Hello BP community,
I have an out of state tenant who has rented my property for almost two years. He generally pays on time (some times before time) and I have never had an issue with collecting rent. Today is 6th of the month and I have not received the rent check. I called and left numerous voicemails and text messages (no response). Last year around November, we had a minor hiccup and his father proactively emailed me and apologized for the delay and said that my tenant feel sick and the father would deposit the check the next day which he did. I followed up with the father also and there was no response. Property is in Virginia and I live in New Jersey. I wanted to connect with experienced landlords to see what my next course of action should be. Any help you can provide would be greatly appreciated.
Happy Investing.
That one's easy. This applies to WI, and I have no idea what the eviction process is in VA. In WI, when someone hasn't paid the rent by the due date, I send a 5 Day Notice. Good tenant or bad, it makes no difference. That's the first step in the eviction process. I either hand deliver them, or mail them certified.
Usually the tenant will make contact at some point. If they pay up, with late fees, no biggie. I do note in their file that they've had a 5 Day Notice, and when. I also keep the proof that I sent it in the form of the certified mail receipt and a copy of the notice itself; there's times here when I won't have to send another one if they non-pay within a specific amount of time again.
If the person contacts me and explains the situation, and when they'll pay; it's no biggie. I tell them the notice is a part of normal process, and protects me should they not hold up their end of the bargain. If they don't contact me, I check to see if they vacated, if they haven't, I post a copy of the 5 Day on their door. I also Facebook stalk them at that point, people don't realize it, but anyone can typically see that. I have found the status on a few absent tenants that way.
All that said, if this guy is a good tenant, I'd say don't worry yourself. Perhaps they're on vacation, perhaps something else completely innocent has come up. Follow due process here, as it's your only recourse.
@Zain B. you absolutely will not be able to convince this tenant to come back in and start paying. You actually have a pretty good scenario on your hands as you have 1.5 month security, which can hopefully cover any repairs, and pay mortgage/taxes/insurance until you get another tenant, if you decide to go that route. If the property cashflows, maybe consider hiring a property management company.
To determine if you should sell, think about this- what will you do with the cash once you sell and pay all fees? Reinvest? If so, where, what return can you expect? How much better/worse is that return than what you can get with the property you already have?
@Justin Fraser I agree that this tenant is gone. I just need to get access to the property which I plan to do this weekend. I just wonder if I should get something signed or a release letter from him stating that he has voluntarily vacated the property.
As it relates to sale, you bring up valuable points. I think I should be able to acquire something more locally. It will cost me a bit more since the Northern NJ market is more expensive than the Northern VA but the quality of tenant will be much better and I think the returns will be in line maybe slightly worse but I will have the peace of mind that I can visit the property if there are any repairs, etc... I made the mistake of securing a 15 year mortgage on this property as I envisioned this as retirement income. This was all before I found BP.
The rent that I got from this property covered my 15 year fixed mortgage and left me with $50 per month. I can probably pay $100 out of pocket and get property management which is something I am considering.
"Eviction is a tool for removing people"
You are clearly confused by the differance between a notice to pay and a eviction notice. Tenants, like yourself, that wish to troll this forum should take the time to educate themselves.
Hahahahahahahh!!!
https://definitions.uslegal.com/l/landlord-tenant-...
Drops mic. Walks away.
@Zain B. you absolutely will not be able to convince this tenant to come back in and start paying. You actually have a pretty good scenario on your hands as you have 1.5 month security, which can hopefully cover any repairs, and pay mortgage/taxes/insurance until you get another tenant, if you decide to go that route. If the property cashflows, maybe consider hiring a property management company.
To determine if you should sell, think about this- what will you do with the cash once you sell and pay all fees? Reinvest? If so, where, what return can you expect? How much better/worse is that return than what you can get with the property you already have?
Lets see 2 years at 1550. I don't know how much mortgage was being paid, and allow for 10% property management cost.
Against that 20k was spent on a rehab. The property has probably not cashflowed close to that and now there will be another set of apt turnover expenses.
That's what you call a good scenario.
"Eviction is a tool for removing people"
You are clearly confused by the differance between a notice to pay and a eviction notice. Tenants, like yourself, that wish to troll this forum should take the time to educate themselves.
Hahahahahahahh!!!
https://definitions.uslegal.com/l/landlord-tenant-...
Drops mic. Walks away.
So now that the original poster has updated us the status - tenant has already vacated the property (probably w/o notifying the landlord), claims that there is mold making his children sick, claims that he notified the landlord that he was vacating, etc.
Do you believe that he is still a "good" tenant? And that the landlord did the proper thing to service notice to pay rent, which actually triggered a response form the tenant finally?
Property owner did a good thing following the proper procedures to protect his investment. All tenants are usually "good" until they stop paying rent and offers no explanation...
@Paul Choi ex-tenant has the keys and is not responding to requests to return the keys. I called, emailed and there is radio silence on his end. I even offered to pay if he mails the keys in and there is no response. Should I call a locksmith and enter the property?
Before you enter the property make sure you are legally able to. Just because he left doesn't always give you the right to enter. Usually a letter of abandonment or mutual termination of the lease will. Check the local laws.
@Dominic R. the tenant is not responding to my requests to have a conversation. He is just ignoring emails, phone calls and text messages. Not sure how I can get him to mutually terminate the lease
Have you left messages explaining you are willing to let him walk away. Sounds like the mold issue is just him trying to cover his butt with an excuse. Like I said first check the local laws because they may just say that obvious abandonment will let you in. All states are different.
@Dominic R. yes. I sent him an email letting him know whatever is done is done. Please return the keys, mailbox keys and parking permits and we call it even. No response.
"Eviction is a tool for removing people"
You are clearly confused by the differance between a notice to pay and a eviction notice. Tenants, like yourself, that wish to troll this forum should take the time to educate themselves.
Hahahahahahahh!!!
https://definitions.uslegal.com/l/landlord-tenant-...
Drops mic. Walks away.
So now that the original poster has updated us the status - tenant has already vacated the property (probably w/o notifying the landlord), claims that there is mold making his children sick, claims that he notified the landlord that he was vacating, etc.
Do you believe that he is still a "good" tenant? And that the landlord did the proper thing to service notice to pay rent, which actually triggered a response form the tenant finally?
Property owner did a good thing following the proper procedures to protect his investment. All tenants are usually "good" until they stop paying rent and offers no explanation...
Yup. Fantastic tenant - don't ask me ask the owner.
The tenant called the owners bluff and now the owner has lost a tenant they really wanted to keep so nope the owner didn't do the right thing. All that stuff about mold was BS to get out of the lease. Without the pay or quit notice they would have stayed and paid, landlords' bluff got called big time. Threatening to terminate a business relationship every time there is contractual cause would be a ridiculous way to run any business, I don't see landlording as any different.
You protect your investment at tenant screening time not every month when the rent is due and I will tell you why.
There is a problem with your theory about following proper procedures.
Procedures don't pay rent, tenants do.
"Eviction is a tool for removing people"
You are clearly confused by the differance between a notice to pay and a eviction notice. Tenants, like yourself, that wish to troll this forum should take the time to educate themselves.
Hahahahahahahh!!!
https://definitions.uslegal.com/l/landlord-tenant-...
Drops mic. Walks away.
So now that the original poster has updated us the status - tenant has already vacated the property (probably w/o notifying the landlord), claims that there is mold making his children sick, claims that he notified the landlord that he was vacating, etc.
Do you believe that he is still a "good" tenant? And that the landlord did the proper thing to service notice to pay rent, which actually triggered a response form the tenant finally?
Property owner did a good thing following the proper procedures to protect his investment. All tenants are usually "good" until they stop paying rent and offers no explanation...
Yup. Fantastic tenant - don't ask me ask the owner.
The tenant called the owners bluff and now the owner has lost a tenant they really wanted to keep so nope the owner didn't do the right thing. All that stuff about mold was BS to get out of the lease. Without the pay or quit notice they would have stayed and paid, landlords' bluff got called big time. Threatening to terminate a business relationship every time there is contractual cause would be a ridiculous way to run any business, I don't see landlording as any different.
You protect your investment at tenant screening time not every month when the rent is due and I will tell you why.
There is a problem with your theory about following proper procedures.
Procedures don't pay rent, tenants do.
Not sure I understand your logic but in any case, we agree to disagree. Good luck on your investments!
"Eviction is a tool for removing people"
You are clearly confused by the differance between a notice to pay and a eviction notice. Tenants, like yourself, that wish to troll this forum should take the time to educate themselves.
Hahahahahahahh!!!
https://definitions.uslegal.com/l/landlord-tenant-...
Drops mic. Walks away.
So now that the original poster has updated us the status - tenant has already vacated the property (probably w/o notifying the landlord), claims that there is mold making his children sick, claims that he notified the landlord that he was vacating, etc.
Do you believe that he is still a "good" tenant? And that the landlord did the proper thing to service notice to pay rent, which actually triggered a response form the tenant finally?
Property owner did a good thing following the proper procedures to protect his investment. All tenants are usually "good" until they stop paying rent and offers no explanation...
Yup. Fantastic tenant - don't ask me ask the owner.
The tenant called the owners bluff and now the owner has lost a tenant they really wanted to keep so nope the owner didn't do the right thing. All that stuff about mold was BS to get out of the lease. Without the pay or quit notice they would have stayed and paid, landlords' bluff got called big time. Threatening to terminate a business relationship every time there is contractual cause would be a ridiculous way to run any business, I don't see landlording as any different.
You protect your investment at tenant screening time not every month when the rent is due and I will tell you why.
There is a problem with your theory about following proper procedures.
Procedures don't pay rent, tenants do.
Not sure I understand your logic but in any case, we agree to disagree. Good luck on your investments!
Don't issue a pay or quit notice unless you are happy to accept either outcome.
Don't issue a pay or quit notice if you really want them to pay because they might quit.
Don't issue a pay or quit notice if you really want them to quit because they might pay.
Nothing difficult to understand there sir. We don't have to agree on anything. That's how I run my business, you can run yours how you like.
@Ihe O. I do think the tenant was good while the party lasted. I am also glad that I sent him a pay or quit notice which put a little fire under his belly to respond and let me know that he has vacated the property.
Call the power company and make sure that the power is on. If he shut it off, the tenant skipped on you and turn the power back on ASAP to protect the property from cold weather damage.