Who is responsible for the bad tenant?

9 Replies

4 plex style buildings with interior common area where entries are located.  2 down 2 up.

Upstairs tenant, placed by HOA vice president. Other tenant placed by me. VP holds a real estate licese. His license is parked at a Keller Williams office that does not allow its agents to manage properties owned by other investors. He is in violation.

VP's bad tenant burns common area flooring with cigarettes, scattered burn holes throughout.  Bad tenant parties all night, good tenant says,"please keep it down, some people have to work in the morning"....Morning comes and good tenant has 4 flat tires.  

President of HOA owns local insurance company, says he's between a rock and a hard place. VP hangs up on me when I call.

It seems to me the only way to deal with this issue is to sue the HOA for damages, my tenant is scared for their lives so I can't hold them to the lease. I can send in a formal complaint to the real estate commission. Both options don't really help my business plan.

Any other suggestions?

I am presuming that you hired this VP to place the tenant and that he didn't just take it upon himself to do so. That being the case, did you know that he wasn't authorized to act as a PM at the time you hired him? I'm guessing it would be a different story if it was a good tenant and you would be happy to overlook the "violation". Evict the tenant and move on with a new property manager.

It seems clear to me that you need to deal with this.  It does not help you to place blame.  Nobody else is responsible for your tenant.  I don't see where you say that anyone else is managing this property for you.  You are responsible to screen your tenants unless you have a management company that does that for you. 

This is one of the tools that all landlords need to have.  The ability to deal effectively with undesirable residents.  You must do it within the law. 

@Steve Olafson  If I understand him correctly, his tenant is the victim in this case, forced to break a lease due to fear of the VP's tenant.  It's my understanding that he is looking for recourse in removing VP's bad tenant, possibly by something having to do with the VP's violation of employer policy.  I don't have a solution in this case, other than to contact an attorney and let them deal with it.  As long as the VP's tenant is in place, no tenant will want to live next to them so this is not a one-time deal.  Best of luck and let us know how it turns out.

Let the good tenant know that you are taking care of the problem so they don't leave.

Tell the bad tenant that you think their time there is up and it's time for them to move on.  Give them notice to leave.  If they do not leave, evict them.

Originally posted by @Marc M. :

@Steve Olafson If I understand him correctly, his tenant is the victim in this case, forced to break a lease due to fear of the VP's tenant.  

 Perhaps that is the case.  That is not how I read the post though.  It is my understanding that it is the original poster's tenant that the vp helped him fill.

If that is the case and the unit belongs to someone else, then this is a whole different problem.

I'm sorry for the confusing post. The VP of the HOA is illegally managing the unit with the bad tenant for an investor I have no relationship with.

I am the leasing agent & contractor for an investor who owns the adjacent unit.. I placed the good tenant in this upscale condo community.

It seems to me the only recourse is to sue the HOA for damages associated with the loss of income caused by illegal management activities by an HOA officer who has permitted his tenant to violate the HOA laws for quiet enjoyment to all members.

Thanks for your suggestions

@Andries Butler  I agree that the only permanent measure is a lawsuit.  However, it's been my experience (10 years in property management, 4 with condo associations and HOAs) that unless you can prove that the board member was acting in official capacity as an officer of the board, that argument may not get you very far.  If she signed paperwork "Jane Doe, VP of This Small Community" then you've got a chance at proving that point.  Obviously, your best recourse is to consult an attorney.  Best of luck with this issue.

I think you want this deal. 

From my experience for every tenant, one should only responsible. From starting to managing. 
And no one else would help you in that rather you your self. 

I would meet with your tenants and assure them you will be swiftly and effectively addressing the matter. Ask your tenants to file a police report regarding the vandalism to their car and to let you know of every disturbance caused by the people in the neighboring unit and their invitees. Document, document, document. Take photos too. Visit the property often at all times of day and night so you can make note of your own observations. Instruct your tenants not to engage with the offending neighbor from this point onward. As a matter of personal safety instruct your tenants to call 911 if at anytime they are in danger.

I would contact the HOA and lodge a formal complaint on behalf the owner of the unit you manage and your tenant. Read the HOA rules and note every violation that the tenant in the other unit is making. Copy the letter to the owner of the other unit and their manager (the VP) and to the owners of the other two units in the same building and their PMs if they have such. Keep on top of this and hold the HOA and the owner of the unit with the bad tenant accountable to bring this to resolution. Involve an attorney only if you need to. Try to negotiate this outside of a lawsuit. Focus on the facts and what resolution you are seeking. Also, call the owners of the other units in the building and garner their support in this matter, they are stakeholders too.

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