All Forum Posts by: Sean McKee

Sean McKee has started 27 posts and replied 227 times.

Any tips or tricks for getting last months rent from tenants when they've given 30 day notice and are refusing to pay last month of rent. Tenant is saying that the security deposit should be used for last months rent (although explicitly not allowed per the lease). If they are in deed moving out in roughly two weeks... is it worth the effort of filing for eviction etc.. or how do you approach these types of situations? Not classy on the tenants part and they've otherwise been pretty good tenants.

Trying to protect my downside in case they don't actually move out at the end of October (although I did get a landlord reference email weeks ago so I believe it's legit they're moving out), also not wanting an upset tenant to trash the unit on their way out being spiteful... trying to walk the line here. Any advice/tips or tricks you've used in similar situations?

Thanks in advance.

This is a tough situation that I have encountered many times. Once tenants decide they are ready to leave, you can loose some leverage. However most people don't want an eviction on their record. So, I do agree with hedging your bets and serving a notice to pay or quit.

The issue with them not paying rent and you using the security deposit is that they have zero incentive to clean the unit and if they damage it, you have no additional funds.

If it were me, I'd serve them an eviction notice and then mark them as owing on a credit reporting site(I use Front Lobby). Once they go 30 days past due, they are reported to the credit bureaus. They still might not pay, but there's a good chance they will. Most people don't want an eviction on their record or it showing on their credit report. You also don't necessarily have to file it right away, you can wait a bit and see what happens.

I understand wanting to walk the line, however you'll likely encounter this again. Each time, the tenant will dictate the situation. Withholding rent is a nuclear option that the tenant went for, so in my opinion you should do the same.

0 Votes

Quote from @Carol Burns:

I am just looking into section 8 and trying to learn. I understand that you screen a section 8 tenant just like you would any other tenant, but for what? They aren't going to have good credit or a lot of income, so what would be good screening requirements? Any other advice you have to give about section 8 would be greatly appreciated. Thanks

Check out the Section 8 Bible: How to Invest in Low-Income Housing. I don't invest in section 8, but it helped me with some of class C units.

0 Votes

Quote from @Carlos Lez:

Quote from @Sean McKee:

Quote from @Carlos Lez:

Esteemed colleagues,

I’m facing a tough situation and would appreciate your perspective.

On August 9th, three students (with their parents as guarantors) placed a deposit on my 3-bedroom Victorian near a college campus. As is common here, the prime leasing season is July through mid-August, and once school starts, demand drops off sharply. Accordingly, I removed the unit from the market after their deposit.

Their lease start date was today, August 16, 2025. However, when they arrived with their parents for move-in, they “freaked out.” This is an older Victorian (not a modern apartment), but it is clean, habitable, and up to code. The students had toured it in person before applying. We take pride in maintaining our properties, though of course, they aren’t new construction.

The tenants are now refusing to pay first month’s rent and sent the following notice citing habitability issues under California law (Civil Code §1941.1 and implied warranty of habitability). Their claims include:

Mold and old food around stove
Mold on walls
Blood stains, dead insects, dust throughout
Dirty stove/microwave, bathroom unsanitary
Windows unclean with missing/damaged screens
General filth, unswept floors
Showerhead replacement needed

They are demanding deep cleaning, mold remediation, replacement of window screens, painting, etc. and state they will withhold rent until this is completed. They’ve also threatened complaints to the local housing authority/code enforcement.

From my perspective:

The unit was cleaned and is habitable.
It’s not new, but it was shown in person before application, and the condition hasn’t materially changed since.
We pride ourselves on keeping units up to code and in good repair.

My concerns:

I held the property for them during peak leasing season and may now be stuck with a vacancy.
They’re making demands that feel like buyer’s remorse rather than legitimate habitability issues.
They are refusing to pay move-in rent, even though they signed a lease and provided a deposit.

Questions for the community:

How would you handle this?
Is this a case where I should meet their demands hoping this will not continue , or is it better to cut losses and move on?
Has anyone dealt with similar “last-minute” habitability disputes where tenants change their minds after committing?

Any input on best practices or legal/strategic next steps would be greatly appreciated.

If there’s actually no material issues and you are certain of it then you can:

- Offer to break lease. Return money. This would be the preferred route. They sound awful and will likely be a nightmare. It’s an older unit and if they want perfection, they need to pay up for it.

-If you don’t want to break lease or they refuse to terminate lease. Tell them any legitimate issues will be handled. Rent needs to be paid. If they refuse to pay, serve them notice and start the eviction process.

I had a very similar situations on a few occasions. Must recent was a current tenant of several years. He got a little behind on rent and started causing issues. He Refused to break lease. So I served him a 5 day notice.
He vacated a week later and paid rent

If you go the legal route be prepared to deal with the city. Tenants often retaliate this way. With an old Victorian home, there’s bound to be stuff not to current code, unless you are really on it with the updates. I’ve dealt with this as well

A lot of times people act tough, but when confronted with legal actions , they back down.

Sorry this is happening. It’s unfortunately very common. Whatever you do, I’d take action very quickly to try and squash it.

Shawn, there are no material issues. These are the people that will continually harass under threat. I am trying to get them to cancel asap.

the only advise I am now seeking is if there is anyway to get them to withdraw the code complaint before they are out the lease.

Carlos. I’ve only had this issue a couple of times when I was actively evicting for nonpayment of rent. Each time I was proactive and dealt quickly with the city. Each time the case was with the city was dismissed and the tenants were still evicted. City government’s like landlords that are quick to deal with issues.

You can certainly try and get them to retract it, but it might not matter. The city still might want to go out.

If you can get them to leave, it will make dealing with the City easier.

If they won’t cancel and won’t pay. Start the eviction process immediately. I don’t know California law, but they likely had to give you some demand period before legally withholding rent. I would also proceed to with making whatever necessary repairs to negate any of their complaints.

There’s a decent chance they will agree to leave or pay with a serious legal actions. The building needing some repairs doesn’t always give tenants the right to withhold rent and many of them don’t know how to do it properly.

I bought buildings with active code violations and I’ve also had to deal with tenant complaints. Most of the time they are focused on big picture issues. So if your building is as well kept as you say it is, then any citations issued will be manageable.

This is the crummy part of being and landlord. Good luck!

1 Vote

San Jose, California

Quote from @Mark Cruse:

Quote from @Scott Mac:

You've been in business 15 years, and the current renters alleged problems include:

[1] Mold around stove,
[2] Old food around stove,
[3] Mold on walls,
[4] Blood stains,
[5] Dead insects,
[6] Dust throughout,
[7] Dirty stove,
[8] Dirty Microwave,
[9] Bathroom unsanitary,
[10] Windows unclean,
[11] Windows missing/damaged screens,
[12] General filth,
[13] Unswept floors,
[14] Showerhead replacement needed.

If it were mine I would ask for picks of each one of these items in the unit.

1. If there is mold it should be remediated- that might be a quick job.

2. In my opinion missing screens and damaged screens should have been handled on the turn.

3. A bad shower head is a common easy replacement.

4. The other things on the list look to me as if they would be solvable by an apartment cleaning service, which some owners use when they do a turn.

Maybe it would be easiest, and least expensive to just have the complaint items fixed.

And like the others have said these may be problem renters in the future as far as complaints and holding back the rent for little things- because there are people out there who will do this kind of stuff.

The items on the list seem to me like something that should be fixed before turning the unit.

But rather than words I'd want photographs of all of the problems.

Good Luck!

You all seem to be treating this with kid gloves. No one just makes up a detailed list like that for no apparent reason, and request that it be mitigated. I have been managing property for well over a decade. This is what anyone would do. My goofy *** kids may go to get a rental house and not fully understand what they should have. When I was young, a dirty low-level motel was five star to me. An intelligent parent with standards would immediately step in and assure their kids is not subjected to silliness or slumlord characteristics. If the landlord expects decent tenants and rents on time, they are going to at least have to deliver the basics. This individual sounds to me like they have an idea they are delivering a substandard product, then dressing it up with words like habitable. Any experienced landlord knows you have to deliver some form of quality on your end, or you will get bottom feeding, desperate and feckless tenants who come in not caring.

Is what it is but if they are reported to the city, they will really understand what inhabitable means.

Mark I wish this were true. Assuming the truth is being told, this could be a bit of buyers remorse. People over exaggerate all the time.
We definitely would need more context and photos.

Mold on walls… could mean a leak underneath the sink that wasn’t caught in time. And the mold is just in that location. Mold remediation would be overkill.

Carlos very well might have been on the hook for dealing with the issues. But the truth is stuff happens and gets missed. Cleaners don’t do a great job, broken items get missed, etc. Missing screens…. They sale kits for those or you can get the adjustable ones from Amazon.

Stuff happens. Automatically threatening to withhold rent and to call the city without the option to remedy is overkill. In a lot of places there’s a demand period before tenants can even start to legally withhold rent.

Point is any tenants that are automatically jumping to the nuclear option are potentially problematic….. I wouldn’t want them living there. They might have an issue with everything the entire lease.

I’ve had tenants that had buyers remorse. I’ve signed mutual termination agreements. Returned the money, took the vacancy and slept like a baby knowing I dodged this exact situation.

2 Votes

San Jose, California

Quote from @Carlos Lez:

Esteemed colleagues,

I’m facing a tough situation and would appreciate your perspective.

Mold and old food around stove
Mold on walls
Blood stains, dead insects, dust throughout
Dirty stove/microwave, bathroom unsanitary
Windows unclean with missing/damaged screens
General filth, unswept floors
Showerhead replacement needed

From my perspective:

The unit was cleaned and is habitable.
It’s not new, but it was shown in person before application, and the condition hasn’t materially changed since.
We pride ourselves on keeping units up to code and in good repair.

My concerns:

I held the property for them during peak leasing season and may now be stuck with a vacancy.
They’re making demands that feel like buyer’s remorse rather than legitimate habitability issues.
They are refusing to pay move-in rent, even though they signed a lease and provided a deposit.

Questions for the community:

How would you handle this?
Is this a case where I should meet their demands hoping this will not continue , or is it better to cut losses and move on?
Has anyone dealt with similar “last-minute” habitability disputes where tenants change their minds after committing?

Any input on best practices or legal/strategic next steps would be greatly appreciated.

If there’s actually no material issues and you are certain of it then you can:

- Offer to break lease. Return money. This would be the preferred route. They sound awful and will likely be a nightmare. It’s an older unit and if they want perfection, they need to pay up for it.

A lot of times people act tough, but when confronted with legal actions , they back down.

Sorry this is happening. It’s unfortunately very common. Whatever you do, I’d take action very quickly to try and squash it.

2 Votes

San Jose, California

Quote from @Andy Sabisch:

Quote from @Kortez Dejesus:

Quote from @Oleg Donets:

@Garrett Prenger if this in not your first deal (meaning you already closed at least 5 deals) AND have a well oiled follow up system in place, I'd recommend trying Pay-Per-Lead. With PPL you get motivated seller leads in your target markets.

However, if you are just starting out, I'd start with pulling lists of homeowners in distressed situations and then either cold call or cold text them. This will allow you to practice your closing skills and won't cost you much.

Utilizing wholesalers is also an option if you are fine paying an assignment fee (which often can be quite steep).

homeowners in distressed situations, how do i find them and their contact information? besides doorknocking?

The problem with this especially for someone that is starting out is that with the ease of obtaining these lists anymore, you will not by the first or even the 100th person that has pulled them and reached out to owners. The cost of the lists and then the time to contact people or pay a virtual assistant can quickly eat up seed money that could be used to acquire that first property. Bandit signs were an effective tool a decade ago but they are so over used that their effectiveness in most areas is diluted. We have found that getting an effective wholesaler or two to find deals is worth the assignment fee as long as the numbers work for us. Good ones are experts in that area (finding deals) and we simply t=do not have the time or desire to compete with them to save the fee.

Andy you nailed this point. I tried Propstream and literally had someone tell me he was getting hundreds of calls. I stopped after that. I found a property through direct mail by focusing on very niche lists and inaccurate seller address information. These were a lot more time consuming to come by and I found there was a lot less competition.

0 Votes

Dayton, Ohio

Quote from @Michael McCrimon:

Hey everyone! I am still new to the real estate world. I have been reading a lot of books and listening to BP podcasts all the time. I want to get into buy in holds eventually but I heard flipping in the beginning is a good way to build capital. So I was wondering other resources that I can determine estimating rehab costs on a property? I have about $15,000 saved right now, but want to be able to estimate rehab costs if I was analyzing a deal. Thanks for your help in advance

I will echo some of what David said.

-Books and BiggerPockets will give you some direction

-However MAKE sure you higher a general contractor to do a walkthrough and give you an estimate . DO NOT try and estimate repair costs yourself. Unless you do a lot of transactions, you won’t be up to date on what materials costs are, labor rates, and local code updates. It’s worth a few hundred dollars. It’s VERY easy to underestimate repairs.

0 Votes

Memphis, Tennessee

Quote from @Nadir M.:

I have a rental property on the market for 14 days. There have been multiple showings and walk-throughs, but no signed lease yet. I’m bringing in plenty of potential tenants, but none are committing. Besides reducing rent, what’s the single best thing I can do to increase interest and secure a tenant quickly? Any “wow” suggestions or strategies that have worked well for you?

50 days ahead of the actual lease date might be too early. I used to do 60 days out and found it to not be effective as most people weren’t seriously looking until 30 days out.

I think you have time before you need to start dropping the price. You can delist it and then wait a couple weeks.

1 Vote

Quote from @Henry Lazerow:

Hopefully this does not pass. @Brie Schmidt has been super helpful in fighting for landlord rights. Lets keep everyone informed when the next call to action is!

Seems everyday now more radical policies are being announced. The way I recommend my clients avoid problems is to only buy nice building in areas with high quality tenants, I cannot stress this enough for new investors in Chicago. A good golden rule is only buy a rental property if you would be willing to live there yourself. For example, my 4-unit in Rogers Park has never had a late payment notice needed in 8 years of ownership and of course never an eviction. I raise the rents to market every year and if someone leaves there is enough demand for multiple qualified applicants who are happy to live in a nice rental. On the flip side, there are other neighborhoods in Chicago where numbers look like great cashflow on paper but they have high eviction rates, even sometimes double digit eviction rates where you are heavily involved in Chicago eviction/tenant politics. In areas where the tenants can't afford the rent raise, you get stuck with either high vacancy/turnover or below-market rents. It's very important you NEVER let your rents get more than 10% below market rate with upcoming potential laws like this. It is not passed yet so if anyone has below market units I recomend you raise them immediately at the next lease renewal. Below are some excerpts from the new law.....

City Council lawmakers are hoping to once again bring to fruition the advancement of such protections for tenants this 2025 legislative session. Introduced by Alderman Desmon Yancy (5th Ward), the city’s proposed just cause eviction ordinance (“Record No. O2025-0017516”) would strengthen tenants’ rights in a concerted way, including by (1) requiring that landlords have just cause, such as nonpayment of rent or violation of the rental agreement, to evict a tenant or refuse to renew a tenant’s lease; (2) requiring that landlords provide tenants with relocation assistance if the tenancy is terminated through no fault of the tenant, or if the rent is increased by more than 10%; and (3) requiring property owners to register their rental units in a citywide registry in order to increase transparency in the private rental market.

Tenants who are terminated from their tenancy due to one of the causes listed are entitled to receive relocation assistance in the amount equal to five times the median monthly rent in the city for a unit with the same number of bedrooms.

Thanks for posting this. While this won't materially impact landlords that are charging market rents, I'm worried about the broader implications.

This kind of policy won't satisfy people/renters. A ten percent increase is still significant enough to upset people and there's the work around with the "Significant repair needed" section. It seems like you can still remove people without the paying the relocation fee if you are rehabbing the unit and it would make it uninhabitable. A lot of the landlords charging 50% below market rents have not kept up with repairs.

The issue is they can't really control some of the broader supply and demand issues that continued to push rents up. This leads to a lot of unsatisfied people and more restrictive legislation down the line. The Fair Notice Ordinance was enacted relatively recently, obviously didn't satisfy people.

I fear if this passes, this will be the just the tip of the iceberg of more stuff to come.

1 Vote

Chicago, Illinois

Quote from @Account Closed:

Interestingly enough, we had and application today, and on paper they look great. Initially, it was two adults, two sons, a elderly dog and a grandfather. Now, it's two adults, two sons, and elderly dog (who's now an ESA) and two grandparents. We are concerned that it's going to be too small for six people. Plus, the ESA was told to us after the lease was out.

Additionally, they are complaining about they do not like the lights and asked if they can be changed and they wanted to know if we can change the closet doors to different ones since they are harder to open since they are large.

It doesn't end there. They wanted their own trash cans, can't do that. As they are provided by the city, not us. There are four trash cans and four recycling bins.

They also asked how many other people live in the apartments, and I am not sure if we can provide that information due to fair housing. They also want access to the garage, which we told that's not possible as that is another person's property.

Lastly, they were on the property again without permission walking around "checking things out". We saw this on the cameras.

We are probably not able to move forward with them, which is a shame. But they seem too much of a headache; and they've not even moved in yet!

Absolutely do not rent to them. They will cause you a lot of headaches.

0 Votes

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All Forum Posts by: Sean McKee

Sean McKee has started 27 posts and replied 227 times.

Post: Tenant gave 30 days, refusing to pay last month rent, saying use security deposit

Post: For those of you who take section 8, what are your screening requirements?

Post: Tenants threatening at move-in

Post: Tenants threatening at move-in

Post: Tenants threatening at move-in

Post: Off market deals

Post: Information on how to determine rehab costs

Post: Rental Sitting 14 Days With No Lease Signed — What’s The Best Next Step?

Post: Lawmakers in Chicago introduce Just Cause Eviction Law - 5x market rent $ as penalty

Post: Turned over unit - Prospective tenants are not happy that the laundry not in the unit