Am I the mean landlord?

Am I the mean landlord?

Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes

First situation: Apartment was advertised at $1400 for a 2 bed/1 bath house. Prospective tenants had 2 pets and we agreed to increase rent to $1430 (15/pet). Lease was written up with the 2 pets allowed and the rent set at $1430. Fast forward a few months. Tenants are a little sloppy but no problems and they pay on time. Tenants gave one of the pets away to a friend and want to reduce the rent by $15. I decline, saying changes to the lease can be discussed at renewal time.

2nd situation: Same tenants/house. One is out of town for the Thanksgiving holiday. The other locks herself out. I come by to open up and charge the lock out fee ($25, as set in the lease).

Am I the mean landlord? My parents would probably be telling me to waive the $15/month and not to charge for opening up. They would advise this on the grounds that I'm more likely to keep the tenants long term. Many on BP who hold firm on the "run it like a business" mentality will tell me I'm doing it right.

I'm looking for the overall consensus here. What do you think? 

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Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
10y

You charge a $25 lock out fee and are willing to go to the house yourself for that? I believe it specifies $100 in my lease. I am not sure because in 12 years of leasing 12 houses this has never happened to my tenants. I would not even consider going to the house to unlock it if the tenant locked themselves out. I would give them the phone number for my locksmith who has the codes for all my keys. The locksmith would charge about $100. If the tenant didn't pay him directly I would pay him bill the tenants for the service. If they locked themselves out after hours or on a holiday they can check into a motel until the locksmith can get there or their partner comes back with the key. I am a landlord not a babysitter.

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  • Investor · Cedar Rapids, IA · Member since 2013 · 494 posts · 407 votes
    10y

    In business there is seldom a clear right or wrong.... it's your business and you set the tone.  Unlike school where there is a correct answer and all the rest are wrong, this is real life and we live and learn.   I would have lowered the rent and waived the lock fee but only if I liked them and wanted to keep them.  I have waived the late fee on the first late payment too then collected it if it happened again.  Others  take a different tack and that's fine too.  Good luck!

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    10y

    Max,

    In a tenant's eyes anytime you say no or enforce a fee of some sort you will always be the bad guy. Stay strong and keep up the good work.

    Try this tip out so you can just avoid the lockout issue all together.

    We remove all lockable door handles. The only way to lock the door is with the key in the deadbolt from the outside of the house. We have about 300 or so units and I do not think we have had a lockout in 2015.

  • Investor · Wellington, FL · Member since 2009 · 37 posts · 19 votes
    10y

    I agree with everything you did.   And, you are not mean. :-)  Just follow the rules outlined in the lease.

    By the way, if my tenants get locked out, they'll have to call a locksmith - and, that will probably cost them $75 or so. 

  • Real Estate Consultant · Houston, TX · Member since 2015 · 172 posts · 51 votes
    10y

    Hi Max I don't think you are a mean landlord, you are actually operating your business. The initial agreement was for pets at an additional price. They could have kept their pet, but they made a decision to give it away. They could actually get another pet if they chose to because it's covered. Also the key situation is really a personal situation between the tenants who occupy the property. You are not their babysitter and I think it's wise to stick to the agreement; however it would be hard for me to do so in this situation. If the truth be told I probably would have adjusted the rent and I wouldn't have charged them the first time for letting them into the house, but I would have made it clear that there probably wouldn't be a next time and if so the fee would be charged for sure.

  • Rental Property Investor · Birmingham, AL · Member since 2010 · 20 posts · 9 votes
    10y
    In my commercial lease I am no locksmith - they are on their own. Good luck you're a grown *** man. In residential leases I give the first lockout free, then $25-$40 depending on property/location. I also give the first main line plumbing stop-up free and $150 after that. Don't want to pay? Coming out of your deposit pal! The lease is everything. Bryant
  • Jim HoganPro Member
    Investor · Malvern, PA · Member since 2014 · 108 posts · 42 votes
    10y

    I would lower the pet fee, BUT let them know they will need to pay if they add another pet.  It is only $15 is it worth it to argue.  As for the lockout yes charge them the $25 and suggest they go to home depot or lowes to purchase a lockbox.  It only cost $25 +/-.

  • Investor · Lincoln, NE · Member since 2015 · 4 posts · 2 votes
    10y

    Stick with the lease, but "mean" is a definite misnomer here. You entered into an agreement and you are abiding by it. I don't see that as mean, just honest.

  • Rental Property Investor · Yokohama Shi, Kanagawa-ken · Member since 2015 · 81 posts · 30 votes
    10y

    Take it from an ex-nicest landlord in town: Stick to the lease. The moment you waive any part of it based on emotion, you introduce ambiguity. The next time something comes up, the tenant may think "well, it says this in the lease.. but the landlord's pretty flexible". It's a slippery slope. I lost thousands being flexible and in the end had to hire a property manager. 

    By the way, that doesn't mean you're being mean! Fair is by no means mean. You were kind in the first place to make a reasonable lease that allows pets at a very low cost, and a generous lost key fee (it costs you time/money to go out there and open the door, doesn't it?). By the way; take @James Wise's advice about lockable door handles!! I implemented that after locking myself out of my own place, and never forgot a key again! 

  • Portland, ME · Member since 2012 · 616 posts · 550 votes
    10y

    I've had several times when I reminded the tenant of the lock-out fee and they miraculously found a key!  Your time is worth something.  If you had hired property management, they would charge for a service call.  Also, what if you are out of town?  You shouldn't create the expectation that you'll be around to open the door.  

     I have also changed all my locks to deadbolts so they don't accidentally lock themselves out.  I think the tenants prefer it.

    However, if it were a duplex and I lived on site, I would let them in for free during normal hours if I were around anyway.  It wouldn't be reasonable to charge if it took you 5 minutes.

  • Spokane, WA · Member since 2015 · 9 posts · 2 votes
    10y

    I wouldn't charge them for 2 pets if they only have 1. I assume your lease states that they will pay $15 per pet at the property. If they have 1 pet then charge them for one. Simple. I certainly wouldn't want to go in front of a judge using your defense of 'well, they had two pets when they moved in so..." 

    For the lockout I would charge them and would consider using the deadbolt method that Ben detailed in his post. I have NEVER been called for a lockout at the properties i have managed that use deadbolts only. I would also consider changing your lease to require a higher fee or to require the resident to contact a locksmith in case of a lockout. 

  • Developer · San Diego, CA · Member since 2015 · 1k+ posts · 1k+ votes
    10y
    Popular thread, eh? I always charge fees specified in the lease. On the monthly invoice, I sometimes give a discount to match the fee amount. Small difference, perhaps, but in my experience it's allowed me to be strict in the moment (and get the point across), but leave the tenant feeling good about me the next time they are paying. Psychology. In 9 years and 10+ doors, I haven't had a tenant pay late or get locked out more than once. YMMV.
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    10y

    Yes...

    Yes, you are...

    But, that doesn't mean your a bad guy.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Max T.  well me being one of the worlds worst landlords what I would have done is

    On the cat situation I would have asked them to leave and gave them 500 dollars to do so. Cats are as stated really bad news if they go rouge on you in the house.. I have bought many many courthouse steps foreclosures over the years and nothing ruins a property more than cat pee.

    on the lock out I would have rush over helped them.. but on my way over I would have stopped at Starbucks and got them a coffee or lattee ( would call and ask what flavor they wanted first.. )  And why well 1400 dollars for a 2bd rental is a bunch of dough in most markets i would not want them leaving  :)  

    My comptroller finally would not let me talk with tenants.. As I submarined everything she did to set up controls... once I moved that task to Dory in my office.. collections got better and I never talked to another tenant. I swear to god I could never say know and the tenants always got the best of me.. I think it was a matter of I did not want to hear their sob stories anymore and just wanted them off the phone and just agreed.. and since rental income is not high on my list of priorities I just blew it off  :).. 

  • Investor · Brentwood, TN · Member since 2015 · 140 posts · 39 votes
    10y

    @Max T.

    I agree with many on the lockout.  If its the first time, I would do it and set the expectation that this is a one time "freebie".

    I have a different thought on the pets.  If they want to open up the lease, I would do it, but I would ask them to sign a new 12 mo lease with the changes, AND specify that there is only one pet.  Of course they could get a new one and not tell you, but if you do inspections regularly you will hopefully figure it out.

  • Investor · McKinney, TX · Member since 2012 · 588 posts · 224 votes
    10y

    My rentals are not exactly close (30-50miles from home).  $25 would not cover my gas, tolls etc.  If for some reason I was feeling charitable, I'd make the tenant meet me at the wal mart or home depot closest to my mailing address published on the lease to make a copy of my key that they would pay for.  If I wasn't feeling charitable, I'd tell them to call a locksmith.  I've never been called for a lockout before.

    On the pets, I don't allow any pets - ever.

  • Investor · Cleveland, OH · Member since 2012 · 145 posts · 39 votes
    10y

    just stick too the lease it keeps life simple...

  • Manhattan, NY · Member since 2015 · 109 posts · 27 votes
    10y

    Waive the lock out fees, and the 15 dollars for the pet they got rid of seems to be fair to waive as well.

  • Real Estate Agent · Tucson, AZ · Member since 2015 · 7 posts · 3 votes
    10y

    There are a lot of good responses here. If you value the tenants I would adjust the rent for the pet that is no longer there. If you can rent the property with ease and you do not have any particular fondness for the tenants than keep it at the current rate.

    On the lock out rate I agree with those who are saying if its in the lease then you should charge it. You don't want to create unnecessary precedent that could lead to more issues down the line. 

    Honestly if they think you are being 'mean' that's on them. Everything is laid out in black and white, so neither party should be surprised by any charges or lack of fee reductions.

  • Jacksonville, FL · Member since 2015 · 60 posts · 15 votes
    10y
    Originally posted by @Glenn McCrorey:

    In business there is seldom a clear right or wrong.... it's your business and you set the tone.  Unlike school where there is a correct answer and all the rest are wrong, this is real life and we live and learn.   I would have lowered the rent and waived the lock fee but only if I liked them and wanted to keep them.  I have waived the late fee on the first late payment too then collected it if it happened again.  Others  take a different tack and that's fine too.  Good luck!

     I disagree and think your answer is wrong.

  • Investor · Cedar Rapids, IA · Member since 2013 · 494 posts · 407 votes
    10y

    @Charles Terrizzi  I laughed out loud when I read your response.  Thanks for the feedback....

  • Spokane, WA · Member since 2015 · 9 posts · 2 votes
    10y
    Originally posted by @Raun Stout:

    There are a lot of good responses here. If you value the tenants I would adjust the rent for the pet that is no longer there. If you can rent the property with ease and you do not have any particular fondness for the tenants than keep it at the current rate.

    On the lock out rate I agree with those who are saying if its in the lease then you should charge it. You don't want to create unnecessary precedent that could lead to more issues down the line. 

    Honestly if they think you are being 'mean' that's on them. Everything is laid out in black and white, so neither party should be surprised by any charges or lack of fee reductions.

    Raun I would not advise a landlord to make adjustments to rent/terms based on fondness. The potential to have a fair housing claim against the landlord is too great. If the tenants aren't ideal a better method to get rid of them would be to terminate tenancy at the end of their lease.

    I agree that as a landlord you are not 'mean' if you follow your contract to the letter. The tenants are adults and have entered an agreement and they need to follow the terms. In my property management career I have always followed the lease, and in the numerous gray areas that inevitably pop up I ask myself "What would a judge think of this?" and "If I was investigated would their be any possible chance that this could be seen as discrimination?" Hence the reason I advised he waive the second pet rent. 

  • Jacksonville, FL · Member since 2015 · 60 posts · 15 votes
    10y
    Originally posted by @Glenn McCrorey:

    @Charles Terrizzi  I laughed out loud when I read your response.  Thanks for the feedback....

     Oh good, I was wondering if my deadpan humor would be misconstrued as being mean.....I am also an hvac guy and on our forums, I know no one would have gotten the joke. 

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @Max T.:

    I think I will waive the lock out charge since this is the first time. I won't tell her until we meet so it will feel like a gift!

    The first lock out is a freebie in my book.  Most of the tenants I've had would take matters into their own hands to save $25. Better to send the handyman over and then talk about back up key solutions. My youngest daughter has her first rental this fall and locked herself out, on the way to the laundry room.  The PM sent her husband over within the hour.  My daughter was mortified, I can assure you it will never happen again.  But if it did, she would pay the fine no problem.  

    As for the pet fee:  by making it monthly, per pet, instead of a one time fee or deposit or for any pet, you've kind of set yourself up for a back and forth on the fee.  The way they see it, they are paying for a service/accommodation they are no longer receiving.....on a monthly basis.  Sure to cause resentment.  Set it up differently next time.  BTW $15 per month on a year or two stay doesn't even cover normal wear and tear from a pet, let alone damage.   

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @Shawn Thom:

    My rentals are not exactly close (30-50miles from home).  $25 would not cover my gas, tolls etc.  If for some reason I was feeling charitable, I'd make the tenant meet me at the wal mart or home depot closest to my mailing address published on the lease to make a copy of my key that they would pay for.  If I wasn't feeling charitable, I'd tell them to call a locksmith.  I've never been called for a lockout before.

    On the pets, I don't allow any pets - ever.

    For sure your tenants have locked themselves out.  They just don't call you.  My guess is that the OP's tenants are young and/or new renters.

    I'm with you on the charitable part.  Depends on the day and the mood.   There's no house or apartment that I need a key to get into, and most of my tenants have skills in the lock and entry dept.

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @James Wise:

    Max,

    In a tenant's eyes anytime you say no or enforce a fee of some sort you will always be the bad guy. Stay strong and keep up the good work.

    Try this tip out so you can just avoid the lockout issue all together.

    We remove all lockable door handles. The only way to lock the door is with the key in the deadbolt from the outside of the house. We have about 300 or so units and I do not think we have had a lockout in 2015.

    So no lockable door knobs?  Passage handles only and deadbolts on all entry doors?  Makes sense but I've never seen it done like that in any rental, low or high end.  At our own house we never use the deadbolt on the front door during the day.  It would take some getting used to always have to use a key every time we left the house.  Your tenants obviously got used to it right away.  Gotta ask, what's the highest rent on those units?

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