dogging newb-feet wet in this industry. It was located on a nice little cul de sac near Aston Pa. recommended to me by an agent The exterior wasn't too bad so I wasn't expecting this amount of damage inside at all.
Sorry for your troubles Brandon. Hopefully it blows over shortly.
Kudos,
Mary
So sorry Brandon! What a mess. I always try to find a "silver lining" to every cloud that appears - this was a big cloud! Now you get your house remodeled for free minus your deductible. I would continue with the eviction so he doesn't come back after it is redone!
Wow, wild. Thanks for the precautionary tale.
@Joel Owens isn't this what setting aside 10% for vacancy is for? Assuming $500 / mo rent and using the 8 years of zero vacancy as told in the story, @Brandon Turner should theoretically have $4800 ready and waiting. That gives him 9 1/2 months to rehab and fill the unit before seeing a drop in income from his projections.
I understand that in reality that money will probably have been put to work somewhere better than a fat pile of cash in a savings account. It certainly would be burning a hole in my pocket. But considering that Brandon is the master of investing with no (and low) money down, perhaps he has kept funds accessible for reasons like this. I'm interested to hear what BP users think that the best practice is.
As long as no one was hurt, the rest can be repaired.
Has the fire marshall identified the cause yet? If it does turn out to be arson, will that impact your insurance?
A property behind one of ours suffered a similar fate early in the spring, it turned out the tenant was cooking shatter when things exploded.
@Brandon Turner that's sad, but fortunately there is insurance.
Recently a friend's apartment house (he's a renter) was PURPOSEFULLY set on fire by another tenant who had mental health problems. Luckily everyone got out alive. Unfortunately not everyone had renter's insurance.
I don't know if screening can help with mental diseases, that at the time of screening are controlled with meds.
You had maybe 7 good years. Your tenant can't live there. Now you can decide to start anew (demolish, sell the land, buy a new property and use the losses for taxes) or or rebuild. See part of this as a gift.
Originally posted by @Roy N.:
As long as no one was hurt, the rest can be repaired.
Has the fire marshall identified the cause yet? If it does turn out to be arson, will that impact your insurance?
A property behind one of ours suffered a similar fate early in the spring, it turned out the tenant was cooking shatter when things exploded.
You touched upon what my first thought was. If it's determined to be arson, is that problematic for insurance purposes? Like not covered maybe.
BTW, what is shatter? Meth?
Originally posted by @Dana Whicker:You touched upon what my first thought was. If it's determined to be arson, is that problematic for insurance purposes? Like not covered maybe.
BTW, what is shatter? Meth?
Dana:
If you know how maple syrup and maple butter/brittle is made - the sap is reduced until it becomes a syrup or paste/solid - then you have the basic idea of how shatter (or a similar product called 'Wax') is made.
Now substitute hash oil for the maple sap and reduce it into a thick syrup. You then infuse it with a solvent and cook it down further (this is where things can go boom). In the end, a solid is precipitated which is 80%+ pure THC.
Sorry hear about the poor tenants and fire house. Hope this gets resolved quick!
I'm going through some similar headache. I have some pictures that just as bad :( . Hit me up if you need some tip on how to deal with insurance company.
OMG!!!! What a FN mess!!!! I'm sure you don't need that right now...
Shocking and sad!
Hopefully things will go smoothly and thank God no one got hurt.
Do keep us posted, if you can.
@Brandon Turner Did you mandate renter's insurance for those tenants? If so, I would like to know more about if they will pay for the damage. I am told it is possible, but haven't seen it attempted before.
Oh NOOOO - someone burned the WALDO!!!!
Dude - that just stinks. I am sorry, Brandon. Just remember - you always have a shoulder to cry on in Lima!
Sorry to see this mate. Good friend of mine and I refer to these as "Stupid tenant tricks."
It is good to hear that nobody was hurt and that you seem to be in the best spirit you can be in a situation like this. Good luck with moving forward.
Somebody else asked about renter's insurance. I pseudo require it. By that, I mean, I charge rent at one rate, and offer a discount for those who get renter's insurance. Since it is cheaper with the "discount" they tend to get renter's insurance.
-todd
This is terrible. I have never heard of a tenant causing such a damage. Hope it was an accident?!!. SO sorry. I hope everything works out with the insurance company.
Sorry to hear this @Brandon Turner.
Rental properties will sooner or later have problems. An experienced landlord told me one time:
"If you never had an eviction, you don't have enough rental properties yet."
So, I would extrapolate this by saying:
"If you never had a fireburnt rental, you don't have enough rental properties yet."
"If you never had a tenant sue you, you don't have enough rental properties yet."
"If you never had a pipe burst in your rental, you don't have enough rental properties yet."
Problems arise with rentals. This is why it's crucial to get good insurance and keep ample of cash in reserves. Ordinary landlords quit when problems arise. Smart and tough landlords don't quit - they tough it out. I'm sure you'll tough this one out!
Wow! What happened? Tenant's meth lab blow up?
That is amazing in a terrible way. Like previous post, will be rechecking my insurance. Eight years...... I hope what they say about Karma is true!
#2 Insurance Contributor
- Insurance Agent
- Nationwide
@Roy N. @Dana Whicker Arson is covered as long as it is not the owner of the property who started it:) "Intentional Acts" is an exclusion on all insurance policies.
@Bryan O. If the insurance company can prove the tenant was at fault, then they can seek reimbursement from the tenants renters policy.
lol, at first I thought you took pictures of the fire while it was happening - bad idea! Worst tenant ever, are you going to sue or take any further actions against him?
Scares me to think of that happening in a multifamily property where its not just one tenant causing problems for themselves... This is where good insurance pays off!
oh man! @Darren Sager mentioned that but i didn't even think it would be that bad. :( Im really sorry that happened. I hope things turn out at least somewhat ok for you after all is said and done.