All Forum Posts by: Patricia Steiner

There's more you can do now.  First, all the non-emergency Police line and report that there has been illegal drug dealing at your property.  Ask for increased driveby patrols. Be sure to advise that you're attempting to remove the tenant/dealers via eviction but the tenants continue to attract "traffic/businss' that is harmful to the property and neighborhood.  

Put up cameras on the perimeter of the property as well as No Trespassing/Security Cameras on Property' signage.  

Be sure you have some great outdoor flood lights/motion control lights along the perimeter of the property.  People doing the wrong things don't like to be "illuminated."

Assign parking spaces to tenants to restrict "incoming."  Don't make it convenient for your tenants to run a business out of your property.  

You will have better luck in securing a quality PM if you demonstrate that you've not let the situation go to a point of impending failure regardless of their efforts.  Take back your property by setting it up to be too hard for the wrong people to do the wrong things on your investment.  And, going forward, add a covenant to your lease that states that 'this is a crime-free property' and that any allegation of an illegal crime does not need to lead to arrest or conviction for the tenant to be immediately evicted from the property and that the tenant agrees to voluntarily and immediately depart.  

Cowboy up time...

It's not happening in my market and I do know that when that has occurred here and elsewhere, it is caused not so much by the appraisal as the lenders' underwriting of it in anticipation of economic downturn.  Be sure to have an appraisal contingency in your purchase contracts and if you're selling or refinancing, have your own comparable sales pulled (within a one mile radius, 30 days or less, within 5% of square footage of subject property) to give to the appraiser upon his arrival. Also, let your lender know that you want to be informed of the valuation PRIOR to the report being released.  That allows you to challenge the results; once the report is out, the valuation is considered determined, underwritten, and founded.

Hope this helps...

No tickie, no laundry...advise BOTH persons that you will not be able to hold the property for them should the lease not be signed immediately (and provide a date that is within 24 hours). Advise that at that time, the termination of their lease will be in effect and you will start marketing the property for a new tenant.  You're running a business - yet you're allowing them to run you and hold up your property. Without a signed lease, you have a month-to-month rental.  And, 'too busy...' we all are - it's a control play.  Take back control and call their bluff.

Best...

Hopefully you have pre-move in photos and condition reports for your properties. I take those with me when I inspect my properties.  Biggies for me include: are the AC filters being changed (dirty filters age the entire system), any sign of water damage (does the caulk/grout look to be in good condition - toliet, tubs/showers and are these draining); any physical damage (floors, walls, ceilings, trim, cabinetry); appliances clean/working order; any property threats (grill to close to house, electrical outlets overloaded, any trip hazards (including those caused by hoarding/excessive clutter), doors/windows blocked by furniture,etc), security lighting adequate.  I have a checklist and I document my findings and compare those to move-in condition. If there is obvious deteroriation, I address it right there and then with the tenant by showing the comparative.  As for cleanliness, unless you have a term in your contract, you're prohibited from enforcing it. You can simply choose not to renew the lease.  I have a convenant in the lease that states that the property must be maintained in a clean, safe, and standard as provided at move-in.  I have had to enforce it twice - and the move-in photos were eye opening to the tenant who simply couldn't see their own filth/clutter/damage.   Congrats on doing the inspections...it's the best way for ensuing that your property is respected by your tenants and that it is maintained in a way that protects you from liability.

Best...

Depending on the market here in Florida, MF may not provide you with the greatest return. As an investor and Broker, I recommend buying an opportunity - rather than a property type and choosing a market that provides both year-over-year property appreciation and rent price increase. Real estate investing is often misunderstood as something less than what it really is - creating, building, and managing a business to maximum return.  Congrats on having the insight to start a second (or more) business segment while you're in the prime of your career. 

Best...

@Joe S.

Finding security guards has always been challenging but in this case I went on several sites like Angie's and inputted my selection criteria. I then had about 10 responses and chose someone who had been a guard at a jail/prison before starting his own company. He knew how to respond to crazy and the tenant we were dealing with was a high conflict guy. The guard quoted an hourly rate and in the end, I think I paid him $150 - which was substantially more than he expected for a couple of hours of work; he was worth that and more. I used him several other times as well when checking out properties 'in the hood.' And, yes, the guard was expected and prepared to vacate the building - meaning escort anyone in it out and off the property.  The job was to vacate all persons from the property, protect the owner from any engagement, allow for the peaceful change of locks.  The guard even took the new keys from the locksmith and then handed those to the owner. No one had direct contact with the owner except the guard and me. 

I recommend exploring this avenue. I needed someone who worked ONLY for us and wouldn't "help" in attempting to resolve any situation or conflict.  It was a transaction and I needed someone who had no interest in anything other than securing the building/property and allowing no one to engage the owner.  While i wanted to hire a thug, the guard was actually medium build, dressed in a black uniform (although we didn't request it - he felt it was more intimidating (it was), and spoke in a 'direct and concise' manner. 

Feel free to PM if you want to discuss more...and set yourself up so the tenant fully understands that it is GAME OVER.  

I hired a security guard to escort the locksmith, the owner, and I to the property. He was uniformed, licensed, and carried a gun.  I gave him specific instructions - no one was to approach or address the owner, the building was to be vacated (we went after hours; the guard would entered first to ensure no one was inside), the owner would then quickly take photos of the interior and parking lot while the guard remained at the door with the locksmith to ensure no one approached/entered the building.  Here's the hard part:  as the owner, don't engage anyone; don't speak to anyone; don't be baited.  Let the process unfold without emotion/drama. Look at it this way: the tenant lost the right to engage you when he chose not to pay rent/violate the lease.  

What happened:  The tenant was in his car at an adjoining parking lot observing us entering the building; about 10 minutes later, the tenant got out of his car and approached the building.  He was stopped at the door by the uniformed guard who escorted him back to his car and watched as he left the premises.  The conversation the tenant had with the guard was very brief and was also practiced beforehand: 'you will not be entering the premises. I will escort you out at this time and off of the property.  You are now under a Trespass Warning.  You are not to return to the property at any time. Should you not leave peacefully now, you will be forcibly removed and charges will be filed against you.'  Amazing just how meek the tenant became; it was all presented factually - without emotion - without room for discussion and it was over.  

I chose to go this way in order to avoid any claim the tenant might make about being threatened with arrest/imprisonment over a civil matter.  I also wanted to avoid having a police officer listen to the tenant's side of the story and/or give him advice on what he could do later.  I just wanted a zero sum game for my client.  

My recommendation is this:  get on with it. The longer you wait, the more you lose and the louder/more entitled the tenant will get. Kick him to the curb.  

It may be long but it protects you and your client. Use the FAR BAR contract - and if you don't, you'll need your Broker's approval as the firm as liability on every contract for five years.  Bottom line:  don't practice law.  Don't take short-cuts with other people's money.  Use what is most protective and that is customary should the deal go sideways.  

There are just somethings not worth making eye contact...and this is one of them.  It's vulgar - but you didn't make it, you don't benefit from it, and it's vulgar everywhere.  Look away. Spare yourself.

In my market, purchasing outright is often the only way to win the deal. Most lenders will require six months of ownership before being eligible for refinancing when purchased with cash but again, it's been the way to win deals in highly competitive markets.  As long as you do refinance it and recoup your cash, it is an appropriate use of a short-time asset to acquire a long-time holding.  And, congrats on having several options available to you!