All Forum Posts by: Nathan Gesner

Unless they can prove neglect on your part, this is their issue and they should be paying you for the damages. It is unlikely mold would grow that quickly, most molds are not hazardous to health, and even the dangerous molds are typically only dangerous to people with existing respiratory problems. If the inspector said it's fine, they don't have a leg to stand on.

These are not good tenants and they are trying to squeeze you for money. You should probably hire an attorney and squash this right now.

If it were me, I would offer to let them go or stay and suffer the consequences. Something like this:

"Dear Tenants,

You reported me to the zoning officer even though I acted as soon as the problem was brought to my attention. After seeing the situation and speaking with others, I believe the damage was caused by your air conditioner, not through any fault of myself or the home. The zoning inspector found no evidence of mold and said the home is livable so I will not reimburse you for rent, pay for your hotel, etc. I not only expect you to pay rent but I also expect you to mow the lawn, which has not been done in a month.

You don't want to live in the house and i don't want you living there. I will offer to let you break your lease without penalty if you are out no later than July 10, 2018. If you insist on staying or squeezing me for money, I will hand this over to my attorney to not only protect me from your unfounded charges but to seek reimbursement for the floor replacement necessitated by your negligence.

Please notify me - in writing - of your intentions."

You can start by going to www.narpm.org and search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addendums. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

I hope this basic guide helps. If you have specific questions about property management, I'll be happy to help!

I think you're being taken for a ride.

You should have demanded the rent on June 1st (or 5th, or something).

When they called on the 15th to say they couldn't afford the rent and to close, you should have walked away.

When your agent contacted you to negotiate a forgiveness of debt, they should have advised you to put it in writing. They didn't, so your agent should be fired or help reimburse you for that loss. You were also charged a late fee by the mortgage company and that late fee should be paid by whomever promised you a closing by the 15th or whomever caused you to not meet that deadline.

The tenants did not pay rent for June but they occupied the home as tenants with a written lease agreement. Unless there is a written agreement that over-rides the lease agreement, they owe rent. Yes, they could argue in court that you had a verbal agreement, but you could counter that the verbal agreement was to close no later than June 15th. I'm not the judge but I don't think they have a leg to stand on.

Crypto currency is down 70% since December. Just 3-6 months ago, crypto was the hot new thing with a lot of BP'ers chastising conservative-minded folks like myself for not jumping on the crypto train. 

"Just invest a small percentage! How can you possibly go wrong? People will be buying houses with crypto!"

Are any of you crypto fans willing to share your stories? How much did you invest? How much did you win or lose? Will you continue investing in crypto?

12 adult males? I would consider a rent increase that covers:

1. Cost of professional property management; and

2. Cost of a professional cleaner every week.

I had them in a rental once when a tenant carried a bunch of cardboard boxes into her unit from the recycling center. Hire a professional. If they are good, they should guarantee their work.

She may be shutting you down because you are a nag.

Send one email spelling out exactly what you expect and set a deadline for the response.

Dear PM,

I've attempted to contact you multiple times to ensure we are progressing with the non-paying tenant. I'm not getting a response and am worried you are avoiding me. I trust you are handling this but I need some assurance as it is negatively impacting my budget. I would appreciate you, or someone on your staff, providing me an update every XX days by email so I can help track the progress. If I have not received an update from you by July 1st, I will (file a complaint with your Broker, report this to the state real estate commission, etc.)

Call the office and speak with someone to verify receipt and then see if they update you.

Stop acting like this is your couch-surfing buddy or an ex-girlfriend that left a cat and some sweaters behind after a break-up. Treat it like a business and you won't have these issues.

You screwed up by returning half his deposit. Never return any of the deposit until everything is finished.

The Tenant failed to empty the unit by the move-out date. Notify him he will be charged a prorated rent for each day until he removes his stuff and returns the unit to you. I use a holdover fee of 3x the rent, prorated daily. If you don't have a holdover clause, just prorate monthly rent and utilities. He meets you to pick up his couch and lamp, you lock the door, and then commence with move-out procedures. The place isn't clean so you clean it. He caused damage so you repair it. Once you are done, you apply his deposit towards the prorated rent, the cleaning, and the repairs. You mail him a written statement showing the deductions (in accordance with your state law) and the remainder of his deposit OR a bill for any charges that couldn't be covered by the deposit. Once it's sent, the ball is in his court to accept, argue, or file suit. You are under no obligation to discuss back and forth, particularly on the phone. I normally will not respond unless they threaten to sue, at which point I will send them a taste of the evidence I have against them. I have never been sued.

No discussion. No arguments. Act according to the written lease and the law.

Since it's such a small area, why not buy an area rug to place over the commercial carpet?

This is why it's complete nonsense to think you can buy investments with no money down. The ability to purchase a property and then save the rental income for five years before the first major disaster hits is unlikely. Most investors purchase rentals and then put more money into the property after closing.

It's my pirate policy. AHR = Always Have Reserve