The "Professional Tenant" from Hell: BEWARE ALL LANDLORDS!

The "Professional Tenant" from Hell: BEWARE ALL LANDLORDS!

Joshua D.Pro Member
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.

You Think YOUR Professional Tenants Were Bad? Meet this guy -- LANDLORDS BEWARE!! (ok - that was my title, but it is far more fitting)

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)

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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.

See this reply in the discussion

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  • Contractor · Valparaiso , IN · Member since 2013 · 604 posts · 327 votes
    13y

    Perform tenant back ground check, all of his court cases would show up and he would never make it thru my tenant screening process.

    Ok lets say somehow he did qualify.

    Do a pre occupancy, or move in, inspection with the tenant, where all defects in the property are thoroughly noted, and pictures are taken ( I do this). This will prove the condition of your property prior to this scumbag starting to play his games.

    Being lazy in this business will cost you buckets of money

  • Contractor · Valparaiso , IN · Member since 2013 · 604 posts · 327 votes
    13y
    Originally posted by Tinotenda Arigurinu:
    this is crazy just crazy , am i stupid for STILL wanting to get into this business with people like him around though?

    Absolutely not, be diligent about tenant screenings. Do very thorough move in inspections where the tenants sign off on the condition of your property prior to them moving in.

    Do not take the first tenant that applies for your property, set up a specific set of criteria that tenants must meet to qualify, then stick to it.

  • Real Estate Investor · Columbus, OH · Member since 2013 · 114 posts · 21 votes
    13y

    In my case I did not rent to a "professional squatter" but I ended up with one. My tenant, a single male truck driver in his late 20's, was a great tenant. He always paid his rent on time, kept the place in working order, didn't whine, etc...

    Two years into his tenancy he started dating a girl. We live fairly close and would drive by the place on occasion, nothing ever looked out of sorts. She slowly weaseled her way in by staying the night occasionally when he was home, then "taking care of things" while he wasn't home. Eventually she started having her medical bills sent there (established residency) which he didn't know until he saw them in the mailbox. She then took up permanent residence (without my permission as stated in the lease) which I was not aware of until I receive a phone call that my tenant had a restraining order against him and was not allowed on the property!

    He had paid the rent and 2 days later she came in already beat up (according to the neighbors) and called the police saying he did it. They arrested him on domestic violence charges and placed a restraining order against him. Since she had established residence at the property (with the mail) he was not allowed near the property even though he was the only one I had a contract with! In the end I found out that she had done this exact same thing (according to police and court records) 4 times in the last 5 years. She lived on my property for 3 months while I had to file eviction on the actual tenant and name her as an "unknown occupant" because I didn't know who she was or the other several people she had taking up house there.

    I have found that the law is not on the side of honest people in most cases. She knew exactly how long she could stay and even told the neighbors the procedure! So I have learned that even good tenants can make poor choices and there is not a dang thing you can do to avoid it at times.

  • Investor · Baltimore, MD · Member since 2013 · 205 posts · 44 votes
    12y

    What a story. OMG! Property owners record and document everything and trust your gut. Please do tenant screening. I had one that got me for about 8 months of rent on code violations. I finally got her out and a judgement for the unpaid rent.

  • Investor · Portsmouth, VA · Member since 2013 · 28 posts · 12 votes
    12y

    There are a couple of deadbeat tenant sites online. Where landlords can list property damage, monetary damage, unpaid rent etc. And her in FL some folks post their names and pics on Craigslist. Not sure if that's legal tho !

  • Investor · Portsmouth, VA · Member since 2013 · 28 posts · 12 votes
    12y

    I forgot, since I had an unscrupulous landlord who bought the house I rented years ago, tried to keep my security deposit. I take before and after pictures. Of EVERYTHING.

  • Dallas, TX · Member since 2013 · 4k+ posts · 744 votes
    12y
    Sense you have shade tree lawyers and the Internet you will always have dishonest tenants regards how well you screen them. Most landlords will take the short route on screening, and it always comes to bite them.


    Joe Gore

  • Investor · Chicago, IL · Member since 2013 · 451 posts · 96 votes
    12y

    In going through this now. This person I recently found out has the nerve to be on LinkedIn as a spiritual advisor. I wish there was a site to black ball these evil people and make others aware.

  • Investor · Baltimore, MD · Member since 2014 · 1k+ posts · 688 votes
    12y

    this would never happen in one of my houses in Baltimore, I'd have an episode of the wire happening in and around his house 24 hours a day courtesy of some "friends" of mine.

  • Real Estate Investor · Champaign, IL · Member since 2013 · 114 posts · 55 votes
    12y

    Its legal loopholes like this that make you really desire to look outside of the law for a solution to the problem. (not a suggestion... just a thought)

  • Real Estate Investor · Orland Park, IL · Member since 2010 · 20 posts · 3 votes
    12y

    Just reading this makes my blood boil! We have terrible landlord/tenant laws in Chicago but NJ obviously has us beat if this parasite can do what he does to people?

    I do not understand WHY these judges don't put a stop to this guy. And the pig is living off of welfare on top of it. Well, I'm sure his mother is proud.

  • Venice, FL · Member since 2014 · 2 posts · 3 votes
    12y

    This case makes it abundantly clear that doing a little google searching on prospective tenants in addition to background checks is worth your time.

  • SFR Investor · Washington, Washington D.C. · Member since 2014 · 13 posts · 3 votes
    12y

    http://blog.nj.com/njv_barry_carter/2012/10/carter_notorious_newark_tenant.html

    So they finally evicted him from where he was staying when the article was written. What a strange and troubled man to go through so much and ruin his name just to score $20-30k worth of free lodging in a busted up place. Hopefully the press and failure will keep him from being so successful in his future cons...

    Thanks to everyone in this thread for sharing this and other stories - certainly sobering! I'm a relatively new landlord, but I did take pictures and get a signature on a move-in checklist (as well as do a full background check and check with the actual owner of the last place that was rented). I felt a little like I was being paranoid then, but now I feel like I did the bare minimum!

    Randy

  • VA · Member since 2012 · 37 posts · 22 votes
    12y

    If his previous Landlords were as "Professional" as the article claims HE is, this would be a non issue, and he would have gotten no where within the legal system.

    While I certainly don't claim to be an expert, or, "Guru" by any means, I have been a Landlord for 28 years. I have also been a Deputy Sheriff for 10 0f those. In my 28 years of Land Lording, I have never had to evict a tenant (although did secure 2 Unlawful Detainers on tenants during that time but they moved before the Court dates) and never received a bad check (some of that is luck).

    The problem I see with this Scenario is with the Landlords, and more importantly, how they present themselves and conduct business, not the " Tenant from Hell". The first problem I see is an inadequate Applicant screening process.

    The second problem of the Landlords is that they evidently have nothing in WRITTING from the Tenant stating that the property was in "good and satisfactory condition" at the time the Tenant signed the lease, or, no video documentation to back that up.

    I have a clause in my Lease that basically states that the Tenants have had an opportunity to inspect the property and that by signing the Lease they agree that everything appears to be in satisfactory condition.

    We also do a joint "Walk-Thru Inspection" of the property at the time of the Lease signing, where I have a list of each room and its contents that convey, i.e. appliances, windows, light fixtures etc., right down to door stops in each room, to include cleanliness and damage. I have check=off spaces for any damage, if something is not clean, and if there are any visible signs of mold any where in the unit, and the Exterior of the property as well. Both the Tenants and I sign and date this at the time of the Walk-Thru. I also document a room-by-room "Video tour" of the property, clearly showing its condition right before the Tenant's Lease signing. By law, the tenants also have 7 days to submit to me a list of any things that may need attention, or, which they may find substandard, for me to correct.

    I do keep my properties in top notch condition, and when people view them they can tell by the condition that I'm not a slum lord, I and have no problem letting them know that. I also relate the story of the local Police Officer I had as a Tenant that I sent down the road after 30 days, because he didn't have the Cajones (sp) to tell his girlfriend she couldn't smoke in the non-smoking unit. I also tell them about the many tenants (who chose to abide by the Lease) that we've had for 5,6 and 7 years. This is a business and needs to be conducted as such.

    I have a property for rent as I write this, I use a "Tenant Phone Screening Sheet" for everyone that calls, It has 15 questions on it ranging form their income, to previous two address and how long at each, reason for leaving, credit & criminal history. income questions, etc.. I ask every caller the same questions and document it, and if they don't meet the minimum requirements for the property that my company has set, then they are not eligible to view the property ... period. If they meet these minimum requirements and view it and would like to submit an application on the property they may do so, and we then run them thru our credit reporting agency (as well do our own due diligence on the applicant).

    I've had this property advertised for 3 weeks, and have screened close to 70 people interested in it and have only shown it to 2 of those 70. I've taken as long as three months to place a qualified applicant in a vacancy in the past, and it doesn't bother me in the least, because once we have one in place they are usually long term, unless they choose otherwise, which is not very often. You have to be able to incur holding costs with a rental in order to find quality tenants.

    My philosophy is simple: I'd rather have a unit vacant and not be getting any income for it, than just throwing anybody in there who comes along with some cash in their hand, then still not getting any income from them while I'm having to evict them because they weren't a quality tenant to begin with, and having them tear up the house during the process too boot!

    Had a lady a couple of years ago that couldn't qualify due to lack of verifiable income, she absolutely loved the property and wanted to pay me 1 years rent in advance ... cash, I wouldn't do it because I saw the light at the end of the tunnel.

    Sorry for being so long winded, but hope this post may be of some help to inspiring Landlords, or, to those who may need some guidance in their practices.

    V/R

    Capy

  • Investor · Nagano, Nagano · Member since 2014 · 66 posts · 18 votes
    12y

    @William C. , great advise you're offering! I particularly appreciate your willingness to forego rent in order to get the right tenant. I agree and think it's important for us as landlords to be prepared to cover a short-term vacancy (contingency fund planning) rather than panicking about leaving a unit empty. Thanks for sharing your practices!

  • Investor · Virginia Beach, VA · Member since 2014 · 45 posts · 8 votes
    12y

    I'm afraid to read it. I finally got rid of my Professional Tenant, it's only been 3 weeks since she has moved so I'm still in the throes of PTSD. The night she left we watched Duplex and Pacific Heights and vowed to do better on our screenings in the future! Luckily the new tenant has moved it who is a repeat GOOD tenant so I can start to heal :) Working up the courage to read it …..!

  • Investor · Clarksville, IN · Member since 2012 · 226 posts · 96 votes
    12y

    this $h!tbag isn't floating in the Hudson why?

  • VA · Member since 2012 · 37 posts · 22 votes
    12y
    Originally posted by @Walter Ichikawa-Doyle:
    @William C. , great advise you're offering! I particularly appreciate your willingness to forego rent in order to get the right tenant. I agree and think it's important for us as landlords to be prepared to cover a short-term vacancy (contingency fund planning) rather than panicking about leaving a unit empty. Thanks for sharing your practices!

    Thank You Walter, appreciate your input as well.

    Bill

  • Real Estate Investor · Boston, MA · Member since 2008 · 102 posts · 10 votes
    12y

    Let's look at the list of suggestions just in this thread on how to prevent such a situation from occurring:

    googleing the person's name

    having tenant sign a form stating the apartment is in habitable conditions before/upon moving in

    taking pictures/video of the premises before the tenant moves in

    not purchasing a property that has an existing tenant

    doing credit checks on tenants who are in a property to be purchased

    etc...

    Can you imagine the expense that everyone is now having to go through, in time (which is monetizable, and could be spent on other things, including real estate business), setting up a system to store such pictures, mental aggravation, increased work to screen tenants, and so on, for the sake of the <1% of tenants who cause these issues? The question is who is really at fault here? And in addition to the tenant, it is the judicial/legal system that allows this to happen. As others have pointed out, these issues are state-dependent. In MA, where I live, we have favorable tenant laws and a complicated web of laws that the landlord must deal with. This is why I think it's important for landlords to go after the legal system and challenge unfair laws, because not doing so only makes things worse for landlords, and precedents can go in both directions.

    Someone mentioning writing to their congressperson about the new law in CA. There is a great article (which I don't have the link to but which could probably be googled) written by a former aide in a congressional office, which detailed how she/he would throw out all mail without reading it, would take calls from constituents, listen carefully, offer support, say that they would relay the concern to the congressperson, and then do nothing after the call is over, and that such practices are commonplace.

  • Rehabber / Flipper · Simi Valley, CA · Member since 2010 · 597 posts · 259 votes
    12y
    Originally posted by @Donald M.:

    Can you imagine the expense that everyone is now having to go through, in time (which is monetizable, and could be spent on other things, including real estate business), setting up a system to store such pictures, mental aggravation, increased work to screen tenants, and so on, for the sake of the <1% of tenants who cause these issues? 

    Seems like it's just part of the business.  And, in fact, the most important part of the business.  I wouldn't be lazy when it comes to tenant screening.

  • Rental Property Investor · Rockford, IL · Member since 2014 · 385 posts · 702 votes
    12y
    Wow I'm glad I never ran I to a tenant like that before I learned to screen tenants properly! I owe that to bigger pockets!
  • Investor · North Brookfield, MA · Member since 2014 · 24 posts · 2 votes
    12y

    You hear about it happening all the time.  If your going to play in the deep end of the pool make sure you know how to swim!!!!!!!!!

  • Investor · Stamford, CT · Member since 2012 · 247 posts · 63 votes
    12y
    Originally posted by @Alex K.:

    The strange thing is that with his knowledge of the legal system he could work as a paralegal and spend much fewer hours earning the money to actually pay his rent instead of suing landlords. Sounds like a psychological disorder.

    The problem we as landlords face is a bad tenant will keep looking for a place to live until his lies are believed by some unsuspecting landlord. So even if the percentage of really bad tenants is small, they apply more than anyone else. If a landlord is the slightest bit lax with screening, they are sure to get a bad tenant who has been rejected by everyone else. Scary stuff.

    Once I talked to a "former property manager" who was referenced on an application. he went on and on about what great tenants these people were. Then I looked up the owner of the property they had lived in on the county assessor website and talked to the owner. She told me these people destroyed her house and stopped paying rent. The "property manager" was actually the brother in law of the tenant.

     That's actually not a bad idea--to look up the property owner on the assessor site & call them directly.  At least then you know who you're talking to.  

    Also, go 2 or 3 landlords back when you check references--if they're horrible tenants, the current landlord will say glowing things just so you'll accept them as new tenants--and then they won't have to deal w/ them anymore!

  • Madison Heights, MI · Member since 2014 · 472 posts · 132 votes
    12y

    Newton is demonstrating that our system of law is broken. Anger should be directed at the system which makes this possible.

  • Investor · Stamford, CT · Member since 2012 · 247 posts · 63 votes
    12y
    Originally posted by @Donald Hendricks:

    this $h!tbag isn't floating in the Hudson why?

     Okay?!  I'm sure folks who've dealt with him wouldn't be too racked w/ grief if he came up, as my aunt used to put it, "floatin' & stankin'"!

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