All Forum Posts by: Daryl Luc

Thelma, not sure where you stand on this after so long since your post, but here's my input. I was the pres of an HOA for almost 20 years and have a little background. First, the board doesn't and won't address any of your concerns since you are not a member of the HOA. As another posted answer stated, you're beef is with the person who owns the actual unit. Regardless of what ever agreement you reach with this individual, no signatures should be given until you have been furnished the Declarations of Condominium by the owner. The Bylaws are useless. They are 'instructions' for the board regarding the administration make up, voting, committees etc. The Declarations are THE RULES.

So it seems quite fishy to me that the guy who owns the unit hasn't shared these with you. I hate to say it, but on face of what you've posted, I would advise that you walk away. File a small claims for any funds you've already given and make it clear in your presentation that the Declarations have been hidden from your view after multiple requests of the owner by you. Or you could hire an attorney. Or you could take your chances going forward with how you've described the relationship as it stands in your last posting. My guess is that you'll find there's a gotcha on the vacation rental approach if there's a sublet restriction in place and the HOA can shut this down with just a threat letter leaving you with nothing to show.

An HOA is a powerful entity with few restrictions. It is a private organization and members are legally bound to whatever is construed within the law since the contract between member and association is tied directly to the property title and is classified as a private agreement. An HOA is a hardball organization if it desires. They can step in front of the owner and evict and they can foreclose an owner just for not following the rules. I would take issue with what one post above stated and that is before I put any money towards closing(or in your case renting), I would have the contingency in the sales agreement stated that the Declarations and Bylaws must be furnished within 7 days of submitting the purchase agreement and that there is a right of refusal within 7 additional days after receipt, based on timely review by my attorney. Failure to furnish automatically cancels the agreement. As a renter looking at condos, you need to put similar language into the lease agreement prior to signature and the language also should limit how much of the up front money, ie security deposit, rent etc. you have to furnish until this milestone of review has taken place.

Originally posted by @Holly D. Metzger:

You know, on further consideration, in my original post, I should have said " The price is too high for what it is".  Actually, since you got 200+ responses, your price is really attractive.  But when you get 0 applications from 40 showings, there's something really wrong.  The potential tenants who are attracted by the current price are being totally turned off by something.  My guess would be the neighborhood, or the building, if this is a condo.  So take a good look around you.  What's the condition of the cars parked on the street? Tour the alleys.  Are there people sorting the trash, or is there any evidence of an "urban campsite"?  Can you see any evidence of criminal activity on the block where your unit is located? Are there vacant or condemned buildings nearby?  

That being said, it may be that you did an A+++ reno on a C property in a D--- location.  So the message you're getting from the market is still this, your unit is overpriced for the people who are willing to live in that area.  Time to consider Section 8 or selling?

Both of your posts are insightful and analytic(experience based!).....I would add this: People buy from people.  If there are 40 prospects, then they needed to be talked with and 'artfully' questioned during their time on premises.  This qualifying should actually target their impressions of what they think it would be like to live there, and how it differs from where they are leaving. 

Sales skills 101;  Know your customer, know your product, ask for the order.

I stopped initiating conversations with tenants with my first one.  Now, I make it clear that once they're in the property, all communication needs to be in writing, in both directions.  I use google voice so if I do get a call, the first thing I do is hit four and it's recorded.  Voicemails are recorded and transcribed automatically.  If I get into a situation where I and a tenant cross paths, say during an inspection, I put the phone on record.  You do not have to let people know you're recording them. If anyone pulls the trigger and files suit or counter suit, those recordings are entirely legal if used to refute lies.  CYA!!  If you find yourself in front of a magistrate, you will have more ammo in your gun than your tenant.

First, my advice is don't tempt fate when it comes to IRS laws.  People do get caught up in them, and it's expensive....real expensive.  You're gambling with your business.  Second..sign a three month lease that doesn't have a month to month clause.  Give yourself enough time to transfer.  It could get ugly if you hold a mortgage in your name, so be prepared for a three or four month ironing out period.  Until the t's and c's are all complete on your side of the transaction, you're exposing yourself to problems if the lease isn't with the correct party.

So, what's preventing you from picking up the phone and reaching out to a few that appeared prequalified on face and see what kept them from your property.  I suppose every salesman (you are selling) would love to have everyone contacting them without having to do any lifting, but this is real life.  Relying on your tenant (customer) to do on autopilot what you need to have happen usually results in way too many fails.

If you do discount, do your best to adjust your lease termination date so that it falls in the sweet spot of March thru July if you are trying to attract school age children.  Then you can recast into a one year lease....avoiding a repeat issue.  Most don't go looking to move after Halloween, right up to Easter....unless there's a 'problem' where they are.  Inheriting someone else's problem, at a discount rate, isn't the best strategy.

Originally posted by @Holly D. Metzger:

I find myself agreeing mostly with what Julie Dillon has suggested, mainly that you make no assumptions.  In fact, I would have the discussion about the rents with ALL the tenants in the building, not just the three ladies of whom you speak.  I would start with the requirement that all occupants be on a current lease by, say, January 1st or as soon as the notice requirement for your state allows.  Then, within the lease you can incrementally raise the rent every two months or so until you get the rent for all the units to the market value by the end of the lease period.  The benefit of this is that, first, by requiring everybody to be on your lease, you are not discriminating against anyone. And second, you won't have to deal with any wierd or unusual conditions that may be present in some of the current leases. Should some of your tenants elect not to sign a new lease, then you may terminate the tenancy as proscribed by the laws in your state.

 There it is.  The one common sense post.  

I'm not sure either of you are aware that there are 49 states other than Texas...which, by the way, is not considered to be at the forefront of 'how it's done in other places'.  In real life, sh!t happens.  Inoculation against calamity is exactly why we carry insurance, do preventative maintenance etc.  It's considerably less expensive than fixing the results of a calamity.  Believe me, there are ways to subject you 'system' to guerrilla tactics by renters.  Agree to disagree, but jeeesh, unless I missed something, people from all states and even a few countries are allowed on this forum and can pick and choose the advice and anecdotes that seem to fit their situation.  The fact that you state there are no 'standards' of eviction are a totally inept statement.  There are standards, it called the law.  Are there differences, yes, exactly my point.  So for you to use your 'way' as the only way is nothing less than uninformed and arrogant.

In my very first business law class (June 1971), in the very first lecture, the prof started with the following: "don't confuse being lucky and being smart. they aren't the same".  That page of notes is on my office wall in a frame, and highlighted.

What seems to be getting avoided by almost everyone here, whether pro or con filing for evictions, pro se or not, is that across the US, currently tenant rights groups are teaching what follows in italics to tenants.  The systematic counterclaim.  This is independent of whatever state you live in.  This was posted as in a thread right here on BP one month ago to one of the articles about evictions..pro and con.  

It is just my opinion, but I would take this, print it out and give it to your attorney of preference before you have to evict anyone, before you get pulled down the rabbit hole, and then ask a simple question before hiring: "Do you know how to prevent this from happening to me?"  To do anything else is confusing good luck with being smart.

As a tenant, I ask for a continuance at the eviction hearing, saying that I'm actively seeking legal counsel. That buys 7 days. Then the morning of the new hearing, I file a compulsory counterclaim and jury demand... pro se'. At the same time, I file paperwork as habius pauper (sp). This way I don't pay a dime to file anything with the court from here on out, while the landlord pays an attorney lol. I escrow my rent so that my rent goes to the court instead of the landlord. Then I amend the counterclaim, to add on a few more weeks. If the landlord fails to file an answer then yay! I file a motion for default judgment and win. ( That actually happened once) If he answers the counterclaim a scheduling conference is set for 1-3 months out. At the conference, I make sure Discovery lasts at least six months. Near the end of the six months, I file a motion to extend discovery. (Meanwhile, I file a fair housing complaint, which requires the landlord's attorney to defend that too. After discovery, the landlord usually files a motion for summary judgment. I file a reply 2 weeks later. Then I file a motion to amend which will take the judge another two weeks to rule on that motion. This pushes his MSJ ruling out another 2 weeks. But before he rules on the MSJ, I file a motion to stay proceedings pending final outcome of the counterclaim. Another two weeks for that ruling - which he usually grants. Now add another year for the counterclaim process to take place. If the judge denys the stay and I loose, add on about 12 - 14 months for the appeal process to be fully adjudicated while I remain in the property, and pay rent to the court instead of the landlord. If the judge rules in my favor, I stay in the property and continue with the counterclaim. The longest I've held up a landlords rent was 43 months. That's just over 3-1/2 years. That landlord finally settled. After years of attorney fees, he ended up paying me damages as part of the settlement. When "I" decide to leave a property, I sue again for the return of my security deposit. I take my digital file of 100+ images that show disgusting the place was at move-in and how immaculate the place was at move out. I win that too. Then I have all the eviction cases sealed and removed from the clerk's website.

Originally posted by @Anthony Wick:

@Daryl Luc . I'm not sure what your point is. You state my solutions are iffy at best. No offense, but your casino analogy is clever, but wrong. What I do know is, not even attempting to collect past due rents is a 100% chance you get nothing. And, a judgment against a former tenant will also hurt them for obtaining future residency. In the OP's case, the judgment would be against the former tenant and his father. Twice the chance to collect. And some collection agencies do report the tenant on a credit report. There is plenty of downside for a non-paying tenant if you get a judgment against them. Wouldn't you want other landlords to go through the minor inconvenience of obtaining a judgment so you can see that you should not rent to this tenant? By obtaining a judgment, landlords are helping other landlords, as well as possibly helping themselves. 

 Anthony, I have generally approved of your past posts without issue.  I do take issue with this.  It's not our responsibility to save other landlords from tenant behavior.  People with all sorts of behavior issues, including eviction, get leases every day, so the downside to being shunned is imagined.  Because the father signed as a co-signor, he's basically off the hook for anything.  A magistrate once told me that was a wide swing at a high pitch.  There's a difference between a co-signor and guarantor.  And both father and son are deadbeats.  It's not even been shared that the father has any asset to claim for restitution!   I suspect this isn't the first time either one has stiffed someone. Apples not falling far and all that.

Collection agencies report around an 11-20% max success rate and charge as much as 60% for their services.  Suing, reporting etc by them will all cost you at the high end, not anyone else since it's in the fee based on the menu items you choose to contract for.  Paying an up front fee type of service and and that money is lost based on those statistics.  And yes, compared to craps where you will lose $1.50 for every $100 bet, is a much better play.  In the end, almost every time a courtroom is used to make a point, only the lawyers come out ahead.