All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Coronavirus Content & Resources Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Companies Hard Money Lenders Contractors Investment Companies

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books New York
ForumsArrowGeneral Landlording & Rental PropertiesArrowHow can I get my credibility back with a tenant I hired ?
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Topic: 1031 Exchanges Topic: Akron Real Estate Forum Topic: Alabama Real Estate Q&A Discussion Forum Topic: Alaska Real Estate Q&A Discussion Forum Topic: Alberta Real Estate Forum Topic: Albuquerque Topic: Allentown Real Estate Forum Topic: Anchorage Real Estate Forum Topic: Ann Arbor Topic: Arizona Real Estate Q&A Discussion Forum Topic: Arkansas Real Estate Q&A Discussion Forum Topic: Arlington Real Estate Forum Topic: Asheville NC Real Estate Forum Topic: Ask About A Real Estate Company Topic: Athens Real Estate Forum Topic: Atlanta Real Estate Forum Topic: Aurora Real Estate Forum Topic: Aurora Real Estate Forum Topic: Austin Real Estate Forum Topic: Bakersfield Real Estate Forum Topic: Baltimore Real Estate Forum Topic: Bankers, Lenders, and Mortgage Brokers Topic: Baton Rouge Real Estate Forum Topic: Beaverton Real Estate Forum Topic: BiggerPockets Business Podcast Topic: BiggerPockets Exclusive PRO Area Topic: BiggerPockets Money Podcast Topic: BiggerPockets Real Estate Investing Summit Topic: BiggerPockets Summer Reading List Topic: BiggerPockets Webinar Discussion Forum Topic: Billings Real Estate Forum Topic: Birmingham Real Estate Forum Topic: Bismarck Real Estate Forum Topic: Boise Real Estate Forum Topic: Boston Real Estate Forum Topic: Bridgeport Real Estate Forum Topic: British Columbia Real Estate Forum Topic: BRRRR - Buy, Rehab, Rent, Refinance, Repeat Topic: Buying & Selling Real Estate Discussion Topic: California Real Estate Q&A Discussion Forum Topic: Cambridge Real Estate Forum Topic: Canadian Real Estate Topic: Cape Cod Real Estate Forum Topic: Cape Coral Real Estate Forum Topic: Casper Real Estate Forum Topic: Cedar Rapids Real Estate Forum Topic: Chandler Real Estate Forum Topic: Charleston Real Estate Forum Topic: Charleston Real Estate Forum Topic: Charlotte Real Estate Forum Topic: Chattanooga Real Estate Forum Topic: Chesapeake Real Estate Forum Topic: Cheyenne Real Estate Forum Topic: Chicago Real Estate Forum Topic: Chittenden County Real Estate Forum Topic: Cincinnati Real Estate Forum Topic: Cleveland Real Estate Forum Topic: Coastal NC Real Estate Forum Topic: Colorado Real Estate Q&A Discussion Forum Topic: Colorado Springs Real Estate Forum Topic: Columbia Real Estate Forum Topic: Columbia Real Estate Forum Topic: Columbus Real Estate Forum Topic: Columbus Real Estate Forum Topic: Commercial Real Estate Investing Forum Topic: Completed Deal Diaries Topic: Connecticut Real Estate Q&A Discussion Forum Topic: Construction & Remodeling Diaries Topic: Contractors Topic: Conway Real Estate Forum Topic: Coronavirus Conversation Topic: Coronavirus Government Assistance Programs Topic: Creative Real Estate Financing Forum Topic: Currently Under Contract Topic: Dallas Real Estate Forum Topic: Davenport Real Estate Forum Topic: Dayton Real Estate Forum Topic: Delaware Real Estate Q&A Discussion Forum Topic: Denver Real Estate Forum Topic: Des Moines Real Estate Forum Topic: Detroit Real Estate Forum Topic: Do it Yourself Topic: El Paso Real Estate Forum Topic: Eugene Real Estate Forum Topic: Evansville Real Estate Forum Topic: FAQ Forum Topic: Fargo Topic: Fayetteville Real Estate Forum Topic: First Time Home Buyer Topic: Florida Real Estate Q&A Discussion Forum Topic: Foreigners Buying in the USA Topic: Fort Collins Real Estate Forum Topic: Fort Lauderdale Real Estate Forum Topic: Fort Smith Real Estate Forum Topic: Fort Wayne Real Estate Forum Topic: Fort Worth Real Estate Forum Topic: Fresno Real Estate Forum Topic: General Foreclosure & Pre-Foreclosure Forums Topic: General Landlording & Rental Properties Topic: General Real Estate Investing Topic: Georgia Real Estate Q&A Discussion Forum Topic: Germantown Real Estate Forum Topic: Get Foreclosure Help - Stop Foreclosure Forum Topic: Gilbert Real Estate Forum Topic: Glendale Real Estate Forum Topic: Goals, Business Plans & Entities Topic: Grand Rapids Real Estate Forum Topic: Green Bay Topic: Greensboro Real Estate Forum Topic: Hammond Real Estate Forum Topic: Hartford Real Estate Forum Topic: Hawaii Real Estate Q&A Discussion Forum Topic: Henderson Real Estate Forum Topic: Hialeah Real Estate Forum Topic: Hilo Real Estate Forum Topic: Home Owner Association (HOA) Issues & Problems Forum Topic: Honolulu Real Estate Forum Topic: Housing News & Real Estate Market Discussions Topic: Houston Real Estate Forum Topic: HUD, VA, and Tax Sales Topic: Huntington Real Estate Forum Topic: Huntsville Real Estate Forum Topic: Idaho Falls Real Estate Forum Topic: Idaho Real Estate Q&A Discussion Forum Topic: Illinois Real Estate Q&A Discussion Forum Topic: Indianapolis Real Estate Forum Topic: Indiana Real Estate Q&A Discussion Forum Topic: Innovative Strategies Topic: Interest Rate Drops Topic: International Real Estate Topic: Investor Deal Diaries Topic: Investor Psychology Topic: Iowa Real Estate Q&A Discussion Forum Topic: Jackson Real Estate Forum Topic: Jacksonville Real Estate Forum Topic: Jersey City Real Estate Forum Topic: Job Loss/Company Closings Topic: Joliet Real Estate Forum Topic: Jonesboro Real Estate Forum Topic: Kailua Real Estate Forum Topic: Kānèohe Real Estate Forum Topic: Kansas City Real Estate Forum Topic: Kansas City Real Estate Forum Topic: Kansas Real Estate Q&A Discussion Forum Topic: Kentucky Real Estate Q&A Discussion Forum Topic: Knoxville Real Estate Forum Topic: Lakewood Real Estate Forum Topic: Landlord Problem Solving Topic: Las Cruces Real Estate Forum Topic: Las Vegas Real Estate Forum Topic: Lewiston Real Estate Forum Topic: Lexington-Fayette Real Estate Forum Topic: Lincoln Real Estate Forum Topic: Little Rock Real Estate Forum Topic: Local Real Estate Networking Topic: Long Beach Real Estate Forum Topic: Long Island Real Estate Forum Topic: Los Angeles County Real Estate Forum Topic: Louisiana Real Estate Q&A Discussion Forum Topic: Louisville Real Estate Forum Topic: Madison Real Estate Forum Topic: Maine Real Estate Q&A Discussion Forum Topic: Managing Your Property Topic: Manchester Real Estate Forum Topic: Manitoba Topic: Marketing Your Rental Topic: Marketplace Topic: Maryland Real Estate Q&A Discussion Forum Topic: Massachusetts Real Estate Q&A Discussion Forum Topic: Meads Real Estate Forum Topic: Memphis Real Estate Forum Topic: Meridian Real Estate Forum Topic: Mesa Real Estate Forum Topic: Miami Topic: Michigan Real Estate Q&A Discussion Forum Topic: Military Investing Topic: Milwaukee Real Estate Forum Topic: Minneapolis Real Estate Forum Topic: Minnesota Real Estate Q&A Discussion Forum Topic: Mississippi Real Estate Q&A Discussion Forum Topic: Missoula Real Estate Forum Topic: Missouri Real Estate Q&A Discussion Forum Topic: Mobile (Alabama) Real Estate Forum Topic: Mobile Homes & Mobile Home Park Investing Topic: Modesto/Merced Real Estate Forum Topic: Montana Real Estate Q&A Discussion Forum Topic: Montgomery Real Estate Forum Topic: Mortgage Payment Suspension Topic: Mt. Pleasant Real Estate Forum Topic: Multi-Family and Apartment Investing Forums Topic: Nampa Real Estate Forum Topic: Naperville Real Estate Forum Topic: Nashville Real Estate Forum Topic: Nebraska Real Estate Q&A Discussion Forum Topic: Nevada Real Estate Q&A Discussion Forum Topic: Newark Real Estate Forum Topic: New Brunswick Real Estate Forum Topic: Newfoundland and Labrador Real Estate Forum Topic: New Hampshire Real Estate Q&A Discussion Forum Topic: New Haven Real Estate Forum Topic: New Jersey Real Estate Q&A Discussion Forum Topic: New Member Introductions Topic: New Mexico Real Estate Q&A Discussion Forum Topic: New Orleans Real Estate Forum Topic: New York City Real Estate Forum Topic: New York Real Estate Q&A Discussion Forum Topic: Norfolk Real Estate Forum Topic: North Carolina Real Estate Q&A Discussion Forum Topic: North Dakota Real Estate Q&A Discussion Forum Topic: Northwest Territories Real Estate Forum Topic: Norwalk Real Estate Forum Topic: Nova Scotia Real Estate Forum Topic: Nunavut Real Estate Forum Topic: Oakland Real Estate Forum Topic: Off-Topic Topic: Ogden Topic: Ohio Real Estate Q&A Discussion Forum Topic: Oklahoma City Real Estate Forum Topic: Oklahoma Real Estate Q&A Discussion Forum Topic: Omaha Real Estate Forum Topic: Ontario Real Estate Forum Topic: Orange County Real Estate Forum Topic: Oregon Real Estate Q&A Discussion Forum Topic: Orlando Real Estate Forum Topic: Overland Park Real Estate Forum Topic: Pearl City Real Estate Forum Topic: Pennsylvania Real Estate Q&A Discussion Forum Topic: Peoria Real Estate Forum Topic: Personal Finance Forum Topic: Philadelphia Real Estate Forum Topic: Phoenix Real Estate Forum Topic: Pittsburgh Real Estate Forum Topic: Pocatello Real Estate Forum Topic: Portland Real Estate Forum Topic: Portland Real Estate Forum Topic: Prince Edward Island Real Estate Forum Topic: Private Lending & Conventional Mortgage Advice Topic: Property Insurance Questions & Discussions Topic: Providence Real Estate Forum Topic: Provo Real Estate Forum Topic: Quad Cities Real Estate Forum Topic: Quebec Real Estate Forum Topic: Questions About BiggerPockets and Official Site Announcements Topic: Raleigh Real Estate Forum Topic: Rapid City Real Estate Forum Topic: Real Estate Agent Forums Topic: Real Estate Crowdfunding Forums Topic: Real Estate Deal Analysis and Advice Topic: Real Estate Development & New Home Construction Topic: Real Estate Events and Happenings Topic: Real Estate Guru, Book & Course Reviews and Discussions Topic: Real Estate Investor Marketing Help & Advice Topic: Real Estate News & Current Events Topic: Real Estate Not-So-Successful Stories Topic: Real Estate Quizzes Topic: Real Estate Rookie Podcast Topic: Real Estate Success Stories Topic: Real Estate Technology, Social Media & Blogging Topic: Real Estate Wholesaling Questions & Answers Topic: Rehabbing and House Flipping Topic: Reno Real Estate Forum Topic: Renters Discussion Topic: Rent to Own a.k.a. Lease Purchase, Lease Options Topic: REOs Topic: Rhode Island Real Estate Q&A Discussion Forum Topic: Richmond Real Estate Forum Topic: Rio Grande Valley Real Estate Forum Topic: Riverside Real Estate Forum Topic: Rochester Real Estate Forum Topic: Rockford Real Estate Forum Topic: Sacramento Real Estate Forum Topic: Saint Paul Real Estate Forum Topic: Salem Real Estate Forum Topic: Salt Lake City Real Estate Forum Topic: San Antonio Real Estate Forum Topic: San Diego Real Estate Forum Topic: Sandy Springs Real Estate Forum Topic: San Francisco Real Estate Forum Topic: San Jose Real Estate Forum Topic: San Luis Obispo Real Estate Forum Topic: Santa Fe Real Estate Forum Topic: Saskatchewan Real Estate Forum Topic: Savannah Real Estate Forum Topic: Scottsdale Real Estate Forum Topic: Seattle Real Estate Forum Topic: Short Sales Questions Topic: Short-Term and Vacation Rental Discussion Topic: Shreveport Real Estate Forum Topic: Sioux City Real Estate Forum Topic: Sioux Falls Real Estate Forum Topic: South Bend Real Estate Forum Topic: South Carolina Real Estate Q&A Discussion Forum Topic: South Dakota Real Estate Q&A Discussion Forum Topic: Southeast NC Real Estate Forum Topic: Spokane Real Estate Forum Topic: Springdale Real Estate Forum Topic: Springfield Real Estate Forum Topic: Stamford Real Estate Forum Topic: Starting Out Topic: St. Louis Real Estate Forum Topic: Stockton Real Estate Forum Topic: St. Petersburg Real Estate Forum Topic: STR Strategies Under Travel Restrictions Topic: Surprise Real Estate Forum Topic: Tacoma Real Estate Forum Topic: Tallahassee Real Estate Forum Topic: Tampa Real Estate Forum Topic: Tax, Legal Issues, Contracts, Self-Directed IRA Topic: Tax Liens, Notes, Paper, & Cash Flows Discussion Topic: Tempe Real Estate Forum Topic: Tenant Screening Topic: Tennessee Real Estate Q&A Discussion Forum Topic: Texas Real Estate Q&A Discussion Forum Topic: Thornton Real Estate Forum Topic: Toledo Real Estate Forum Topic: Topeka Real Estate Forum Topic: Tucson Real Estate Forum Topic: Tulsa Real Estate Forum Topic: Tuscaloosa Real Estate Forum Topic: Upstate New York Real Estate Forum Topic: Utah Real Estate Q&A Discussion Forum Topic: Vancouver Real Estate Forum Topic: Vermont Real Estate Q&A Discussion Forum Topic: Virginia Beach Real Estate Forum Topic: Virginia Real Estate Q&A Discussion Forum Topic: Waipahu Real Estate Forum Topic: Waipahu Real Estate Forum Topic: Warren Real Estate Forum Topic: Warwick Real Estate Forum Topic: Washington D.C. Real Estate Q&A Discussion Forum Topic: Washington Real Estate Q&A Discussion Forum Topic: Waterbury Real Estate Forum Topic: Westchester County Real Estate Forum Topic: Western NC Real Estate Forum Topic: West Gulfport Real Estate Forum Topic: West Virginia Real Estate Q&A Discussion Forum Topic: Wichita Real Estate Forum Topic: Wilkes Barre Scranton Real Estate Forum Topic: Wilmington Real Estate Forum Topic: Wisconsin Real Estate Q&A Discussion Forum Topic: Worcester Real Estate Forum Topic: Wyoming Real Estate Q&A Discussion Forum Topic: Yukon Real Estate Forum
Create post

How can I get my credibility back with a tenant I hired ?

37 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Real Estate Finance, Flipping, and Team
  • Posts 82
  • Votes 152

Kimberly Kesterke
Investor from Marietta, GA

posted about 1 year ago

Well- despite all of the advice against it, I hired one of my tenants to do some basic property management work. He wanted work and I needed some help - pure and simple. You know how hindsight is 20/20? Well, I'm going to share some things in this post that make me cringe- and yes, I agree with you on the front end.... I was an idiot. But I would like advice on how to get my credibility back after the classic mistake of commingling business with a tenant. 


Long story short, I have a tenant in one of my properties who I trusted. He and his wife paid rent on-time, he seemed like an honest guy and I really needed a new team member to help be my "boots on the ground". Being an out of town landlord, I needed someone to help keep contractors straight, help pick up supplies and keep the jobs running. Basically I needed a project manager, and since he claimed to have helped real estate investors in the past, I felt like this could be a successful partnership. 

Cringe-worthy mistake #1: I sent over a business credit card for him to use for supplies 

(yes, I'm an idiot). I justified it by: 

1. I trust the guy 

2. It will help save me time 

3. He rents from me, I like this guy as a person- why would he do anything shady?? 

well- after about 3 weeks that one bit me in the behind- charges from Family Dollar and Lowes popped up that were not authorized. I immediately cancelled the card and had him return what he bought- which after pressing him for the receipts it was clear they were not job related charges. 

Had he been a contractor, I could have fired him, but since he is one of my tenants, I felt I needed to tread lightly. I wasn't willing to press charges or make a huge deal about it-  and decided this was my own stupid tax for even thinking a credit card was a good idea in the first place. ( I have to take some responsibility there on my end). 

Cringe-worthy mistake #2: By hiring him, he clearly saw that I needed additional help, which damaged my credibility as a landlord.

As landlords, we have to keep a distance. As soon as tenants feel too comfortable, they start to take advantage... which leads to... 

Cringe-worthy mistake #3: I gave him an exception in paying rent on-time this past month.. 

(insert throw pens, remote controls, your computer mouse at this forum post) 

If I haven't lost you from my absolute lack of common sense and lack of following my OWN Processes, read on as to why this was the nail in my coffin with this tenant.....

A little back story- he called me up at the beginning of the month with "the story". We all get them- heck, I get one from each new tenant at least once within the first 3 months they start renting from me. And I'm good at being firm. 

However, since he had helped me out with these renovation projects, I felt I owed him a favor. I told him I wasn't happy that he was going to be late, and that I would make an exception this once. I asked him when he could have rent paid and he said 01/17. 

Well- you guessed it- its 01/17- end of day, no rent. I reached out earlier today and you know what his response was? " I will get it to you later". He acted like I was the one bothering him!! (Landlord credibility completely annihilated). 

The lesson I learned here was to never ever ever ever hire a tenant to do any sort of work. And secondly, never ever ever waiver on rent collection processes. And never give a tenant/ project manager a credit card ( I pretty much added that in for myself- anyone reading this with any common sense already knows that) 

So the purpose of this post is two fold- One- I would love some advice on how I can get my credibility back with this tenant and avoid this every single month until his lease expires in June. And Second- if in the future it seems like a good idea to hire a tenant to do some work- please think twice. 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 7.0K
  • Votes 4.7K

Theresa Harris

replied about 1 year ago

@Kimberly Kesterke   Your response to I'll get it to you later is to show up with a notice tomorrow followed by an eviction notice.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 1.2K
  • Votes 1.2K

Kris H.

replied about 1 year ago

@Kimberly Kesterke

You do not need to gain credibility back, you need to fully enforce the lease to the maximum extent your jurisdiction allows. Do not concern yourself with this tenants feelings, they burned that bridge when they were late. This is not the kind of tenant you need to “win back”, because they are a loser. Evict.

And when the day comes that your forget this lesson, and it most likely will, at minimum have the tenant pay every single dollar they can afford on the 1st. If that amount is less than 90% of rent, take the $ and begin eviction.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Tenants, Maintenance, and Finding & Screening Tenants
  • Posts 1.9K
  • Votes 1.8K

Lynnette E.
Rental Property Investor from Tennessee

replied about 1 year ago

The ONLY possible way to get this tenant back under control is to give whatever notice is till required in your area, maybe a 3 day type notice? and start the eviction process ASAP.  No grace, no partial payment.  And no more allowances for being late.  Oh, and do collect the late fee too.

Drive to the house tomorrow and post first thing in the morning, be there by 8am.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Flipping, Team, and Real Estate Finance
  • Posts 3.6K
  • Votes 9.3K

Jim K.
Handyman from Pittsburgh, PA

replied about 1 year ago

@Kimberly Kesterke

I hope nobody piles on. You've learned what you needed.

I don't think you have a good chance of reasonably rehabbing this. You're already going to have to go belly-to-belly here to get results on rent. It doesn't have to be a conflict or confrontational, but you're going to have to ask why the rent was late and how he plans to make sure next month the rent is not similarly late. "I spent it on something else" is not an answer. You smile and nod compassionately when he says that and say, gently, "Well, (insert name), you're insisting that I float you a two week plus loan, aren't you? I just want to know what was that important, so that we both know where we stand."

That phrase hasn't failed me in the past. But then again, I'm a big guy in his 40s. I look exactly like what I am. I'm under no illusions that my size has helped me in discussions like these. You're going to have to develop your own repertoire to some extent.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Real Estate Finance, Flipping, and Team
  • Posts 82
  • Votes 152

Kimberly Kesterke
Investor from Marietta, GA

replied about 1 year ago

@Jim K. Great line- I will certainly use that one.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 1.2K
  • Votes 876

Matthew Irish-Jones
Real Estate Agent from Buffalo, NY

replied about 1 year ago

@Kimberly Kesterke I would not worry to much about gaining any credibility back. I would immediately enforce the lease and move forward regardless of any stories within the framework of the law.

His opinion of you, good, bad, or indifferent is irrelevant.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 94
  • Votes 54

Edward L lauckern
from Auburn NY

replied about 1 year ago

Be blunt to the point, professional as you can with this guy. Explain you gave him an opportunity to work with you and he frauded you. You feel as if you been had, you hired him as a service which he did unsatisfactory, in business we make.mistakes and move forward .. 

Explain to him now moving forward no longer working together and you as a tenant. . Your rent is late and it will not be tolerated!

You can say .. I'm getting the pattern of late rent on a regular basis, offer to let him break the lease to find something less expensive, and give his security deposit back as long as the place is tenant able.. end it with something like unfortunate if rent is late as a business I will be forced.to seek the legal remedies. 

The point is you have to let him think you dont care, its pay rent and stay or dont pay rent and leave or get evicted .. no inbetween and you are not going to wait to see next month.. he took advantage. One thing I learned is to nip issues in the butt asap. Be clear and to the point .. explain in detail your expectations so there is no confusion,  every thing is on paper, under promise over deliver . If this guy doesnt pay next.month move forward with notice to pay or quit  .  Send a message to your other tenants in doing so

Rotate Log in or sign up to reply
user profile avatar
  • Posts 813
  • Votes 543

Michael King
Rental Property Investor from St. Louis, MO

replied about 1 year ago
Originally posted by @Kimberly Kesterke :

Well- despite all of the advice against it, I hired one of my tenants to do some basic property management work. He wanted work and I needed some help - pure and simple. You know how hindsight is 20/20? Well, I'm going to share some things in this post that make me cringe- and yes, I agree with you on the front end.... I was an idiot. But I would like advice on how to get my credibility back after the classic mistake of commingling business with a tenant. 


Long story short, I have a tenant in one of my properties who I trusted. He and his wife paid rent on-time, he seemed like an honest guy and I really needed a new team member to help be my "boots on the ground". Being an out of town landlord, I needed someone to help keep contractors straight, help pick up supplies and keep the jobs running. Basically I needed a project manager, and since he claimed to have helped real estate investors in the past, I felt like this could be a successful partnership. 

Cringe-worthy mistake #1: I sent over a business credit card for him to use for supplies 

(yes, I'm an idiot). I justified it by: 

1. I trust the guy 

2. It will help save me time 

3. He rents from me, I like this guy as a person- why would he do anything shady?? 

well- after about 3 weeks that one bit me in the behind- charges from Family Dollar and Lowes popped up that were not authorized. I immediately cancelled the card and had him return what he bought- which after pressing him for the receipts it was clear they were not job related charges. 

Had he been a contractor, I could have fired him, but since he is one of my tenants, I felt I needed to tread lightly. I wasn't willing to press charges or make a huge deal about it-  and decided this was my own stupid tax for even thinking a credit card was a good idea in the first place. ( I have to take some responsibility there on my end). 

Cringe-worthy mistake #2: By hiring him, he clearly saw that I needed additional help, which damaged my credibility as a landlord.

As landlords, we have to keep a distance. As soon as tenants feel too comfortable, they start to take advantage... which leads to... 

Cringe-worthy mistake #3: I gave him an exception in paying rent on-time this past month.. 

(insert throw pens, remote controls, your computer mouse at this forum post) 

If I haven't lost you from my absolute lack of common sense and lack of following my OWN Processes, read on as to why this was the nail in my coffin with this tenant.....

A little back story- he called me up at the beginning of the month with "the story". We all get them- heck, I get one from each new tenant at least once within the first 3 months they start renting from me. And I'm good at being firm. 

However, since he had helped me out with these renovation projects, I felt I owed him a favor. I told him I wasn't happy that he was going to be late, and that I would make an exception this once. I asked him when he could have rent paid and he said 01/17. 

Well- you guessed it- its 01/17- end of day, no rent. I reached out earlier today and you know what his response was? " I will get it to you later". He acted like I was the one bothering him!! (Landlord credibility completely annihilated). 

The lesson I learned here was to never ever ever ever hire a tenant to do any sort of work. And secondly, never ever ever waiver on rent collection processes. And never give a tenant/ project manager a credit card ( I pretty much added that in for myself- anyone reading this with any common sense already knows that) 

So the purpose of this post is two fold- One- I would love some advice on how I can get my credibility back with this tenant and avoid this every single month until his lease expires in June. And Second- if in the future it seems like a good idea to hire a tenant to do some work- please think twice. 

Don't be so harsh on yourself. You made a mistake and know where you went wrong; you are a good person and you got burned as a result of it. As others have said, evict. Get the clown out of your house and out of your life. I hope this is an easy process for you. Good luck Kimberly, you've already got your credibility back by identifying your mistake and searching to rectify it. 

 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 960
  • Votes 969

Jonathan R McLaughlin
Rental Property Investor from Boston, Massachusetts (MA)

replied about 1 year ago

@Kimberly Kesterke good learning and good advice here, seconded.

Put together a record of the credit card charges he used to buy non related job things. If he gets hostile or difficult during the separation process remind him that you chose to interpret his use of the credit card as a lapse in judgement but are willing to pursue him for damages/charges.

Should be a good small claims court thing if he didn’t pay you back. Just something to hold in reserve.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 1.6K
  • Votes 1.5K

Bob B.
Investor from Roswell, GA

replied about 1 year ago

 If he stole from you and now isn't paying the rent, it's time for him to find another place to live.  Don't loose a minute sleep about regaining creditability with a tenant that lies and steals.  Don't take any excuses. If the property is in Marietta you should not have a problem finding a new "good" tenant.  Post the pay or quit and stick to your guns.  

Rotate Log in or sign up to reply
user profile avatar
  • Posts 1
  • Votes 4

Alethia Reynolds
from Midlothian, Virginia

replied about 1 year ago

I want to thank you for such a honest post. I’ve learned so much over this one (unfortunately at your expense) than all the success stories. 

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Traditional Financing, Real Estate Finance, and Analyze Deals
  • Posts 1.7K
  • Votes 2.9K

Jill F.
Investor from Akron, Ohio

replied about 1 year ago

@Kimberly Kesterke Great news! All you need to do to get your credibility back is to post a 3 day notice to leave (or whatever is the the GA equivalent) on the tenant's front door. If he calls (all huffy or otherwise) just tell him he's going to need to get to you in 3 days or less and move on. 

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Traditional Financing, and Maintenance
  • Posts 96
  • Votes 33

Michele Z.
New to Real Estate from Augusta, GA

replied about 1 year ago

@Kimberly Kesterke - I admire and appreciate you sharing this experience to help others. No one's perfect and we can all get into situations when we know better. To use your own phrasing, I think your true "stupid tax" here is losing a formerly reliable tenant because you have to evict at this point. That's how you reestablish your reputation. When he retells the story it will go along the lines of, "yeah, I thought I had the advantage... but boy was I wrong." It reestablishes your credibility in the bigger picture.  I wonder if you get stuck doing a true eviction, because offering cash for keys lets him think he still pulled one over on you in the end, in the long run, you know?

Rotate Log in or sign up to reply
user profile avatar
  • Posts 813
  • Votes 543

Michael King
Rental Property Investor from St. Louis, MO

replied about 1 year ago

@Kimberly Kesterke Any updates today Kimberly? Give us some good news.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 6.0K
  • Votes 9.4K

Dennis M.
Rental Property Investor from Erie, pa

replied about 1 year ago

Well there’s no point in reminding you how foolish that was . You know it better than any of ya now ..It sounds like you learned a master lesson here and there’s no point in anyone saying we told you so . Kim the reality is This is a tough business , it’s a people based business and no one was born with these skills or “ grit” so we gotta always be open to learn and always always always keep moving forward even if it’s an inch at a time

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Real Estate Finance, Flipping, and Team
  • Posts 82
  • Votes 152

Kimberly Kesterke
Investor from Marietta, GA

replied about 1 year ago

@Michael King I reminded them of the payment process and when evictions would  he filed. Luckily I got paid the rent today. Lesson learned. @Dennis M. yes- this business is not easy- When I follow the right processes things go relatively smoothly. It’s always when I slack on a requirement or cut a corner out of convenience that it ends up biting me. 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 813
  • Votes 543

Michael King
Rental Property Investor from St. Louis, MO

replied about 1 year ago
Originally posted by @Kimberly Kesterke :

@Michael King I reminded them of the payment process and when evictions would  he filed. Luckily I got paid the rent today. Lesson learned. @Dennis M. yes- this business is not easy- When I follow the right processes things go relatively smoothly. It’s always when I slack on a requirement or cut a corner out of convenience that it ends up biting me. 

 I'm very happy to hear that for you Kimberly. I would be very strict with that guy now; let him know who's boss. He probably just needs to be re-trained and you'll receive rent on time, without attitude. 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 6.0K
  • Votes 9.4K

Dennis M.
Rental Property Investor from Erie, pa

replied about 1 year ago

I Find I do this with my black lab sometimes  actually . I will give her too much trust I’ll let  her to roam the back yard Or not put the trash up ..and little by little she takes my kindness for granted and  Then Screws me over ! Now you’d think after 13 years of this foolishness I’d learn but I don’t ! I’m not sure I can “ retrain” my dog but I can do the next best thing and that is a shock collar . I guess the lesson in that story is you must ZAP the tenant to get control , in this case that’s comply or eviction notices . Make him aware that you still have the final say and can apply force 

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Team, Single Family, and Residential
  • Posts 178
  • Votes 188

Fred Cannon
Rental Property Investor from St Augustine, FL

replied about 1 year ago

@Kimberly Kesterke it’s not you that has a credibility problem. Your tenant does. We all learn from our mistakes in RE. My first tenant I accepted post dated checks. Three months later I had my first eviction. Not a good start for me but I am a quick learner Was that the tenants fault, no that was my fault Another lesson I learned. If you allow a tenant to pay late with no penalty then every month you will be calling him for rent. The only time I use a tenant for work is to show a property. And I pay a showing fee. I don’t take it off the rent. This actually works well for me since I am an out of town investor and my properties are multi family. But I have to have a degree of trust in them to offer this. From cutting grass to major repairs I hire professionals because of lessons learned. I ONCE let a tenant negotiate lower rent for providing lawn care. Another lesson learned. Luckily all leases have an end date and I enforce that on all late payers and high maintenance tenants.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Tenants, Managing Tenants, and Team
  • Posts 992
  • Votes 1.1K

Merritt S.
Investor from Milwaukee, WI

replied about 1 year ago
Originally posted by @Kimberly Kesterke :

Well- despite all of the advice against it, I hired one of my tenants to do some basic property management work. He wanted work and I needed some help - pure and simple. You know how hindsight is 20/20? Well, I'm going to share some things in this post that make me cringe- and yes, I agree with you on the front end.... I was an idiot. But I would like advice on how to get my credibility back after the classic mistake of commingling business with a tenant. 


Long story short, I have a tenant in one of my properties who I trusted. He and his wife paid rent on-time, he seemed like an honest guy and I really needed a new team member to help be my "boots on the ground". Being an out of town landlord, I needed someone to help keep contractors straight, help pick up supplies and keep the jobs running. Basically I needed a project manager, and since he claimed to have helped real estate investors in the past, I felt like this could be a successful partnership. 

Cringe-worthy mistake #1: I sent over a business credit card for him to use for supplies 

(yes, I'm an idiot). I justified it by: 

1. I trust the guy 

2. It will help save me time 

3. He rents from me, I like this guy as a person- why would he do anything shady?? 

well- after about 3 weeks that one bit me in the behind- charges from Family Dollar and Lowes popped up that were not authorized. I immediately cancelled the card and had him return what he bought- which after pressing him for the receipts it was clear they were not job related charges. 

Had he been a contractor, I could have fired him, but since he is one of my tenants, I felt I needed to tread lightly. I wasn't willing to press charges or make a huge deal about it-  and decided this was my own stupid tax for even thinking a credit card was a good idea in the first place. ( I have to take some responsibility there on my end). 

Cringe-worthy mistake #2: By hiring him, he clearly saw that I needed additional help, which damaged my credibility as a landlord.

As landlords, we have to keep a distance. As soon as tenants feel too comfortable, they start to take advantage... which leads to... 

Cringe-worthy mistake #3: I gave him an exception in paying rent on-time this past month.. 

(insert throw pens, remote controls, your computer mouse at this forum post) 

If I haven't lost you from my absolute lack of common sense and lack of following my OWN Processes, read on as to why this was the nail in my coffin with this tenant.....

A little back story- he called me up at the beginning of the month with "the story". We all get them- heck, I get one from each new tenant at least once within the first 3 months they start renting from me. And I'm good at being firm. 

However, since he had helped me out with these renovation projects, I felt I owed him a favor. I told him I wasn't happy that he was going to be late, and that I would make an exception this once. I asked him when he could have rent paid and he said 01/17. 

Well- you guessed it- its 01/17- end of day, no rent. I reached out earlier today and you know what his response was? " I will get it to you later". He acted like I was the one bothering him!! (Landlord credibility completely annihilated). 

The lesson I learned here was to never ever ever ever hire a tenant to do any sort of work. And secondly, never ever ever waiver on rent collection processes. And never give a tenant/ project manager a credit card ( I pretty much added that in for myself- anyone reading this with any common sense already knows that) 

So the purpose of this post is two fold- One- I would love some advice on how I can get my credibility back with this tenant and avoid this every single month until his lease expires in June. And Second- if in the future it seems like a good idea to hire a tenant to do some work- please think twice. 

Who cares what our tenants think of us, it's usually off-base anyways. You're too hard on yourself. You reached out for a beneficial relationship and got burned. If anyone needs help with their credibility it's your tenant, not you. You know what to do and are doing it - that's as credible as it gets. I'll guess you needed to vent more than you needed advice!!! Vent away - we are here to listen :)

 

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Residential, and Single Family
  • Posts 286
  • Votes 153

Jermell Shavers

replied about 1 year ago

@Kimberly Kesterke . So the entire post how I see it is how do you get your credibility back ?? You want to know what I do I rule over my tenants with an iron fist don’t call me unless you need something fixed that I’m responsible for or you’re making a rent payment. Anything else goodbye.

This is how you get your credibility back put him out.... don’t renew his lease. If you can’t handle it hire a property management company 10% and they should have people on staff

Rotate Log in or sign up to reply
user profile avatar
  • Posts 1.2K
  • Votes 842

Ralph R.
Investor from Bethel, Alaska

replied about 1 year ago

@Edward L lauckern . Absolutely not. The OP owes no explanation to this guy whatsoever he’s late with his rent. If she owes him anything it’s an eviction notice. Here it’s 2 months lost rent after the notice to flip a unit. She’s already lost 1/2 a month. It will cost her 3 months rent plus repairs to get her next full rent check. Why does she owe him an explanation?? RR

Rotate Log in or sign up to reply
user profile avatar
  • Posts 1.2K
  • Votes 842

Ralph R.
Investor from Bethel, Alaska

replied about 1 year ago

@Jonathan R McLaughlin . Going to small claims court won’t gain a thing. You can’t get blood from a turnip. He can’t pay rent why would he pay a small claims judgement. Only option is evict and move on. Your first loss is your best loss. Cut your losses and move on.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 960
  • Votes 969

Jonathan R McLaughlin
Rental Property Investor from Boston, Massachusetts (MA)

replied about 1 year ago

@Ralph R. thinking she may need that as an additional lever to get him out if and when he fights the eviction/lease termination. It will do something too....records of judgements follow people even if you can’t collect. Worth a morning. Really though, all about having the  most tools to get him to move on.

Rotate Log in or sign up to reply
  • 1
  • 2
Related Resources General Landlording & Rental Properties
Have Top-Notch Tenants? Here’s How to Keep Them
5 Essential Property Maintenance Tasks To Keep Your Rental in Tip-Top Shape
Rental Arbitrage: The Secret to Making a Fortune on Airbnb Without Owning Property
8 Reasons the Best Landlords Always E-Sign Rental Agreements
6 Tips for Listing Your Rental Property Online
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Nathan G.
Nathan G.
Cody, WY
9.76
Score
Supada L.
Supada L.
7.77
Score
Joe Splitrock
Joe Splitrock
Sioux Falls, SD
6.25
Score
Joe Villeneuve
Joe Villeneuve
Plymouth, MI
6.04
Score
Bjorn Ahlblad
Bjorn Ahlblad
Shelton, WA
6.02
Score

General Landlording & Rental Properties Trending Discussions

  • Raising Rent: Good idea or bad business practice
    36 Replies
  • POLL: Rent delinquencies, January 2021.
    22 Replies
  • Bank Accounts for Multiple Properties
    42 Replies
  • Duplex plumbing issue not covered
    9 Replies
  • Tenants moving out, want refund of sec deposit on moving out
    16 Replies
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.