Rental Property Investor · Pittsfield, NH · Member since 2019 · 93 posts · 32 votes
Just bought my first property in Pittsfield, New Hampshire, it's a four-unit built in 1850 my family and I plan to do an owner occupied unit with tenants in the other 3 units. The previous landlord seemed to have forgotten about the place. There's a lot of deferred maintenance and my favorite thing was the inherited tenant. Upon meeting him he talked a lot about how long things took to get repaired and how the current owner/landlord was unreachable. He then went on about all of his future plans and how fire department/ town enforcement and landlord will do nothing. He even stated that what they don't see won't kill them and he has made/ currently making upgrades in his own unit. He was very open about his plans to expand his porch, and remove all the trees on the property to expand the parking lot, mind you both these things require permits to do. With all that being said, he is on the other landlords lease for a while longer, he is a yearly contract. Any ideas of how to handle that kind of tenant?
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
6y
@Matthew Anderson monitor him closely once you take over, and make sure the lease has a way to evict him if he starts making improvements to the property. Also, speak to a local attorney who handles evictions and make sure you understand and budget appropriately for the process. You may not need to do this, but you may have to if he is serious. Also, remember that he may be all talk. He is a tenant who has lived in a poorly run property, and there is a good chance he is full of hot air.
Rental Property Investor · Pittsfield, NH · Member since 2019 · 93 posts · 32 votes
6y
@Ned J. He knew I was in works to buy so yes. I definitely see him pushing as far as I let him so getting quick fixs that add value to his family and show him I'm not the old landlord.
Rental Property Investor · Pittsfield, NH · Member since 2019 · 93 posts · 32 votes
6y
@Jane S. Wow that tantant was the gift that kept on giving. Thank you for sharing I see how keeping clear communication is key and getting to know them to see where there head is at. All of this could help make him feel comfortable or like in your case make it a long annoying process.
@Mary Mitchell thank you I hope to build a relationship that will show him that he can relax and enjoy his family. He seems like he feels like if he doesn't do it that it won't get done or get done cheaply. I like your pont of view of treating him as a person first. It can be tricky but of it works out it will be for the best.
unless there is city or county code to the contrary if your owner occupying a 1 to 4 unit your not subject to the same fair housing rules under the federal laws.. do check that. if there are no city or county rules .. then just read your federal guidelines you can be very picky vs a vi the federal rules for owner occ house hacking.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
6y
Always treat your tenants fairly, professionally and with kindness. Dont invite them to tea or coffee, dont engage in personal conversations, dont complain when when you do invite them to tea they think you are wanting to be friends. Keep it professional if there are issues talk to them first before going all battle ground on them. Let them know what lease clause they are breaking and tell them you will handle repair issues etc i have found this works
This is a business. Treat people like the customers they are. I am not sure why, but on this board, this whole “new sherrif in town, be as rough as you can be and kick everyones ***” is so prevelant. It sounds like a misserable way to live to me.
In the end, real estate is a PEOPLE business. Learn how to interact with people to get the result you want in a way that is professional, etc. It really does make things a lot easier and more profitable!
There are a lot of books that can help. (Dale Carnegie) It turned my manner of interacting with people upside down and in fact helped me be sucessful. :)
Belfast, Northern Ireland · Member since 2018 · 128 posts · 56 votes
6y
@Matthew Anderson
I would make it clear to him in conversation that the problems these 'upgrades' may cause, as he might just be unaware. Also ensure you have an eviction clause in the lease which says that you can evict him if he starts making improvementsto the property.
This way you are covering yourself should any problems arise.
@Brandon Roof thank you I'm planing on taking the BP lease template and bring it to a lawyer to go over so when is time to re up I'm in a better position as of right now I don't have the old lease but will update everyone when I do. I'm uncomfortable with the conversation but this is a skill set I need to bud because even if I have a property manager I'm going to have them.
Did you get an estoppel cert when you purchased? Are the tenants on a fixed term or month to month? Where are the tenants security deposits located? Do you have any move in inspection reports? I would be issuing new and updated leases as soon as possible. Look into joining your local or states apartment association for updated lease docs specific to your states laws.
It's not property management, it's people management. A tenant who wants to improve the unit shows he is invested and proud of his home. He most likely has long term plans to stay. Always be calm but assertive. Thank him for wanting to make improvements himself but explain that going through the proper channels is imperative due to insurance and legal requirements. Throw him a bone with some general repairs. Tell him that if he wants to have other more major items done, and those items fit into your plan, he can hire a licensed contractor of owners choice but at tenants expense. Lease needs to make clear that any improvements become sole property of the owner. You may get some free equity.
Rental Property Investor · Pittsfield, NH · Member since 2019 · 93 posts · 32 votes
6y
@Nicholas Darracq thank you about the apartment association I hadn't even thought of that. I really like your approach in including him in it that could work if he actually is serious about this because I do want people that are proud of the property because those people that are going to take care of the property and let me know when there's things that need to be repaired not just let them ruin the property.
Rental Property Investor · Big Sandy, TN · Member since 2013 · 147 posts · 91 votes
6y
I would hit them with a new lease or allow them out of their current lease on day 1. Ive now bought 3 different complexes and the sooner you take control the better the results. I highly recommend being seen and requiring an application and onboarding to your system. You may have to cut ties with some but it sets a standard of what is expected both directions. I fought tenants to change from where the previous landlord picked rent up at their convenience. After 3 months i realized over half of them were probably only paying about 9 months of rent a year because of bad book keeping and excuses. I now only have 2 of those 8 original tenants after 18 months
@Nicholas Darracq thank you about the apartment association I hadn't even thought of that. I really like your approach in including him in it that could work if he actually is serious about this because I do want people that are proud of the property because those people that are going to take care of the property and let me know when there's things that need to be repaired not just let them ruin the property.
Thats great Matthew. Make sure you get up to speed with your lease documentation, security deposits and documented inspections before anything else. I wouldn't per se include him as part of the decision process just layout the mechanism for how things will get done and that it's all backed up by the lease agreement. If he wants to pay for a licensed and insured contractor to make improvements that you're on board with than that sounds like a sweet deal to me.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
6y
@Bill F.
Well You cater to “ customers” and the customer is always right ! Sometimes you kiss a customers butt in business .. Does that sound like a good business model to you ? I hope not !
Look It is your property you are allowing them to stay there for a set time period ..in return they have a job to do and that job is to be sure they pay your rent so you can honor your financial responsibilities . If they don’t follow through and do their” job “they must be fired / evicted
Just bought my first property in Pittsfield, New Hampshire, it's a four-unit built in 1850 my family and I plan to do an owner occupied unit with tenants in the other 3 units. The previous landlord seemed to have forgotten about the place. There's a lot of deferred maintenance and my favorite thing was the inherited tenant. Upon meeting him he talked a lot about how long things took to get repaired and how the current owner/landlord was unreachable. He then went on about all of his future plans and how fire department/ town enforcement and landlord will do nothing. He even stated that what they don't see won't kill them and he has made/ currently making upgrades in his own unit. He was very open about his plans to expand his porch, and remove all the trees on the property to expand the parking lot, mind you both these things require permits to do. With all that being said, he is on the other landlords lease for a while longer, he is a yearly contract. Any ideas of how to handle that kind of tenant?
Well I wouldn't worry too much. It sounds like some dude just blowing smoke. I'd probably drop dead right on the spot if I saw a tenant living in a quad pay to get an expanded parking lot, remove a ton of trees and build a new deck. Lol, with all of that said even thought it's rare people do get struck by lightning everyday, so just tell him no. If he doesn't listen and becomes a problem just evict him.
Well You cater to “ customers” and the customer is always right ! Sometimes you kiss a customers butt in business .. Does that sound like a good business model to you ? I hope not !
Look It is your property you are allowing them to stay there for a set time period ..in return they have a job to do and that job is to be sure they pay your rent so you can honor your financial responsibilities . If they don’t follow through and do their” job “they must be fired / evicted
Thanks for sharing your perspective on the rental business Dennis, it certainly is a unique outlook on the landlord tenant relationship.
Rental Property Investor · Pittsfield, NH · Member since 2019 · 93 posts · 32 votes
6y
@Blake Garcia wait a minute you can start a new lease day one.I was under the assumption that you had to honor the old lease until it ran out.The only option I thought I had was cash for keys or wait until their lease expired. You have any more information about how this works this is a new concept I've never heard of it.
Rental Property Investor · Big Sandy, TN · Member since 2013 · 147 posts · 91 votes
6y
@matthew anderson
Im sure this is a state by state issue. With my purchases the leases were usually expired or in month to month status or missing. Tired andlords tend to have ****** records.
If they chose to push the issue and their lease was still intact you may have to go along. If you leave the pricing the same and offer to lock in their price at current rate nothing changes for their end but you now hold a good lease with your standards. You could sell it to them as locking in their price.
If they choose to sign new lease the newer of the 2 documents would have the authority. Nothing illegal about offering an updated lease and an application for good contact records.
At that point if they choose to not sign new its a red flag or at least plan on this being a possible high maintenance possibility
Flipper/Rehabber · Miami, FL · Member since 2019 · 29 posts · 14 votes
6y
@Matthew Anderson
First thing you have to do is make some quick initial improvements.
Paint, fix broken things, spruce up the landscaping etc
Next you have to start making notices and giving them to the tenants in writing. Any problems you see in regards to the upkeep of individual units, bad habits etc you must provide notice/memos to inform them what the rules are and what's to be expected of them.
Don't be a jerk either. You can be firm and respectful. And make it clear that owner approval must be given in writing prior to any improvements to the property
Rental Property Investor · St Augustine, FL · Member since 2019 · 264 posts · 279 votes
6y
@Matthew Anderson. Did this tenant know that you are the new landlord. It’s amazing what a conversation can do to see up expectations. I think we have entered the age where conversation is becoming extinct Just talk to the guy. He can’t cut down your trees and he can’t alter your porch.
Rental Property Investor · Gilford, NH · Member since 2019 · 50 posts · 20 votes
6y
Great thread @Matthew Anderson. After reading through all the posts, I personally think @Nicholas Darracq gave some of the best advise. Personally I've found that each tenant is different, and needs to be treated slightly differently. Some need a firm hand, some need reassurance, some need lots of attention, some mostly want to be left alone. This is no different than how you treat other friends and acquaintances in your life ... small adjustments to best suite the person you are interacting with. Treat your tenants with respect, and most of them will return the favor.
I put a tenant into one of my units who was initially stand-offish and somewhat combative. She had dealt with landlords in the past who were unresponsive, and to be frank, a-holes. After a few chats with her, and showing her that I am a responsive and responsible landlord, she switched from being b1tchy to being genuinely kind. After 5 years, I'd say she is far and away one of my best tenants (pays 10-15 days early every month!). Had I treated her with a totalitarian attitude, we would probably continually have had uncomfortable interactions, and possibly worse.
Good luck in your journey, and try to have some fun along the way!
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
6y
Well, you've heard lots of ways to deal with a person like this. The fact that the person seems "invested" in the property would cause me to try to acquire him as an ally. While making it clear to him that he himself can't make any changes, you can use him as a "consultant" to suggest needed repairs and improvements and then move forward with those that are needed and practical. Tenants want a nice place to live and to be respected and listened to. He may be a really good tenant so don't be too fast to throw him out on his ear.
Regarding the contract/lease: In most states, if you buy a property that has a tenant in it, you have to honor the lease until it expires. (unless you can get them to agree to something different)
Flipper/Rehabber · Colorado Springs, CO · Member since 2016 · 499 posts · 167 votes
6y
i would try to buy him out--probably would end up cheaper than stressing yourself trying to change him--and make his unit the first gorgeous reno but make sure you get his signature on all the relevant docs. Legacy tenants are 1000% bad news. I've had otherwise sensible sellers tell me i cant evict a legacy tenant even if they stop paying rent. Well whats gonna stop me? Pass pass pass