OOS landlord - need advice on tenant issues

OOS landlord - need advice on tenant issues

Member since 2018 · 6 posts · 1 vote

Hey Everyone,

My cousin just told me about this blog and I am hoping someone can help or advice for my situation.

I am relatively inexperienced landlord. I wanted to start small and gain some experience, so I purchased my first unit with a partner - 3 BR, 2BA condo and rented to this lady for about 4 years. Half way through it we both had to move to different states for work so we became OOS landlords. Issues started in the 3rd year - which were minor annoyances. But in the last year things just went to a completely different level. They kept getting into trouble with the condo association over various things. Her new husband (who is not on the lease) got into a fight with some neighbors, allegedly the provoked neighbors threw a stone at the window and broke it. They wanted me to pay for it. As we were arguing about whose fault it is, they filed a complain with the village, inspector basically said I don't care who pays for it or whether it comes out of the deposit but as a landlord you have to upkeep the property, so we had to fork the cash to get it fixed at that time.

I have a guy that did basic property management (not a contracted property management company) for me - collect rent, fix small issues etc. because I am out of town. After that experience, I pretty much told them that their lease wont be renewed.

There were other issues such as - habitually paying rent late, paid late fee on some occasions, completely disregarded all other notifications for late fee on the rent etc.

The notice that was sent to them said on the title of the document "30 day eviction" We gave that to them beginning of May (60 days before). But the date of vacating the unit - was listed as June 30th when their lease was set to expire anyway.

The good news is they finally left. They took it upon themselves to pay only up to Jun 14th rent when the lease was expiring on Jun 30th. However, they did not return the keys until Jun 19th. They just dropped them off at the onsite condo association office. Of course they left the place in a horrible state, I couldnt believe people can actually live like that.

My first experience has been bad enough that I want to just sell and get out and not do this again. Hopefully this is just a frustration that I will get over and learn and do better next time. This is cash flow positive property and our return is about 12% every year.

Here is where I need help -
1. We did not return the deposit - when we added the damage, unpaid rent, broken window issue and late fee on rent - it exceeded the amount of the deposit.
2. They never left a forwarding address to send a statement of charges to.
3. 48 days later I get an email from her stating her deposit is not returned and she will pursue damages etc.

Can anyone that has some experience provide some insights? Suggest a good lawyer etc.? And forgot to mention the property is in Hoffman Estates, IL

Thank you,
D

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Specialist · Olympia, WA · Member since 2011 · 45 posts · 12 votes
8y

Hi Sean, 

A few thoughts. Unless you are experienced, for an out of state rental, I would recommend getting a property management company. I would call the top 10 property management companies and ask who they use for a lawyer, the good ones will be more than happy to help. Then I would interview the most helpful companies for property management services. 

You always want to ensure all occupants that are legally adults are added to the rental agreement. A detailed application process does a lot to prevent these issues ahead of time as well. 

The specific details are very dependent on state law and the specific language in the lease. The good news is, it shouldn't take long for a good lawyer with landlord/tenant law experience to get you on the right path after reviewing your lease. 

Best of luck!

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  • Specialist · Olympia, WA · Member since 2011 · 45 posts · 12 votes
    8y

    Hi Sean, 

    A few thoughts. Unless you are experienced, for an out of state rental, I would recommend getting a property management company. I would call the top 10 property management companies and ask who they use for a lawyer, the good ones will be more than happy to help. Then I would interview the most helpful companies for property management services. 

    You always want to ensure all occupants that are legally adults are added to the rental agreement. A detailed application process does a lot to prevent these issues ahead of time as well. 

    The specific details are very dependent on state law and the specific language in the lease. The good news is, it shouldn't take long for a good lawyer with landlord/tenant law experience to get you on the right path after reviewing your lease. 

    Best of luck!

  • Member since 2018 · 6 posts · 1 vote
    8y

    Thanks Trevor!

  • Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    8y

    I wont comment on your future in the business as I don't have time for a long response.

    Security deposit is straightforward though. State laws dictate that security deposits must be returned, along with a statement of deductions within a set timeframe. usually this is 30 days, but sometimes can be 60. failure to return the deposit or a statement of deductions "usually" means the tenant is owed the whole deposit, due to your negligence. I only state usually, because I am not a legal expert. some states even allow tenant to sue for triple damages. this all applies even if tenant damages exceed the total deposit.

    the bad news is you likely will owe the tenant their whole deposit, because you failed to send a statement in 30 days. the good news is you learned your lesson and will not continue land lording without looking up your local landlord tenant laws right?

  • Member since 2018 · 6 posts · 1 vote
    8y

    Thanks Andrew!

  • Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    8y
    @Sean Pat So I’m guessing you Keep the deposit. And get a property management company. A lot of these issues are solved by Training your tenants right the first time. Can’t do that after they’ve already lived there a while. The good news is they mostly paid rent for 4 years, which is a fairly long time
  • Dekalb, IL · Member since 2018 · 25 posts · 5 votes
    8y

    @Account Closed I am also in Illinois and I believe that either the state of IL or just Chicago is more tenant friendly. So that means they will likely lien towards the tenant and you might have to pay the deposit back to her. As mention earlier I would check the tenant laws of Hoffman Estates and see what they are for future knowledge. 

  • George SkidisPro Member
    Rental Property Investor · Belleville, IL · Member since 2017 · 875 posts · 529 votes
    8y

    When a tenant moves out send the deposit statement to the apartment they just left with "Address Correction Requested" under your return address. IF it is forwarded the post office will send you a card and charge you the price of a stamp for the information. Keep the card as proof of mailing. If the letter comes back keep it as proof of service. I would still send them notice of damages at the new address they just provided.

    Hoffman Estates is another way of saying Chicago and Cook County. Tenant friendly does not describe it. Get and attorney or send them the deposit.

    It sounds like you are dealing with an "educated" tenant. Seek legal advice. Don't have an attorney send me a PM and I can make a recommendation.

    OOS is frequently a miserable issue for experienced landlords. Get a professional property manager if you intend to keep the property.

    It would help to add the state you are currently in to you BP Profile.

  • Member since 2018 · 6 posts · 1 vote
    8y

    Thanks George. I reached out to a lawyer that practices in that area. I will post a follow up lessons learned soon so everyone can gain some insights for the future 

  • Member since 2018 · 6 posts · 1 vote
    8y

    Darius,

    Thanks for the reply. Yes I checked the local laws and they are super tenant friendly and out former tenant is very well versed with them. Will post a conclusion on this soon.

    Best,

    S

  • Member since 2018 · 6 posts · 1 vote
    8y

    Thanks Caleb!

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