All Forum Posts by: Jonathan R McLaughlin

But it isn’t the end is it? You still have to deal with him. Not saying he is right to do any of this: was just trying to get a take on what his mindset might be. And don’t kid yourself, he doesn’t think the way you do and you shouldn’t expect him to…he isn’t in the situation of having a new lease and construction “voluntarily”: the building he had a sweetheart deal in was sold. Are you saying he used to be the handyman and favored tenant? Oy.

And almost no one thanks you for half of market, they just think in terms of their immediate situation getting worse. And half of market might actually be market with ongoing construction. Are we talking days, weeks, months? 
i would train yourself not to expect gratitude when you are trying to be fair. You won’t usually get it. 

The more dysfunctional someone is the less they can see the big picture and the likelier they are to lash out. I love the exaplmple of “can’t get to the laundry” it’s classic “I don’t have control over this and I’m angry” he has a right to be angry, just not to lash out.

I was trying to cover possibilities for readers, and most people actually dont do what you already did so bravo. Sounds like a reasonable person would have been satisfied. He isn’t reasonable and Given you did all that I would go formal and hard:

Notice on the door reiterating timelines and say you have issued instructions for contractors to stay within those limits and saying you have gotten reports of hostile action from him/tenants Say any further incidents will result in immediate consequences including up to an including reporting to law enforcement (restraining order?) Make it on formal stationary and openly  cc the contractor and an imaginary lawyer if you don’t have  one already. Have the letter say all complaints MUST be in writing to you at a specific email/address.

And I would certainly offer to let him out of the lease. “You aren’t happy I won’t hold you here even though you committed to 12 months and it’s January. If things calm down I can give you a good reference. Do you want to give notice?”

bet he quiets down.

Id push back on the “operate elsewhere”. Places with lots of regulations usually have them when people are making a lot of money!

A few practical tips beyond the good ones mentioned:

1) use a real attorney vetted lease. Don’t add crazy stuff to it you know wouldn’t fly.

2) you can use qualitative juudgement about prospective tenants; having written criteria that takes into account demeanor and actions during the application process or before is fine, but keep to objective things, not things like “I didn’t like the cut of their jib” For instance:

Were they on time for the appointment? If not did they call? Is the application truthful? that kind of stuff?

3)do not cut corners on safety stuff and its appearance…loose floorboards…flaking paint…etc

4) take your vacancy reserve seriously in your analysis. You want to be able to use them getting out while as a leverage point if there is a problem

5) most tenants are fine if you are fine, for the problematic ones 89% of problems go away with good records and evidence of willingness to deal. I definitely didn’t make that number up.

6) FYI We operate in both MA (tenant friendly) and NH (landlord friendly) and we haven’t had to change the way we operate at all.

7) professional tenants are criminals and problems everywhere, so that’s an area where things can likely be harder though we have not been directly involved in that situation. A good attorney is helpful. Don’t be cheap up front or accept excuses to delay, it will bite you.

In all seriousness, phrasing the question that way on a public forum is not a great start.

Screen well, treat people fairly, fix problems quickly, keep records.

So from his point of view:

Forced to sign a new lease, at an increase I presume? Or move out. AND his formerly quiet apartment is now a construction zone. AND his previous bad behavior didn’t seem to get called out, why would he think it was problematic?

I would be cranky too. He can’t treat your people poorly but taking a moment to think about it from his point of view might help. His life just got worse and you and your guys are causing it. 

Did you send a notice to tenants outlining the work to be done, times it would be done , timeline for completion and offering an avenue to deliver complaints if any? If you haven’t do so now (email probably best).

At the same time I would inform him that any hostility to the contractors will almost certainly delay the progress and increase his inconvenience, and that any lease renewal will be contingent upon a minimum level of civility. Even if u have sent a note I would do the above.

I would also reach out to other tenants and ask about their experience with the contractors/work. That way when he bi&es to the neighbors they have heard from you personally and he will know that and that you are responsive.

Do all this and see the reaction before any next steps. 

Ask to see their plans for the space and business. Sketches? I’d be pretty leery of any TI if the equipment and set up is there already.  I don’t know your market though.

This is common and is essentially the bank saying “we are going to collect the new tax amount” and giving you the option to lend them the money by paying it early :) 

Just spread it out over the 12 months as your new baseline. Won’t be the last time.

I wouldn’t give them the option upfront. Set up your preferred electronic payments (we use apartments.com) and in your polite and friendly intro note let them know this is the new method. I think this is more important if you live next to them, neither of you want to interact over this more than you have to and it is much easier to keep a paper trail

If there is truly some problem you will be sympathetic to, you can always adjust if they bring it up.

Yes. But keep in mind the fee for an exchange is about $1k and your tax liability on 20k is probably only 2.5-4k if not offset by other stuff, so I wouldn’t tie yourself in knots trying to make it happen if it isn’t just sitting there.

@Irene Low so you don’t want to buy out of desperation, but time is a real asset. To analyze how this might work for you long term:
take a 5 year timeline 

Calculate your cost of living during that time renting out the other half and incorporating increasing rents but also maintenance etc. How much did it cost you to live?

Take the loan balance you would have after 5 years of pay down and calculate a new 30 year fixed loan. Use current rates, a little above and a little below. You might find it cash flows very well in that scenario, not to mention perhaps further subsidizing your living expenses and freeing up money for other investments. This isn’t even counting any appreciation.

And if you buy something you like to live in in a place you like you would be very unlikely to get hurt, you might not win big, but you could. 

House hacking is probably the most powerful tool out there for someone to build wealth, and it could do great as a more immediate profitable investment: just don’t confuse the two approaches. They are not the same. A low interest rate environment has muddied these waters.

Good luck!

@Steve T. you are over thinking this. Yes, based on what you sent going rate is between 2325-2600 for this depending on location. Your place seems right in line with conditions, not sure about square footage At 2600 you are encouraging them to move. The $2900 ones are a different product.

At 2400-2500 you are in the middle of the market, 

The lowest posted price is $2325 which would still be almost a 10% increase for you and likely not risk any turnover due to preference. Thats probably what I would do and then increase by 2.5%-5% yearly as feasible in the market if you want to keep them. The tenants have access to the same info you do. 

Just remember, you can be fair and even generous and it still might not work for them. And even if it does they still might (probably) not appreciate your efforts. Thats their right and is the nature of the business.

Good luck, post how it goes.