Bad Neighbors scaring away prospective Tenants!

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Bad Neighbors scaring away prospective Tenants!

Destin E. ThomasPro Member
Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes

Hello BP community, I purchased my first rental property (a duplex) a few months ago and I'm trying to rent out one of the units (I'm househacking), but the neighbors directly across the street are like those wanna-be gangsters that hang outside in their front yard all day and literally it's scaring away all my prospective tenants (SUPER annoying!).

It's actually a good neighborhood and really developing, but it's just this one house that is making renting out the unit almost impossible.

I've thought of a couple ideas, but instead of trying to reinvent the wheel I'm curious to hear from others who have gone through this similar situation and what you were able to do to "fix it" to get a unit rented. I'm now going on 2 months vacant and can't keep affording to pay the PITI on my own. Any advice or guidance would be greatly appreciated. Thank you!

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
5y

prepare the potential renter ahead of time.  by telling them you live there and  although they have a unique look to them they are peaceful neighbors. and or you may need to motivate someone by having the best priced unit in the area.

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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y

    prepare the potential renter ahead of time.  by telling them you live there and  although they have a unique look to them they are peaceful neighbors. and or you may need to motivate someone by having the best priced unit in the area.

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  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    5y

    I have one house that is next to probably the trashiest house on the street.😢

    Trashy neighbors are like Neighbors with barking dogs. What can you do about it? Trashy neighbors can really hurt the desirability of a rental or a house for sale. People gripe about HOA , but it seems that one of their primary functions is to keep trashy neighbors from taking over the neighborhood.

    4Reply
  • John Teachout
    Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
    5y

    Just wondering if you have any actual indication of the neighbors scaring tenants away or if you just think that could be the case. ie, have you had any feedback from potentials like "We like the unit but are uncomfortable with the neighborhood". Is it possible that it's overpriced for it's condition/finishes and that's the actual issue? Not saying it is, but if the neighbors are to the point where people are afraid of living there, then maybe the law needs to get involved...

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  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    5y
    Originally posted by @Destin E. Thomas:

    Hello BP community, I purchased my first rental property (a duplex) a few months ago and I'm trying to rent out one of the units (I'm househacking), but the neighbors directly across the street are like those wanna-be gangsters that hang outside in their front yard all day and literally it's scaring away all my prospective tenants (SUPER annoying!).

    It's actually a good neighborhood and really developing, but it's just this one house that is making renting out the unit almost impossible.

    I've thought of a couple ideas, but instead of trying to reinvent the wheel I'm curious to hear from others who have gone through this similar situation and what you were able to do to "fix it" to get a unit rented. I'm now going on 2 months vacant and can't keep affording to pay the PITI on my own. Any advice or guidance would be greatly appreciated. Thank you!

     Well, that actually could be a lot of things. Are they working on cars? Do they have cars on blocks or missing major pieces like engines, windows, hoods? Are there bullet holes in the sides of the cars? Or are they simply playing checkers on the porch?

    Did they start hanging out after you bought or were they there before you? 

    Are they the owners or are they renters? Are they partying late into the night with "guests" arriving at all hours? Do they have a pet alligator on a leash? Or do they go in at sunset?

    Are they the "I'm not paying rent/mortage and I can't be evicted crowd?" or just enjoying "quiet enjoyment" on their own property?

    Have you walked over to meet them and find out who they are? People fear what they don't know. If you get to know who they are you can make a better decision on what you should do.

    4Reply
  • Destin E. ThomasPro Member
    OP
    Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
    5y

    Hi Jay Hinrichs, yeah those are some good ideas that I was considering as well as I'm all about transparency, so that might help for sure, thanks!

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  • Destin E. ThomasPro Member
    OP
    Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
    5y

    Hi John Teachout, yes I've literally had prospects come in excited about the unit (it's been fully renovated so I'm confident it's not the condition, and it has a security fence surrounding the unit for safety), they walk back to their car, and later that night I get a message to my phone from them saying, "my family agrees with me that the neighbors across the street are a concern...they're thinking it's not safe" or "I don't know what's up with those people across the street but I need to protect my little girl"... these are literal messages I've gotten :-/ 

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  • Destin E. ThomasPro Member
    OP
    Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
    5y

    Hi Mike Hern,

    I know it may sound like I’m being judgmental, but I’m honestly not. To answer your questions:

    > Yes, they are working on their cars frequently, not in bad condition, just usually double or tripled parked in the middle of the street (I wish they would once just stay on the porch);

    > I don’t know how long they’ve been there, but I’m going to inquire with the other neighbors;

    > I know the house is owned by their older parents and they just stay with them. They bump their music ridiculously loud on a frequent basis (at an obviously disturbing level) and occasionally into the night. I feel bad for their elderly parents having to put up with that disrespect in their own home!

    > I assure you the words “quiet enjoyment” are not in their vocabulary. In addition to the constant loud music, they speed their cars and motorcycles up and down the street regularly too.

    > My next move is to walk over and talk to them with a “peace” offering goodie-bag or something and let them know I’m trying to rent out the unit. However, that even feels unethical because I know if I was renting this place and locked myself into a lease thinking I’m in a nice quiet neighborhood and the next day all this crap comes “out of nowhere” I’d be pretty pissed.

    I promise I’m not venting, just would rather focus on solutions. I’ll just have to plow through and see what I can figure out, thanks.

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  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    5y
    Originally posted by @Destin E. Thomas:

    Hi Mike Hern,

    I know it may sound like I’m being judgmental, but I’m honestly not. To answer your questions:

    > Yes, they are working on their cars frequently, not in bad condition, just usually double or tripled parked in the middle of the street (I wish they would once just stay on the porch);

    > I don’t know how long they’ve been there, but I’m going to inquire with the other neighbors;

    > I know the house is owned by their older parents and they just stay with them. They bump their music ridiculously loud on a frequent basis (at an obviously disturbing level) and occasionally into the night. I feel bad for their elderly parents having to put up with that disrespect in their own home!

    > I assure you the words “quiet enjoyment” are not in their vocabulary. In addition to the constant loud music, they speed their cars and motorcycles up and down the street regularly too.

    > My next move is to walk over and talk to them with a “peace” offering goodie-bag or something and let them know I’m trying to rent out the unit. However, that even feels unethical because I know if I was renting this place and locked myself into a lease thinking I’m in a nice quiet neighborhood and the next day all this crap comes “out of nowhere” I’d be pretty pissed.

    I promise I’m not venting, just would rather focus on solutions. I’ll just have to plow through and see what I can figure out, thanks.

     Looks to me you gave facts, and were not judgmental. I read your profile and I'm proud of you for what you've accomplished, especially in So Cal. 

    Here is some stuff from a guy that's been at it for a while.

    The parents have hearing loss and don't actually hear the noise. When visiting my mom the TV is on full volume in order for her to hear it. I turn it down and she yells at me, but it gets her attention ;-) Old folks like to hear noise so they know they aren't alone. Noise chases away the loneliness for some people. 

    There are ordinances about parking cars on lawns and having too many inoperable cars on the property and working on cars in the streets. However, since cops are disrespected, they aren't likely to worry about enforcing those items. 

    If there is a mortgage on the property, eventually it will go to foreclosure. I bought one like that where there were 8 working age adults and a baby, all related brothers and sisters and they couldn't or wouldn't make a $906 monthly mortgage payment. So, if they are not working, it's likely the mortgage isn't being paid and at some point the bank forecloses. 

    People who work on cars and have them all over their yard are very concerned about their "possessions", the cars. Fights can easily break out if their cars are perceived to be toyed with. If cars come and go, then it's a "mechanic" working out of his home. Probably not legally. 

    It's likely they have been there for a very long time and believe they own the street. Quiet enjoyment isn't part of their lexicon. It is enforceable in court, but you still have to live across from them after you win. 

    I'd still make the effort to get to know them a little bit. I would be inclined to do a general background check and see if there are any violent felonies listed about them. I had one guy change his attitude immensely when I asked him if he ever did time. I asked it in a matter of fact way with a smile on my face. He immediately said he didn't want to go back and I assured him I didn't want him to go back either. I wouldn't say we became friends but we had a certain "understanding" and he was a lot easier to deal with. These people lead rough and tumble hard lives and depending on age, the older the better, have learned how to control themselves. 

    2Reply
  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    5y

    Sometimes putting up cameras outside and motion activated flood lights encourage people to move it to their back yards if thy have one.

    2Reply
  • Marian Smith
    Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
    5y

    @Destin E. Thomas I kind of think you may have no choice but to lower the rent. Don't necessarily lower your tenant standards, but some people will put up with bad neighbors for cheaper rent. If your rent is already a bargain then it may be a waiting game. My rental is across the street from porch dwelling serial killers. with goats. and a metal recycling collection. I had a tenant who said every other house in Missouri looked the same and was thrilled with the rental price. It may have helped that I could say the neighbors had been there for 10 years with no problems. They also moved from the same neighborhood. Do you have a sign out front? Someone from the area might feel safer due to familiarity.

    2Reply
  • Karl B.
    Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
    5y

    I lived in L.A. for almost a decade. I never had this issue but I live in MO now and the renters next door are super annoying so I can sympathize. 

    Is there ever a time they typically aren't outside? Like when the Rams play or when it's 5:00 PM and they're eating dinner?

    If so, those are the times to schedule showings!

    1Reply
  • Josh Daniel
    Member since 2019 · 4 posts · 2 votes
    5y

    @Lynnette E. I agree with the camera idea. Even a fake camera would work. People like that don’t like being on camera.

    1Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    Hi @Destin E. Thomas, you can try to talk to them and introduce yourself to get to know them better and mirror their behavior. You may want to seek support from other neighbors and contact HOA as well, or you may want to write a complaint letter to solve the problem because it can involve other nearby residents experiencing the same issues. Or, serving them formally written letters signed by multiple individuals might be an excellent way to make them change habits.

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  • Destin E. ThomasPro Member
    OP
    Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
    5y

    Thanks for the kind words, guidance, and advice Mike Hern! It is much appreciated. Just wish it wasn't such an overly frustrating situation for my first investment property, but I respect and value your opinion and I thank you for the time to show me some of the ropes :-) take care and wish me luck!

    0Reply
  • Destin E. ThomasPro Member
    OP
    Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
    5y

    Hi Marian Smith, you make a good point about the sign out front and taking advantage of the familiarity of the neighborhood, and I just started letting other neighbors know that I will give a referral fee of about $200 if they refer someone and that person gets approved. But I like the familiarity viewpoint and will add that to my toolbox/tricks-of-the-trade going forward. Thanks!

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  • Destin E. ThomasPro Member
    OP
    Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
    5y

    Hi Karl B., yes I've definitely been tracking the good & bad times to do showings based on when they're out front the most, so for sure trying to take advantage of that at least! Thanks!

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  • Destin E. ThomasPro Member
    OP
    Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
    5y

    Hi Wale Lawal, yes for sure I'm going to try talking to them (maybe incentivize with a goodie-bag or gift card) and I started asking around with the neighbors as well. No HOA in this case, but according to a neighbor there have been some complaints in the past and it calmed down, but then they would go back to their old ways. Still some strategizing to do on my part, thanks Wale!

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  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    5y

    @Destin E. Thomas this may seem like a basic question, but do you have a for rent sign in the front yard? Yard signs market to people who are ALREADY in the neighborhood. When you advertise online, you are showing to people who only know what the property looks like, not the neighborhood. In addition to yard sign, I would put up pointer signs. Buy a few and put them at any major intersection nearby pointing to the property. 

    As others suggested, you may need to lower price. If someone can get affordable rent, they are willing to look past things. Also be aware that renting to families may just not work out. People with children are more concerned about family safety than a renovated property. Maybe finding some roommates or other younger people who care less about these types of things is a better option.

    Whatever you do, I would not try to cover up the problem. Showing the property when they are inside may get a tenant into the property, but they will be unhappy and won't stick around. Openness and honesty is your best policy. Anything else just invites more problems than it solves. I would rather have a vacant unit than a family trying to break their lease.

    1Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    5y
    Originally posted by @Destin E. Thomas:

    Hi Karl B., yes I've definitely been tracking the good & bad times to do showings based on when they're out front the most, so for sure trying to take advantage of that at least! Thanks!

    Hi Destin,

    How did the "Goodie Bag" thing work out?

    What "Goodies" were in it.

    Apparently you survived the encounter--you might not have with everyone.

    Maybe your potential renters are seeing something in/about these men that you are missing.

    Maybe it's as simple as a gang hand sign, or a gang method of dress, hairstyle or color of clothing.

    Maybe it's some particular 'Body Language" of the "Street" that you are totally unaware of.

    Maybe it's the pronunciation of a certain word that clues them in.

    People from the area also may know one or more of these men and know their past history and present "Activities" but not say anything to you about it.

    Some of these areas in Los Angeles are extremely well kept up--but still have bars over the windows--for a reason.

    Good Luck!

    1Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    5y

    And Destin,

    If you have not done the "Goodie Bag" thing yet--It might not be the safest thing to do.

    If you are working in a 'Tough Area" and think 'Goodie Bags" will help---just NO.

    It's something that's probably best avoided.

    You'd be better off asking LAPD to park an un-manned car out there for a a couple of weeks--if they even do that.

    Also asking the LAPD about that particular address and if the (known) residents are a problem would be smart.

    You have had a lot of feedback from potential renters on their thoughts on it--it might be best before approaching anyone over there--to go to the LAPD front desk in person and ask the desk Sargent about the address.

    just my 2 cents.

    1Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    5y
    Originally posted by @Destin E. Thomas:

    Hi Wale Lawal, yes for sure I'm going to try talking to them (maybe incentivize with a goodie-bag or gift card) and I started asking around with the neighbors as well. No HOA in this case, but according to a neighbor there have been some complaints in the past and it calmed down, but then they would go back to their old ways. Still some strategizing to do on my part, thanks Wale!

     I don't think you should do this. You're going to give them a gift card or some chocolates and they say "clean it up and keep it down, I'm trying to run a business here" (obviously I am paraphrasing). They're going to cooperate 0% is my prediction.

    I think your bigger issue is that the neighborhood is not as good as you want to believe, because good neighborhoods don't have these problems, or at least don't have them for long. Good neighborhoods have pull with the city and with the cops. Good neighborhoods have people that have their lawyers send cease and desist letters.

    Your best bet is likely to do as someone else mentioned - lower the rent to compensate for the neighborhood. It appears these people were there when you bought the property, and that should have factored into your process. Pigs and slobs next door rather than across the street are actually easier to deal with, because you can often fence and screen them out such that no one knows they are there. 

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  • Casey Caton
    Investor · Member since 2017 · 69 posts · 65 votes
    5y

    @Destin E. Thomas yep, I would second that recommendation. Maybe even include that info in the listing by saying the neighborhood is up and coming but still has some rough edges. Sandwich that “bad” info between the best of what your property has to offer!

    1Reply
  • Destin E. ThomasPro Member
    OP
    Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
    4y

    Hi Joe Splitrock, I totally agree 100%. Great ideas as well, thanks man! Yeah I just couldn't sleep knowing that I didn't disclose that to prospective tenants as it would just invite more problems down the road. But I really like the idea of appealing to the people who are already in the immediate area since they'll already be "aware" of the local issues essentially. Again, great stuff and thanks again!

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  • Destin E. ThomasPro Member
    OP
    Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
    4y

    Hi Scott Mac, thank you for the 2 cents for sure! I haven't gone with the goodie-bag idea just yet, just an idea that I was bouncing around, but you definitely bring up some good points. I did ask a cop buddy of mine and he suggested the same thing you did about talking to the PD and getting some info there. I'll be looking to do that soon, so I'll keep you all posted with everything, but once again thank you for the insight and wish me luck!

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  • Destin E. ThomasPro Member
    OP
    Investor · Los Angeles, CA · Member since 2020 · 30 posts · 8 votes
    4y

    Hi JD Martin, you make some very valid points, and I agree I do have to compensate with my expectations especially with regard to the rent amount. I'll definitely be incorporating that going forward and taking the revenue hit, so even if it means less green over time, it'll definitely be worth it to avoid the headaches. Wish me luck and hopefully I'll be able to bring someone in soon!

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