All Forum Posts by: Thomas S.

This is one of the most common complaints of novice landlords.

Linda has made the point I was going to make. The reality is that as a landlord it is your responsibility to train your tenants. New tenants that have been badly trained by their previous landlord can be a major pain.

The solution you are seeking will have no effect on your ability to collect rent on time.

Never ever go door to door collecting rent. As a landlord that is not your responsibility.

Your problem is how you manage your business. In other words you are the problem not your tenants. They are like untrained puppies, they do not know any different and have in fact trained you.

Teach them. Have strict penalties, make it clear it is their responsibility to pay you on time every time without exception. Have a no pay no stay policy and enforce it to the letter. Never accept excuses and punish when necessary. It is not your responsibility to go door to door collecting rent. 

Why would you not insist on vacant closing. This would not effect a fast closing it would simply kill the deal and the risk is in the hands of the seller. If the seller is not prepared to agree I would be extremely leary and move on to the next good deal.

I would focus on what I can afford, primarily positive cash flow properties.

If cash flow is not an issue I would buy, bulldoze and wait for the area to transform at the expense of other speculators. Then sell to a developer. 

Do you have 30 plus years to wait on speculation.

If you want to sell the property why are you not simply listing it and get the best possible price.

Is this a act of charity on your part. If not then list and sell don't waste your time dealing with a individual that by the sounds of it is going to be a financial problem.

If he has problems paying due to regular bills how will he pay when the furnace or roof need replacement, stove, fridge, hot water tank. Will he simply let the place deteriorate around him.

People rent because home ownership is far more expensive.

• as a buy&hold operator of 18yrs, cash-for-keys works well. I've only had one eviction fight with me to the Court order of Possession. The object is not saving the money for an eviction, but getting possession immediately (saving time & further lost rents) to prepare and get occupied with a new tenant.

So what you are saying is that your accountant includes extortion payments in your income tax expense claims.

Cash for keys works OK for some but based on both a business and moral stance I consider paying extortion to be extremely offensive and criminal in nature. Although criminals do find it a lucrative approach to breaking a lease and  I would assume all your tenants are aware of your policy.

My reputation is that I will evict and fight every tenant for every dollar they owe at any cost. As a result all my tenants are of the highest quality and I have not had any legal or tenant issues for a very long time. No legal or extortion deductions and all my good tenants are protected. My reputation in this business has served me very well and is more important to me than the cost of fight a few low intellect criminals.  

Your decision is that you are OK with the tenant in place even if it could take 6 months or more to evict.

I think you either need to investigate the state landlord tenant eviction process or require a vacant closing. Just to be "prudent".

Cash for keys, I always laugh when I hearing about that approach.

They justify it as a way to avoid hustles, stress and damages.

Extremely unprofessional to bow down to extortion but understandable

given the fact that the business is dominated by hobby landlords. 

The truth hurts.

This is the reason you do everything by the book. State landlord tenant regulations clearly define how these situation are to be handled. Know your states regulations and follow them to the letter.

Chances are you were probably owed a additional months rent due to their hold over period and if you were you should have gone after it. That is how business should operate.

In this business no good deed ever goes unpunished.

Bad idea to change anything. Their personal relation ship has nothing to do with you as long as one of them remains in the unit. As far as the deposit is concerned the lease stands as is and legally there is no responsibility to return it to anyone. Legally when one tenant leaves they must attempt to get their portion of the deposit from the other tenant. The issue of the deposit is between the tenants not a tenant and the landlord as long as one tenant remains in the unit.

You have no reason to do anything for the tenants and to protect yourself should simply instruct them to work it out between themselves. This is not a issue that requires your involvement until the lease is up.

Good advice except no one has asked what your past track record is in the business.

If you have extensive experience then you warrant a higher percentage but without a track record your investor is taking a very high risk.

We know what your perspective partner is bringing to the table so what do you offer.