Tenant respect

[Wesley W.]

Hey folks,

I'm new to the investment game and I've come across a situation I need some input from the current landlords on.

I've got a tenant that has paid late each of the three months I have owned the property.  As per my lease, I have served a "pay or quit" notice after the 8th (5 day grace period from the 1st).  Each time, they have paid before I pursued anything further.

In the lease, they must pay $50 if they don't pay on the 5th, and another 5% of the balance after the 8th.

I bought the property from a lazy landlord that was too lenient with this particular tenant, so I am trying to condition her to my reasonable expectations.  Every month there is a different story; this month her car broke down, blah blah and she would not have the rent on time (this was before the 5th).  I reminded her via text that after the 5th there would be a $50 late charge and another $35 tacked on after the 8th.  She asked if I could waive the second late charge since she was "telling me ahead of time" and was "telling me the day she would pay" (the 12th).  I basically told her that my late fees were to offset my costs of any legal processes I need to begin for non-payment, and that I would have no choice to send out another 3-day notice on the 9th if there is no payment.

She responded with what I can only call a "litany of sarcasm" - about how she appreciates how understanding I am and "way to undermine your tenants' attempt to make rent" , she resents jhaving to pay installments on pet fee for cats she's had for years, etc.  She ended up telling me should would pay on the 8th, despite the hardship.  (As an aside, as I type this she has not paid, and I sent a 3-day notice this afternoon.)

My question is how would you deal with her conduct?  I have been nothing but professional and courteous with her, as I enforced the rules of our written lease.

On one hand, I think "I'm the professional" and should not dignify her conduct by responding at all, while the other side of me does not want to set a precedent where she can use me as a verbal punching bag during her residency.

Another piece of information that might be germane is her unit it totally trashed (she has lived there for 10 years) and would take about $6k to turn it over.  Her rent is about $100 under market (I raised it $50 when I bought the place in July), so I'm mitigating my losses on that unit as long as she continues to pay (albeit late).  To be honest, if the unit were in better shape I'm not sure I would tolerate her drama and BS.

Your thoughts and input as always is graciously appreciated!

[Account Closed]

Here we go the "Testing Phase".  You're the new guy on the block, tenant is going to test you and is, big time.

Is this tenant on a years lease agreement?  or Month to Month?  

Since this gals been there for 10 years, she thinks this rental property is hers.  Yep, she does.  And you are an intruder.  This is how she paid before.  This is how she lived her life with the old landlord, and therefore you should also go along!

Being in a rental home for 10 years plays a big part in a Judges mind and if the tenant is paying their rent will perhaps give you a tongue lashing if you tried to evict her at this stage of the game.  But that's okay...the law is the law. 

So..this is what you need to do. 

If the tenant is on a month to month, you can send her a Notice of Termination of Tenancy, (a bluff) giving the allotted time per your State Law to move or go to court, reason being failure to pay her rent on time, and a breakdown of the Landlord Tenant Relationship. In Michigan we don't need a reason for a Termination of Tenancy on a Month to Month. If she loves her homes so much, she won't want to move.  She will call you and yell at you and argue with you, but if you remain strong and stick to your decision, she will either comply or go to court or move. 

And you most definitely need to re-write your lease agreement! Have in it that rent will be applied to all outstanding monies owed.  

If the tenant is on a years lease, and she pays the rent and all those extra fees just under the wire, you can't evict her, and she will sooner or later get mad and leave.  (But she will give you a hard time about this.  But believe me, she will eventually move)

If she doesn't pay the rent that is owed, and all the fee's that it entailed, and just tries to pay her rent, DO NOT ACCEPT IT!  These fees are part of her rent now.  Part of the money she owes you now, and therefore, if it isn't paid 100% in full, then file in court for non payment of rent.  Plain and simple!  And then she will have additional court fees tacked on to her already late fee's, rent, etc. 

This is part of "Training Process".  But, from experience, she will most likely move.  Because it's a matter of control now.  They make good money, so that's not issue.  The issue is that she views this home as hers.  She is used to calling the shots.  You are the new guy.  She might mellow, but doesn't sound like it. 

This is tough taking over properties from another landlord.  I know, I've been there and done that.  I had to almost evict everyone that I took over.  I had to re-write the lease agreement, and tried to come across as fair and balanced, a good listener, a good landlord, but that I a contract was a contract and rent was my income and evictions would take place per the lease agreement.  It took a good year, but then our tenants stayed with us for many many years thereafter.  You just got to keep strong, and hold your ground, no matter how tough it may be.  But it wont' be forever!

So that is my advice to you.

Nancy Neville