Tenants refuse to pay or don't. ? Just don't know

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Tenants refuse to pay or don't. ? Just don't know

Joe Moody
Canton, OH · Member since 2016 · 3 posts · 0 votes

I'm trying to come up with some ideas for my landlord sense he's older than I am. I just don't think he knows what to do. any way. My land lord rents apartments out to a lot of people who pay the 1st months rent and the deposit. and then live in the apartment for months until "Joel" (Land Lord) gets eviction notices from court and gets them removed. In the mean time Joel loses $1000 or dollars in rent. My question is. Because of this. Can he, Joel. go after family members for the balance. Is there an easy way to get his money for the rent that these people screwed him on. He does take this off his taxes. But he doesn't make money. right now there's 32 apartments and there's only 6 people living here. 

The idea is that he does what repairs he can. With out that money he loses on renters. I lot of the repairs can't or don't get done. 

Does any one have any idea's on what I could do to help Joel get the money from renters to just don't pay there rent. What can we do to get real people that will pay rent and stay. 

Joe

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Curtis YoderPro Member
Rental Property Investor · Tulsa, OK · Member since 2014 · 241 posts · 187 votes
10y

Sounds like he needs to sell the property or at a minimum turn it over to a PM company. Sad sounding situation. There are a ton of go getters here on BP that would jump at the chance to help turn this property around.

Pay rent by the 5th or it turns over to the attorney. In Oklahoma we can have a tenant out by the 20th through the 25th. Then go after damages if needed. You have to be hard if you want to be in this business. Real estate investing and renting is business, not a playtoy.

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  • Joe Fairless
    Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    10y

    @Joe Moody to help with economic occupancy you/he can: 

    - qualify the renters better on the front end (i.e. increase increase requirements, no felonies, no evictions, etc) 

    - if the property is in a bad area then he would need to spend money to insulate it a bit. That could include a perimeter fence, security, getting a police officer to live there in exchange for discount or free rent 

    - increase the deposit on the move-in to make people really want to get it back when they move out 

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  • Dawn AnastasiPro Member
    Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
    10y

    He might make more money selling the building.

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  • Kevin Harrison
    Investor · Woodbridge, VA · Member since 2015 · 476 posts · 197 votes
    10y

    That is a vicious downward circle. No money for repairs, worse clients, more damages, don't pay rent, no money for repairs. I think @Dawn Anastasi might be right. It sounds like this place needs an infusion of cash to get it truly rent ready again for quality tenants. If the owner cant provide it then he might need to sell it to someone who can to make this place profitable again.

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  • Jason Hirko
    Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    10y
    Originally posted by @Kevin Harrison:

    That is a vicious downward circle. No money for repairs, worse clients, more damages, don't pay rent, no money for repairs. I think @Dawn Anastasi might be right. It sounds like this place needs an infusion of cash to get it truly rent ready again for quality tenants. If the owner cant provide it then he might need to sell it to someone who can to make this place profitable again.

     Agreed. Sounds like he needs to get out now before it gets empty and needs a full renovation

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  • Stone Teran
    Investor · Cincinnati, OH · Member since 2015 · 374 posts · 120 votes
    10y

    Sell.

    Family members are not on the hook for their relative's debt.  Only the adults listed on the lease are.

    1Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    10y

    Sell

    0Reply
  • Joe Moody
    OP
    Canton, OH · Member since 2016 · 3 posts · 0 votes
    10y

    Thank you every one for your input

    0Reply
  • Account Closed
    San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
    10y

    He could send the judgments to a collection agency.  But, he doesn't have a clue how to manage a building.  He could look into getting a property manager and see if he could still make money after paying the management fees.  If he was to first screen for good tenants (if the property is somewhere good tenants want to live), then be on top of tenant problems and maintenance, he wouldn't have these problems.

    The funny thing is, it seems like guys like him don't want to spend money on managers, or screening services or maintenance or upkeep, etc., so they won't ever make money on a place like that.

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  • Curtis YoderPro Member
    Rental Property Investor · Tulsa, OK · Member since 2014 · 241 posts · 187 votes
    10y

    Sounds like he needs to sell the property or at a minimum turn it over to a PM company. Sad sounding situation. There are a ton of go getters here on BP that would jump at the chance to help turn this property around.

    Pay rent by the 5th or it turns over to the attorney. In Oklahoma we can have a tenant out by the 20th through the 25th. Then go after damages if needed. You have to be hard if you want to be in this business. Real estate investing and renting is business, not a playtoy.

    2Reply
  • Mike Hanneman
    Investor · Coeur d'Alene, ID · Member since 2016 · 551 posts · 218 votes
    10y

    At the very least have him file evictions as soon as he can. If rents late on the # day then the next day there needs to be a late fee and then a pay or quit served. Have him, read the state tenant laws so he can at least be on top the eviction system. This way he won't be waiting months to file an eviction.

    Maybe this could be a potential deasl for you, take over manging for him, for a fee of course.

    Why does he want to stay in this business if he's truely losing money most months? 

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  • Joe Moody
    OP
    Canton, OH · Member since 2016 · 3 posts · 0 votes
    10y

    Thanks again for the input. 

    Maybe I should have gave more info. I lived here for 15 years my self. There been tenants that have live here for 20 plus years. It's a nice place to live. It's just management is slow. Repairs are very slow. The owners have had problems with passed tenants going into the basement and sabotage pipes or any thing else they can do. Just to get back at the owners from them not paying rent. There's renters I have talked too. and I ask why they haven't paid. and they tell me. They are waiting for the landlord to come so they can pay. Well I send the landlord over to collect and here to find out that wanted to pay $75. and the owe $3000. The landlord files for a eviction. 

    Not ever time the landlord can file for evictions. It's just it cost too much. and when people don't pay their rent. He doesn't make make. 4 years ago he rented an apartment next to mine to find out that the tenants (all of them) were wanted by the police. and one was wanted to by the US Marshals. Think about it. To do all the back ground checks and Police checks and so on just costs a lot of money. 

    I was hoping that some one mite have better ideas on how to do this checks and so on. With out them costing money. Or some kind of court procedure that wouldn't cost him some any thing to file evictions.

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  • Mike Hanneman
    Investor · Coeur d'Alene, ID · Member since 2016 · 551 posts · 218 votes
    10y

    Landlords have tenants pay for their own background/credit checks, eviction checks after they turn in their rent application, that's what the application fee is for. A landlord should never rent to anyone, not even family, without having done this screening process. This process will help prevent alot of these problems you are speaking of.

    Once the tenants are given the key it's too late.

    Evictions might be expensive but they are better then recieving $75 when $3000 is owed. Your landlord has no business running a property and will eventually lose this one one way or another. He seriously needs to educate himself on becoming a landlord and knowing the state landlord/tenant laws. Also knowing the eviction laws would benefit him too. Alot of times evictions don't go all the way to court and I bet that if he starts running this property better, the other tenants will start paying and behaving accordingly. It's amazing what a note taped to the door stating, "PAY OR QUIT" will do to a lousy tenant. 

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