New BP Member, Questions and Some Venting!

9 Replies

Started my real estate investing journey less than a year ago, and really enjoying it. Currently have 5 rentals. One rental is under a large PM company and the other 4 with a smaller PM. 

In one single family rental, we added wood vinyl flooring, a bedroom, and upgraded the kitchen prior to getting it rented. Inside and outside cleaned up before tenant moves in (early 4/2018). 

This tenant is the secretary at the larger PM company handling this only unit. I felt uneasy about it, seemed like a conflict of interest to me

And so it began...

Tenant complains the inside is dirty and there are bugs, spiders everywhere. Neither I, cleaning lady, subcontractors ever noticed any insects during the entire process! 

Couple weeks into the first month, the PM assistant emails asking if I would like to have the AC serviced, I agreed. 10 days following that I receive an email from her on a Friday night, the tenant is complaining that the AC is not working...??? 

A couple other minor little things over the next month or two came and went, until today I receive an email telling me the tenant (who is the secretary mind you) called Friday and complained of a bee hive in the yard and they immediately sent a pest control company to remove it for $65.00

What are your suggestions? Ride this year out and increase the rent to push her out?

Not pay the bee hive removal? 

Thanks for any help! Just venting but would appreciate any insight to start my journey!

Sam

Hi Joe, thanks for responding. 

1. The cleaning and insect issue at the beginning could not have been. It was a red flag for a HIGH maintenance tenant. But what could I have done at that time? 

2. I agreed to have the AC serviced weeks before I received the email about it not working on a Friday night. I responded to the email indicating I agreed to have it serviced two weeks prior, it must have never been serviced. Honestly, never heard back from the company about that issue, and never saw it debited on my financials. 

A beehive? No I do not see how that would be my responsibility. I have already responded that the tenant can take care of that bill.

Originally posted by @Sam C. :

Started my real estate investing journey less than a year ago, and really enjoying it. Currently have 5 rentals. One rental is under a large PM company and the other 4 with a smaller PM. 

In one single family rental, we added wood vinyl flooring, a bedroom, and upgraded the kitchen prior to getting it rented. Inside and outside cleaned up before tenant moves in (early 4/2018). 

This tenant is the secretary at the larger PM company handling this only unit. I felt uneasy about it, seemed like a conflict of interest to me

And so it began...

Tenant complains the inside is dirty and there are bugs, spiders everywhere. Neither I, cleaning lady, subcontractors ever noticed any insects during the entire process! 

Couple weeks into the first month, the PM assistant emails asking if I would like to have the AC serviced, I agreed. 10 days following that I receive an email from her on a Friday night, the tenant is complaining that the AC is not working...??? 

A couple other minor little things over the next month or two came and went, until today I receive an email telling me the tenant (who is the secretary mind you) called Friday and complained of a bee hive in the yard and they immediately sent a pest control company to remove it for $65.00

What are your suggestions? Ride this year out and increase the rent to push her out?

Not pay the bee hive removal? 

Thanks for any help! Just venting but would appreciate any insight to start my journey!

Sam

Well for starters I don't think you have the option "not" to pay for the bee hive removal. I'd imagine they have your money so you not wanting to pay for it is probably an irrelevant point. On top of that landlords are often required by municipalities to handle pests and $65 is incredibly cheap for a company to make a trip out to your house.

As for the A/C if it doesn't work it doesn't work. If you are thinking that this large PM company is just making up false charges I'd say that's pretty unlikely. I mean they sent someone to your house for $65 my man. Nobody is making any money doing that. 

All that said I think that the tenant living in your unit is a bit odd. Due to the issues or perceived issues you have discussed it's not a good practice for a management company to do this. All of the Holton-Wise employees that rent from Holton-Wise we aim to put them in units that are owned by Holton-Wise as to avoid these exact issues, real or perceived.

Appreciate the feedback. After reviewing the lease agreement and financials it appears that this tenant (employee of PM) is not being assessed late fees for partial rent payments. Agreement states rent is to be paid in full by first of each month. This month partial rent payments made until final payment in full received today. No late fees assessed. Wonder if they are letting all tenants slide on their late fees?

My good friend has lent me her lease for our first rental and it has a clause in about $50-100 for each service call to the property to decrease and discourage nuisance calls. They then use their discretion that if it’s a legit complaint or repair needed to be handled, they waive the fee.

Originally posted by @Sam C. :

Appreciate the feedback. After reviewing the lease agreement and financials it appears that this tenant (employee of PM) is not being assessed late fees for partial rent payments. Agreement states rent is to be paid in full by first of each month. This month partial rent payments made until final payment in full received today. No late fees assessed. Wonder if they are letting all tenants slide on their late fees?

Originally posted by @Sam C. :

Appreciate the feedback. After reviewing the lease agreement and financials it appears that this tenant (employee of PM) is not being assessed late fees for partial rent payments. Agreement states rent is to be paid in full by first of each month. This month partial rent payments made until final payment in full received today. No late fees assessed. Wonder if they are letting all tenants slide on their late fees?

Late fees might not be due to you. Read the management agreement between you and the management company. Most of the time late fees get paid to the management company.

What does it say in your lease? Who should be taking care of the property maintenance and lawn care? Typically in single family rentals lawn care and maintence up to a certain dollar amount is the tenants responsibility. That's how we have ours written and laws may be different in your state. but always start by referring back to your lease and then decide whether or not you will do a repair because in some instances it may be the tenants responsibility. also I would have recommended against not having allowed a employee of a company that is managing your property to live in the property. Sounds like a conflict of Interest in my opinion. 

I agree Melissa. I am regretting allowing that to happen. Its great though, no matter how much you prepare, read, listen, you only truly learn by immersing yourself into the process. Undoubtedly, situations like this will arise for the next couple decades of my journey, its exciting to learn from mistakes early on and know you will improve! 

The beehive deal would not have "bugged" me if it were the only picky complaint from the tenant. Only being in the home 2.5-3 months, I have received nit picky stuff each month. I have the other rentals fully occupied and hear absolutely nothing from those tenants.