Hey BP, need your sage advice please!?!

General Landlording & Rental Properties
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Hey BP, need your sage advice please!?!

Cory LucasPro Member
Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes

Purchased my first duplex on March 2 and it came with tenants currently occupying both sides. I currently have been able to get a lease signed with one of my tenants and rent collected for March with them.

The other tenant I’ve talked to via Facebook messenger multiple times, previous owner said that was the best way to get in touch with him, which I’m not thrilled about that as a communication tool, but I’m navigating that avenue as best I can with him.

I’ve tried to set up times to get together and go over the lease and collect his rent. I feel (and I’m pretty sure I am) getting the runaround in regards to him signing the lease and paying rent. Per his previous lease, late payments do not kick in until day 10 of being overdue.

I should probably preface with I’m not freaking out or anything and I’m perfectly ok with this being a hiccup. I certainly wasn’t planning on posting something like this and asking questions like this so soon, but it is what it is and now I just need to figure out how to best handle it most effectively!

My question to you all without dragging this out much more is, what do you feel my best course of action is?

I have a five day notice from my lawyer that I can use.

Do I just try and stop by and catch him at home? To try and find out what is going on and why he is reluctant to sign and pay? But I’m unsure of tenant rights on that one and just stopping by?

Or do I just serve him the five day notice and if he continues to not pay offer him $200 (his security deposit) to just get out of there?

Or do you all have other better thoughts?

Thanks in advance for the time and replies! Look forward to hearing from you all

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Jill F.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
6y

What, EXACTLY, does the current lease say regarding when rent is due? if rent is due on the first, regardless of the the length of the late fee grace period, then he is technically already in breach of the lease. Yay! Once he breaches the lease, then you are not obligated to honor the rest of the lease term; this is great news if the former owner had a sh*tty lease. I would let him know that because he is late he is in breach and he will need to sign my lease and pay the rent due, and if done promptly (by xx date)this one time I'd give him a pass on the late fee. If he failed to sign my lease, I'd 5-day him-- if you go this route do not accept any payment unless he actually signs your lease. Also, I would not sign a term lease with a tenant of this caliber, only m2m.

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  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    6y

    I'm sorry you're wasting money on an attorney.  Anyone embarking on a new business, should learn the laws pertaining to that business, or expect to spend crazy out of pocket money to an attorney.

    Landlord-tenant laws are not impossible or even difficult to learn.  If you are going to invest in rentals, and you want to make a decent profit, you should learn them. Before you end up in these situations.

    This tenant is yanking your chain.  Give him notice to pay or quit.  You can do that without an attorney, who will try to make it appear more complicated than it is, because that's how he/she will make more money.

    The thing is, if you give a notice to pay or quit, or you file against someone in small claims court, and you happen to do it wrong, normally, the judge or clerk will tell you how to fix whatever it is you did wrong.  You won't go to jail if you do it wrong.  And guess what?  Normally, the clerk or judge will tell you how to do it right, or they'll just make a fair judgement - and you won't need a lawyer - at all.

    But, really, learn the laws the pertain to your business.  Check nolo.com for free articles, Google your state and "landlord tenant laws" and learn the laws, so you can't be tricked by savvy tenants or ripped off by lawyers who aren't about to tell you that you don't really need them.

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  • Cory LucasPro Member
    OP
    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    6y

    @Crystal Smith thank you for the response. I did send them a letter when we took over ownership to the property, just didn’t feel it pertinent to my question. The cash for keys would basically be his security deposit. You think I should offer more? Any other strategies you suggest?

    I have hand delivered a 5 and 30 day notice at this point. A certified letter is currently in the mail. The tenant claims he’s going to pay and has until Monday, so we’ll see. I’m still optimistic, but have things rolling the way I’d need if it gets to that point according to the advice I’m receiving from my lawyer

    Thanks for the feedback and time taken

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  • Cory LucasPro Member
    OP
    Rental Property Investor · Brighton, IL · Member since 2019 · 431 posts · 139 votes
    6y

    @Sue K. I certainly don’t consider it a waste of money. Do I want to have to spend it? Absolutely not, but I’d far rather spend the bit of money I’m having to so I do things properly, cause otherwise it could end up more costly in my opinion.

    I have served him notice at this point. Hand delivered a 5 and 30 day notice and sent copies of them via certified mail. My lawyer didn’t make it complicated at all, he’s a pretty straightforward guy. Sounds like maybe you haven’t had the best of experiences with lawyers maybe?

    I definitely appreciate the insight on if I did something wrong with documents they would tell me how to do it correctly. That’s definitely good info to know. I didn’t want to have to learn about all of this so quickly, but hey I’m getting a crash course on it all right now, which will I’m sure pay off more down the road considering I will already know the steps now and can avoid further being “ripped off”

    ;) thanks for the time taken and feedback provided, greatly appreciated

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  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    6y
    Originally posted by @Account Closed:

    @Sue K. I certainly don’t consider it a waste of money. Do I want to have to spend it? Absolutely not, but I’d far rather spend the bit of money I’m having to so I do things properly, cause otherwise it could end up more costly in my opinion.

    I have served him notice at this point. Hand delivered a 5 and 30 day notice and sent copies of them via certified mail. My lawyer didn’t make it complicated at all, he’s a pretty straightforward guy. Sounds like maybe you haven’t had the best of experiences with lawyers maybe?

    I definitely appreciate the insight on if I did something wrong with documents they would tell me how to do it correctly. That’s definitely good info to know. I didn’t want to have to learn about all of this so quickly, but hey I’m getting a crash course on it all right now, which will I’m sure pay off more down the road considering I will already know the steps now and can avoid further being “ripped off”

    ;) thanks for the time taken and feedback provided, greatly appreciated

     Certified mail is antiquated.  All you need is proof of delivery.  Never send anything requiring a signature.  No longer required in the day of delivery confirmation, and nobody can dodge the postman who scans your tracking code as she's putting it into the mailbox.

    Lawyers are highly overrated.  I know because I have a bachelors degree in law and worked for many for years.  Very few of the ones I have ever met or worked for were better at dealing with legal matters than me.  Most are lazy and all about billing and conning clients into thinking they're smarter than their clients.

    But, if you think they're worth it and want to help them pay for law school - that's very kind of you.  Just know, though, that landlord-tenant law is a very tiny bit of state code and very easy to learn and pretty much anything to do with landlord-tenant law can be done in small claims court, and even that's rarely necessary - if you just take the time to learn that tiny part of the law, even if you aren't a lawyer, that has to do with your business.

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  • Jim Cummings
    Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
    6y

    @Account Closed. I would judge based on the number of questions / uncertainties you seem to exhibit about the situation - that you are unclear about the Landlord Tenant Laws where this property is located. 

    Although, we are all learners throughout life, I would suggest you take the time to have a good working knowledge of the Landlord Tenant Laws pertinent before you proceed with any action. 

    Nothing worse than losing your case at the Eviction hearing on a Technicality / T - you didn't cross / I you didn't dot, etc.

    Good Luck!  

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