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Peter Stewart
  • Real Estate Broker
  • Indianapolis, IN
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I just called the cops. There's someone screaming in the basement

Peter Stewart
  • Real Estate Broker
  • Indianapolis, IN
Posted Aug 5 2018, 12:18

That was the text I got from a tenant at 730am last Friday morning. They live in a 4plex I own nearby. What a way to start the day! 

Here's some backstory before I get to the details - I am in the process of evicting one of the tenants in that 4 unit for multiple lease violations (non-payment of rent, installed a window a/c unit and has not taken it out despite multiple warnings, and has had 2 people living in the unit who are not on the lease for the last 6mo). The tenant is a real piece of work - an alcoholic, a druggie, and a total liar. And, the two people living with him are now wanted for aggravated assault. One of the two stabbed someone at a gas station - I recognized them from the news article (they had security footage), and they've been turned in to the police (the police have all their info, but haven't acted on it yet). Needless to say, these are not good people and I need them out.

Note - This is my first "real" eviction. Have the hearing this coming Thursday. 

When I got that text I immediately hopped in the car and drove to the property (~7min away). I was able to catch the officers before they left the property. Apparently for 3 days in a row these lovely tenants have had a homeless person living in the basement of the property (one of their druggie "friends", I'm sure). And this particular morning he was extremely inebriated and decided to scream at the top of his lungs at 730am, scaring the crap out of my other tenants (I'm told multiple calls went in to police). I'm told he sounded "demonic". The tenant I'm evicting "claimed" him and told the cops he could sleep it off in his unit. I tried to have him trespassed to no avail....When I went to check out the basement to make sure there was no damage there were 4 Loco cans everywhere. Based on this guys behavior, there was more than that involved. And yes, I immediately changed the basement lock and didn't give the bad tenant a key copy.

So, what is the moral of this story and why am I telling it? Several reasons:

1. Trust your gut. I knew from the beginning this tenant was no good. But, he was an acquaintance from high school and I had a few people vouch for him. In my gut I knew not to lease to him, but I didn't follow it.

2. Diligently screen EVERY tenant, no matter who they are. I didn't vet him at all (no credit or background check, etc). I went off the "word" of two people. Surprisingly, these two people are not interested in now reimbursing me for the unpaid rent, attorney fees, and damages to the unit :)

3. Treat your rental properties like a business, not a hobby. This is probably my biggest mistake. I am a full time realtor and this is my main source of income. But, I do own multiple rentals and I'm on a path to purchase 100 units in the next 5 years. So, it's imperative that I treat it like the business it is. I was WAY too lax with tenants, allowing them to pay late, pay in installments, etc. Establish clear rules and boundaries, and don't deviate from them, no matter what. 

4. Train your tenants from the beginning. If you give an inch, they'll take a mile. Set clear rules and expectations with them in the beginning. These people are your customers, not your friends. Treat them as such. Don't let them cross into the "friend zone", or even get close to it. It's tough, but you have to remove all emotion from this side of the business. It's something I've really struggled with in the past, but this lesson has opened my eyes and made it very easy to make the change.

Although this problem tenant has been just that, I almost have to thank him. He has taught me so many lessons to apply to my business, I will be benefiting from them for the rest of my life and undoubtedly will gain far more $$ from the lessons than what this tenant has cost me.

Peter Stewart Realty Logo

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