First visit to my propery In 5 Years - got some questions.

First visit to my propery In 5 Years - got some questions.

Denver, CO · Member since 2013 · 16 posts · 0 votes

Ok, I know, I'm absolutely remiss for waiting 5 years to physically check on my rental property. Problem is, I live ~1200 miles away.  Tenant took the house 8 months after it was built, so everything was brand-new.  Anyway last week I gave my tenant several days notice and jumped on an airplane and dropped in for an inspection.

•(1344 finished sq feet. 3 bed/2 ba unfinished basement, 2 car)

•He obviously cleaned the house fairly deeply for my arrival.

•He seemed nervous and asked me if my visit meant that he should start looking for a new place to live. I immediately calmed his fears.  "Of course not, I just wanted to check on the place."

•Before I started my inspection, he asked me to sit down and proceeded to make several confessions.

- His lease is for himself and his adult son (a police officer), but for the last several months his adult daughter and her 5 year old child have been living in the home, and will continue to indefinitely.  

- All three maple trees in the front yard (planted by the builder) had died in the last 2 years.  He had removed 2, the other remained in the ground.  This means to me they lived 3 years before they died.

-The giant dog, obnoxiously/frantically jumping up onto the sliding glass door scratching vigorously at the handle, the whole time I was there, was a recent addition.  They got him as a puppy and had grown just shy of a great dane size. He was an INSIDE dog, hence his behavior not liking being put out for my visit, but he assured me he has never has went potty in the house. Not only did this dog scratch nonstop on his hind legs at the sliding door, he would relocate to the house windows and jump up and scratch at them and the vinyl siding with powerful strokes.  Originally my tenant had been approved for 2 older basset hounds (outside only dogs) for which, upon move in, he paid to have my backyard fenced himself with a rather quality plank farm fencing.  The bassets had apparently passed with age.

-He acknowledged the carpet was worn quite substantially and stained substantially.  This was not builder grade carpet, I had paid for a medium-high grade carpet and pad upgrade. He confessed it had not been properly card for, but that he planned to live another 4 years in the house until his retirement, at which time he suggested I would need to replace it anyway.  (9 years total)

-Even though he promised he would never smoke in the house, he confessed he would sometimes smoke in the bathroom with the fan on when it was too cold to go outside.  I could detect the smell in the bathroom, but it was not overpowering, and I couldn't detect any cigarette smell in any other part of the house.

  • Confession time was over, I proceeded with inspection.  The house looked very worn, but nothing appeared to have been outrightly mistreated. Formica counters looked to have a medium degree of water damage here and there. Walls were fairly dingy, baseboards pretty ragged, etc.  But nothing a deep cleaning, fresh painting, new carpet, new vinyl flooring, and a bit of minor repair here and there wouldn't fix.  He did paint a couple rooms himself, which were done VERY nicely, in essence as good as a professional could do.  This tells me he cares at some level and has an eye for detail.  All the windows needed calked.  His garage door wouldn't open automatically because the dog had chewed the wires on the sensor (not my problem) he told me he would have it fixed.
  • Outside vinyl siding needs a power-washing, and there were a few cracks or breaks where he had hit the side of the house with his ride-it mower.  Grass looked healthy enough.
  • I've never raised or lowered his rent the entire time.  Doing a little research I feel like he's paying probably $100 under market right now.  But given the condition of the house, maybe not.  I'm calculating market if it was in great shape.
  • My question:  What would you experienced guys/gals do?  Any thoughts?
  • Should I raise the rent due to increased occupants?  Raise the rent because of dog?  Charge him for the dead trees? Require an increase in the secuirty deposit of some sort?  I hate to run him off because he has always paid on time, and despite the wear and tear, he's not harming the house per/say.  And I do believe him when he tells me he will stay another 4 years.
  • Ok guys let me have it, I'm ready to be taken to the woodshed :) LOL.
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    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    10y

    @Nicholas S. Send him a thank you note and you look forward to having him as a tenant for many years to come.  Then add up how much you saved by having one turnover in 9 years.

    See this reply in the discussion

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    • Investor · Oak Park, IL · Member since 2014 · 307 posts · 150 votes
      10y

      Regarding trees, their dying does not necessarily mean it was his fault.  I had 3 trees die a few years ago which were  there when I bought the house 10 years ago.

      Real long-term tenant, with no vacancies.  Not the worst tenant, but not the best.  I would have a conversation about the wear and tear, and additional occupants and raise the rent.

    • Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
      10y

      @Nicholas S. Send him a thank you note and you look forward to having him as a tenant for many years to come.  Then add up how much you saved by having one turnover in 9 years.

    • Real Estate Investor · Saint Petersburg, FL · Member since 2013 · 1k+ posts · 951 votes
      10y

      Does your lease say anything about the tenant taking care of trees?  To me that's a landlord issue, unless the tenant cut down living trees.   Who knows why they died.  If you are concerned about your landscaping you need to hire a lawn service and build that into the rent when it is leased.    Other landlord issues are the caulk for the windows and pressure washing the outside.  To me it sounds like you need a someone local to the property that can check in on it and keep it up for you.  Often your neglect will lead to a tenant's neglect since they don't see anyone that cares about the property.   

      If the property is below average condition then you aren't going to get market rent if you kick the tenant out.  How much will it cost you to bring the property into perfect condition again?    Your 5 year old carpets have reached the end of their useful life (according to the IRS, it's 5 years for carpet) so you won't be able to charge the tenant for those.  


      If you're getting the rent on time and no real damage is being done to the property then keep collecting the rent.

    • Denver, CO · Member since 2013 · 16 posts · 0 votes
      10y

      Thanks everyone!  I can't tell you how much I appreciate the quick replies!  

    • Durham, NC · Member since 2013 · 502 posts · 215 votes
      10y

      I personally would have a chat with the tenant about up-keeping the house and only ask for a monthly pet rent plus an additional security deposit (not a pet deposit) because of the indoor dog. The tenants will probably comply, in fact, be happy to do so, because they are in more than one lease violation. On the other hand, keep them happy as long as it gets. A turnover will be costly now and not much worse in 4 year as long as the dog doesn't ruin the floors. The added security deposit will work as an incentive for your tenant. Also, get the daughter on the lease and have some maintenance done to the siding.

    • Investor · Plano, TX · Member since 2014 · 188 posts · 149 votes
      10y

      @Nicholas S. In the last five years, how long have you raised rent? The $100 increase, how much more is it across the 5 yr mark. If you're in a growing market, you shouldn't have any qualms about raising rent 3% to 4% every year.

      Also, as far as wear/tear repairs ago, if you are going to be spending 15% to 20% of yearly rental rate on home improvements, it just means you are responsibly taking care of your asset. For $1500/mo rental rate, up to $3600 in yearly maintenance is fair game. Anything higher, then your tenant is added undue stress on the property.

      Pets, thats should be addendum on your lease agreement. I charge $300 extra desposit and $15 more per month per pet. If its a large pet, then $25 per month. Big outside dogs, staying inside the house can do a lot of damage to the property.

    • Denver, CO · Member since 2013 · 16 posts · 0 votes
      10y
      Originally posted by @Mike Makkar:

      @Nicholas S. In the last five years, how long have you raised rent? The $100 increase, how much more is it across the 5 yr mark. If you're in a growing market, you shouldn't have any qualms about raising rent 3% to 4% every year.

      Also, as far as wear/tear repairs ago, if you are going to be spending 15% to 20% of yearly rental rate on home improvements, it just means you are responsibly taking care of your asset. For $1500/mo rental rate, up to $3600 in yearly maintenance is fair game. Anything higher, then your tenant is added undue stress on the property.

      Pets, thats should be addendum on your lease agreement. I charge $300 extra desposit and $15 more per month per pet. If its a large pet, then $25 per month. Big outside dogs, staying inside the house can do a lot of damage to the property.

      I have never changed his rent.  I've charged $1100 the whole time.  Area code 41048. I've kept a close look at the Market over the last 5 years, and it really has been stagnant.  There might have been a year or two where I could have gotten away with raising it a couple hundred bucks, but it has since come back down.  

      I like the idea of another few hundred dollars onto the security deposit, and $25 more a month for the big inside dog.  Thank you so much!

    • Denver, CO · Member since 2013 · 16 posts · 0 votes
      10y
      Originally posted by @Andreas W.:

      I personally would have a chat with the tenant about up-keeping the house and only ask for a monthly pet rent plus an additional security deposit (not a pet deposit) because of the indoor dog. The tenants will probably comply, in fact, be happy to do so, because they are in more than one lease violation. On the other hand, keep them happy as long as it gets. A turnover will be costly now and not much worse in 4 year as long as the dog doesn't ruin the floors. The added security deposit will work as an incentive for your tenant. Also, get the daughter on the lease and have some maintenance done to the siding.

       This makes sense to me Andreas, thanks.  I think this will be my strategy.  And as far as the floors go - they looked good now - but who knows in 4 years with the dog.  Either-way it's vinyl so not the end of the world if I have to replace the kitchen or something.  After 9 years, it will probably go nice with some new carpet anyway to throw in some new vinyl, or am I just rationalizing right now?

    • Denver, CO · Member since 2013 · 16 posts · 0 votes
      10y
      Originally posted by @Patrick L.:

      Does your lease say anything about the tenant taking care of trees?  To me that's a landlord issue, unless the tenant cut down living trees.   Who knows why they died.  If you are concerned about your landscaping you need to hire a lawn service and build that into the rent when it is leased.    Other landlord issues are the caulk for the windows and pressure washing the outside.  To me it sounds like you need a someone local to the property that can check in on it and keep it up for you.  Often your neglect will lead to a tenant's neglect since they don't see anyone that cares about the property.   

      If the property is below average condition then you aren't going to get market rent if you kick the tenant out.  How much will it cost you to bring the property into perfect condition again?    Your 5 year old carpets have reached the end of their useful life (according to the IRS, it's 5 years for carpet) so you won't be able to charge the tenant for those.  


      If you're getting the rent on time and no real damage is being done to the property then keep collecting the rent.

       My lease does state that the tenant is responsible for the health of trees and shrubs.  However, I get what you're saying.  I will take responsibility for them.

      I agree about the carpets too. 

    • Professional · Glendale, CA · Member since 2013 · 105 posts · 47 votes
      10y

      I'm curious as to if your original lease allowed pets and if so, stated a pet deposit amount.

      Also, additional tenants not added to the lease...never a good idea.

      My years of training and experiences with a property managment co suggest that you need a trip to the woodshed.  But can't change what's been done so I'll make a suggestion.

      You should check into hiring a mgmt co to take care of your property and it that's not financially feasible, then try to find someone with management experience to check on the property.   Why?  You're lucky the property is not in worse condition and the guy is honest enough to admit his trangressions...so at least you have a tenant with a conscience.

      I'll just use one example to make my case....Daughter and her daughter are now residents who are not on the lease.  So dad travels for business and Daughther brings boy friend to live with her.  A boy friend doesn't have steady work.  Boy friend isn't on lease, so he brings friends over for a keg party.   You have very little control over these new residents who despite not being on the lease....are tenants because they lived there for 30-days and recieve mail there.  Thus, you have to go to court to get them out.

      One last thing...why would tenant cut down trees and not mention that to you?  Does lease allow them to do that? 

      In any event, looks like you realize this isn't an ideal situation and will make changes.  So, good luck.  But I really suggest you get some type of supervision for that property to protect your interests. 

    • Denver, CO · Member since 2013 · 16 posts · 0 votes
      10y
      Originally posted by @Fred Dray:

      I'm curious as to if your original lease allowed pets and if so, stated a pet deposit amount.

      Also, additional tenants not added to the lease...never a good idea.

      My years of training and experiences with a property managment co suggest that you need a trip to the woodshed.  But can't change what's been done so I'll make a suggestion.

      You should check into hiring a mgmt co to take care of your property and it that's not financially feasible, then try to find someone with management experience to check on the property.   Why?  You're lucky the property is not in worse condition and the guy is honest enough to admit his trangressions...so at least you have a tenant with a conscience.

      I'll just use one example to make my case....Daughter and her daughter are now residents who are not on the lease.  So dad travels for business and Daughther brings boy friend to live with her.  A boy friend doesn't have steady work.  Boy friend isn't on lease, so he brings friends over for a keg party.   You have very little control over these new residents who despite not being on the lease....are tenants because they lived there for 30-days and recieve mail there.  Thus, you have to go to court to get them out.

      One last thing...why would tenant cut down trees and not mention that to you?  Does lease allow them to do that? 

      In any event, looks like you realize this isn't an ideal situation and will make changes.  So, good luck.  But I really suggest you get some type of supervision for that property to protect your interests. 

       Thanks Fred,   Yes he had a couple OUTSIDE basset hounds that he told me were rarely or never brought inside.  He even showed me the elaborate outside doghouse that belonged to them.  I did not ask for a pet deposit.  Those dog's are now in heaven, but this new puppy I'm thinking came with the adult daughter, and has grown huge.

      He was not allowed to cut down trees, and I really wish he had told me they had died.  He took it upon himself to remove them for use in his backyard fire pit.  Which is not the end of the world because they would have had to have been removed anyway since they were dead.  But still, I see where you're going with this.

      You're right, I need someone I can trust to pop in more often. I will look into it.  I will also get daughter and g.daughter on the lease.

    • Professional · Glendale, CA · Member since 2013 · 105 posts · 47 votes
      10y

      If your neighbors are homeowners, I would try them.  They often have a vested interest in surrounding properties as noise, clutter or whatever is a nuisance.  Try to create relationships with them.  Perhaps one would be willing to keep a key and check/take pictures of the house/property for you every six months.

      good luck

    • Denver, CO · Member since 2013 · 16 posts · 0 votes
      10y
      Originally posted by @Fred Dray:

      If your neighbors are homeowners, I would try them.  They often have a vested interest in surrounding properties as noise, clutter or whatever is a nuisance.  Try to create relationships with them.  Perhaps one would be willing to keep a key and check/take pictures of the house/property for you every six months.

      good luck

       Great idea Fred!  I'll get back over there in about 6 months and try to make some acquaintances.

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