All Forum Posts by: Account Closed

Recently in our area, reality seems to have finally sunk in.

The economic realities have begun to cause rental owners to really react and aggressively cut prices on their units.

No new jobs, layoffs, less income, people leaving the area.

Both SFR and multi-family are affected and those with no mortgage or lower runtime cost structures have more flexibility with their pricing and are able to find tenants, though no where near the quality of yesteryear.

Previous to this year, rents had remained fairly stable maybe down 5-10% but nothing compared to the 20% we are beginning to see now as desperate owners are realizing that they may lose their investments if they do not find tenants.

The lower quality tenants actually have their pick of units now versus unable to find anything.

As far as investing in new properties, it is a dangerous game if not backed by cash reserves, today's "low-money-down" owner is tomorrow's foreclosure.

We see nothing on the horizon to change this pattern, rents will seemingly continue to drop and day-to-day management will continue to take more time and effort due to the lower quality.

We have used 6 different PM's over the last 25 years and they all suffered from similar problems, but basically they were all a disaster. Bad tenants, not available except between 9 and 5, long periods of empty units, bad maintenance, etc.

We gave up on every finding a PM that actually did what they promised so we started to bring on our own part-time person to handle our properties while we are out of the country. They are on a fixed salary per month.

The first person failed due to bad communications, we always had a problem getting them as did our tenants.

We tried someone else who was even worse and we had lost papers, mail, etc.

The first person again re-entered the picture, this time fully understanding the comm problem and has been with us ever since with outstanding results.

The cost is less then a PM and they are available seven days a week with email, and Skype for long distance calls on a preset call schedule for status.

We have given them folders of all the forms we use to run our business, such as three-day notices, seven-days, Demand for Payments, etc. and they know how and when to follow our practices.

This continues to work for us, better then any PM ever came close.

Update:

They have accepted my offer of an early exit from the lease and will be out by the end of the month.

Given any reasonable handover, this will end with a minimum of headache.

Here's hoping.

Another favorite from Hunter S. :

"When the going gets tough, the tough turn pro!"

"No matter where you go, there you are!."

Buckaroo Banzai (and Confucius)

"Early to bed early to rise, makes a man healthy, wealthy and wise"

Benjamin Franklin

but prefer the corollary:

"Early to rise, early to bed, makes a man healthy, but socially dead"

Unknown

Mike and P NW,
I think you are both right, I am documenting all with these annoyances and but unless they do something else, I will wait on the Seven-Day notices.
It is difficult to get tenants right now, and they still do have some time left on their lease.
Thanks for the advice.

Well, it was bound to happen, has been a few years, but we have the classic case of the tenant from hell in one of our units.

Couple and child, dog and cat, in a good all tile, recently renovated unit.

Problems began when we refused, not for the first time, the tenants request to modify the unit inside and for yet another sublet of one bedroom.

We have signed complaints from property managers, contractors who have been abused for not doing what the tenant wants rather then what we have authorized.

They have also informed us they are running a business from the unit, in violation of the lease.

We have offered them an early exit from the lease, ahead of schedule, waiving any costs for the early exit, no response to our offer.

We resent our offer and requested they respond.

At this point, they are not behind in the rent, we have had bad checks but all cleaned up by now. But they are driving everyone crazy with the non-stop complaining but refusal to actually report a problem, lease clause makes them responsible for costs if no problem is found.

So if no response is received shortly, we will hit them with Seven-day Notice of Non-Compliance with Lease, clause about no business in unit and non-harassment of landlord and/or representatives.

This notice comes with Cure, which means they have seven days to remedy the situation. But if they again break any lease clause, we can issue a Seven Day Vacate Notice, without Cure, and begin the eviction process if they do not vacate.

Wondering if anyone else has had experience with this type of problem and might suggest an alternative approach.

Depends upon where you are in the country and the economics of your area.

We are in a predominately retirement-based Florida area, so medical is the primary employer, followed by other services. Most are suffering.

Vacancies abound in the medical commercial areas, a sight unseen a few years ago. Foreclosures continue to rise but home prices have leveled off and do not seem to be dropping much if you can find a buyer.

For us, January - April is the best time to get lower to lower-middle income renters as tax returns are usually the basis of a new renters security deposits and full last and security deposits usually mean a fairly problem free tenant. We tend to try to manage our leases around this and adjust our rents to fill leases during this period.

There are some seasonal rentals in winter but not nearly as much as normal.

Summer is the worst for us, as economic activity is dead slow due to snowbirds being gone, and this is the period of our worst quality tenants and least activity in renting. Most service businesses are dead as well, so common to see layoffs during this period as well with service businesses.

Rents are way down from a few years ago and problem tenants are way up.

The quality of credit is almost non-existent as we have little high paying jobs so most tenants here live paycheck to paycheck or are recovering from some financial problem.

How long this pattern will last here is anybodies guess.

The landlord doesn't need to try anything. It is your responsibility to return the place in the same condition as you received it, not his to minimize your costs when you have not lived up to your contract.

I would contact the landlord and try to work things out up front as you are looking at time lost to market, his time and effort, and repairs.

Carpet cleaning will not get the smell out. Those carpets and pads must be pulled and the odors removed before new pads and carpets go in.

And no Virginia, pet deposits will not take care of this, they can contribute but these people should talk first before the landlord does his checkout and try to come to some agreement to ease his pain and in turn theirs.

Talk first, do not make them chase you or any chances of a reasonable settlement go out the window, or they would for me.

Mike is absolutely right.

The day the rent is late hit them with a three-day and then begin the eviction, but more so, tell them that NOW.

If they attempt to use the deposit you will file eviction and that the cost will be excess of 500.00 so they will lose their credit rating as well as their deposit and be sued.

As far as them not being available, this is ridiculous, post an inspection notice with 24-hour notice, or whatever your area and lease allows, and then enter whether they are there or not. Bring a camera and at least one witness. Tell them this as well.

The last time I heard something like this, the house was being used for criminal activity. Something is wrong here and you are being jerked around..

TAKE CONTROL..