All Forum Posts by: David S.

I think what we have is a difference in laws between states. That is why I use the language "most" or "some jurisdictions" when I make statements like that. Each state has its own nuances when it comes to eviction law. And don't forget the personality of each judge.  What sets well with one will get your case thrown out in another court.

I actually made an appointment to see the judge when I went to this system.  It was his suggestion to close the account or have the bank refuse the payment.  I have been through too many scenarios so I do my research when I make a change. Also, I have multiple payment methods included in my lease. In Louisiana, we are SPECIFICALLY not allowed to take a payment if we want to continue with the eviction. This is ingrained in state law and not the lease.  In this case, state law trumps the lease.

Although this partial payment trick has never been used on me, I must be aware of it and make changes if necessary.

I didn't realize this was such a heavy topic.

Here is the evolution of my rental collections process:

1.  I started out by receiving the rents in the mail to my PO Box.  Issues: Tenants say they mailed it when they didn't, if they were late, there was another 2 day delay.  I even had an eviction delayed because the judge believed the tenant when he said he mailed it! Some tenants were used to paying in person, so I had that transformation.  I usually gave pre-addressed envelopes, but sometimes they were lost.  Some tenants were incapable of mailing rent due to the inability to actually address the envelope correctly. The straw that broke the camel's back was that my local post office kept putting my rent checks in other peoples PO Boxes, so sometimes they were lost for 3 months.  I even spoke to the local Postmaster several times, but he didn't care. (Just recently, I got another landlord's rent---he almost evicted the tenant over it!) Some of these issues necessitated rent pick-ups.  I charge a $30 fee for my time and gas for rent pick-ups.  Tenants balk at that.  I still get some mailed in for some of my long time, reliable tenants who don't have transportation.

2.  I am now using the deposit in my account method.  Some tenants actually use the transfer function with their bank as well.  On some of those, they only need a name and/or phone number of the person receiving the money.  I was extremely surprised that the tenants absolutely loved this method of paying.  No paying for stamps, money order fees, etc. Many actually paid their bills in person, so it was right up their alley. Issues:  With 18 units, some with the same rent, it can be a challenge figuring out who paid.  I give unique deposit slips to the tenants, but they don't always use them.  Also, I request a text when they deposit the rent, they don't always do this. I am starting to use MULTIPLE savings accounts, so that will solve that problem.  We already exhaustively went over that in SOME JURISTICTIONS, an eviction can be stopped with a partial payment AFTER an eviction is filed.

3. One of my banks use the card option that @Roy N. and @Rick H. have mentioned.  I have recently considered to start using that method.

4.  I will eventually use Buildium.  I am impressed with their platforms and the reviews here on BP.

Only the market and local laws you operate in will determine if you can get that much in advance money.  I would assume a hot rental market or one that is tenant friendly, so Landlords ask for more.

I agree with @James Wise and make it a higher deposit, if legal in your jurisdiction.

Technically, I was, at times, able to get more deposit then the monthly rental amount because of the combination a security and pet deposits added up to higher than one month's rent.  However, asking for more without a pet would result in the tenant moving on to the next landlord. My market just does not support that business model. A lot of landlords do not accept pets, their pet deposit is non-refundable, or they charge a pet rent. So there is some leverage in getting a nice pet deposit.

Normally, they send out a private fire investigator to see if it was arson.  If that checks out, they will send an adjuster to run the info through the insurance computer program, which will give the value of the claim.  Is it replacement costs or Actual Cash Value?  If replacement, they will withhold a large amount of money for depreciation.  The depreciation amount has to be recovered when the work is done.  You may even need a licensed contractor and not your own subs.  If Actual Cash Value, you will not get the total amount of damage (no depreciation check) and that one time check is all you get.

Are you sure the mortgage is paid?  If it not, the mortgage company will confiscate the insurance check and dole it out piecemeal and subject you to inspections before they dole out each breadcrumb.

Also, if it is an older house, it will have to brought up to code, which will cost more money.  The policy may have ordinance coverage which will offset these costs.

After reading Davon's posting, I see it is legal to return rent in California and proceed with the eviction?

That is not the case in Louisiana.  I have even had friendly debated discussions with the judge in my jurisdiction about this. In my state, a tenant can "reset" the eviction process by making partial payments, regardless of whether my lease states that I refuse to accept it. I can put all kinds of things in my lease, but if it violates state statutes, state or federal case law, or the judge's feelings that day, then I'm SOL.

We just have a huge variation in state, county, city laws concerning evictions.

I must note that I do indeed have my tenants deposit money in my account directly.  I have never had the eviction erased due to this trick.  As I stated, I am not worried if they do because I can evict fairly quickly and without an attorney.  In addition, I screen very well to keep the scam artists out.

@Marcia Maynard

@Account Closed

I also allow my tenants to deposit directly into my account.

Like Marcia and Nancy stated, it is true that in most jurisdictions, including my own, that depositing a little as $1 (or penny for that matter) will stop an eviction. Like stated by Victor, for me, the benefits outweigh the consequences.  If a rent is late, I will not wait another few days because "it is in the mail," nor do I treasure travelling to get the rent.  My time is far more valuable.  Since I went to this method, it has saved me many hours per month in administrative tasks.

The only recourse from preventing the tenant from depositing money into your account to stop an eviction is to close the account.  I am not that worried about an eviction delay because the total eviction timeline in my area is 6 to 7 calendar days. I probably would be singing a different tune if it took me much longer to evict. It may be a good idea to have the same number of accounts as tenants to make this easier.  You file for eviction and close the account at the same time. Of course, this ONLY would be good for small scale. 

Here is another food for thought: some banks allow deposits with only a person's phone number or name.  What if a tenant found out where you were banking during the eviction process and deposited money that way?  So many potential scams.......... SCREEN YOUR TENANTS!!!

LARGE SCALE: probably not a good idea.  There is too much room for error. Too many units, probably many with the same rent and you couldn't trust each tenant to use the supplied bank deposit slip or write identifying information on the slip. Some type of automation through property management software would be best.  Some banks automate ACH's as well. Also, if you maintain an office open to the public, you could accept rent that way.

@Meng W.

I was going to recommend Suspend SC followed up with roach bait.  However, Suspend is not sold in your state, probably due to state law.

The absolute best roach bait is Maxforce FC Magnum.  With properly cleanliness and proper use of this product, you will make a huge dent in the infestation.  Here is the link:

Maxforce

Building perimeter spraying and interior spraying with a long residual is best when used with this bait.  However, I did not find one yet that can be sold in your state.

@Holly N.

After going through several half-a** roofers, some of whom were not cheap, I found a good one on Angies List.  I was very apprehensive for years about paying a subscription to find workers.  However, now that I did, I am glad I changed my perception. I go for the best rated contractor with many reviews. The roofer I found had unbelievable customer service and quality.  The rep showed up with copies of their contractor license, insurance, etc. They did, in fact, underestimate one job and ate the costs instead of trying to pass it to me.

I agree with @Matthew Paul about good contractors not being cheap and cheap contractor not being good.  Some exceptions there, but it is generally true.

@Holly N.

PM treats you like crap?  If they are disrespecting you...how are they treating your tenants?

Time to spend some time an that city and start shopping for a PM.

In the future, maybe you can send some surveys to the tenants to get a feel for the PM situation.  There are even companies who can do it for you.

I think you are referring to pier and beam construction?

There are companies who solely do foundation work/house leveling.  Their methods are the following: they jack up the house to get it level and use some type cement cylinder as support, in this case since it is pier and beam, below the supporting piers (or slab if it was concrete).

The costs depend on how bad the ground is and how many cement cylinder they use.  Also, it appears that some of your piers need replacing.  Most of these repairs that I have seen were less than 10k, with many being around 5k.  I would definitely consult with at least 3 of these types of companies before proceeding.

As a side note, many homeowners and investors strictly don't buy houses with foundation issues, so you make get a great deal.