Oustanding Rent/ Damaged Property / Forged Signature

Oustanding Rent/ Damaged Property / Forged Signature

Birmingham, AL · Member since 2017 · 3 posts · 1 vote

I had a family that I rented to for the last three years in a SFH, 3b/2ba in Bham AL. The house was a vacate forclosure that we renovated to meet the neighborhood standard, engineered floors, tile kitchen, freshly painted walls etc. The first year went pretty smooth, the second year the husband lost his job several times and they had difficult paying their rent. The mother was in the military and was send on a few missions. When the mother went out of town the house would become a wreck with four kids left unsupervised.

On the third year renewal the tenant reached out indicating the school needed an updated lease so I revised the contract sent it to the tenant. They signed and sent it back to me. Out of 8 months 6 were paid 15 days late. I waived most of the fees knowing the husband had a hard time maintaining a job. Mid-way thru the year I get a complaint that the house is unlivable with no prior complaints. I asked several times to detail out the issues so that we could have a productive service call. Their main complaint was about the basement being damp and cold. I responded indicating that the basement is not a livable space and should only be used for laundry and storage. I later found out the kids were using it as a playroom and one of them were sleeping down there. The house was never advertised as having a finished basement only a 3/2

In all fairness I did become a bit of an absentee landloard during this time as I was transferred across the country two times and my personal life interfered. Nonetheless I had a handyman available and on call.

In visiting the house there was scattered trash on the deck and thru the yard. There was open grease containers in the kitchen, three garage door windows missing, holes in the walls, missing kitchen cabinet doors, broken floor tiles, doors off hinges, bags of dirty laundry in the basement etc.  After assessing the damage I prioritized based on landlord liabilities. The tenant stopped paying rent and become unresponsive to emails, calls and texts. The tenant then indicated that they are moving out. I replied with a certified letter that I needed 30 days notice last month rent and a cancellation fee. The tenant responded to my letter indicating that we did not have a signed lease and that they are on a month-to-month and that they only owe $1,600. In reviewing my records I must not have sent back a countersigned lease. Nonetheless in any of their prior leases there is a tenant hold over clause that indicates that if they stayed in the property monthly rent would increase by $50 dollars. I responded back to the tenant with the lease line and indicated each month would also be accompanied with a late fee if we were not going to go by the most recent lease with the total balance of $2,500 remaining. 

The tenant moved out this past weekend, turned off all utilities, left some furniture, food in the fridge, and trash throughout the house on top of all the damage listed above and left a roach infestation.  The infestation is so bad that roaches burnt out the new kitchen range control board.

I got a quote from the a sub contractor to do the repairs which is in the neighborhood of $4,200.  Which includes

  • repair drywall damage/cracks
  • replacing doors that were kicked in or off hinges
  • repaint interior walls(tenant painted without authorization)
  • replace broken kitchen tiles
  • replace both bathroom vanities
  • repair and paint kitchen cabinets
  • replace range control board

I was told by a few other people that I should take the quote, outstanding balance, email correspondences, and before/after pictures to the wife's commanding officer but I am not sure if that will do any good. Has anyone had any luck with this?

After thinking about the lease and knowing the tenant needed it for school, I contacted the school to see if they could verify they had a copy of a signed lease on record. Sure enough, I was able to obtain a copy of this years lease with my signature on it. Clearly forged by the tenant.

At this point I am wondering what I can do legally. 

Would you contact the tenant and let them know you received a forged copy and they should pay now before turning it over to authorities?

Would you take the tenant to court on the basis that you have a signed lease to get damages, unpaid rent and future rent?

Any advice would be helpful. Please keep in mind hindsight is 20-20. I am well aware of my mistakes leading up to this point. 

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Deborah BurianPro Member
Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
9y

@Joe Tubbs - none of the above.  Clean it up, call it a lesson learned, and move on.

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  • Deborah BurianPro Member
    Rental Property Investor · Oklahoma City, OK · Member since 2013 · 1k+ posts · 412 votes
    9y

    @Joe Tubbs - none of the above.  Clean it up, call it a lesson learned, and move on.

  • Lockport , NY · Member since 2014 · 265 posts · 124 votes
    9y

    agreed. the commanding officer can't pay any bills.  take some responsibility by not maintaining tighter control on this property.  you never should have allowed late payments.  anyway...they are gone. rehab it, get it rented.  you will spend more money and create a lot of headaches by pursuing them to pay costs...

  • Investor · Zürich, Zürich · Member since 2016 · 292 posts · 115 votes
    9y

    @Joe Tubbs Sorry for being blunt, but you let it come to this and helped create this mess due to being an absentee landlord without, apparently, local property management to prevent such a situation. While it's no excuse for the tenants having done what they did - the property is your responsibility, and you messed up. I therefore second @Deborah Burian but would add to the "call it a lesson learned": really learn from this. You cannot continue the way you did. Doesn't work for anyone involved, i.e. neither you as landlord nor your tenants.

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

    I agree with the above, unfortunately the situation is your fault. Having said that I would strongly advise taking them to court for the full amount. They should be held responsible for the damage they did even though you did not step in to prevent it. A ruling in your favour will create a serious road block in their lives, especially for her, and the likely hood is that at some point in time, if they want to have a normal life, they will contact you to settle.

    You could have prevented the damage at several points in the lease but allowed your hobby landlord attitude to interfere. This does not negate their responsibilities. I would do what ever is possible to inflict as much damage on their financial lives as possible and expect to not only win but defiantly get paid.   

    I would also advise you to sell and get out of the rental business.  

  • Birmingham, AL · Member since 2017 · 3 posts · 1 vote
    9y

    Thank you all of for the comments. 

    @Thomas S. in regards to your last comment, "I would also advise you to sell and get out of the rental business." Your advice equates to...you had a bad day go jump off a cliff. Not very helpful. Looking over your comments on other posts, they all have the same theme... get out or sell. You should try and be more positive. 

    I have a 32% cap rate on this property. It was paid in full after this last year of only a single tenant. This particular property is outside of my portfolio and was of lower priority. The lesson learned is to not rent to larger families as I have a internal conflict about evicting them.

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

    Most will agree that you were the cause of the problem. You agree you were the cause of the problem. There is absolutely no denying that fact. I have very low tolerance for any investor that ignores the signs and ends up having a tenant run their property into the ground. The writing was on the wall and you list multiple excuses for allowing it to happen. I read through your post and recognised at least 10 statements you made indicating you were negligent. The mistake I made was in assuming you were a hobby landlord but now see you are experienced, even worse, shame on you.

    You want positive....I am positive you learned the wrong lesson, "The lesson learned is not to rent to larger families". Wrong, the lesson you should have learned is - Take care of business. 

    You invested in a property you choose not to prioritise and you should sell before you repeat your mistakes. That I am POSITIVE of.

    As for my "theme" you are correct, unlike most I do not condone sloppy management and believe if investors are not going to be professional they have no business in the business. I do not pat people on the back and stroke their feelings when they screw up especially when it is so obvious they are the root cause of all their own problems.

    Get serious or get out, sell to a investor that will take care of business. Nothing worse that a investor posting "I have a problem" when in reality They are the problem. This is far bigger than "you had a bad day". That is my theme. 

  • Birmingham, AL · Member since 2017 · 3 posts · 1 vote
    9y

    @Thomas S. thank you for your comments. Notes taken. 

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