1st B&H Property, 1 Month in, Door Kicked In!

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1st B&H Property, 1 Month in, Door Kicked In!

Tapiwa Wakatama
Healthcare · Decatur, GA · Member since 2014 · 31 posts · 11 votes

Greetings everyone,

I closed on my first property (tenanted) on 2/18/2016. I'm both excited and nervous. I'm excited at the prospect of building wealth through real estate. I'm a little nervous about the risk. The investor mindset has not fully settled in yet. Buying a new car is less risky in a part of my mind than investing even though, cars and the like do not produce income for the most part.

I got a text from my PM the other day. Someone tried breaking in by kicking in the door. They didn't get in, but the door was damaged. I immediately did a quick search on the BP forum for this topic, then told the PM to get me the police report. The tenant said they were with the cops at the moment, and provided a police report number shortly after. The PM advised that it may take about a week for me to get it.

A few hours later I hopped on crimereports, and didn't see any incidents at the property. I just checked again with the same result. I don't know what that means.

So I'm resolving two issues in less than two months. Granted, I was mostly aware of the first issue before closing (fixing a cabinet and outlets).

With that in mind, what is everyone's experience when starting out, or acquiring a new property?

Is it reasonable to have issues come up early in this process?
Has anyone heard of a tenant giving a false police report number?
Am I doing the right thing by fixing the door right away, or should I have received verification from the police first?
Do you mainly profit on your properties during the first year?
Is it OK to trend into a profitable state with a property over time?

Thanks!

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Robert Melcher
Residential Real Estate Broker · San Antonio, TX · Member since 2016 · 506 posts · 311 votes
10y

Damage to windows and doors is a tenant responsibility in our lease. I am comfortable saying that the large percentage of break-ins are from associations of the resident.  Domestic issues lead by far, then highschoolers who've been in the house.  I have our contractor do the work and the charges are applied to the resident's account.

Of course, we have had vacant houses vandalized, plundered, and even partied-in.  Unless you are there 24/7, its hard to prevent.

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  • Michael Noto
    Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    10y

    Just have someone take a picture of the door and email or text it to you if you are looking for confirmation that the door was kicked in.

    Can't you just call the local PD and find out if a police report was filed?

    How is the area this house is in?  What kind of screening was done for the tenants that are currently living there?

    2Reply
  • Mike Sattem
    Investor · La Grande, OR · Member since 2014 · 194 posts · 176 votes
    10y
    Gooooood Morning! Sounds like you are trying to get all of your property issues out of the way at the beginning of the year ;) So, to answer your questions, as soon as something breaks or is reported by tenants you need to get it fixed. It is definitely a show of good faith, and it will need to be fixed at some point anyway, so you might as well do it asap. Also, if you are having doubts about your tenants, you should examine your tenant screening process with your PM. If you find out later the damage was tenant caused you can still take action against their security deposit, or the ask the tenants to reimburse you directly. Secondly, things like this happen, it's just part of the experience. My first house was vandalized, had an attempted break in, and then caught fire all within 18 months. It's my best performing property, go figure.
    1Reply
  • Joseph Landis
    Melbourne, FL · Member since 2015 · 16 posts · 4 votes
    10y

    This is what they call experience!!  Think about how boring it would be if you didn't have any stories to tell your grandkids.

    My experience is that most issues do come up early and then as things are resolved it will quiet down, although I have to admit I haven't had major issues with tenants destroying things.

    I agree with @Mike Sattem, get the door fixed ASAP.  I would call the police department and see if a police report was filed.  What you don't want to do is accuse your tenants and then find out you are in the wrong.  You also don't want to assume they are telling the truth if you have some evidence to the contrary.

    Also, this is a good time for a display of leadership.  Let the tenants know that you are not a pushover.  You show it by keeping up with your responsibilities (cabinets, outlets, door) and holding the tenants accountable for keeping up theirs (not damaging the property, paying on time)

    You can also evaluate the performance of your PM and if you feel you are getting a good value or not.  If not, I wouldn't hesitate to let them know that they are not meeting your expectations.  If they don't improve, get another PM.

    1Reply
  • Robert Melcher
    Residential Real Estate Broker · San Antonio, TX · Member since 2016 · 506 posts · 311 votes
    10y

    Damage to windows and doors is a tenant responsibility in our lease. I am comfortable saying that the large percentage of break-ins are from associations of the resident.  Domestic issues lead by far, then highschoolers who've been in the house.  I have our contractor do the work and the charges are applied to the resident's account.

    Of course, we have had vacant houses vandalized, plundered, and even partied-in.  Unless you are there 24/7, its hard to prevent.

    3Reply
  • JJ ConwayPro Member
    Financial Advisor · Stephenville, TX · Member since 2016 · 163 posts · 85 votes
    10y

    If it's any consolation, you're not alone- one of my first rentals, one month after renting it out discovered the toilets were not connected to the sewer main. Terra cotta pipes had disintegrated years ago.  During rehab we hadn't used the toilets enough to notice.

    Two answer your questions: yes, I think it's reasonable to have issues come up early - especially since you don't yet "know" the properties.  I've not heard of a tenant giving a falce police report number but I HAVE had tenants give false damage reports - especially when I was out of country for work.  This is why I ask for pictures immediately.  I try to buy properties where I profit from day 1. I have some properties that I used to profit on but don't now because the market shifted, and I have one that I bought at break-even foolishly thinking I was ok because "one day the value will go up"  will never make THAT mistake again

    Don't let this discourage you!  Real estate is one of the best wealth building tool I've ever seen.

    1Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    10y

    This is normal. In this case you need to take a closer look at your tenants. Nothing worse that purchasing a tenanted property as you have no idea what your are getting.

    As mentioned this is highly likely directly related to your tenant, unfortunately you can not trust most of what a tenant will tell you in these situations. 

    You may need to find better quality tenants. Make arrangement to meet with the tenants and get the details first hand. Every time there is a issue or property problem you need to make a visit to confirm the details and insure your PM has done a proper follow up.

    1Reply
  • Tapiwa Wakatama
    OP
    Healthcare · Decatur, GA · Member since 2014 · 31 posts · 11 votes
    10y

    @Michael Noto 

    I forgot to mention that the PM did forward pics of the damaged door.

    I just called the Sheriff's dept. and they confirmed the case number, but it won't be available for three days. I was getting nervous because crimereports is showing incidents in the area as recent as 3/31/16.

    I looked at the crime map on Trulia and the area is green. It it still is, but now I notice the text box shows regular theft and robberies. Personally, I feel comfortable driving around the area.

    The tenant was already in place from the previous owner/ investor. Tenant was ansty in the beginning because the previous owner resolved zero complaints. The tenant seems comfortable now that the current issues are being promptly addressed.

    @Mike Sattem 

    I'll keep the tenant screening process tip in mind towards the end of the lease. And also make sure the tenant wasn't at fault for this incident. I really appreciate you sharing that point about your first property! It really makes me feel like I'm not alone.

    Thank you both!

    0Reply
  • Tapiwa Wakatama
    OP
    Healthcare · Decatur, GA · Member since 2014 · 31 posts · 11 votes
    10y

    @Joseph Landis I'm hoping to have the door fixed today. I'll remember your point about being objective when it comes to statements from tenants. So far the PM has been on top of things comes recommended from trusted individuals. Nonetheless, I do need to educate myself on managing the manager.

    @Robert Melcher I hope to add that to the lease at renewal time. Thanks a lot for mentioning that!

    Thanks for your replies!!!

    0Reply
  • James DeRoest
    Investor · Century, FL · Member since 2015 · 950 posts · 603 votes
    10y
    Originally posted by @Tapiwa Wakatama:



    With that in mind, what is everyone's experience when starting out, or acquiring a new property?

    Is it reasonable to have issues come up early in this process?

    Well done for getting started with your first property. 

    As for issues.....how long is a piece of string really? Never take it personally, always put your happy game face on no matter what it costs.

    You have an interesting choice ahead of you though, that not many consider. And this was told to me by a friend who rents in social housing.

    Do you want to be a rich landlord or poor landlord? My friend chose what property he lived in on the wealth of the landlord, he wanted a wealthy landlord because if there was a problem it'd get fixed immediately, a poor landlord won't fix things promptly because they haven't got the money to. He had a choice of two properties a few years ago, an average house and a brand new house. He chose the average one because the landlord had money, and the other landlord was simply mortgaged up.

    Personally, I prefer to be the rich landlord, the one who gets things fixed quickly, and I think it pays off in the end with tenants. 

    1Reply
  • Tapiwa Wakatama
    OP
    Healthcare · Decatur, GA · Member since 2014 · 31 posts · 11 votes
    10y

    @JJ Conway, @Thomas S., and @James DeRoest

    Thank you so much! Every reply in this thread has helped me immensely. The repairs are being taken care and I will consider everyone's advice. I hope others will find benefit from this thread too!

    1Reply
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