All Forum Posts by: Wesley W.

I agree with everyone saying you should move on and remarket ASAP.

Here are some things to consider for next time to avoid this.  First, only sign the lease once ALL move-in costs are paid (and with guaranteed funds).  I only accept (a) cash or (b) a personal check drawn on a local bank.  When they put down a deposit, have them sign a binder agreement that says they forfeit the money if they don't come up with the rest by "x" date (I usually give them 5-7 days between deposit and the lease signing).

If, for some reason, they pull a "bait and switch" at the lease signing, and don't have all of the cash, DO NOT sign the lease.  Have THEM sign it, and explain you will sign and execute the lease after all move-in funds have been received and are settled. 

 Again, since this is a new business relationship, I would strongly caution against accepting anything other than cash or a local check for move-in fees, which you can walk into their branch and get the cash.  THEN validate the lease and scan/send them a copy.

Based on the many good posts I've read from you @Nathan Gesner I have a lot of respect for your knowledge of the L/T space, but in this case I disagree with your logic.  Here's why.

The PM works for the owner (either contracted or direct employ).  My understanding is that the OWNER can be held liable for the actions (or inactions) of the PM.

The belief that I am hiring a professional and I should just "trust" them to do their job and leave them alone is flawed.  To me, that's like saying if you own a small business and you hire someone you delegate tasks to, you are "micromanaging" if you oversee their work from time to time.  Your name is on the business.  You as the business owner are ultimately responsible (legally and ethically) for the actions taken under that mantle.

As the OP stated, this is a new business relationship, and in my opinion there is much more downside to being laissez faire at this point as opposed to "hands on."

Trust, but verify.

I had similar experience with SmartMove.  It appears the BP discount is only valid if you use an alternate main page to their site, and I could never tell what the "retail" price was to confirm my discount.  One day I just told myself I was working too hard for something that should be simple, so I switched to tenantbackgroundsearch (which is also cheaper).  I like how they have the landlord input the tenant data (i.e. SS#, etc.) so I know I'm screening the right person.  It always made me a bit nervous when SmartMove contacted the tenant directly, then generated their report without any oversight from me to verify their information.  RentPrep is on my short list of vendors I'd like to give a try to in the future.  Good luck!

@Johann Jells I'm almost certain it's to protect the poor tenant (pun intended) from missing out on new housing opportunities.

I always have them add to the security deposit when the rent increase goes into effect.  I do this so in case they skip out at the end of their tenancy without paying, I at least have a one month's equivalent in deposit to apply as rent owed.  With regular inspections, I'm not as worried about using all of the security deposit for damage, but I have had the "by the way, I'm moving and I'm using my security deposit as last month's rent" situation thrown at me, despite the lease agreement stating the contrary.

As a result, I have also gone to collecting last month's rent in addition to a security deposit upon move-in.

Oddly, in NY, for Landlord/Tenant civil cases only, once there is a judgement it gets removed from the NY courts searchable database.  In other words, when the case is pending it shows - but after it is heard and a judgement is issued it disappears.  Unlike other civil actions, which persist and are searchable.

Your jurisdiction may vary; our system here seems quirky.

I hear what you are saying about not being cashflow negative, but be very careful about buying into the "sunk cost" fallacy.  Once this tenant gets too far behind, my opinion is that they will never be able to catch up and that money is permanently lost.

The other side of the coin is, by the time you successfully evict them and renovate it will be spring.  

Ultimately it's a business decision, but project out each scenario beyond the winter and see where you might end up either way.

I think the critical issue here was not the breed/temperament of the dog, but the fact that this landlord clearly stated he had a "no big dog" policy that the tenants were well aware of prior to signing the lease.  Moving forward, I'd be more concerned about this tenant's behavior as opposed to their dog's.

Tenantbackgroundsearch is a company that lets you enter the data and then gets permission from the tenant to run the screen.  I have had good luck with them.  I agree with you - I always thought a system that relies on correct data input from applicants to screen them was inherently flawed.

You just better have a rock star PM you can use or be willing to spend a lot of time on the management yourself and be prepared for all kinds of challenges.  It will be drama-filled, for sure.  Not for the newbie, in my opinion.