All Forum Posts by: Mike Eisenhut

George,

Thank you for that answer and happy to see you can understand real world circumstances better.
The funny thing is after I asked for the doctors notes they have been silent about the situation. They asked on Saturday if I could stop by and look at the sink for them. To my surprise they were very friendly and never brought up the lease situation.

Jon Holdman, I like your first answer. However, your second answer seems way out there. Obviously, if it was just a matter to sell the place I WOULD. My assumption is you have a slight understanding in the term "below market value". The house was never originally purchased for the idea of renting. When we tried to sell it last year, unrealistic offers came back due to foreclosures popping up and selling on the same street. The best offer we got was still going to leave us with a 15K mortgage debt. Please understand this is the real world. Bad things happen such as people loosing jobs and having to accept lower paying jobs just to have income. I would rather go out trying then to just accept defeat. So the next positive option was to rent the place (better than telling the bank we CANT afford the place). So far this idea has worked well until this month.

Further more, I don't go out looking for "deadbeats" to rent the place. If you read my whole statement, we knew the family for a couple years and honestly they came across as good people. Their place was always spotless, their rent was always paid on time to their previous landlord. Two great reasons for me right there. What all this looks like to me is they have had to make some sacrifices moving in here. Their cost of rent and utilities went up moving from a duplex to a single house with more area. They no longer like it and want to just leave. Besides their "medical excuses" their income circumstances have not changed. We warned them before they moved in what the average heating and electric bill was per month. They swore up and down that was no problem for them. They said they just always wanted a single house to rent from a landlord they could trust. Well, now that they had to make some adjustments to their lavish spending, they no longer like it. So they are looking for any angle to break the lease (my opinion). So, I came here looking for advice to see if they could do such a thing.

I have a couple other properties that are doing fine. I enjoy the business and hope to continue with more houses in the near future. I never worry about mortgages or legal fees for that matter on those properties. I don't know of any business owner that has not come across challenging situations. If have had it that easy in your life. I pray you never have to face a tuff situation, because it's no fun. To tell them simply "exit the business" in my opinion is just bad advice. Your answers did not even pertain to the question... I was trying to get advice without bringing in the entire life story of property. If you needed more information before reaching that conclusion . I would have gladly pm'ed you anything you wanted to know.

Sorry for the backlash, but before you just jump to those conclusions. Please try to understand not every situation is the same and not every question has simple answers like yours. That's why I try reaching out to others for advice.

Thanks guys!

Thank you for the input guys. Trust me, if I had my way they could leave now. The problem is that I am worried about being able to afford the mortgage right now. A year to 6 months ago, this would not have been a worry.

I talked with them a little more tonight. They said they had one doctors letter today stating their family doctor "recommends" the husband not use stairs.

My plan is I want to try and work with them best I can to try and get the place shown and rented quickly by putting ads out. One issue is they are ready to leave by the end of this month. So they never even gave me a month notice. I am going to try and stall them for at least one more month with an official notice. I told them I will I will need copies of the doctors letters for all of them since each of them signed the lease.

So I am seeing the best option is to keep them their for as long as I can (another month or two) Hoping to have another family take over the rent.

Hello,

First off, I just want to thank everyone here. You guys have been great at answering questions. I feel bad not really being able to contribute much back.

I do have another question I hope you guys can help me with...

Last June we had 3 renters sign a lease. It was a husband/wife and brother. The husband and wife on disability and the brother who works. However, also receives assistance for some mental issues.

We knew this couple for a few years before they rented the place. They always kept their place spotless and from what we could see never really any issues. Very happy, friendly, family. When they heard we wanted to rent one of our houses. They wanted to move in. We told them how much and they were excited and said no problem. We signed a one year lease with them.

Well now all of a sudden they call up with this crazy idea they signed a month to month lease and they can leave anytime. They found another place they liked and wanted to mouth out end of the month. We sent them a copy of the lease, certified letter / signature required.

We then get a call from them today saying they are going to get doctors excuses to let them leave and break the lease. Stating they can't use stairs and the house is not suitable for their conditions of declining physical health.

They still have about 3 months left on the lease. This will really put us in a bad spot of they can do such a thing.

I have looked the Ohio and local renters rights. I can't find anywhere in the laws where a tenant can just leave from a doctors recommendation.

Does anyone know if this can be used to break a lease?

We have calmly replied back that their decision will prematurely break the lease and we will have no choice but to handle the matter in small claims court. They said thats fine as their friend who works for the city gave them the advice of medical excuse and they know it will work per his advice.

Anyone else ran into this?

Thank you!

Mike

Just today we found out (my mother and I) that a franchise she signed a contract with back in 2006. Just filed to take her to court for $40k of the remaining contract. Very long story short. The Franchise owners started new plans that were never in the original contract by taking votes. With that came various other strange fees and eventually to the point. Many of the franchisee owners requested an audit of the franchiser (as per allowed in the contract). They never followed through with a audit request and eventually end with many of the franchisee's just flat out walking away from the contract. We decided to do the same. (Yes, I understand not a very smart thing) However, they became so unprofessional that it ended in them making very vulgar and threatening calls. So bad that actually one of the franchisees had to file a restraining order.

Now fast forward to this month. We find out they hired an attorney to take us to court over the remaining balance. We have kept many good documents and feel that we may have a chance at beating this case. However, there is always a chance we can lose.

Our fear is they see the rental properties and are going to try and get ahold of those for damages.

I have already looked into the homestead exemption for this state and understandably there is not much that is protected there. The properties are under her name (also know this is bad). From what I understand, once a court case has been filed. Any transfer of ownership or changes to the house deed. Can be undone by the judge for this case?

I know there are many slip-ups here! Should have voided the contract legally and should have made sure the properties were in a LLC or some kind of trust. Unfortunately, it looks like we acted to slowly. However, I was in slight hope there is something we could do to protect these properties? Mom had almost all of her retirement due to the economy. The franchise business was going to be a good hope. Now it has come down to the rental properties being the last hope.

This is no doubt a tuff question to answer without knowing all the details of the story. However, since there are many others here with rental property and some even experts! I was hoping someone may have a direction we can shoot for. If she does end up loosing the case.

Thanks guys for your time!

I really appreciate it...

Mark, Jon,

Thank you guys.

I was working upstairs today at the Cleveland house and heard a knock at the door. It was the boyfriend with the rent money. He apologized about it. I have really weighed the pro's and con's with this family. They are very open and welcoming with the property. They never appear sneaky. If their is something I ask them not to do like not smoking in the house and keeping their things picked up in the yard. Never have an issue, just have to ask once. So, I figure, what the heck if the worst out of them is I am waiting a extra week or two for the rent with them. I will let it slide. On that same street there is much worse renters trashing the houses and doing really shady things. So I will work with them.

Just hope they do have a checking account! I am really anxious on wanting to try this new erentpayment system. I have gotten almost everything automated. The applications can be downloaded and fillout via PDF and sent back. Any issues they can log into the site and submit an issue and instantly goes to my phone. Now, if I can just get the rent working that easy. lol

Jon, I think parts of Ohio are landlord friendly. However, Cuyahoga county is NOT. Any landlord will tell you the renters have more rights then the landlord. I have noticed that's slowly starting to change for the best. However, foreclosures are so cheap around here and so many renters available. You are willing to deal with the laws. In fact there is one property I see for $3k a few doors down. I have been debating to just purchase it. Fix up the outside and just use it for storage or i dunno something. I think the annual taxes are around $800. So tempting! lol

Thanks again guys!

Thanks guys for the quick replies!

Mark, I appreciate the example you stated and exactly what I am fearing! I don't want to get up there with my chest puffed out banging on the doors demanding rent or threat an eviction.

I have seen huge damages take place on a friends property. She would act very forceful and it usually ended with the tenet getting the eviction notice. The tenet being pissed, would clog a drain and over run the tub steal fans or a dishwasher. Then her winding up in court batting the issue for months.

I like the stay strong, stay firm, stay fair.

Ed, I have considered the deposit slip setup and know what you mean about the paycheck to paycheck. However, I am at a point where I feel if you don't have a checking account this day and age. Then chances are you don't have very good credit. It may be a leverage point to get this family out if they don't have a checking account. Just tell them I am really sorry, however, this is the new system in place. Just kindly explain they will have two months. If they can't get on that payment system by then...... maybe have to look somewhere else to live. Or maybe since they have already moved in and I have an account for the houses just use the deposit slips for this family and once they are out. Mandatory new system! epayment only!

I do hate bringing the epayment in after the fact. However, think it will be easier for everyone.

I currently own two rental properties and usually collected rent on a contact basis. Each time the tenet would call and say I have the rent when ever you ready to pick it up.

Now, on the Lakewood property this has been no issue. Tenets are usually from a clean background and hold good jobs. Current tenet there is 27 and attorney for a company in Cleveland. The one before her was a executive with PNC bank. At that property rent is usually paid a week before due and in cash (their choice).

The other property is located more towards the inner city and that is another story. We just acquired this property April 2010 and started renting it September 2010. The family that moved in is a interesting situation. The mother is part disabled and has the consumers protection act paying part of her rent ($400). Then there is two female kids of hers living there and one boyfriend. The one sister is paying $100 and the boyfriend is paying $100. Recently they have come of short $100 that was due by the 7th. The boyfriend had quit his job due to hardly making any money and is now low on funds. Actually, he is a really nice guy and the one we usually talk with about any issues or questions (the more mature one to work with). It's really a sad situation with them. The Mom is not all there mentally. The one sister only works at a convenient store for a living. The other one had a child out of wedlock and her and the boyfriend are trying to get their new life started. The mom growing up was from foster home to foster home and abused by different families.

However, this is a business and I want to make sure it is functioning properly. The fact the $100 is late does not bother me. However, it draws a concern for future with them and living there.

I have been thinking about and finally on a system. I opened a new bank account and setup both properties for online payment. It is going to ACH from their checking account when ever they loin and pay. It also will detect late payments and add a $50 fee plus $1 for each day missed on top.

Neither property is on a contract, simply month to month. Am I within my rights as a landlord to notify them I will ONLY be accepting payments by this method? I figured it would be a 2 month in advance notice.

I have the first tenet setup where she is will pay her full rent online. The other family tenets only $200 since $400 is just sent automatically from the moms account.

I don't want to be harsh with any of them. However, if no one has a checking account and can pay online I feel it may not be suitable to rent to them any longer.

Soon I will be on my next property and just want a smooth functioning system.....

Thanks for the input!