What did I get myself into or am I over-reacting??!!

What did I get myself into or am I over-reacting??!!

Investor · Alabaster, AL · Member since 2016 · 280 posts · 88 votes

So I rented one of my properties to a lovely family. Did my due diligence etc...They were coming off of Section 8, but I did verify their income etc.( income increased)... Oops, husband lost his job 1 month into the lease.3 months in  now and I get a call every other week about stuff that they suggest should be updated. This is a property in a great area and I had many interested in it. It is in great condition... I will not, and cannot update every single thing. It is a rental, if they want customization, buy your own home. - done with my rant. I did a 6 month lease, am I over-reacting?.. or should I not renew? The rent is payed on time, but the expectations are not typical. 

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Investor · Wellington, KS · Member since 2016 · 256 posts · 188 votes
9y

My landlord parents and my grandparents taught me to never say no to tenant requests for updates or improvements, just say how much the rent must increase to pay for it.  I usually price it to cover the improvement cost within a year.  If the tenant says ok, you have a permanent rent increase, an improved property and a happy tenant. If they say no, the tenant decides it isn't worth it- end of discussion.  After a couple requests, the silliness stops.

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  • Patti RobertsonBusiness Member
    Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
    9y

    @Christine Mwai - I have a lot of SEC 8 rentals (100 currently and I've participated for about 7 years) and can't say as though I've ever met anyone who "got off the program" because they made too much money.  I have had participants go down to a 0% subsidy - meaning they paid 100% of their rent, but as long as they complied they got to stay in the program in the event they had a change of income.  Are you sure they weren't asked to leave the program?  Did you call SEC 8 to inquire? I certainly could be wrong, but this just doesn't sound logical to me. 

    I would thank them for the suggestion and tell them that they rented it in the current condition and be done with it.

  • Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
    9y

    Would they pass your income criteria now that the husband lost his job? Did he get another job? How long did it take him? Combine the job instability with the neediness and they seem like a good candidate for termination. If you feel the tenant is taking too much time to manage you can either hire a property manager to take over (I would raise the rent to cover this) or just let them go. The turnover will cost you some money but your peace of mind is more important.

  • Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    @Christine Mwai If you make it clear that you're not doing the updates, would they renew their lease?  That could decrease the number of calls but I have to admit, calls about updates are better than call with excuses about not paying rent!  I'm going to sound horrible but I wouldn't let them being "a lovely family" factor into it.  Repairs and updates are two very different things.  The latter usually comes with a rent increase attached to it.  I'd say your decision could be based on your confidence that it would still have many people interested in it.

  • Vendor · New York, NY · Member since 2017 · 217 posts · 88 votes
    9y

    Seems like if they just complain and still pay, thats doesn't qualify as a bad lessee. I would reconsider if  they are causing you more problems, but should definitely ask yourself whether you need to perform these updates?

  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    Did you have a property condition form and inspection when they moved in that they signed and dated?

    The inspection form is generally accepting the current condition of the property. Repairs of existing items and (things they would like for updates) are not one in the same.

    They might just be bugging you to see what they can get. If they were section 8 previously the standard of care for the landlord to get rent payment and the standard of care for what might be found in a typical rental are different.

    Section 8 you get inspections and the inspector can be overzealous with demands and withhold the rent payment until in compliance. So they might be used to making all these demands for new stuff with section 8 from the past.

    Either the tenant is being unreasonable or you have to set expectations as to how you landlord versus section 8 being their previous experience.

    No legal advice given.    

  • Investor · Alabaster, AL · Member since 2016 · 280 posts · 88 votes
    9y

    I'm listening and thanks each above. To clarify or answer, the are a possibility in the future, but not necessary in this market for a rental. The type of updates would not increase rent by much more in this scenario. As far as the vacancy rate here, it is "put a sign in the yard" and I get 5 calls a day.

  • Investor · Alabaster, AL · Member since 2016 · 280 posts · 88 votes
    9y

    Hind sight is 20/20....they did expect Section 8 to do things at their bidding or calling. I can understand that if there is a true issue. This is not the case in this scenario. I have rented this particular property out for 2 years to the former couple, no issues... they loved it. I did the walk through and it is documented as relates to move in condition.....to quote them, " we love this place Ms. Christine, thank you so much.".:)

  • Rental Property Investor · Whittier, CA · Member since 2014 · 324 posts · 268 votes
    9y

    You may be better off letting them move on when their lease expires, if they are going to be high maintenance.

    As others have suggested, do repairs if something isn't functioning, but "updates" where you are improving the condition of the property I would reserve for a reward for good tenant behaviour over an extended period (repair the leaky faucet when it leaks, but reserve the replacement of a faucet with a spray nozzle for when they renew their lease, for example).  

  • Investor · Wellington, KS · Member since 2016 · 256 posts · 188 votes
    9y

    My landlord parents and my grandparents taught me to never say no to tenant requests for updates or improvements, just say how much the rent must increase to pay for it.  I usually price it to cover the improvement cost within a year.  If the tenant says ok, you have a permanent rent increase, an improved property and a happy tenant. If they say no, the tenant decides it isn't worth it- end of discussion.  After a couple requests, the silliness stops.

  • Dave StokleyBusiness Member
    Property Manager · Cleveland, OH · Member since 2015 · 699 posts · 799 votes
    9y

    Ask yourself:

    - Are these reasonable or necessary requests?

    - Will these people ever be satisfied? Are they just trying to see what they can get away with?

    I love @Victor N.'s suggestion above. Personally I have little tolerance for PITA tenants and would let them go if I thought it was going to continue to be a nuisance.

  • Andy WebbPro Member
    Rental Property Investor · Carrollton, TX · Member since 2013 · 750 posts · 538 votes
    9y

    What does your lease say about the condition of the home?  Our lease states that the tenant is assuming the property "as-is".  If there are minor cosmetic issues that we feel are unimportant, we can lean on that clause.  Do you have anything like that in your lease?

    Andy

  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    9y

    @Christine Mwai , what I'm reading is that they are requesting things be updated or improved, and not asking for repairs for broken or not-working-properly items.

    "I'd like a new faucet because this one is ugly" isn't your problem. "I'd like a new faucet because this one drips" should be addressed.

    The bottom line is they saw the property before they rented it, right? Unless you advertised it as "Come rent this place and I'll make any change you want." then you have every right to keep those ugly-but-functional items in the home.

    I would craft a rote response that goes something like, "Thank you for the suggestion. At this time I do not have any plans to change that."

    And then repeat as often as necessary until they get it. 

  • Ben McMahonPro Member
    Investor · San Diego CA · Member since 2014 · 341 posts · 139 votes
    9y

    @Christine Mwai

    I am a property manager.  I started managing property because I knew other people didnt want to do it.  The reality is that its helpful to have a buffer between owner and tenant.  If the property management firm's hands are tied, than the tenant can't do anything.

    My suspicion is that the tenant is either 1) looking to see what more than can get out of you, or 2) Is the type of person that just wants to be listened to.  There are a lot of lonely people that work crappy jobs and they want to exercise some dominance over someone or something they think they might have control over.  

    Obviously, as mentioned by @Mindy Jensen if its something that needs to be addressed, than you do it.  Everything else is covered in the initial walk through and lease.

    I am not just plugging property management because thats what I do.  I often go and visit properties that I own, and the tenant has no clue.  They think I am just another property manager and they aren't able to make a case with me because the company offers a buffer.

  • Property Manager · Cumming, GA · Member since 2015 · 261 posts · 199 votes
    9y

    My take is that everyone makes us happy.  Some when we meet them, some when they leave.   

  • Investor · Long Beach, CA · Member since 2012 · 313 posts · 190 votes
    9y

    Don't renew their lease. Trust your gut. 

    It's pretty typical for people to show interest in a prospective unit...but out of those 5 people that call you per day, how many would work out to be good potential tenants? In my area when I am getting a vacancy ready, I have people coming over all day interrupting me asking about the rent, when it will be available, blah blah blah...but (in my case) none of them are serious...of if they are serious, they aren't people I would rent to. 

  • Member since 2016 · 13k+ posts · 12k+ votes
    9y

    Based on your market and their personal situation, lost job, I would not renew at end of lease. In the future switch to M2M lease to protect yourself when renting to strangers.

  • Real Estate Broker · Hugo, MN · Member since 2016 · 688 posts · 596 votes
    9y
    I agree, as a property manager who has unfortunately dealt with many tenants like this during my career, I would non-renew. It is imperative that you repair things that are not in working order, but upgrading things in their unit after they signed a lease for the apartment as-is they are trying to take advantage. This is something that will most likely follow them wherever they rent, as they are high-maintenance tenants.
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