BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
I just finished reading one of the most incredible and shocking articles for the real estate investing industry. It is about a "professional tenant" (read: dirtbag) who may just be the worst there is.
If you are a current landlord or are thinking about it, please take the 5-10 minutes it'll take you to read this article.
We've had many great posts on our blog and the forums about how to deal with tenants set on ripping you off, but I think we must discuss this particular case.
Be sure to read the comments below the article as well . . . (most disturbing, IMO)
Residential Lender · Irvine, CA · Member since 2011 · 56 posts · 34 votes
15y
Wow, that's pretty scary. I hope other would-be professional tenants don't get any ideas. One way to defend yourself against the "deplorable conditions" issue is to photograph your unit before the tenant moves in and have them sign off on a document that everything is in working order.
If he came to another landlord, and if the landlord felt something fishy about him and if the landlord rejected him from being in his property as a tenant. Do you think he would sue the landlord for discrimination?
Residential Lender · Irvine, CA · Member since 2011 · 56 posts · 34 votes
15y
This kind of stuff is a good reason to network with other investors in your area. The area where I invest has a private Yahoo forum where landlords can ask other landlords about certain tenants and alert others about deadbeats and troublemakers. It's a good system that saves us all a lot of grief and helps keep trouble out of our neighborhoods. The local police department is also involved in the online discussion because they know that keeping out deadbeat troublemakers reduces crime.
Rental Property Investor · San Antonio, TX · Member since 2011 · 266 posts · 158 votes
15y
Not only is this guy a dirt bag, he has taught his kids to follow in his footsteps! How scary is that?! Another generation of pro-tenants terrorizing landlords in NJ.
Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
15y
Brian Levredge said it right:
It would seem that this guy has a number of evictions on his record, which would all come up in a credit check. How this guy has been able to burn that many people, is somewhat mystifying to me.
I think the comments about signing off on conditions on the front end and using video to document are both great tips as well. It is crazy that the court systems would allow someone like this to keep doing the same thing over and over.
Property Manager · Lehigh Acres, FL · Member since 2011 · 3 posts · 2 votes
15y
wish he was in one of mine here in Florida. I have never ever seen an eviction go more than 60 days and he would have to pay the court the money to continue the case. Fl has good laws and does a pretty good job protecting the owner
Investor · Lawrence, MA · Member since 2011 · 41 posts · 22 votes
15y
Guy should definitely be jailed for legitimate fraud, theft, etc. How is it that laws in place can let this guy do what he does? Note to any landlord out there....do your background checks!!! One minute into my background check on this guy and I know I wouldn't rent to him.
Rehabber · Minneapolis, MN · Member since 2011 · 21 posts · 0 votes
14y
Originally posted by Charles McDermott:
Scariest thing to me is that one landlord 'inherited' him when he purchased a property.
Does anyone do background checks on existing tenants before they close on a property? And do the existing tenants cooperate?
-amserv
I agree, that is scary! Just think of acquiring a rental and a guy like this came along with it... I wouldn't think to do a background check on existing tenants.. Now I will.
You are right Joshua Dorkin the comments are the scariest part. I just can't wrap my brain around the fact that people read that article and feel the need to defend him, or agree what he is doing is okay. He is literally ruining homes and apartments in order to get free rent. Definitely eye opening...
Real Estate Investor · Charlotte, NC · Member since 2012 · 8 posts · 0 votes
14y
I think this tenant got his tactics from the movie Pacific Heights (Michael Keaton). It is a story of the worst tenant in history. Same MO. If you are a landlord and haven't seen it, you should. It could be considered a horror movie for landlords, but good to know how these people operate.
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
14y
If our legal system were "fair", then it would be illegal for someone to repeat this more than once.
In other words, you get through one eviction case, and in the future you automatically lose and pay all costs.
This reminds me (California)? - where they said that 37% of all of some type of cases were filed by current inmates (who spend their time reading legal books, and filing complaints).
Flipper · Carlsbad, CA · Member since 2011 · 115 posts · 20 votes
14y
Thx for sharing Joshua. Our laws here in CA are just as crazy as NJ. Landlords and PMs really need to do their due dilligence in tenant screening because it can be a nightmare to get a savvey tenant evicted. Thank goodness, most professional squatters don't have the legal knowledge that this guy has!
Property Manager · Van Nuys, CA · Member since 2012 · 3 posts · 1 vote
14y
I hate to say it, but there was absolutely nothing new in that article folks. Everything he pulls, we have had to deal with here in Los Angeles for years.
It appears many of you have not heard about the new 'Shriver Funding Act' that hit California this year. If you are a California landlord, Google it, because it will hit you right in the pocketbook in an eviction action. Basically the act provides money for 'indigent' tenants for attorney's fees. The courts have a list of law firms the tenants can contact when they are approved for the funding. Every law firm we have seen so far, since the act went into law, were high dollar Wilshire Blvd law firms.
What we have experienced in the last year due to it:
1. Tenant's attorney filed a Demurrer Action. This is a [u]seperate lawsuit filed against you the landlord. If you do not respond to it you automatically lose the eviction, it stops the unlawful detainer action until it is settled. Only an attorney can show up in court, you cannot. Cost the owner $1,000 extra in legal fees to handle it right away. Other option was to wait the 30 days until the action's court date and then pay $350.
2. Tenant's attorney filed a Discovery Motion in a standard, no pay, eviction. Took us four days, at 6 hrs a day, to prepare the information for the response to the discovery request. Literally hundreds of questions like 'How many 3 day notices have you served to tenants in the last 10 years, what were their names, what was the outcome?' I had to charge the owner $400 for our time and that was a bargain. Total additional legal fee charges ran $2,100 over the standard.
Investor · Houston, TX · Member since 2008 · 257 posts · 58 votes
13y
Thanks god I live n Texas. Or property code is quite different. I would have him out in 5 days if he appealed. Or if I was luck a forceable eviction. My favorite the writ of possession.
San Antonio, TX · Member since 2013 · 8 posts · 0 votes
13y
Wow this guy had some serious modivation to keep from paying rent. Imagine if he put that into something useful. He could find a cure for something. Haha nonetheless I like the idea of having the tenant sign saying that the place is In a good living standard. This guy is terrible, my father got sued here in texas. The lady was a paralegal, and knew the system.