Eviction Nightmare with aggressive tenants.

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Eviction Nightmare with aggressive tenants.

Justin K.
East Texas · Member since 2018 · 205 posts · 138 votes

I will preface this by saying this is 100% a self inflicted wound that in all honesty did know know was happening. I am an investor with two other "good old boys" who still believe in handshakes and verbal agreements.(I do not!!! I have worked for a larger company and contracts and written agreements are a rule of operations.

Property was bought 4/18 with tenant in place with signed contract with previous owner.

1st mistake- I was under the impression one of my other business partners received a new signed lease agreement for our company. That did not happen....

2nd mistake- we did not do our own internal due diligence and perform a background check.

3rd- one of my other partners was informed in June that the current tenants were subletting(I found out 10/23/18, yes 3 days ago) and did not tell me. I would have never allowed that. Their theory was that the bills are being paid, its all good.

4th- the tenant that was paying the rent stopped paying and missed the rent for October 1. They did not post notice or even make calls figuring out why. Again found out on 10/23/18.

We posted notice on 10/23/18 at 5pm and they have until 5pm today to leave or we will file per Texas eviction rules.

What makes things even better is the current people who are occupying MY PROPERTY basically called me and said "I wish you would come down and try to make me leave." Well the already pissed off, very Type A personality, very well trained guy wanted to throw on the plate carrier, go lights out, and get playful in the dark. But unfortunately (or fortunately, depends on how you look at it) my old age and wisdom kicked in and going to jail and lossing my family is not worth a rent house.

So basically I think we broke every rule of being a land lord possible. I basically told both partners that I am now taking over and I am running the show as I am not going to run my business as a charity. They fund, I run the business, I make my cut. 

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Bill F.
Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
7y

@Justin K. 

I have nothing of merit to add besides +1 for the phrase "get playful in the dark" 

You are making the right call by following the eviction script, despite how tempting going kinetic at 0300 may seem. 

Since this is your first eviction, paying an attorney to handle it may be worth its weight in gold.  1. You could treat it like eviction OJT and get a feel for if this is something that's in your wheel house or not.

2. It provides an insurance policy of sorts against you dragging this process out by making a mistake. Unknow unknowns kinda thing.

Good Luck

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  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y

    @Justin K.

    I sympathize with your problem. Get the good old boys out of the business and sitting on the sidelines with their wallets open and their mouths closed however you can. They never tell you this in the get-rich-quick buy-and-hold seminars, but there are simply a LOT of people who do not have and don't want to acquire the mindset and diverse skill set of a quality property manager.

    I also tell new investors to go through your first eviction with your lawyer. Consider it a tuition expense. If you're local, as I am, it's also a great idea because you'll call in the same lawyer when an eviction starts taking a weird turn, and that lawyer will function more effectively if s/he was the one that taught you how to do evictions in your area. I know the mentor's going to help you, but if you're in low-income rentals, as I am, there's no substitute for having a working relationship with a highly experienced local real estate lawyer over a period of years.

    I've made the same mistakes and relied on the same sort of people. You get past it eventually.

    One of the things that happens if you develop in this work is that you will eventually consider a point of pride is that nothing a tenant can say to you will ever bother you emotionally once you are in a conflict-laden situation. They might as well be barking like dogs. I hope you get there soon. When this guy told you to "come down there" he likely meant for you to meet him at the door, shake his hand, maybe trade a few harsh comments about each others' mommas before you stripped down and went at it under Queensberry Rules. I doubt there's a place in his brain that would understand what you took it to mean, otherwise he would have kept his trap shut.

    Good luck, Justin. I hope you update this with good news soon.

    2Reply
  • Justin K.
    OP
    East Texas · Member since 2018 · 205 posts · 138 votes
    7y
    Originally posted by @Andrew Flora:
    This is why I am always armed when making house visits, especially when there's eviction notice involved. I do at some point tell them to their face, if they get violent then I have a right to defend myself. If they won't leave then the court/police remove them for me. Use it as a lesson and start over fresh with your next tenants. What we learn from our mistakes becomes very valuable lessons

     Absolutely on being armed. I hope it never gets to that point.

    0Reply
  • Justin K.
    OP
    East Texas · Member since 2018 · 205 posts · 138 votes
    7y

    On a side note, what about using the "I think my tenants are using/doing drugs in my house" card? Does this fast track the eviction and I can then self help eviction? 

    Its not below me to pull the drug card and then change the locks while the cops arrest them for drug possession which in this case I do believe they are using. 

    0Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y

    @Justin K.

    The drug issue will vary from area to area. Self-help evictions backfire as a rule unless you're a slumlord and you own the entire town/municipality including the local chief of police.

    0Reply
  • Justin K.
    OP
    East Texas · Member since 2018 · 205 posts · 138 votes
    7y
    Originally posted by @Jim K.:

    @Justin K.

    I sympathize with your problem. Get the good old boys out of the business and sitting on the sidelines with their wallets open and their mouths closed however you can. They never tell you this in the get-rich-quick buy-and-hold seminars, but there are simply a LOT of people who do not have and don't want to acquire the mindset and diverse skill set of a quality property manager.

    I also tell new investors to go through your first eviction with your lawyer. Consider it a tuition expense. If you're local, as I am, it's also a great idea because you'll call in the same lawyer when an eviction starts taking a weird turn, and that lawyer will function more effectively if s/he was the one that taught you how to do evictions in your area. I know the mentor's going to help you, but if you're in low-income rentals, as I am, there's no substitute for having a working relationship with a highly experienced local real estate lawyer over a period of years.

    I've made the same mistakes and relied on the same sort of people. You get past it eventually.

    One of the things that happens if you develop in this work is that you will eventually consider a point of pride is that nothing a tenant can say to you will ever bother you emotionally once you are in a conflict-laden situation. They might as well be barking like dogs. I hope you get there soon. When this guy told you to "come down there" he likely meant for you to meet him at the door, shake his hand, maybe trade a few harsh comments about each others' mommas before you stripped down and went at it under Queensberry Rules. I doubt there's a place in his brain that would understand what you took it to mean, otherwise he would have kept his trap shut.

    Good luck, Justin. I hope you update this with good news soon.

    I have a calling going out first thing Monday morning to a lawyer per the recommendation of my mentor after i gave her a 30 minute rundown of the situation. Unfortunately its come to this and again, hard lesson to learn. 

    Whats even funnier is just this Monday i was talking with my partners about having a lawyer lined up just in case a situation like this did come up. I should have found some wood to knock on because ill be damned it it didn't come true a few days later. 

    Never heard of Queensberry rules. Rules of a Gunfight and the rules of Zombieland is what I generally follow as they haven't proved to be wrong yet. 

    0Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    7y

    "It's tempting to take thing into my own hands because honestly, I just do it better in the dark."

    Been there done that.

    Regrettable for me I am in a extremally pro tenant jurisdiction. To be successful we are often forced to be creative to avoid having to rely on our landlord/tenant board adjudicators to get evictions.

    0Reply
  • Justin K.
    OP
    East Texas · Member since 2018 · 205 posts · 138 votes
    7y
    Originally posted by @Jim K.:

    @Justin K.

    The drug issue will vary from area to area. Self-help evictions backfire as a rule unless you're a slumlord and you own the entire town/municipality including the local chief of police.

     It still fathoms me that tenants like this have more rights than the people who have signed and documented papers saying they are the owners.  Its my property and I wish I could just go down and grab them by the collar and throw them out. 

    1Reply
  • Justin K.
    OP
    East Texas · Member since 2018 · 205 posts · 138 votes
    7y
    Originally posted by @Thomas S.:

    "It's tempting to take thing into my own hands because honestly, I just do it better in the dark."

    Been there done that.

    Regrettable for me I am in a extremally pro tenant jurisdiction. To be successful we are often forced to be creative to avoid having to rely on our landlord/tenant board adjudicators to get evictions.

     I would like to hear your creativity stories if you have any. 

    0Reply
  • Matthew Olszak
    Real Estate Broker · Chicago, IL · Member since 2015 · 1k+ posts · 2k+ votes
    7y
    Originally posted by @Justin K.:

    I will preface this by saying this is 100% a self inflicted wound that in all honesty did know know was happening. I am an investor with two other "good old boys" who still believe in handshakes and verbal agreements.(I do not!!! I have worked for a larger company and contracts and written agreements are a rule of operations.

    Property was bought 4/18 with tenant in place with signed contract with previous owner.

    1st mistake- I was under the impression one of my other business partners received a new signed lease agreement for our company. That did not happen....

    2nd mistake- we did not do our own internal due diligence and perform a background check.

    3rd- one of my other partners was informed in June that the current tenants were subletting(I found out 10/23/18, yes 3 days ago) and did not tell me. I would have never allowed that. Their theory was that the bills are being paid, its all good.

    4th- the tenant that was paying the rent stopped paying and missed the rent for October 1. They did not post notice or even make calls figuring out why. Again found out on 10/23/18.

    We posted notice on 10/23/18 at 5pm and they have until 5pm today to leave or we will file per Texas eviction rules.

    What makes things even better is the current people who are occupying MY PROPERTY basically called me and said "I wish you would come down and try to make me leave." Well the already pissed off, very Type A personality, very well trained guy wanted to throw on the plate carrier, go lights out, and get playful in the dark. But unfortunately (or fortunately, depends on how you look at it) my old age and wisdom kicked in and going to jail and lossing my family is not worth a rent house.

    So basically I think we broke every rule of being a land lord possible. I basically told both partners that I am now taking over and I am running the show as I am not going to run my business as a charity. They fund, I run the business, I make my cut. 

    If you are going to run the show, the best thing to do is turn the property over to a PM. When you have a partnership, everyone will have different opinions on how to run the show. Rather than thrust all of the responsibilities on one or more people, and later the blame when things don't work out, treat this like a business and delegate those responsibilities to the professionals. Beyond blame, you'll also have an issue that you deserve a larger cut because you are taking care of everything, etc.

    On to the immediate problem - the tenant threatening you. He says you better not go over there. Well, why would you? There is a process to this. You aren't Bubba, you aren't going to go over there and threaten to break his knees if he doesn't leave immediately, and he's not going anywhere until the process is done. Follow your state's process to evict and do so. That means engaging with an attorney to do their part in court, and with the sheriff to do their part physically removing the tenant. The tenant wants to make this personal with you, don't let him do that. Keep it stuck in your mind that this is simply a process you follow. Literally if you run your business right you can do everything involved with this situation via email and phone calls from your home/office, just to ensure all of your moving-parts are doing fulfilling their roles.

    6Reply
  • Justin K.
    OP
    East Texas · Member since 2018 · 205 posts · 138 votes
    7y
    Originally posted by @Matthew Olszak:
    Originally posted by @Justin K.:

    I will preface this by saying this is 100% a self inflicted wound that in all honesty did know know was happening. I am an investor with two other "good old boys" who still believe in handshakes and verbal agreements.(I do not!!! I have worked for a larger company and contracts and written agreements are a rule of operations.

    Property was bought 4/18 with tenant in place with signed contract with previous owner.

    1st mistake- I was under the impression one of my other business partners received a new signed lease agreement for our company. That did not happen....

    2nd mistake- we did not do our own internal due diligence and perform a background check.

    3rd- one of my other partners was informed in June that the current tenants were subletting(I found out 10/23/18, yes 3 days ago) and did not tell me. I would have never allowed that. Their theory was that the bills are being paid, its all good.

    4th- the tenant that was paying the rent stopped paying and missed the rent for October 1. They did not post notice or even make calls figuring out why. Again found out on 10/23/18.

    We posted notice on 10/23/18 at 5pm and they have until 5pm today to leave or we will file per Texas eviction rules.

    What makes things even better is the current people who are occupying MY PROPERTY basically called me and said "I wish you would come down and try to make me leave." Well the already pissed off, very Type A personality, very well trained guy wanted to throw on the plate carrier, go lights out, and get playful in the dark. But unfortunately (or fortunately, depends on how you look at it) my old age and wisdom kicked in and going to jail and lossing my family is not worth a rent house.

    So basically I think we broke every rule of being a land lord possible. I basically told both partners that I am now taking over and I am running the show as I am not going to run my business as a charity. They fund, I run the business, I make my cut. 

    If you are going to run the show, the best thing to do is turn the property over to a PM. When you have a partnership, everyone will have different opinions on how to run the show. Rather than thrust all of the responsibilities on one or more people, and later the blame when things don't work out, treat this like a business and delegate those responsibilities to the professionals. Beyond blame, you'll also have an issue that you deserve a larger cut because you are taking care of everything, etc.

    On to the immediate problem - the tenant threatening you. He says you better not go over there. Well, why would you? There is a process to this. You aren't Bubba, you aren't going to go over there and threaten to break his knees if he doesn't leave immediately, and he's not going anywhere until the process is done. Follow your state's process to evict and do so. That means engaging with an attorney to do their part in court, and with the sheriff to do their part physically removing the tenant. The tenant wants to make this personal with you, don't let him do that. Keep it stuck in your mind that this is simply a process you follow. Literally if you run your business right you can do everything involved with this situation via email and phone calls from your home/office, just to ensure all of your moving-parts are doing fulfilling their roles.

     Awesome advice. I think you hit the nail on the head! 

    0Reply
  • James Warner
    Denver, CO · Member since 2018 · 5 posts · 1 vote
    7y

    Kinetic actions have a time and a place, but until then, I’ve had good luck doing eviction research here and on the associated links: https://www.nolo.com/legal-encyclopedia/how-evict-tenant-north-carolina.html

    0Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y

    @Justin K.

    Look for lawyers who specifically mention estate planning, small business, and real estate in describing their experience. That's legal code for "experienced landlord's lawyer."

    0Reply
  • James Ma
    Burnaby, BC · Member since 2017 · 282 posts · 268 votes
    7y

    Well technically if there is no paperwork then they're not tenants and you should be able to evict them or charge them with trespassing

    0Reply
  • Harry Durken
    Flipper/Rehabber · Costa Mesa, CA · Member since 2018 · 1 post · 0 votes
    7y
    @Scott Nidell have your partners buy you out and then they can handle the mess. Also, don’t let one situation leave a bad taste in your mouth. Don’t make the mistakes again, and always be the lead in a property unless it’s not possible, then ask yourself, “is this what I want in my life?”.
    0Reply
  • Account Closed
    Retired Landlord/Author · Commerce Township, MI · Member since 2012 · 1k+ posts · 1k+ votes
    7y

    Should of, would of could of. It's done. You learned a lesson.  Where do you go from here.  

    First you need the courts to tidy up the mess. Whatever tenants are left to stay, and they are bad get them out or get co-signers.  But the main thing here is how to go forward.  I will post some things here for you to read.  

    A Lecture for New Investors by Nancy Neville

    Okay, I understand it.I’ve been there.You’re tired of working for somebody else.You want to be your own boss.You want to make money.Houses are still selling rather cheap, depending on the area, and you think, now is the time to become a Landlord!Just buy a house, rent it out and money rolls in, just like that.

    I’ve been on Bigger Pockets for several years and I cringe when I read that someone has just bought a house or a duplex, or a 4plex and they are soooooo excited, that they are about to burst, and then they ask the question.“WHAT DO I DO NOW”?

    Oh my goodness!You mean they’re asking this question now, AFTER they purchased a home!Yikes!!!!

    I see more and more people buying buildings for rentals and don’t have a clue what to do with them once they have them.

    Being a Landlord is a very serious business!!!!I can’t stress this enough.The life of a landlord can be exciting and challenging, but it is 24/7 and it is a business of people management, and doing things legally and doing things right, and making decisions, bad or good.

    This is a business of evictions, of fires, of break in’s, of damages, of being responsible for other people’s lives.What THEY (your tenants) do affects YOU!

    There are laws to follow in order to make your building legally rentable.One is to have a C of A(Certificate of Acceptance) this is decided upon by the state, or county or city where you live.They have to approve this home to be a rental.Then you receive a C of O (Certificate of Acceptance) decided upon again by the local or state or county authorities. This states the home has been approved and available to be a rental.And some of these must be applied for every time a tenant moves.So check your state laws.

    There are Landlord Tenant Laws, Building Codes, and laws that are not laws at all but based on a Judge’s opinion of whether or not a tenant did wrong or not.For instance, normal wear and tear.Judges have various opinions on what they deem normal wear and tear.

    This is an Industry of thinking skills.This is an industry of holding your temper and implementing your lease agreement no matter what.You need to think like a Judge.You need to think reasonably.

    You need to be a good listener.You need to be in control.

    Once you buy a house you need to know how to keep that house and how to keep your tenants long term.

    You need to know how to be all things in order to keep your tenants happy, yet make them know the rules of landlording and how to be good tenants.

    I always say that one is only as good as the tools they have.You could be the greatest landlord in the world in mind and action, but if you don’t have the equipment, or the education, or the money to invest in the proper tools to make you successful, then you will never make it in this business.

    It takes my breath away to read the stuff on here by new investors.And I understand that how can they know what they do not know?That is why I wish there was a Sticky Note on here for New Investors to post posts like mine (and maybe there is and I just don’t know it) that tells them to Read This First before Investing!!!

    My husband and I were very successful in the business. (We are retired now due to his cancer). But we owned a huge house.And every time someone would come over and do work on something on the house, they would ask, “Wow are you a doctor?” and I would say no.And they would ask, “A lawyer?” And I would laugh and say no.I’m just a Landlord.And they would say, “Wow and that’s all that you do?”And I’d laugh again and say, “Yep that’s all that I do”.And they would reply.“Wow, I think I’ll become a landlord too”.

    And that is the mindset of a new investor. When I say that’s all that I do, let me tell you what to expect in the life of a landlord and all that they do.

    • 3 am Christmas Eve Tenants call-Furnace went out.I get up, phone calls made, emergency call, expensive triple overtime to the Heating Contractor, Tenant has heat. Tenant Happy.Landlord sleepy.
    • 2 am Fire Dept. calls.Fire at such and such a place.We get dress. Blizzard outside.Drive to the home.Access the damages.Look at the big hole in the roof from the fire dept.Plan our strategy.Talk to tenants. Get our guys out to put a tarp over the roof.Meet in the morning with everyone to solve the problem, what to do with tenants, whose fault, where to go from here.
    • You have tenants parking their cars on the lawn
    • Having unauthorized guests
    • Doing Drugs
    • Having a dog they shouldn’t have
    • Hoarders
    • Complainers
    • (In my case…drive by shootings, bullet holes in rentals, thievery)
    • Water abuse
    • Dish on roofs when forbidden to have one on the roof
    • And so much more
    • On top of being ready to take care of emergencies any time night or day, and solving tenant issues. You need to also take care of the following.
    • 1.Fixing up a vacant rental so it can be rented out again.
    • a.We had handy men to do most of this, but with 40 rentals my husband and I had to pitch in a do the labor ourselves as well.
    • b.I would paint the house and garages.
    • c.Husband would fix the repairs inside
    • 2.I would take care of the tenants.This entailed
    • a.Taking care of advertising the homes (usually we had more than one vacancy at a time)
    • b.Taking phone calls and screening tenants
    • c.Scheduling open houses
    • d.Staging the house
    • e.Interviewing the applicants
    • f.Making sure I double checked their application forms
    • i.Criteria
    • ii.Employers
    • iii.Verifying funds and income
    • 3.Typing up the lease and making sure they understood the lease
    • 4.Then making sure the Tenants abided by the lease agreement
    • 5.Paid their rent on time
    • 6.And sent that Notice to Quit for Non Payment of Rent the very first day rent is late.

    On top of that I did my own evictions and I never lost a case and I dealt with the 36th District Court in Detroit.I won because I covered my butt by having everything in writing.I documented everything.Every phone call I made to them and every phone call they made to me.

    I never complained to a tenant because they called regarding a repair.I listened when they told me they couldn’t pay their rent, but even though I understood their problem, I made them pay their rent anyway.

    Landlording is about making tough decision and doing things you don’t like to have to do.

    Landlording is a Business.

    You have to not LOVE YOUR HOUSE.I can’t stress this enough.If you don’t know or understand that this is a business of evictions, damages, and injustices, and fixing this house up over and over again, you aren’t going to be happy let alone successful.

    How I wish I could be there for every new investor to help them understand what it’s like to be a landlord BEFORE YOU INVEST.But I can’t and that’s really a shame because it something every new investor should dig into before they invest.

    One last thing. Yes you need to have an accountant to file your taxes for you at the end of the year. Our industry involves huge sums of money in our rentals and other people's money. An Accountant knows how to get you back more money at the end of the year because they know the tax laws, not you! So please don't be cheap and try doing it yourself.

    Nancy Neville

    7Reply
  • Account Closed
    Retired Landlord/Author · Commerce Township, MI · Member since 2012 · 1k+ posts · 1k+ votes
    7y

    Know your Area by Nancy Neville

    KNOW YOUR AREA

    Okay, you’ve decided to take the plunge in buying rental properties and becoming a Landlord. What’s the first step you should take?

    You need to decide on the location. Would they be located in “hard to rent” areas where there is a lot of crime? Would they be located in a low-income neighborhood where rents must be kept low? Would they be a long way from your office or home? (Remember, you must be able to take care of those emergency repairs immediately, so living 60 miles away, unless you have independent contractors doing the work for you would not be a good idea.) Plus, you must be available to be there or take care of matters when the need arises.

    Would your properties be in high ranking neighborhoods where rents are targeted more towards CEO’s and high paying officials? Sometimes these types of rentals are only short term. How long would your rentals stay empty while waiting for another tenant to come along who could afford such rent? These are things to think about.

    CASH FLOW

    In this day and age, with the economy the way it is, I highly recommend paying cash for your rentals. Prices of homes are cheap now with foreclosures in abundance. But if you have to get a mortgage loan to purchase a home, then make sure the mortgage payments are going to be less than your rents, and not a long-term loan. (You must make at least $100 over and above your expenses for each rental unit to allow for vacancies and other unexpected expenses).

    I also highly recommend buying more than one property at a time. The more homes you buy, the more it secures your investment. You need at least 5 homes to survive in this business long term. There will be many unexpected expenses, such as evictions, tenants who don’t pay, and vacancies. If you don’t have other income coming in, or have other rental homes, then you won’t be able to cover all these expenses.

    Even though I recommend at least 5 homes, it is better yet to purchase at least 10 homes and more. The more homes you have, the better chance you have of lasting a long time in this business. The eviction process and lots of vacancies are stressful enough, without having to worry about where your next dollar is going to come from.

    EXIT PLAN

    It is VERY IMPORTANT to have an EXIT PLAN no matter if you are young and just starting out, or approaching retirement age and have been in the business a long time.

    There are many unexpected problems that arise in everyone’s life. Whether it’s the economy going sour, or you are growing old, or bad health, you must have a “backup plan”.

    Many of us hate to talk about having our burial planned out or having life insurance, but it’s something we need to talk about with our families and plan for, and so most of us do. Having an Exit Plan, or a Retirement Plan, is just as important and crucial.

    0Reply
  • Account Closed
    Retired Landlord/Author · Commerce Township, MI · Member since 2012 · 1k+ posts · 1k+ votes
    7y

    THE TENANT PHASE by Nancy Neville

    THE FIRST MONTH (THE HAPPY PHASE)

    During the first month of a rental period, the tenant is happy. They wanted the home, they got the home and everything is fine. THEY ARE VERY HAPPY! You spent a lot of time at the signing of the lease telling them what you expect from them and what they can expect from you. They seemed to be happy and they nodded in understanding.

    THE SECOND MONTH

    Somehow during the second month, when the newness wears off and the happiness falls into a routine, the new Tenants become confused. They seem to forget what the rules are and when rent is due (even though they have a written lease agreement to refer to). If they are one of the few tenants who does not get confused during this time, this means they have jumped from the Second Month phase into the TESTING PHASE which may cause a few problems, but I will talk about that in a few minutes.

    To help the Tenants not be confused during the 2ND MONTH PHASE, I always bill my Tenants their rent 10 days before it is due. It's during the 2ND MONTH PHASE that I will answer any questions they may have and not make them put it in writing.

    TESTING PHASE (May begin as early as the 2nd month):

    The TESTING PHASE is a very crucial phase. Whether the tenants and you get along is determined during the TESTING PHASE. More Tenants than not like to Test the Landlord. If they had gotten away with it with their previous landlord, chances are, they feel, they can get away with it with you.... so they will try. They will pay their rent when they want to, putting you last and live the way they want to regardless of your rules.

    It is very important to nip this in the bud during the TESTING PHASE, because if you allow the tenant to get away with things such as paying their rent when they want to and doing what they want, then chances are you will never proceed past the TESTING PHASE.

    THE THIRD MONTH:

    If you make it to the third month, that is good. But it is also very crucial during this time as well to make sure the tenant stays on course. The Third Month strengthens your position as to who runs what. During this time you want to make sure that the tenant keeps paying their rent on time and keeps obeying the rules. One little falter on your part can throw the tenant back into the TESTING PHASE. It is very important that you guide them during this time as to what you expect and want. And important that you gain their trust and respect during this time.

    THE FOURTH MONTH - THE COMFORT PHASE:

    The Fourth Month through the first year is THE COMFORT PHASE: the tenant becomes accustomed to your rules and is starting to feel comfortable. If you have handled everything correctly, being strong when needed to be, and doing evictions when needed, the Tenant will feel secure because the Tenant will know what is expected of them and will feel comfortable and will want to stay. (Tenants usually feel comfortable with stability and sameness).

    AFTER THE FIRST YEAR:

    After the first year, the COMFORT PHASE becomes more stable and each year thereafter. It's just a matter of keeping your Tenant happy, yet, making sure they don't slip into the Testing Phase from time to time. Even old time Tenants will want to go to the Testing Phase if they see their Landlord falter, get too over-generous or too understanding.

    When that happens the Tenant's stability changes because the rules are changing throwing the tenant into the Testing Phase again, so we don't ever want to falter but always stay strong and in control.

    THE MOVING PHASE:

    During the moving phase the Tenant, no matter how many years they have been with you, seems to forget everything again. They become babies and they revert back to the TESTING PHASE. Once again they never refer to the Lease and must depend on you for answers.

    During the MOVING PHASE, the Tenant can change personalities quickly. It's like they drank a potion that changed them from Jekyll into Hyde. They become this fiend, this villain that could destroy you and is probably the hardest phase of all the phases.

    It is during the MOVING PHASE, that you must be cool, have all your wits about you and be prepared, yet still be cordial so as not to enrage the monster that seems to be lurking in your Tenant during the MOVING PHASE (as there is NO ANTIDOTE to calm the savage beast once it takes form). If by chance this happens, it is best to not confront the beast but to keep your distance until the courts can set it free!

    With time everything will fall into place as long as you treat Landlording as a business!

    Rent On!

    0Reply
  • Account Closed
    Retired Landlord/Author · Commerce Township, MI · Member since 2012 · 1k+ posts · 1k+ votes
    7y

    BEFORE INVESTING HAVE A PLAN by Nancy Neville

    When we are little we say to others….”When I grow up I want to be a….”

    • Doctor
    • Lawyer
    • Banker
    • President
    • Etc.

    Then when we grow up, we realize that in order to be all the above we need to have a plan. We just don’t happen to be a whatever- we- want to be just like that. It takes a plan.

    • Do we attend College?
    • How many years?
    • What college?
    • Do I need a college degree?
    • Where will I get the money to fund my dream?

    Yet in the Landlord Business (our Industry) people don’t view it as a business. The media, courts, tenants, family and friends, feel we are just money hungry people who care nothing about our tenants but only the money. Do they say that about Bankers, Grocery Store Owners, Doctors (well maybe doctors..bad example) plumbers, etc? Not so much. They view these industries as companies, businesses, but….. not us. And even some of us WE DO NOT VIEW OURSELVES AS A BUSINESS!!!

    I have people contacting me all the time wanting me to help them solve all their problems because they didn't have a plan. And, I try to help them as much as I can, but there is only so much I can do. Which lead me to writing this blog.

    Many investors, see a sale, hear about the landlord business from others, and they get excited and so they buy a house. But they don’t know anything about being a landlord. And...most of us fit into this group, when we first began as well.

    So here is my tip for those who need, want it, and glad they have it. ( I wish I could have this posted some place where I wouldn't have to hunt and find it every time someone asks this questions on here, but perhaps the owners of this site might tag it, we will see)

    So...here it is.

    THIS IS THE PLAN

    1.Location, Location, Location .

    2. Check out the neighborhood before you buy. Is it a money maker neighborhood, or a bad one?

    3. Check the area to see how much rent you can charge for this home in this particular area.

    4. As a Realtor, when I sold properties to investors, I would tell them, from my own experience, how much money they could get in rent for this home. In return they would ask me….”Well what if I did this to the house and that to the house (spending thousands of dollars in extra’s to the house), how much could I get in rent then”, and it never ceased to amaze me, how they looked at me when I told them that they would still get $750.00 a month. They wondered how they could still only get $750.00 a month when they spent so much money on extra’s to make the house super special! The answer is this. Location, location, location. What is the market value in that area and neighborhood! It is just like buying a house. What is the market value in that area? What are they selling for?

    5. Check your Landlord/Tenant Laws before you even buy a home! Very Important

    6. Sit in some Landlord/Tenant Court Sessions to see what goes on.

    7. Study the City Ordinances of where your properties are located. If you don’t …..be prepared to receive several tickets for things you didn't know your tenants were supposed to (you really since you are the landlord) do.

    8. Get your OFFICE ORGANIZED!! I can’t believe how many investors are so focused on buying and not how to KEEP THEIR PROPERTIES or KEEP TRACK OF THEIR PROFIT AND LOSS. You can't possibly do that if you are not Organized or have an Organized Office!

    9. Therefore setup a good filing system

    Get a good answering system…Vonage Phone is one good example

    Stamps.com is great for keeping track of letters you send your tenants.

    QuickBooks is a Landlords best friend. Buy it and learn how to use it.

    10. Keep in mind that this is a business of people management. You must get a feel for people and their personalities.

    11. Learn what words are Legal to use in advertisements. There are many no no words. (See my blog on What you can say and not say) to avoid discrimination lawsuits.

    12. Learn how to setup your properties to have good curb appeal

    13. Learn how to do open houses. Plan for them. Makes applicants excited. Competitive

    14. Prepare a legal and good application form. Set a criteria for qualifying applicants.

    15. Prepare a legal and good Lease Agreement. Take pictures of the home prior to renting it out and have that day's paper somewhere int he picture to depict that the photo's are current.

    16. Setup a website Wordpress.com is free to advertise your rentals- generates interest.

    17. Learn now to screen your applicants.

    18. Learn how to do a credit report and read them

    19. Learn how to choose a tenant. Beware of Testers How you speak, words you use, how you choose an applicant will make you or break you. There are testers. Do things right and you won't have to worry.

    20. Don’t allow applicants to pay for their application fee by check or money order. They can cancel the checks or money order if they don’t get the place.

    21. How much money do you charge for an application fee (Credit Check) $25 per person is what I charged. If they qualified I applied it to their move in fees. If they didn't qualify, it was non-refundable. Have that on your application form.

    22. Only accept cash or a Cashier’s Check for credit checks and if you choose them as a tenant, make sure only cash or Cashiers Checks are acceptable, Otherwise they can stop payment on checks and money orders once they move in. PACIFIC HEIGHTS!!!!

    23. Don’t allow tenants to move into the property unless they have rent and security deposits PAID IN FULL!! NEVER give anyone the keys until you have all move in fees, money due you in your hands and utilities (if they are to pay them) placed in their names.

    24. How much Security Deposit can you charge. Believe it or not, your State has a law for that. Michigan is one month and half plus first month rent. What does your state say?

    25. If tenants pay for utilities. make sure they have them placed in their names on the day or prior to the day you sign the lease. Call the day you sign the lease to verify that has been done. If not, DON'T RENT TO THEM, they do not follow instructions.

    26. If you are a Property Manager, make sure you are a Broker, or work for a Broker who does Property Management. About 3 states say you can be a Property Manager and not work for a Broker if you a Licensed Property Manager, not a licensed Realtor or Salesperson.

    27. If you are a Landlord and have a Property Manager, either let them be a Property Manager 100% or you handle everything yourself, but not do both

    28. IMPORTANT: Learn the forms of your STATE !

    • How long do you keep your paperwork, your leases? Tenant files?
    • What is a Notice to Quit?
    • What is a Demand for Possession?
    • How many days does your state law require you to send that Notice to Quit?
    • What is a Termination of Tenancy?
    • How many days does your State law require you to dent that Termination of Tenancy?
    • What is the difference between a Notice to Quit and a Termination of Tenancy?
    • How do you fill them out?
    • How many copies do you need?
    • How much do they cost?
    • What is a Health Hazard Eviction?
    • When can one be sent?
    • What is a Writ of Restitution
    • How do you fill out all these forms
    • How many days are required for the process
    • How do you handle an eviction in general?
    • Do you change the locks on the tenants…ABSOLUTELY NO!
    • How do you handle a tenant who hasn't paid their rent?
    • How do you handle a tenant whose lease has expired?
    • How do you handle a tenant who won't move out
    • How do you handle tenants doing damages?
    • What type of Pets are legal rental pets?
    • How many people can live in a house
    • What to do with too many Guests in the rental home?
    • Unknown people on the lease?
    • How do you evict someone not on the lease?
    • How do you handle tenants doing drugs
    • How do you handle noise complaints
    • How do you handle vehicle violations
    • How do you keep a tenant long term? See my blog on The Tenant Phase

    To be a successful landlord, and maintain that excitement that you had when you first began, before you knew the ropes, you have to have all this in place, and you MUST AT ALL TIMES STICK TO THE RULES OF YOUR CONTRACT, YOUR LEASE AGREEMENT. Stick to the rules, and you will keep that excitement. You will keep not only your tenants happy, but you will be happy, making your family happy, and that’s what makes landlords still be landlords after 30 years in the business.

    Nancy Neville

    1Reply
  • Jon W.
    Investor · Matamoras, PA · Member since 2015 · 111 posts · 32 votes
    7y

    Immediate execution of the tenant(s). There is no room for negotiations especially from inherited tenants.

    1Reply
  • Justin K.
    OP
    East Texas · Member since 2018 · 205 posts · 138 votes
    7y
    0Reply
  • Justin K.
    OP
    East Texas · Member since 2018 · 205 posts · 138 votes
    7y
    Originally posted by @James Warner:

    Kinetic actions have a time and a place, but until then, I’ve had good luck doing eviction research here and on the associated links: https://www.nolo.com/legal-encyclopedia/how-evict-tenant-north-carolina.html

     Thank you for the link! 

    0Reply
  • Justin K.
    OP
    East Texas · Member since 2018 · 205 posts · 138 votes
    7y
    Originally posted by @Jim K.:

    @Justin K.

    Look for lawyers who specifically mention estate planning, small business, and real estate in describing their experience. That's legal code for "experienced landlord's lawyer."

     My mentor who I spoke with yesterday gave me the contact information of the one she uses for everything from evictions to...... 

    1Reply
  • Anthony R.
    Property Manager · Lakewood, OH · Member since 2015 · 250 posts · 258 votes
    7y

    I'm an army OIF vet, owner operating 12 rentals in Ohio. I've had a ton of success translating military experience into my rental business. PM me if you ever want to discuss strategy.

    1Reply
  • Justin K.
    OP
    East Texas · Member since 2018 · 205 posts · 138 votes
    7y
    Originally posted by @Anthony R.:

    I'm an army OIF vet, owner operating 12 rentals in Ohio. I've had a ton of success translating military experience into my rental business. PM me if you ever want to discuss strategy.

     Pm incoming. 

    1Reply
  • Kate J.
    Rental Property Investor · Austin, TX · Member since 2016 · 294 posts · 104 votes
    7y
    @Justin Klepfer I did not read all replies. Just wanted to say that you are fine and suchthings happen very often. This is how you learn to be a landlord. It's usually very hard to find out that they sublease. As soon as this have happen you have to file eviction immediately. I dont think you did many mistakes, you should not beet yourself up in any case. You can give the guy money for the keys and take it from the deposit of your tenant. Well, at least attempt. This is the fastest and it always worked for me.
    0Reply
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