Another minority Landlord devastated by government intrusion

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Another minority Landlord devastated by government intrusion

Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

74-year-old black woman, not paid rent for two years and the tenant refuses to even sign the form for rental assistance. This poor woman is held hostage by a criminal tenant...and an unjust, illegal government policy.

Think it's rare? Listen to what the attorney says.

Landlord Can't Get Rent Relief Because Tenant Ref…: https://youtu.be/QUb47GMK4-c

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Jim K.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
5y

@Nathan Gesner

Come on, Nathan, look at it, this is the same basic deal as your last "example" of a screwed landlord!

The landlord doesn't want to identify herself, is 74 years old, the obvious peeling paint all over the rental property, completely overgrown front shrubbery, tenant/LL communications have completely broken down, "Not a cent of rent since February 2019" = $31,000, 21 months at about $1480/month for that D-class crapshack. And into debt she's gone instead of selling the crapshack, no pay on the water, etc.

You live by the sword, you die by the sword.

THE MORATORIUMS ARE UNFAIR. THE GOVERNMENT EXISTS TO SCREW US AS LANDLORDS. WE COMPLETELY AGREE. But you keep on dredging up these sob-story examples of marginally competent self-managing landlords who are, surprise-surprise, being run out of business by COVID adversity.

If you're going to self-manage down at the lower end of the property spectrum, you had better be made of sterner stuff than this lady. THE WHOLE WEBSITE KNOWS YOU KNOW THIS. There isn't a day that goes by here in the forums that we don't get another example of someone failing down in C/D-class properties who simply isn't smart (or savage) enough to survive in this business. They put the tenant in place and expect rent to come in like manna falling from heaven. Yeah, it ain't like that.

I know what you're going to say. Her business model was working pre-COVID, she shouldn't be run out of business by the government. Sure. But something was going to stomp this woman out of the business soon enough. The moratoriums went into place in March 2020. The tenant here, again, hadn't paid rent since February 2019. What was the 72-year-old landlord doing for those 12 months where there was no moratorium? Twiddling her thumbs and hoping that Jesus would intervene and knock out the rent?

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  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    5y

    Devastating! Makes no sense the tenant will not sign. Criminal? Absolutely!

    1Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    The government will create a program to assist minority landlords.

    1Reply
  • Debbie C.
    Member since 2019 · 118 posts · 74 votes
    5y

    @Nathan Gesner

    Terrible she is going through this, and if she does not get the money from a program to assist the landlord, she will never get any of it from the tenant. 

    When she finally gets them out she will have repairs to make, and she still owes her property taxes. And we know that won't be forgiven.

    3Reply
  • David P.
    Member since 2020 · 404 posts · 235 votes
    5y

    As bad as it sounds if i were in her shoes i would just list the property for sale as is. I would think the property even in that condition with bad tenants still can net her a good profit depending on when she got it. 

    3Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    5y

    Tragic for sure. Life savings wiped away by ignorant government interference and an equally dumb and criminal tenant!

    2Reply
  • Nathan GesnerBusiness Member
    Moderator
    OP
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y
    Originally posted by @John Thedford:

    Devastating! Makes no sense the tenant will not sign. Criminal? Absolutely!

    Oh, if I were king for a day!

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  • Nathan GesnerBusiness Member
    Moderator
    OP
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y
    Originally posted by @Eric James:

    The government will create a program to assist minority landlords.

    And, just like every program they create, it will go to the wrong people while the majority of funds will go towards administrative costs or fraud, waste and abuse.

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  • Nathan GesnerBusiness Member
    Moderator
    OP
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y
    Originally posted by @David P.:

    As bad as it sounds if i were in her shoes i would just list the property for sale as is. I would think the property even in that condition with bad tenants still can net her a good profit depending on when she got it. 

    They owe $30,000 on a house and would spend 6% on REALTOR fees. Any investor worth their salt would only pay below-market because they would be inheriting a problem renter. Would you give away $50,000 or more that easily?

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  • David P.
    Member since 2020 · 404 posts · 235 votes
    5y
    Originally posted by @Nathan Gesner:
    Originally posted by @David P.:

    As bad as it sounds if i were in her shoes i would just list the property for sale as is. I would think the property even in that condition with bad tenants still can net her a good profit depending on when she got it. 

    They owe $30,000 on a house and would spend 6% on REALTOR fees. Any investor worth their salt would only pay below-market because they would be inheriting a problem renter. Would you give away $50,000 or more that easily?

     In her case I would as right now is as good time as any to sell high. Even a below market sell is considered high compared to 2 years ago. If she can't even afford an eviction lawyer or pay property tax I would just cut loses short and cash in on this red hot housing market.

    1Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    5y

    @Nathan Gesner

    Come on, Nathan, look at it, this is the same basic deal as your last "example" of a screwed landlord!

    The landlord doesn't want to identify herself, is 74 years old, the obvious peeling paint all over the rental property, completely overgrown front shrubbery, tenant/LL communications have completely broken down, "Not a cent of rent since February 2019" = $31,000, 21 months at about $1480/month for that D-class crapshack. And into debt she's gone instead of selling the crapshack, no pay on the water, etc.

    You live by the sword, you die by the sword.

    THE MORATORIUMS ARE UNFAIR. THE GOVERNMENT EXISTS TO SCREW US AS LANDLORDS. WE COMPLETELY AGREE. But you keep on dredging up these sob-story examples of marginally competent self-managing landlords who are, surprise-surprise, being run out of business by COVID adversity.

    If you're going to self-manage down at the lower end of the property spectrum, you had better be made of sterner stuff than this lady. THE WHOLE WEBSITE KNOWS YOU KNOW THIS. There isn't a day that goes by here in the forums that we don't get another example of someone failing down in C/D-class properties who simply isn't smart (or savage) enough to survive in this business. They put the tenant in place and expect rent to come in like manna falling from heaven. Yeah, it ain't like that.

    I know what you're going to say. Her business model was working pre-COVID, she shouldn't be run out of business by the government. Sure. But something was going to stomp this woman out of the business soon enough. The moratoriums went into place in March 2020. The tenant here, again, hadn't paid rent since February 2019. What was the 72-year-old landlord doing for those 12 months where there was no moratorium? Twiddling her thumbs and hoping that Jesus would intervene and knock out the rent?

    12Reply
  • Curtis Mears
    Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
    5y

    @Nathan G.

    Crazy when the federal goverent does not honor contracts that were entered in good faith

    1Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    5y
    Originally posted by @Curtis Mears:

    @Nathan G.

    Crazy when the federal goverent does not honor contracts that were entered in good faith

    They said a black man was worth 3/5 of a white man. They gave slavers the authority to take back escaped slaves across free state lines. Again and again, acts of genocide were committed on the Native Americans. FDR and the US Congress straight up ripped off every small gold holder in America in 1934. They locked up thousands of Japanese-Americans in concentration camps in WW2. They decided that stress positions weren't torture.

    It's not crazy, IT'S BUSINESS AS USUAL IN AMERICA.

    And despite all this, yes, we are still the good guys of history. The bad guys starved their own people to death to punish them when they weren't exterminating them in death camps and systematically gang-raped women before putting them to death through torture or burying them alive.

    2Reply
  • Ron Brady
    Rental Property Investor · Burlington County, NJ · Member since 2019 · 540 posts · 771 votes
    5y

    @Jim K. Appreciate your sharing your contrarian take. My two cents?  While there are many elements of government engagement in real estate that can be challenging, my business and family have benefitted greatly from that same government's depreciation rules and establishment of fannie and freddie loan programs.   

    2Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    5y

    Too bad there isn't a way to take the tenant to court for refusing to sign the paperwork.  To bad the govt won't create an option for cases like this where a court clerk or someone can sign to verify the facts and let her get the rental assistance.  She should take a large, young man (ie bouncer) with her next time she goes.  I wonder if she could hire a process server or someone?

    0Reply
  • Marian Smith
    Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    5y

    @Theresa Harris True, or a copy of the lease and an affidavit stating the situation.

    0Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y

    While it's never fun to see a landlord get ghosted by a tenant and a rule for assistance requiring tenant cooperation, this started a long time ago for the nameless LL.  She allowed the BS to go on for 12 months pre-covid and probably has no screening process.

    By minority landlord, I was hoping you meant minority in aggregate, accidental outlier, an exception with material difference from most investor LLs.  Her age or ethnicity had nothing to do with the legal problems or why this happened in the first place circumstances.  But I am glad a story highlighting a stupid legal rule that should have exceptions is getting out there. 

    Her lead paint-peeling crapshack @Jim K. LOL will be lost to tax forfeiture if she doesn't get some large friends to go over there and tell those losers what's what. A real story would be 'Elder landlord takes back her sh*t with force!'

    4Reply
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