All Forum Posts by: Nathan Gesner

I use a written form to remove tenants from a lease. It basically states the following:

1. 1. Tenant A wishes to vacate and be removed from the lease. Tenant A gives up all rights to access and use of the property.
2. 2. Remaining tenants release Tenant A from any responsibility towards paying rent. They also acknowledge Tenant A cannot be held responsible for the condition of the home upon lease termination.
3. 3. Tenant A waives any rights to the Security Deposit, last month's rent, or other funds held by the Landlord. If Tenant A paid a portion and would like those funds back, it is their responsibility to work that out with the remaining tenants.

This is a dummy version of what my agreement states. I make Tenant A return the keys, have all parties sign the agreement, and then provide a copy to all parties.

As a Property Manager, I get a lot of business from Landlords like yourself. You don't screen applications, you don't use a written lease, and you probably rent below market value with the assumption the tenants will show their appreciation by paying on time and taking care of the place. This sometimes works for many years but eventually bites you. In the end, it almost always ends up costing you more than you ever saved.

Get them to toe the line or move out. Meet with an attorney to get a solid lease agreement you can use, even with your relative. Screen applications, put them under contract, and ensure you are renting at market rate - or at least close to it - so you don't get all the riff-raff.

i would like to hear more about the alterations made to your home and why the tenant even received a refund. It seems enough was done to your home that you would have used it to make repairs.

As for the check, I give people 90 days to cash it. If they don't, I put a stop-payment on the check and hold the funds. I will also send them a certified letter explaining what I did and that they can request a new check in writing. I will deduct the cost of the stop-payment order (around $25) from their deposit and send them the rest.

I use this same process for Landlords and vendors. I don't want to account for a check that's floating around for long periods of time, particularly when it may result in additional problems down the road (e.g. lost or stolen).

I managem over 200 units and this is definitely a red flag. Yes, some of these people have been burned by a Property Manager and don't want to deal with a business. But MOST of them are hiding something or they know a private owner is easier to manipulate. I regularly work with owners that try Landlording themselves, only to get burned out by manipulative tenants. About 1/3 of my owners hired me to take over management because they couldn't deal with manipulative tenants anyore.

Tenants try to manipulate me with stories of grandma dying or someone hacking into their bank account. I know how to deal with these issues professionally so they don't become a problem. Bad tenants know that I know and won't come near me.

I've opened about 15 collection cases. I collected fully on two, a very small amount on three, and nothing on the others. I now only go to collections if it is over $300. 

It requires low expectations and patience, with the knowledge that you may never collect a dime. At a minimum, you are reporting something that will reflect on their credit report and perhaps stop them from cheating someone else.

@Kyle 

@Kyle J. is correct that you can make a collections claim without a judgement. Be sure to provide as much evidence as possible with your initial claim the more solid your case.

I received a colleague request and accidentally rejected it. I can't find a way to accept it and there is no way for him to send me a new request or for me to send him a request. Any suggestions?

I am a member of NARPM and agree you should start there. Try to find several managers and compare them to see what is "normal" for your market. Some of those fees and clauses seem questionable, but if you check with other managers and they are charging the same, then maybe that is your market. 

Remember: fees don't tell the whole story! What if they charge more but they get better results? I am the most expensive property manager in my area, but I am far more than a glorified rent collector and my owners make more money...even after paying my fees. 

Compare fees, compare contracts and forms, intervkew them about how they handle specific problems, and talk to some of their Landlords and Tenants. The bottom line is that you should never sign up for something unless you understand it and are comfortable with it.

Question: you have no experience with rentals or property management. Why not start with something smaller and cheaper? $800,000 sounds like an awfully expensive way to "dip your toes in the water" with real estate investing.

Without even crunching the numbers, this sounds like an investment that could go either way. Meanwhile, there are small, single-family homes for under $100,000 that will get you a much better return and you can gain the experience without having your entire life savings tied up in one deal!

So many Landlords make the mistake if thinking they can save money by doing everything themselves. It looks to me like you have spent a lot of time and effort dealing with problem tenants that should have been caught in the screening process. Now you have to go through the expense and trouble if finally dealing with them, which will probably cost you far more than a property manager would!

Di yourself a favor and hire someone. It sounds like you have a poor screening process, if one even exists. You are probably renting below market value. And you are dealing with issues from 1,000 miles away. A decemt property manager could everything for you, do it better, and put more money in your pocket.

You've let problems build far too long. When they kicked the door in, you should have dealt with it immediately. Same for every other problem. I say you hire someone to help you straighten out this mess, whether that is a PM or an attorney. Don't wait for them to leave and don't try handling it on your own. Be honest to yourself and admit your short comings or this Landlord thing will ruin you.

I disagree. First, any changes or notices to your agreement should be in writing and signed by all involved parties. You can talk to them face-to-face but I would still provide them something in writing and have them sign their acknowledgement. Second, you should run your business like a business. You don't have to be mean about it but there is nothing wrong with notifying your tenant of an increase by writing.

I would also argue that the reason so many Landlords have problems is they do everything verbally and face-to-face, which gives the tenant an opportunity to negotiate or manipulate the situation. You can be a business while still treating people kindly and with respect.

Here's my letter, short and sweet.

Re: Rent increase

Dear _______________:

Due to the increased cost of maintenance, taxes, insurance, and other incidentals, we are required to increase your monthly rent. This letter serves as official notice in accordance with your rental agreement.

Current Rent: $00.00

Increase: $00.00

New Rent Rate: $00.00

This increase takes effect the 1st day of February, 2016.

We’ve been happy with you as a tenant and hope you continue to stay with us for a long time. If you have any questions or concerns, please call us at (307) 555-1111.