All Forum Posts by: Brad Schaeppi

Kyle.  I agree with the resources shared here to guide the tenant storage process.  

Assuming there will be no mutual agreement in writing to end the tenancy, the residential tenancy with an order granting the Landlord possession ends when 1)  The sheriff serves the writ of recovery, then returns to remove the tenant or 2) the tenant "abandons" the unit during the eviction process and moves out.  Yes, Minn. Stat. 504B.271 refers to "Tenant's Personal Property Remaining in Premises," but please note you will first need to comply with 504B.365 and specifically Subd. 3 Removal and Storage of Property.  You will notice 504B.365 Subd. 3(d) is where the tie into Minn. Stat. 504B.271 appears.  That is the link from the writ to the landlord storage regulation.  

A few key pieces of 504B.365 Subd. 3(d): (When sheriff returns a 2nd time to move out the tenant--different from where the tenant "abandons" on his/her own prior to sheriff return move out)

-The landlord has specific personal property inventory and tenant inventory notice requirements.

-The landlord has phone and mail notice requirements to notify the tenant of date and time of the sheriff move out. 

-Take photos of each and every room and additional photos of questionable items (TV is an old TV not a new flat screen, etc.).  If you do a "photo" inventory with sheriff, I advise uploading the photos and emailing or texting a link or even mailing a cheap USB with the photos.  Bad faith tenants are unlikely to pursue landlords for damages when they know any bluff will be called in short order. 

If the tenant "abandons" the unit based upon facts (no notice in writing, but all non-trash personal property removed, utility changed billing, , etc.), I advise writing a "Notice of Abandonment" letter to the tenant that is mailed and emailed to last known address.  This document effectively ends the tenancy under Minn. Stat. 504B.365 Subd. 3(g) and tells the tenant you the landlord now have lawful possession.  Be very careful of bad faith tenants and "unlawful ouster" that arises in 504B.365 Subd. 5, 504B.231, and penalties in 504B.225 which include "reasonable attorney fees."  In short, hesitate before you change the locks because you believe the tenant may not live there (half moved out).  If you have an old lease authorizing attorney fees, and your tenant hooks up with the right contingency attorney, you could be out thousands if you act too fast.

Last comment.  Once the tenant is out and you lawfully change the locks, you need to pay attention to 504B.271 Subd. 2. This statute authorizes punitive damages to the landlord if you do not provide access to personal property with 24 hours notice written notice (after you change the locks).  The problem is a bad faith tenant may want to come and go multiple times for an hour at a time for several weeks.  In that case, I advise landlords to error on the side of a lot of time for the first move out time and advise the tenant (in writing) to bring friends, rent a truck, and that you are not required to allow them multiple short times to access their personal property over and over again.  There is a fine line here, but you get the idea.  If a tenant asks for access to personal property, open the door and grant a full day to remove items (assuming not a threat to property damage).  Then return to lock the property up.  Make sure to check all windows are shut, closed, and locked after each access.  

Practically, when you seek to turn the unit, do your best to move into one room or the garage (if garage water/weather tight and no electronics in cold winter) and clean the unit and re-rent.  Yes, if you plan to re-rent and store on-site, you cannot remove those items during that 28 day period from the end of the tenancy.  As @Dan Vleck stated, rent the house without the garage or retain storage rights in the basement, etc. 

If you have a multi unit apartment building, I do not advise common area storage for the 28 days of personal property.  Then you may have a theft issue.  Leave the abandoned personal property in the unit or place into a locked room on site.

Good luck!

If you ever want a 40 year old speaker to discuss purchase and sale or landlord/tenant law, let me know.

Best.

Brad Schaeppi

My two cents: You are better off sourcing a new deal, pitching that to investors, than selling past success.  "Site control" (sourcing a new deal under contract) is typically one leg of the stool--the others are capital and experience (such as rehab & project management, etc.).  To be clear, not just site, but pro-forma to show the potential returns based upon your experience (say your 3 unit).  That said, jumping from a triplex rehab to a 5-20 unit rehab is apples and oranges.  I suggest locate something smaller, say a 6 to 8 unit or a 4 plex (which you can source a 30 year fixed loan on) and work your way up.

I second @Todd Dexheimer.  As with any organization, the timeliness and work product also depends on the loan officer.  DM Todd or another local with specific loan officer options too.  Local banks that "hold the note" typically take a more entrepreneurial approach than national banks with more "check the box" standardized approaches that may seem strange at times for 10-20 unit multifamily, such as a required $5,000 Phase 1, etc.  Local banks, such as bridgewater, also hold notes on hundreds of local multifamily properties, thus may understand better that higher rents can and will be achieved for an under performing property.  Once you establish communication with a bank it is your call.  Some investors practice scorched earth with open bidding between many lenders looking to shave 10 bps and fees, appraisal fee, etc.  Others seek a couple options and seek to build a long term relationship.  If you are a first time multifamily investor without significant stock or real estate assets, you won't have much leverage.  Investor leverage with local banks can also be found in the capacity to move significant deposit accounts their way that maintain high balances +$100,000.  So if you moved successful business banking deposit accounts their way, you will open doors at the bank. Good luck!

Avoid tenant rehab work for reduced rent if at all possible!!  In addition to previously stated issues (insurance, liability, etc.) depending on the state of your rental property, there may be state statutes against required tenant work without written consideration.  In Minnesota, where I practice real estate law, Minn. Stat. 504B.161 permits just this type of system, but only if agreement supported by "adequate consideration" and "in a conspicuous writing."  In sum, unless this arrangement is highly detailed, it raises the likelihood of conflict between the parties.  If the tenant takes issue with this arrangement or has alternative financial reasons to modify the deal, he/she can provide 14 days notice, and if not addressed, deposit rent into court and bring a 504B.385 rent escrow action.  Court results range from rent abatement of prior rent paid or any judicial option found in 504B.425.  There are also issues of landlord covenant of habitability which in Minnesota cannot be waived (at the end of the day the landlord is responsible should the apartment be uninhabitable, not the tenant who did not perform the work).  Having a separate contractor removes this landlord/tenant relationship all together.  Yes, you may keep standard caretaker work for cleaning, snow, lawn, but (in Minnesota) make sure to state on the lease specific monetary consideration ($40 month for snow, $20 month to clean debris, etc.).  At the end of the day, DIY can lead to trouble.  Do your homework or consult a local, landlord tenant specific attorney.  

@davidmoore Thanks for the opportunity to chime in.  My rate for flat fee non-payment or failure to vacate through initial hearing (including court and service) starts in the $600s for Hennepin/Ramsey.  Some attorneys will charge flat fee per case plus court plus service which will seem dramatically less.  I handle fact specific breach of lease cases hourly and not flat fee.  My clients have the opportunity after the initial appearance with order/settlement to take over and handle the writ/sheriff direct and keep costs down.  I also have an online form permitting property managers or owners toquickly upload all the info including common area access info and attach proper documents.  This process decreases on client staff time needed for questions or follow up.

Investor, broker, and management company clients work with me not because I am the 100% lowest cost shop in town, but fair priced, good/quick customer service, and deliver on most of their legal needs:  I have my own leases, forms, notices, handle rent escrow trials, property management company contracts, purchase and sale agreements, commercial leases, contract for deed, cancellations, etc.

The value I bring is that clients with complicated residential or commercial fact patterns can in 10 minutes receive a potential outcome scenario based answer based upon hundreds of cases across multiple counties.  As with much in life, you generally get what you pay for.  

Questions for any eviction agent or attorney:  

1) If I go with you now, when do you file the complaint?  How do I know you will not wait until you have X amount of cases, then file?  

2) How do you know my eviction complaint is the best strategy (non payment, breach, etc.) given all options?  

3) How will potential habitability defenses affect the outcome (if applicable)?

4) Can I call/email prior to the hearing without a charge?  If so, who do I call?  

Thanks Everyone!

Kyle.  

I replied in the other forum.  Sounds like it is time to file an eviction for non payment of rent.  If you file now, you can amend in court and add March Rent.  It is best to keep communication at a minimum (outside of standard maintenance request and reply) with a non-paying tenant.  

Yes, counties do have emergency assistance available for tennats that can help qualifying tenants catch up.  However, that is a bad sign--that there may be no reliable income to support the monthly rent.

Best.

Brad

Kyle.

Good morning.  I process evictions across the the Minneapolis St. Paul metro.  First thing is to decide if your time has any value.  Many attorneys, including myself offer flat fee residential evictions that are not excessive.  If you elect to file on your own, the eviction can be filed in the county of the property.  Generally instructions can be found here:  http://www.mncourts.gov/mncourtsgov/media/CourtFor...

The main mistakes landlords who file on their own make are either with 1) not filing paperwork as an agent for their LLC (if owned in an LLC) or 2) improper service upon the defendant. Your case can be dismissed (after waiting 2 weeks and spending the money on filing) for improper service.

You also need to think through strategy.  What are my eviction action tenant default options?  Do I want the tenant to redeem for non-payment (or do you have a choice)?  What are the benefits to filing only non-payment of rent, etc.  Is the tenant month to month?  If so, do I want to issue a 14 day notice to pay or quit, then notice to terminate (if no payment, then eviction so that there is no opportunity to redeem?  In other words, in some instances, tenants routinely pay late, then redeem in court (and frustrating and costly to landlords) while others are late one time, and others have told a false bill of goods and have fallen way behind.  

Good luck!

I might as well wade into the active topic pool. I believe we will see a best of breed for sale by owner type platform take the stage with state specific advice, forms, etc. and agents (and attorneys, etc.) compete for Seller business based upon their reviews and proposed commission. Right now, zillow needs agents to pay for their product placement ads, thus there is no real well funded FSBO model (to my knowledge--yes tons of small sites exist, but nothing compelling to change the model). A well funded FSBO business model not built upon agent advertising dollars (not zillow/trulia) will overtime become the new model. On the buy side, I see that converting to more of a price per pound service model--charge for tours, charge consulting time, but not for an overall large commission. Taking the buy side further than RedFin has done to date. I give it 5-10 years. Think 1 click for a value of my property, think 1 click to add on additional detail to basic plan, think I want to add a floor plan, think 1 click to add professional photos (and choose which time works for you tomorrow), 1 click to review and select an attorney to review the purchase agreement for you at his/her flat fee by a time you want, etc.

Eli.  Lots of good options out there in S. Minneapolis.  I am not familiar with the BP policy of mentioning companies, etc.  I'd steer clear of the large companies that market the most and talk to the mid size/smaller ones.  Your best option is to choose a company that already manages in that neighborhood/block.  3 to 4 companies off the top of my head would all be good fits.  Regardless of who you select, make sure you thoroughly review the property management agreement on the legal and business side.  Specifically, look to the three buckets (% monthly fee of gross income, new rent/renewal fee, hourly/labor fees).  Like anything in business, don't be fooled by the low % thrown out.  Also ask if the property management company collects fees on the leasing side from the applicant--not the application fee--a commission (a few larger companies do).  As with any business, ask for client referrals.  

Good luck and congrats!