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Updated over 1 year ago on . Most recent reply

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30
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Nikky Jarvis
12
Votes |
30
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Who is accountable for this - realtor or tenant?

Nikky Jarvis
Posted

I signed a contract with a realtor to find a tenant for my property. He found a tenant after vetting the tenant, we signed a lease,  and the realtor sent me a screen shot of renters insurance and utility agreement with an electric company (This agreement was not under the tenant's name). He was asked to turn all utilities in his name on the day he paid his first month rent and deposit. The realtor was given the first month rent and promised to obtain the rest of the documentation from the tenant. I provided the keys to the property but did not hear back again from the realtor about sending me copies of the renters insurance certificate and all utilities. I have since been demanding these documents from the tenant and each time he promised to provide them but to no avail. Two weeks ago, tenant sent me a text message recently stating that the gas supply was cut off at the property and that the gas company said they would not reconnect gas supply. I asked him if he did not turn the utility in his name and I offered to speak with the gas company but he stated he was speaking to them right then and he later confirmed that the gas has been reconnected and that he paid them all outstanding money. 

On mother's day - Sunday afternoon, he texted me a picture of a leak on the kitchen ceiling and stated that the leak was coming from overflowing sink in the primary bathroom and that he noticed it two days prior. I was out of town and I sent a contractor immediately to go to the property and assess the issue. The contractor went straight away and worked on the leak for three days, including new ceiling in the kitchen. I demanded the renters insurance certificate and sent the tenant the invoice for water damage and have been calling him but he has not been answering his phone. I examined the tenant's lease application closely and then called the employer, and I was notified that he was not found in the system as an employee.

I called the realtor to report all this, I requested vacant possession of my property, and listed the following concerns - Falsification of information to obtain the lease, Forged documentation of employment and pay stub, non payment of rent (he is owing some money from the last rental payment due to not setting up rental payment through AVAIL platform and he made payment with money order one of which I could not cash as he wrote his name on PAYEE section), Failure to provide renters certificate of insurance in his name, Failure to provide utility contracts in your name, Using water from start of lease to date under my name - City of Houston water bill in my name and bill remains unpaid, Water leakage and damage to the property (extent of damage still to be assessed, Unpaid invoice for the cost of emergency work to stop the leak and fix the ceiling in the kitchen, the grass is overgrown and the property was unkempt when we visited last week to inspect the work on the water leak. 

I received a text message from the realtor this morning stating the he was having a meeting with his broker about this "to proceed with the smoothest transition possible." 

I want to get my property back and want to know the best way to proceed and who to hold accountable. Your suggestions are welcome.

Most Popular Reply

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28,053
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,042
Votes |
28,053
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Quote from @Nikky Jarvis:

1. Lesson learned. DO NOT hand over keys until you have confirmed all payments are made and all pre-requisites are complete. No promises. No excuses. They have everything or they don't move in.

2. Have solid policy regarding late rent. I hit them with a late fee on the fifth, the earliest allowed by state law. I file a 3-day Pay or Quit on the 11th. If they still don't pay, I file for eviction. Set the policy and follow it.

3. If the REALTOR gave you false information, file a complaint with the Broker and demand (a) they refund the money, or (b) they cover the cost of removing the bad Tenant. I think the former option is the most reasonable. If they fail to make it right, file a complaint with the Broker. If the Broker fails to make it right, file a complaint with the State Commission.

4. It's not enough to require the Tenant to set up renter insurance. They can cancel the policy one day after moving in and you'll never know. A better option is to set up a renter insurance policy under their name but include the cost as part of the rent. In other words, rent is $1025 a month, you spend $25 to pay for the renter insurance policy and add the Tenant to the policy. When they move out, you take them off the policy and put it under the next tenant's name. Another option is to require the Tenant to add you as "Additional Insured" or "Additional Interest" on their policy. This will ensure you are notified any time their policy is changed or canceled.

5. You are trying to save money with DIY property management, but it's not working. You paid a full month of rent to a REALTOR to help you find a Tenant? How many applications does that REALTOR review? How do you think their marketing and screening process compares to a PM that processes 1,000 applications a year? The REALTOR has no skin in the game. Once they get paid the finder fee, they walk away and you're stuck with whomever they found for you. If you hire a professional property manager, they'll be careful about who they place in the rental because they know they'll have to deal with them for the next year or more.

6. Start the eviction process. It sounds like you're not experienced with this, so I recommend you hire an attorney and let them do it right.

  • Nathan Gesner
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