need advice regarding a new tenant and issues out of the gate- TX

need advice regarding a new tenant and issues out of the gate- TX

Investor · Fullerton, CA · Member since 2012 · 10 posts · 9 votes

Hi there- I am a newer landlord, several years under my belt, a few properties but all in California. We recently moved to Texas and bought our first investment property.

Let me start by saying I have very high and consistent screenings- all my tenants in our other homes are model (learned the hard way several years ago when we dabbled before the crash). We applied the same methods in Texas and a group of qualified, professional ladies moved in the home on a 12 month lease March 1. They had visited the property several times before signing the lease with their agent, I walked it with them both before and after signing and they turned in their move in checklist within 24 hours.

One week into living there, I have received an email from one of the tenants saying her father (copied on the email) has visited and decided there are major electrical issues with home. I have spent $50,0000 upgrading the home to current, high level finishes, addressed any noted safety concerns by my licensed electrician,  and they signed for home accepting as is.

The email was aggressive in nature with no real actionable items or specific concerns other than "GRAVE DANGER".  I've called two separate electricians out to review today, I feel they may positioning to try to get out of lease (or at least one of them is- the other two weren't copied). Her dad jumped in to the correspondence so I immediately stopped the thread, started a new one with all three tenants and outlined the steps I was taking to inspect the concern. Dad isn't on lease- I am not going to support that behavior where a grown woman has her daddy involved.

I plan on having a direct conversation with the three tenants on the lease to openly and responsibly address concerns.

Here are my questions:

In reviewing the deposit check, I noticed that her dad IS a joint on the checking account. He is not on the lease. Did cashing a check from him as a co-owner on a checking account mean I accepted him as a tenant? Pet deposit and rent came directly as an ACH transfer from another one of the  tenant's accounts directly.

Who decides "GRAVE DANGER?" I mean really- if I have to electricians out and they say it's not an issue, I have to go with the professional opinion. If the house is older but the systems are in good working order, am I required to upgrade to latest electrical code that changed this last November? I would think that's more of a convenience.

Last- do I really want them here?! I'm am reviewing my options. I hope that this settles down, and they can comfortably enjoy living in the home, but if it escalates, do I hold them to the whole year or offer them to buy out?  I don't want headaches for the entire year, dealing with someone's dad, but seriously, shouldn't they learn accountability? (Just wish I wasn't the one teaching the lesson!)

Any input is appreciated.

Thanks

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Greg H.Pro Member
Moderator
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
9y

@Amber Matas

Since he is a GC, I would send him a note requesting a copy of his license and workers comp insurance since he was doing an inspection of your property as you only allow contractors that are licensed and insured ! :)

See this reply in the discussion

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  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y

    Unless there's a signature ON THE LEASE, papa is not a tenant.  The joint account matters not.

    As there's push and shove alread and daddy is whining (is he a licensed electrician), I would strong arm the complaint and just tell'm  "I see you are not going to be happy here so I offer to let you move out immediate."

    it is only going to get worse - -

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

    Ditto what @Jeff B. said.

    They've been in your life for 8 days, and already have GRAVE CONCERNS about the property that has been deemed fine by a professional? 

    Contact all parties who have signed the lease - daddy isn't one of them - and offer to let them out of the lease. They've paid for March, tell them you will allow them to leave if you can start showing the property immediately. Remind them that they will be on the hook for rent until you can get it re-rented. 

    What, specifically, is the problem? If there is an electrical issue, that should be fixed. Electricity gives everyone the heebie-jeebies, even something that is minor. 

    I agree with Jeff, these ladies will be trouble every minute they are your tenant.

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

    Daddy is not on the lease and has no rights, do not communicate with him at all.

    You are wasting your time and money chasing fictitious problems. Make it clear to all tenants that each is equally responsible for the entire rent and tell them to resolve their rental arrangements. They are bound to the lease and need to resolve the issues among themselves. They will likely need to find a new room mate for you to screen but that should be your only involvement from this point forward.

    You are correct in assuming this is simply a ploy by the one tenant that is having second thoughts about being a tenant

    Call her bluff and stop wasting your time. I would tell you exactly what to say to her but I doubt it would be allowed on this forum. I would also have a few choice words for daddy.

  • Minneapolis, MN · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    Ya don't worry about Daddy,, names on check,, not your lease..he obviously control the purse strings of the daughter..

    Did you  have the electrical inspected recently or worked on at all.. Ask what the specific concern was about the electric service, so you can understand better what they have questioned.  

    I personally would wait until I get a better idea of what they mean, and then if warranted call out a electrician to inspect. and make sure he leaves a note signed the service is properly working. 

    I wouldn't let them out of the lease. If you do charge them what ever you can. 

    I'd make sure you know the landlord tenant laws for your state, because they sound like high maintenance type renters.. but we've all had them, we've all dealt with them and if I get high maintenance renters you bet I'm a high maintenance landlord to please. 

  • Investor · Fullerton, CA · Member since 2012 · 10 posts · 9 votes
    9y

    Thanks everyone!  I currently have the NOLO book for Texas cracked open with a cup of coffee. :) I asked the tenants for specific concerns and have two licensed electricians on their way now where I will meet with each one individually to assess. Then we can talk to the tenants about what the "issues" may be. As an aside, I did have an electrician go through the home when we bought to assess any safety issues- we identified about $1000 worth of repairs we promptly took care of.  No other concerns were noted.

    And Daddy owns a GC firm...

    We will see what the electricians say and then we can assess. I appreciate the support.

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

    If your electricians do not find anything wrong make sure you bill the tenant for your expenses.

  • Greg H.Pro Member
    Moderator
    Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
    9y

    @Amber Matas

    Since he is a GC, I would send him a note requesting a copy of his license and workers comp insurance since he was doing an inspection of your property as you only allow contractors that are licensed and insured ! :)

  • Investor · Fullerton, CA · Member since 2012 · 10 posts · 9 votes
    9y

    @Greg H.- love it!  Just had both electricians take a look. There is a three way switch that should be a four way in garage and a little issue outside that we are attending to out of an abundance of caution. Total to fix $300.  Will take care of it. I did ask them point blank if they wanted to stay in the home and they look genuinely surprised, saying they loved the house, and they were sorry to cause issues. I told them legitimate repairs are never an issue and safety a priority but  that clear communication is key and if there are ever any issues in future please be specific so I can address them appropriately. To their credit, a I noticed a few improvements had made on their dime (new exterior lights were installed and  motion sensored). Dad wasn't at the property, but his facilities director was and we chatted a bit. Hopefully this all resolves itself as they settle in. Thanks for all the feedback.

  • Investor · Charlotte, NC · Member since 2016 · 374 posts · 189 votes
    9y

    @Amber Matas - Give them the number to code enforcement.  Have them come do a quick inspection.  I don't typically use a licenses electrician, but if I did and all the permits were on the up an up, I say bring it on.  I would tell them let me know when the inspector is coming by and I can meet them there.  I would take this head on, full charge, no holds barred.  You need to train these tenants that you are in charge and not them.  This is your first start.  Threaten to kick them out.

  • Investor · Takoma Park, MD · Member since 2016 · 166 posts · 147 votes
    9y

    I suggest you take detailed photographs with time/date stamps of the electric panel and any other pertinent parts of the system. If Daddy is poking around, who knows what else he might be doing. I doubt you will need the photos, but should something come to pass, you will be glad you have them.

  • Patrick LiskaPro Member
    Investor · Verona, NJ · Member since 2014 · 1k+ posts · 832 votes
    9y

    They did upgrades to your house by installing new light fixtures ? they are messing with the electric, they shouldn't be touching anything like that without your consent, hopefully you have that in your lease. take pictures of what they did and send an email to Daddy with a copy of the lease part that says they can not make alterations to the house without your consent and pictures of what they changed and CC " your Lawyer"  - either for real or make your own lawyer email, but document everything. once he sees the lawyer is involved you may stop hearing from him.

  • Dallas, TX · Member since 2016 · 1k+ posts · 745 votes
    9y
    Originally posted by @Amber Matas:

    @Greg H.- love it!  Just had both electricians take a look. There is a three way switch that should be a four way in garage and a little issue outside that we are attending to out of an abundance of caution. Total to fix $300.  Will take care of it. I did ask them point blank if they wanted to stay in the home and they look genuinely surprised, saying they loved the house, and they were sorry to cause issues. I told them legitimate repairs are never an issue and safety a priority but  that clear communication is key and if there are ever any issues in future please be specific so I can address them appropriately. To their credit, a I noticed a few improvements had made on their dime (new exterior lights were installed and  motion sensored). Dad wasn't at the property, but his facilities director was and we chatted a bit. Hopefully this all resolves itself as they settle in. Thanks for all the feedback.

    How do you know those upgrades were done properly?  All you need is one loose connection or broken wire from someone who didn't know what they were doing and you end up with a house that was burned down.  Especially if they are claiming there is bad wiring right now.

  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    9y

    Inform all tenants that you noticed electrical changes and while you appreciate their safety concern with the motion sensor lights that GC Dad nor anyone else can make changes to the property without written permission of the owner.  For their safety you need to control who works on the property and make sure they are licensed and insured. Quote the lease if you can.  You might just do this by email confirming your onsite conversation with them and restate nicely your policies. Since you had two electricians out you will let it go this time. 

  • Investor · Fullerton, CA · Member since 2012 · 10 posts · 9 votes
    9y

    This is what I love about BP! Thanks for all the great tips everyone!  Everything has been thoroughly documented and their work was done by a licensed electrician, they took responsibility and we discussed how improvements should be made moving forward. I'm hoping this was just a case of a young lady who isn't familiar with clear and accurate conversation and that we are the road to a happy landlord/tenant relationship. 

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