All Forum Posts by: Account Closed

You can't terminate a lease any time you want, but you can choose not to RENEW a lease, but you must give the proper notice of your intent to NOT RENEW THE LEASE, according to your state laws, so many days prior to the lease expiration date. 

You cannot terminate a years lease just because you want to come back home.  A contract is a contract, and you are not the Mayor...right?

In Michigan we must give a 30 Day Notice to Quit and it must be a FULL  30 Day Notice.  It must cover the entire rental month.  But it must be sent to the tenant a few days before that rental month in order to give the tenant a FULL 30 Day notice of your intent not to RENEW the lease.

So if you choose to move back into this home, you will need to submit a notice to this tenant prior to their lease expiring that you do not wish to RENEW their lease. 

Nancy Neville

Best form of advertising is your reputation! 

Steve, the way you are handling all this is "spot on".  (My husband and I had 40 rentals but we couldn't afford a building.  But if you can, that says a lot).

We too, gave a little gift bag. I had a welcome card, welcoming them to THEIR NEW HOME.  Emphasis THEIR new home.  Not mine.  Pens with our logo on it, calendars, and, because my properties were in Detroit...:O  I gave them a door stopper siren, that would break your eardrums if anyone tried to open that door.  I had hesitated to give them that gift, because it might say to them, this block is dangerous, not that it was, but I knew Detroit, and they seemed to like it!  And of course I had trinkets for the kids.  

The way you handle yourself, whether big time or small, reflects on you, on us, as landlords to the News Media, our tenants, neighbors and friends. 

I LOVE how you have your setup and I don't say that just to anyone.  A great model and mentor to the Newbies on this site....

Nancy Neville

When I select a Tenant and call them to let them know that they were chosen, I instruct them to do the following:

PRIOR TO SIGNING THE LEASE AGREEMENT:

• They have to have all utilities put in their name either on the day the lease is to be signed, or before.  (e.g. gas and lights) If not I don't rent to them.
• I tell them that it will take at least 20 minutes to go over the lease with them at the signing of the lease, so be prepared to spend a little time there.

THE DAY WE SIGN THE LEASE AGREEMENT

• I call the gas company and the light company  once again to verify that the utilities have been placed in the tenants name. (This is a twice verification process) 
• I print out a copy of the entire lease agreement, e.g., I have one for me and one for the Tenant to keep for their records.
• It takes about 20 minutes to go over the Lease Agreement as my Lease Agreement is quite long.  (Why not?  When I purchase a home the paperwork I sign takes hours. So why should a bank expect and demand every "I" dotted and every "T" crossed and not me?)  My lease covers everything known to mankind.  (well almost)
• I go over what I expect from them, and what they can expect from me. 
• I have before pictures, with the date on them, usually a few days before we sign the lease, and always have that days Newspaper somewhere in the photo to depict that the day I took these photo's are actually current.
• I have the tenants  sign a page in the lease agreement, on both of our copies, that says, the house looks exactly like the photos in their Lease Agreement and in mine.
• I go over in great detail the difference between a normal repair request and an emergency.
• I tell them that for a normal repair request, it will be taken care of in the order it is received.
• For emergency repairs, it will be taken care of immediately, if possible, but definitely within  24 hours  QUARANTEED!

DO NOT HAND OVER THE KEYS UNTIL YOU RECEIVE THE FOLLOWING:

• Verification has been made that the utilities have been placed in their names.
• The FULL SECURITY DEPOSIT AND MOVE IN FEES ARE PAID IN FULL and in
  • Cash or Cashiers Check and put in my little hands TODAY as we sign the lease!
  • (If you allow them to pay with a normal check, they could put a stop payment on it as soon as they move in.
  • The same thing for a money order.
• That all copies, theirs and mine, of the Lease Agreement are signed by all of us.  (NOT THE OCCUPANTS)
• Once all this is done, I now  pronounce us Landlord and Tenant, give them the  ring, (key ring with keys of course) and our marriage (contract) has been completed, and most times I even get a hug at this time. 
• The Move in Time is a Happy Time. .

TO KEEP YOUR TENANTS LONG TERM, AND STILL HAPPY PLEASE READ THE FOLLOWING:

                                   THE TENANT PHASE BY Nancy Neville

THE FIRST MONTH (THE HAPPY PHASE)

During the first month of a rental period, the tenant is happy. They wanted the home, they got the home and everything is fine. THEY ARE VERY HAPPY! You spent a lot of time at the signing of the lease telling them what you expect from them and what they can expect from you. They seemed to be happy and they nodded in understanding.

THE SECOND MONTH

Somehow during the Second Month, when the newness wears off and the happiness falls into a routine, the new Tenants become confused. They seem to forget what the rules are and when rent is due (even though they have a written lease agreement to refer to). If they are one of the few tenants who do not get confused during this time, this means they have jumped from the Second Month phase into the TESTING PHASE which may cause a few problems, but I will talk about that in a few minutes.

To help the Tenants not be confused during the 2ND MONTH PHASE, I always bill my Tenants their rent 10 days before it is due. It's during the 2ND MONTH PHASE that I will answer any questions they may have and not make them put it in writing.

TESTING PHASE (May begin as early as 2nd month):

The TESTING PHASE, is a very crucial phase. Whether the tenants and you get along is determined during the TESTING PHASE. More Tenants than not like to Test the Landlord. If they had gotten away with it with their previous landlord, chances are, they feel, they can get away with it with you.... so they will try. They will pay their rent when they want to, putting you last and live the way they want to regardless of your rules.

It is very important to nip this in the bud during the TESTING PHASE,because if you allow the tenant to get away with things such as paying their rent when they want to and doing what they want, then chances are you will never proceed past the TESTING PHASE.

THE THIRD MONTH:

If you make it to the third month, that is good. But it is also very crucial during this time as well to make sure the tenant stays on course. The Third Month, strengthens your position as to who runs what. During this time you want to make sure that the tenant keeps paying their rent on time and keeps obeying the rules. One little falter on your part can throw the tenant back into the TESTING PHASE. It is very important that you guide them during this time as to what you expect and want. And important that you gain their trust and respect during this time.

THE FOURTH MONTH - THE COMFORT PHASE:

The Fourth Month through the first year, is THE COMFORT PHASE: the tenant becomes accustomed to your rules and is starting to feel comfortable. If you have handled everything correctly, being strong when needed to be, and doing evictions when needed, the Tenant will feel secure because the Tenant will know what is expected of them and will feel comfortable and will want to stay. (Tenants usually feel comfortable with stability and sameness).

AFTER THE FIRST YEAR:

After the first year, the COMFORT PHASE, becomes more stable and each year thereafter. It's just a matter of keeping your Tenant happy, yet, making sure they don't slip into the Testing Phase from time to time. Even old time Tenants will want to go to the Testing Phase if they see their Landlord falter, get too over generous or too understanding.

When that happens the Tenant's stability changes because the rules are changing throwing the tenant into the Testing Phase again, so we don't ever want to falter but always stay strong and in control.

THE MOVING PHASE:

During the moving phase the Tenant, no matter how many years they have been with you, seems to forget everything again. They become babies and they revert back to the TESTING PHASE. Once again they never refer to the Lease and must depend on you for answers.

During the MOVING PHASE, the Tenant can change personalities quickly. It's like they drank a potion that changed them from Jekell into Hyde. They become this fiend, this villain that could destroy you and is probably the hardest phase of all the phases.

It is during the MOVING PHASE, that you must be cool, have all your wits about you and be prepared, yet still be cordial so as not to enraged the monster that seems to be lurking in your Tenant during the MOVING PHASE (as there is NO ANTIDOTE to calm the savage beast once it takes form). If by chance this happens, it is best to not confront the beast but to keep your distance until the courts can set it free!

With time everything will fall into place as long as you treat Landlording as a business!

Rent On!

Nancy Neville

Darren and I must have posted at the same time. 

First mistake is letting someone move into the home without paying you the full amount in Move in Fees:  e.g., Security Deposit and rent money.

2nd mistake is that you sent them a Notice to Quit and not a Termination of Tenancy Notice, giving them (if on a M-T-M) a 30 day notice to move.  (You can't just toss them out, you have to go through the process.  The same thing for them, they just can't move, they need to give you a notice)

This guy knew he was being laid off before now.  He knew how is mother is.  He had to have a place and fast and you allowed him in.

Did you do a credit check prior to them moving in? 

They could threaten you until the cows come home and there isn't a Judge in the world that would rule in their favor when it comes to you not having real wood in a home or new cabinets.  Good grief!!!  What a bluff.

They won't move, even if you give them the money back, because they haven't any other place to stay.  But try to make them an offer if you want them out, but the price may be high.  If they accept any of your offer, put it in writing the terms of your agreement!

Nancy Neville

Jeremy, what you want you have....in QuickBooks.  The reason you think Excel is faster is because your are use to Excel and you don't know how to use QuickBooks. 

QuickBooks gives you an automatic Audit Trail. 

QuickBooks gives you cash in and cash out by running a Profit and Loss Report Standard any time you wish, or by running a Profit and Loss Report by Class any time you wish.

The Class Feature in QuickBooks is what links income and expenses to whatever property you choose.  Just click the name of the property and QuickBooks links it for you.

I hope you will go back to QuickBooks just to see how Powerful a tool you have right in the palm of your hands.

Nancy Neville

You said per adult not if you are married, there is the difference.  I would call her and tell her that you saw she has just married is the husband not going to be living with you? And absolutely state that all adults must be on the lease. 

Nancy Neville

My rental contracts always state rent is due on the 1st of every month or else it is late.

Then I go on to say, that if rent isn't received in my office on or before the 5th of the month you will be charge a $25.00 fee.  (But notice I never say it is a grace period, because it isn't).

A contract is a contract.  If written that rent is due on the 1st, then rent is late at 12:00 midnight. 

Judges look upon landlords who try to squeeze a lot of money out of tenants in various fees, interest, etc, as "gougers" and it doesn't go well with them in court.  So trying to attach other fees upon late fees isn't going to be good for you in court.  $10 a day is pretty steep.  In Michigan several landlords tried charging $3 per day and that was tossed out of court.

When you have an eviction it is important to come across to the Judge(s) as a person who is professional and fair.  They respect that and they look favorably on you.  So keep that in mind.  It's important to win your case, get the money that is owed you, but just as important to show the Judge that you are not the Dastardly Landlord in cartoons.

Nancy Neville

As hard nosed as this may seem, we are not our tenants friend, mother, father, brother, sister, bank or care giver.

We are a business and our rent money is our income.  Would you like it if your boss told you they couldn't pay you because they were a "mess", there mother died, their car broke down.  We'd be pretty mad, wouldn't we, but then we are our own boss and depend on our tenants to help us make a living. 

But society believes that Landlords need to make exceptions, they need to be compassionate, and understanding, and most of us are, but they also feel we should help them by letting them make payments to us until they get on their feet.  What people don't realize, is that they never do get on their feet.  They usually get further behind.  

Oh believe me...in the beginning...I did try..  They were thankful, until the next month when they didn't have the rent and still didn't catch up on the last months rent.  You learn very quickly that emotions don't belong in the landlord business.  It doesn't mean we don't feel sorry for them, or are not understanding, but what if we did this for all tenants, and if you do it for one, you need to do it for all, who is going to support US!  Right?

Run this business based on the contract you and the tenant sign called a Lease Agreement.  Once you deviate from that contract, you have created a new contract based on the deal you just made the tenant. 

So send that Notice to Quit if rent isn't received in your office on or before it is due, because the Eviction takes a long time.  Time enough for them to get the money and stop the eviction process.

Nancy Neville