Anyone else expecting a really bad month?

Question

Anyone else expecting an awful month next month? I have 2 tenants that are late this month. One was supposed to pay this Friday but didn't and is not answering. The other hasn't been replying for 2 weeks. I expect the first to pay but be really late again next month. I think the second one will not pay this month nor next month. She has a $3000 county collection for not putting lids to her trash that I will have to pay because the house is under my name and I can't evict her or do anything because evictions are closed in MD, so Monday I'll offer cash for keys.

The third home was a model home that bought from Ryan Homes where they lease it back and pay you rent. The house is beautiful and it was renting very well but they lease is up and it will barely cover the mortgage if I rent it in the market so I have to sell it and pay mortgage until it sells. The fourth is a government program that takes 2 months to receive rents so I won't get the rent until September, and the last one is an offer I gave the tenant that if she paid rent on time every month I would give her the last month for free.

Overall I'll have problems with 5 out of 8 properties and losses for sure. Anyone else going through anything like that?

Theresa Harris · Answer

Isn't that the truth.  I had a stackable washer drier go, a washing machine, chimney to rebuild, some small plumbing repairs and then property taxes.

Anthony Wick · Answer

@Daniel Suarez

Well, I’ve been solid in rents. Even had three vacancies in May/June, and filled those up quickly, with increased rents. However, maintenance has been rough this summer. Three AC units went belly up in June, and now a hail storm last week may mean 3-4 new roofs are coming. A person can go through $15k in a real hurry.

Daniel Suarez · Answer

@Mike Morawski yes that true. My 16 plex in Oklahoma is doing really well except for mainstance issues. The problem with multis  is actually finding them.

Ian Walsh · Answer

I have heard this from a couple of people but I have not heard back from them on the current status.

Johann Jells · Answer

I'm having a hard time filling a 1br here even after I dropped it nearly 10% from what the last tenant was paying.  I have a longtime tenant moving out on the 1st, and while I need a month to work on it, so and maybe things will be better by an Oct 1st move in, I'm worried.  Part of the problem here is new high rise developments coming online are saturating the market and pushing everything down, not just the "luxury" stuff.  They need to hit their rental % targets or they're in trouble with their lenders, so they're giving a lot of perks like free months and gym memberships.

Daniel Suarez · Answer

@Anthony Wick, that’s great. I wonder if market class has anything to do. All of my rentals are in a C area although the houses are really nice. Yes ac has been really rough for me too. I had problems in every single unit., that’s interesting. I’ll find out more about eviction for that. Yes this is the third time this is happening. The first time it was $100, the second time $300 now $3000. She keeps on telling me she was covering the trash and I did drive by the property and I saw the trash without lids. I’m pretty sure she’s not even going to show up for the court.

Theresa Harris · Answer

@Daniel Suarez Where I am evictions are banned for non-payment, they are not banned for violations of the least.  $3K for not putting lids on trash cans seems excessive.

Three of my 4 are fine.  The 4th moved in in March and was late paying.  July is still outstanding and she wasn't replying to messages.  We have a meeting with her on Tuesday, after hearing indirectly (a friend staying with her) when we went the house for the third time.  Her partner (who normally works out of town for 3 weeks a month) apparently left her and she's having a tough time. I feel sorry for her, but she still needs to pay her bills and let us know what is going on.  I suspect she will either move (easy to get it re-rented) or pay but have to catch up a bit.  Her business was closed (cleaning business) during the shutdown, but should be up and running now.

Daniel Suarez · Answer

It’s hard to say. Most of the houses in that area are brand new so it’s hard to compare. My realtor told me he thinks it’s gonna take about a month.

Brittany Rose · Answer

@Daniel Suarez

Have you looked at the days on market for the area?

Daniel Suarez · Answer

@Brittany Rose sorry I shouldve been more specific. The house is in Baltimore county

Anyone else expecting a really bad month?

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