All Forum Posts by: Account Closed

My Lease Agreement also states that any repairs due to tenant's neglect or their friends, etc., will be billed for the repair.  Once I send our handyman out there to check things out and he has analyzed the situation and found it to be the fault of the tenant, and after he sends me a bill for it with his findings, I will then  turn around and send  the tenant a copy of the bill he sent me, with a bill I'm sending them for the repair, and what he had found.

If the tenant doesn't pay the bill by the time they send me their rent, I will deduct the repair from the rent, when they do send it to me, as I have stated in my Lease Agreement that any money received in my office will be applied to any outstanding bills first.  

The downside of billing tenants for repairs as they come about, is that the tenant may not report  repairs to you when they are needed.  So you need to do some drive by's and inspections from time to time.

Nancy Neville

Not sending out that Notice to Quit for Non Payment of rent the very first day rent is late!!!!

So let's go over this.....

We have a lease agreement with our tenants which is a legal and binding contract.  It has a move in date, and it is either on a month to month or an annual agreement.  Therefore you have a rental due date established for both.  

Once a due date for rent is established, in the contract, (verbal or written) it is binding.  The tenants know when rent is due and so do you!  Therefore there is no reason for you to feel sorry for the tenant when their rent is late and you have to send them that Notice to Quit. 

For one thing, the Notice to Quit that you send out the very first day rent is late (the next day after rent was due), is just a Notice and nothing more.  It doesn't go on their record, you don't go to court, and it is just a NOTICE to them that their rent has not been received.

But even though it is just a Notice, it is imperative you send it to the tenants the first day rent is late because you can't even begin the eviction process unless that Notice has been sent.  To them it is a notice.  To you, it is the beginning of the eviction process.  It protects you, just in case they don't pay their rent. TIME IS OF THE ESSENCE IN OUR BUSINESS!

Why we get hung up on sending out that notice on the very first day rent is late is beyond me.  It's not like we hound them, threaten them, take away their stuff, kick them out, call them names, and belittle them.  It is simple a notice to them stating that you have not received their rent, and yes, language is in it, stating that IF (and note the word IF) rent is not received in my office on or before whatever date your state law says you can file that Notice to Quit, then you will have to take them to court.  But your tenants should not be offended by this, unless they don't plan to pay their rent, or  plan to pay it anytime they want.   But this is where you train your tenants to expect this Notice when rent is late.  It should be discussed with them thoroughly during the signing of the lease process)

Mortgage companies protect themselves and so do bankers, Hard Money Lenders.  They send out notices when we don't pay, and they can even repossess our cars and foreclose on us if we are just plain late.  Yet we feel embarrassed to send that Notice to Quit to our tenants the very first day rent is late.  And time is of the essence in this business.  But that is another topic. 

Nancy Neville

There is a time-line for evictions.  They vary per state. 

In Michigan, if rent is not received in my office on or before the 1st of the month (the date on our lease agreement as to when rent is due) then on the 2nd of the month, I send my tenants a Notice to Quit.  They have 7 days in Michigan plus two full days to allow for mailing, (and I can't can't count the first day as one day) for them to respond to this notice and send me their money, (so they actually have 11 days to pay this rent).   

If rent is still not received in my office on or before the 11th, then on the 12th day I can file that Notice to Quit in a court of law, and it is at that time that the courts will setup a court date for us (usually within 10 days, making it around the 22nd of the month).  This is called a legal eviction.

When it comes to a termination of tenancy, (not renewing someone lease), Michigan has a 30 day Notice of Termination form that we send our Tenants.  It must be sent to the tenant( allowing a full 30 days notice plus 2 days for mailing and you can't count the first day as day one.)  If the tenant doesn't leave the day after the 30 days is over, then  the next day we can take that Termination of Tenancy Notice, and the courts will setup a court date,.  (usually 10 days from the date you file)

Just because a tenant says they will not move in 30 days, does not mean you can sue them.  Well, ya, you can sue them or try to sue them, but unless they break the law, the contract, you don't have a case, so you will be turn down the moment you try to file the paperwork.  Bad Intentions DO NOT BREAK A CONTRACT.

Follow the laws of your state and don't allow anxiety to over take your thinking skills.  Reacting to bad tenants, threats, or fear, will cause you more harm then if you sit back,  implement your lease agreement (according to the laws of your state), and let the courts do their job.  It's tough, but it works.  Being patient is part of our business!  Evictions and damages and fixing up our rentals after a tenant moves is what we are about.  

It is only when you understand what being a Landlord truly is...A BUSINESS, will you be truly able to enjoy being a landlord and all that entails, even the good, the bad, and the ugly.  And as for the bad ones....well, they're just someone you had to get rid of.... and you move on.

Nancy Neville

My lease always included what the difference is between an Emergency Call and a general repair request call.

Emergency Calls, I would take care of immediately.  

• Leaky Toilet
• Running Faucets
• Leaking Roof
• Furnace not working
• Lights not working
• Electrical outlets not working
• Things of that nature.

General Repair Requests are to be submitted to me in WRITING sent to my office, and I would take care of them in the order they were received. 

Once a tenant has to put it in writing, some how they just don't feel the repair is that big of a deal anymore.  However, they may not report repairs or damages any more so be careful on  how you handle this matter. 

I also tell them, that if my repair person, finds there is no repairs to be made, they will be billed the $75.00 service call fee that my handyman bills me for having to go out there and find nothing wrong.  This also goes for "no shows".  Once an appointment has been made with them, if they don't call to cancel, and my guys show up, then they are billed for the call.

Have everything in writing in your Lease Agreement, and you're good to go.

Nancy Neville

Hello Jerry:

QuickBooks actually has work orders but they are called "Estimates".  You can change the word "Estimate" to Work Orders in the Edit Template Field. 

Nancy Neville

Good Judge! 

Nancy Neville

Rents are based on the "Rental Market" rates at that time, just as houses for sale are based on the "Market Value" at the time. 

When selling a  house the price is based on whether people are moving in or out of the area.  If they are moving out, the price of houses being sold will tank.  If there is an influx of incoming people due to new jobs in town, then the prices will increase. 

The same theory is based on rents.    Therefore, don't buy a house in a neighborhood with low rents and think by upgrading your rental home is going to guarantee you top rents.  It just ain't going to happen!  Rents are based on the "Market Rental Rates" in your area at this time. 

Curb appeal also has a bearing on how much rent you can get.  If you don't keep your property up, and the landlord down the street does, they can get more rent than you. 

Try to invest in several homes on a block to maintain the tenant pool and the community.  Plus it's easier to keep track of your rentals if you own several in the same area. 

Nancy Neville

Landlords work 24/7 and yet people say to us when they find out we are landlords, "Oh is that all you do", and my reply with a grin is, "Yep, that's all that we do".  

Vacation time, phone still rings, tenant calls, and that is where you have a dependable handyman handle the repair for you, via your instructions. 

3:00 am phone rings, yep a fire in one of the rentals.  Sleepy in the head, several phone calls to make, and out we go to access the damages. (Fires always seem to happen in the  wee hours of the morning it seems)

Christmas Eve, always Christmas Eve, why on Christmas Eve, is there always a problem at one of our rentals.  (Since we owned 40 rentals it kept us hopping most times).  It seems this is the time the furnace goes out.  Why is that?  Furnaces must believe that on Christmas Eve it is the time to break down. I truly feel it is a conspiracy!!!!

Winter comes, pipes break, water leaks, basements flood. 

Heavy wind storms come, trees on roof, holes to patch, and tenants complain. 

Yep, sometimes it's good to be a landlord and then there are those times when you wonder how you ever survived it. 

And I won't get into evictions, that is another story.  Ah those were the days!!

Nancy Neville

Attend your local Landlord Association.  They are in your town, therefore,  they can share their Lease Agreements, Application Forms, and much with you.  I can't stress this enough for new investors.  

Nancy Neville

The life of a landlord can be very frustrating as we have to deal with...

• Tenants who pay late
• Tenants who complain about every little thing
• Tenants who make huge demands after moving in when prior to the move in the house was beautiful and oh so perfect.
• Tenants who hold over when they should have moved
• Tenants who leave in the middle of the night
• Tenants who are evicted and still owe you a ton of money
• And last but not least Tenant Damages

Extra Mentions

Landlords are viewed as

• Cold people
• Courts view us as Villians
• Tenants view us as Slumlords
• Neighborhoods view us as the "Dastardly Landlord"
• Friends and Family view us as "being mean" and RICH !!!!

So Steve with that said and done to answer your question.

ALWAYS GET A JUDGMENT:   Why?

• It goes on their record
• You can garnish their wages or income tax returns
• You can renew the Judgment when it almost expires and it will follow them around until they eventually pay or file for bankruptcy.
• You can hire a Collection Agency, (Like I did) and they will hunt them down like Columbo. (I got paid 11 years later when they finally moved back into my state)

Foot Note:

If they left and only owe a small amount of money, let's say half the rent, and left the rental unit in A-1 condition, then I let it go.  I'm talking about big time money owed that I would do all of the above.  

Even though it is a "hassle" to go to court, think of it as your "Continuing Education" in the landlord biz.  You will witness other cases and get a ring side seat as to what other landlords go through.  This prepares you for what might happen to you in the future, and allows you to revamp your lease agreement or application forms.  It is truly a learning experience.  

Nancy Neville