New landlord and possible tenant situation already! Advice please

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New landlord and possible tenant situation already! Advice please

Stephen Neto
North Dartmouth, MA · Member since 2018 · 45 posts · 6 votes

I'm a new landlord, haven't even collected first rent from tenants yet on a 3 unit in a city of about 100k population. Neighborhood is rough in an ethnically diverse section, but property price and rents seemed good. Second floor tenant, who lost her lasts months rent because old landlord used it when she was behind, seems to have invited other people to live in the apartment when she found out there was a new landlord. Got this Info from first floor tenant. She already lives with her girlfriend. 

New tenants are not authorized unless they go through me with an application. How should I go about this?

Should I wait to see if they at least pay their rent? I am assuming she needed help with the rent. But I don't like the fact that she brought someone in without asking me.  I am doing property management myself or thought I was going to. But its stuff like this that makes me want to hire a PM co to deal with that type of BS.

Oh and I know they smoke pot in the house because last time I was there, I smelt it. 

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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
8y

Start the eviction process.

She was already problematic and got behind on rent with the last Landlord. You also know she's smoking in the unit (doesn't matter if it's a legal substance or not; smoking shouldn't be allowed indoors). 

Hit her with an eviction and minimize the losses now.

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  • Karen Rittenhouse
    Flipper/Rehabber · Greensboro, NC · Member since 2010 · 623 posts · 615 votes
    8y

    @Nadir M. Their problems cannot become yours. This is a business. If they can no longer afford rent, they must move. Unless you can afford to lose money every month?

    1Reply
  • Nadir M.
    Property Manager · Westminster, CO · Member since 2018 · 486 posts · 110 votes
    8y
    @Karen Rittenhouse I guess it depends on their history as your tenants as well. I see your stance on the issue as well, I guess that’s the best way to handle it
    0Reply
  • DeVaughn Pearson
    Rental Property Investor · Rapid City, SD · Member since 2015 · 4 posts · 0 votes
    8y
    @Stephen Neto I had a similar situation when I began a couple years ago, almost half of the tenants in a 9 unit were not paying and giving me excuses on why they couldn’t pay their rent. By being respectful, firm and consistent I was able to evict the tenants. My advice is to make sure you know what your options are regarding landlord tenant rights and create a plan and execute; sticking to a plan can help eliminate some of the emotions that can come with evicting a tenant. Hope this helps and good luck!
    0Reply
  • Aaron Maxwell
    Member since 2017 · 125 posts · 37 votes
    8y
    @Migeul Obramowitz actually that is not true what you are saying,seems kinda racist to me. There are alot of good working class paying citizens in the hood that have jobs and careers. And there are plenty of investors in the hood.look at harlen now, look at oakland ca, smh. And my advice is get lisa phillips book or check out her poadcast on youtube. But her book is really good .
    0Reply
  • Lisa Phillips
    Real Estate Investor · Arlington, VA · Member since 2012 · 302 posts · 277 votes
    8y
    Originally posted by @Aaron Maxwell:
    @Migeul Obramowitz actually that is not true what you are saying,seems kinda racist to me. There are alot of good working class paying citizens in the hood that have jobs and careers. And there are plenty of investors in the hood.look at harlen now, look at oakland ca, smh. And my advice is get lisa phillips book or check out her poadcast on youtube. But her book is really good .

     And this is why discussing low income properties on here is a losing proposition...But I did see good advice sprinkled within the mass stereotypes.

    0Reply
  • Aaron Maxwell
    Member since 2017 · 125 posts · 37 votes
    8y

    Exactly!

    0Reply
  • Christine Kankowski
    Real Estate Broker · Temecula, CA · Member since 2014 · 994 posts · 783 votes
    8y

    Provide them with applciations for anyone living in the property who is not on the lease.  Let them know they need to come up with rent to make it current and provide last months rent as well according to the lease. 

    If they can't come up with it, file for eviction asap. 

    Best of luck!

    0Reply
  • Stephen Neto
    OP
    North Dartmouth, MA · Member since 2018 · 45 posts · 6 votes
    8y

    Constable will be serving 30 day notice tomorrow.

    1Reply
  • Rich N.Pro Member
    Investor · Haverhill, MA · Member since 2015 · 761 posts · 328 votes
    8y

    You do know they will not give you November's rent (if they were ever going to do it ).

    Be prepare for them to call you asking why and can they change your mind.  Have your answer ready. i.e.  Unfortunately, I need the place for family. Do not elaborate anymore than that.

    If they ask to stay a little longer....Unfortunately that won't be possible.  Note: if you did, then you would have to hire the constable again AND they will know your a pushover!

    Did you get any security deposit funds ?

    0Reply
  • Stephen Neto
    OP
    North Dartmouth, MA · Member since 2018 · 45 posts · 6 votes
    8y

    @Rich N. there were no deposits transferred for this tenant from previous landlord. That was like Sign #3 for me. I had a gut feeling from day of showing they would be a problem for me going forward. I realize too I may not get November rent but I am willing to cut my losses early on and start this project out my way. I have 2 other good family oriented tenants, going to make it three shortly. 

    0Reply
  • Aaron Maxwell
    Member since 2017 · 125 posts · 37 votes
    8y

    Where is the evidence for that ? And to me  doesn't even matter  because I already know  what type of person you are and they are a lot  of successful  real estate  Investors  that are buying  up the hood . You can look up  roof  for all  on Instagram .  It is not  a black owned business  but they sure do have  a lot of  black tenants .  In the hood .  And they are very successful  so miss me with that

    0Reply
  • Douglas Snook
    Attorney · Attleboro, MA · Member since 2015 · 412 posts · 165 votes
    8y

    @Stephen 

    @Stephen Neto Let's start at the beginning. At the moment they are current on rent and have no written lease or month to month agreement. I will also assume you have no written application from them (or any of your tenants)

    You have two choices - give them a 30 day notice NOW (before November 1) You do not need a reason to terminate (don't say you have a familiy member if you do not). They probably will not pay rent NOV 1 (claiming they need they money to move to another place) If they are not out by Nov 31 then you go to court for the eviction and it will take its course there

    You could wait until Nov 1 to see if rent is paid. If it is not you can give them a 14 day notice to quit. However if they pay it current you are stuck.

    You might want to consider giving ALL the units a 30 day notice of termination. Then tell them if they want to stay you need them all to complete an application and qualify and to sign either  year long lease or month to month agreement that will list all occupants and state no smoking of any kind (what out if they try to claim pot is medically required) and also require security deposit and last month rent (if you want to go there)

    Even if you self manage you need a good attorney to help with the eviction (at least the first one )

    0Reply
  • Stephen Neto
    OP
    North Dartmouth, MA · Member since 2018 · 45 posts · 6 votes
    8y

    Thanks @Douglas Snook As I mentioned, i gave them 30 day notice. If they leave at the end of November and they do not pay November rent, which most say will happen, should I be grateful they left but didn't pay rent?  I assume it is a lost cause if I try to get the November rent from them after the fact?  In the mean time I will ask for the rent on the first of the month and see what happens.

    0Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    8y

    @Stephen Neto

    I guess I'm the odd man out here. I'd at least see if the new person is acceptable before I started thinking about eviction.

    I own and manage a number of low income rentals. If the existing tenant was having trouble paying rent and managed to get someone else acceptable moved in to help pay rent-- as long as the unit is does not exceed 2 persons per bedroom YAY! If you are in an area where the market will allow you to collect last month's rent in addition to security and first, I'd get them on a payment plan to come up with the last month's rent in addition to regular rent payments. If you are playing in the C-/D+ sandbox being flexible keeps tenants in place longer and makes you more money.

    Having said that, I do have rules where I don't bend-- I do not allow cigarette smoking in renovated units because it ruins my paint. I don't really care if tenants vape or smoke marijuana (since they are unlikely to smoke enough to ruin my paint). I don't let anyone get behind on more than one month and I do kick out drug dealers.

    0Reply
  • Stephen Neto
    OP
    North Dartmouth, MA · Member since 2018 · 45 posts · 6 votes
    8y

    @Jill F. I have been pretty good in my life so far to go with my gut.  Upon first walk thru of property when I was scouting the house, I felt good about all units except the one in question.  After finding out about the smoking, inviting others over to live, dogs pooping on hallway carpets (carpets to be replaced) and used up last months rent from previous owner, sellers agent now tells me (after the fact and sale) that this tenant reported previous owner to board of health because thats how she settles things.  So my trusting gut served her the 30 days.

    0Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    8y
    Originally posted by @Stephen Neto:

    @Jill F.  ...this tenant reported previous owner to board of health because thats how she settles things...

    That all by itself would do it for me. Out she should go.

    0Reply
  • Douglas Snook
    Attorney · Attleboro, MA · Member since 2015 · 412 posts · 165 votes
    8y

    Once you have her served she may call the Board of Health, so be it, you may get tagged for some stuff the other lanlord never took care of, it will not stop your eviction action. Once you get her into court, you may have to wheel and deal with her in mediation or she may even lawyer up with a legal services attorney. She may delay it but you should be able to get use and occupancy out of her while she is there and if she doesn't pay it, get the execution to move her out

    0Reply
  • Jeremy W.
    Specialist · Rancho Santa Margarit · Member since 2018 · 17 posts · 1 vote
    8y
    @Stephen Neto Turn it over to a property management company and move on to your next deal.
    0Reply
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