CHA investment rental, and issues with tenant withholding rent

CHA investment rental, and issues with tenant withholding rent

Member since 2019 · 3 posts · 1 vote

We purchased a two flat investment building in Chicago, Cook County. Both are section 8 rentals.

I’m having a lot of trouble with a tenant, withholding rent, and  giving 30 day notice (which would work out as 2 and a half months  rent she would be withholding the way she planned it out.)

I didn’t see this coming as she has lived there 7 years and we had a very close relationship. But looking back now, I guess I should have.

She has a history of being very late with rent, I’ve never charged her late fees, nor did we raise the rent on the unit the entire time she was there. My big heart got in the way. She is in her 70’s and we lost site on investment vs heart strings. In 2016, she went three months without paying rent, and again, heart strings. I did end up giving her a 5 day notice at the three month point, and she did pay.

My problems is: She is withholding rent because she claims we owe her money for an overpayment ($700.00) she claims she made...in 2012! It is not true, but she’s going with it. She clearly planned this out,k owing she was going to give her 30 notice, in addition to the fact that she will no longer be needing the section 8 voucher as she is moving in a nursing home. So she has nothing to lose in her mind.

I’ve gone through all the steps with her, telling her she cannot withhold rent based off something she “feels” is owed to her. And she would have to go through the proper steps if she feels this money is owed to her, it’s not legal! It has all gotten me no where.

I mean if her claims where true, why would she wait 7 years to bring it up. The story pretty much explains it self.

I do plan on giving her a 5 day notice tomorrow, and I have notified CHA. She also had her granddaughter move in May of last year, and she told me she reported it to CHA, come to find out she didn’t. They said she made a phone call  inquiring If her granddaughter could move in with her, as her caretaker, but she never followed up. So now CHA enforcerment is also involved. Found out her son was also living there for the better part of 2018 AND paying the rent.

But I don’t know what to do, or how to get her portion of the rent from her. We also believe she is moving to Florida, to be close to her sister (she’s mentioned this in the past few years)

If I give her a 5 day, it’s not going to make a difference,like I was explaining above, because of the fact she’s moving anyway.

And even after those 5 days are up with non payment, I could start the eviction process, but again, where’s that going to get me with her moving out anyway. I mentioned her possibility moving to Florida because I fear if we do take it to court to sue her, how would we track her down. And even if we did, how does that work if she’s out of state.

To make it more confusing for us is She sent me a text 2 days ago to tell me she broke The attic door. She said she would have her son fix it, I told her not to have him touch it (it’s an older home in Chicago,and it’s not a standard size attic door)

She sent me a text today asking me if I wanted her to pay for replacing the door. I have not replied yet because I remember another situation I was in,helping a friend. It’s a long story, but what always  stuck with me was when the detective said “if someone owes you money, and you take ANY form of payment for something unrelated, it would void out the bigger issue”

Like, I think, in this situation if we where to take money from her for replacing the door, we would be accepting the fact she’s not going to be paying rent. In addition these type of things are usually dealt with when we do final walk through with her.

She told me she has been talking to an attorney, I don’t know if it’s true. But if she is getting legal advice, it sure sounds to me like she may have been advised to do this, as a set up. I guess all of what she is doing.

I truly apologize that my question(s) are a lot,and long, I hope I  conveyed them in a way that is understandable.

I was just wondering if anyone else has been in this type of situation, and any advice how to handle it.

We’ve been lucky with our other rentals that we’ve never had to deal with something like this, so I’m at a total loss.

I will say though, it’s been a very good/tough lesson for us moving forward as to loosing site of the investment in the first place.

Thank you in advance for all that may have been in a similar situation and can offer any  advice.

Lisa

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Member since 2016 · 13k+ posts · 12k+ votes
7y

It is not possible to undo your poor management mistakes from the past. You know everything you have done wrong and going forward you may not be able to change your approach to this business. Some have it some don't. Success comes from knowing what you can and can not succeed at and hire others to do what you can't.

Normally your best option is to continue forward, do the eviction, and inform S8 as well as the nursing home she is intending to move too. You may be able to jam her up and force her to pay that way.

In your situation your best option, based on your past business practice and management skills, may be simply to let her slide and be thankful when she is gone. Moving forward if you consider S8 again it is essential that you immediately begin the eviction process when tenants do not pay their portion of rent on time. By informing S8 of the eviction you can have them cut off benefits and they will pay. Going forward this will allow you to own them.   

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  • Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    7y

    I am from Chicago.  I have invested in these types of properties and there are more issues than your average rental.  First, stay firm on the rent and dismiss her story.  At least you are getting a portion from CHA.  Give her a 5 day notice.  Remind her that she will lose her voucher if there is an eviction and you will report that to CHA.  

    Minor mistake in being too friendly to her.  People in CHA homes are short of money, so it is common to try to hustle the landlord for a few bucks.  

    If she moves out of state, then you can take possession of the apartment through abandonment.  I consult my local attorney about the exact rules to do this.  I've had a tenant move out without notifying me.  

    Chances are that you will get this tenant to pay up with a little bit of effort.  Collecting tenant portions is not easy.  And if she moves to Florida, then so be it.   Turn the property over and find another tenant.

  • Member since 2016 · 13k+ posts · 12k+ votes
    7y

    It is not possible to undo your poor management mistakes from the past. You know everything you have done wrong and going forward you may not be able to change your approach to this business. Some have it some don't. Success comes from knowing what you can and can not succeed at and hire others to do what you can't.

    Normally your best option is to continue forward, do the eviction, and inform S8 as well as the nursing home she is intending to move too. You may be able to jam her up and force her to pay that way.

    In your situation your best option, based on your past business practice and management skills, may be simply to let her slide and be thankful when she is gone. Moving forward if you consider S8 again it is essential that you immediately begin the eviction process when tenants do not pay their portion of rent on time. By informing S8 of the eviction you can have them cut off benefits and they will pay. Going forward this will allow you to own them.   

  • Chicago, IL · Member since 2017 · 175 posts · 86 votes
    7y

    I purchased a CHA property last year and was faced with this same problem. Tenant had lost their voucher and owed thousands. At that point eviction would cost $1600. I actually ended up paying all their move out fees ($800) and offering them$300 to move out by a certain date. They missed the date but still used the move out service. I cut my losses and would do it again in a heart beat. The feeling when the unit is finally yours again is amazing

  • Member since 2019 · 3 posts · 1 vote
    7y

    I wanted to deeply apologize for not replying to all the helpful information I was provided.

    SO much more has happened since my original post, that it is literally giving me anxiety.

    i Did serve her a 5 day notice on March 4th, 2019.

    This lady is unreal! She kept trying to play “let’s make a deal” and offering to give me $174.00 for Feb and March rent. That is HER decucting this $700.00 she feels she is owed, from 2012, and what the difference would be.

    She continuesd, and continued to do things like this, she even told me that it would be I’m my best interest to take her offer! There has been so many  threats and manipulations from her, I finally told her (  asked her respectively ) to stop texting me, unless  emergency at the building, repair requests, or if she was going to pay the full amount due, during the 5 day notice. She even went so far to  threaten me that she was going to call the police, to make a report for her heater not working! 

    She tells us the heat is not working, but low and behold (we live hour and 1/2 away) 5 min before we got there she texts me to say “oh, the heat it working now! It’s 74 in the apartment.

    But yet another example of my darn heart sting about the heat,  The ordinance is 66 during day, 68 at night. She said she cold, so what do I do? I change it where she can set it at 75 ( we pay heat).

    After I asked her to  respectively stop texting me , not only did/is she continuing  but she also brought her granddaughter into it! And she was texting me  nonstop . With a “poor me” I’m going to be homeless,don’t take my grandmas mistakes out on me” gosh I could go on and on and on.

    But now I’m back to the what do I do. 5 days up, non pay ( as mentioned, now 3 days later past, she is still trying to scam me to stop the eviction! She now wants to meet face to face, to “show me her canceled checks, from 2012...now she’s bringing up checks from 2013 as well, in addition to changing her org amount she claimed she over paid to $720.00.  ( ok, sorry bit of venting there again)

    She even tried to offer to pay the full amount past due, the day after the 5day ran out.

    She knows she has no legal leg to stand on. And I did not accept it. No way no how, we just want her out!

    And to collect our money the proper way through court.

    Now, putting my heart sting aside, why should I allowed her to even do that? She had her 5 days, I mean why should I now allow her  The assurance  She can pull all this, and stay.

    To make it more complicated, (she is well aware of our heartstrings also) she is trying to put the  voucher in her granddaughter name! So she can continue to live there after she moves out. 

    She even tried the “ I’m pregnant card” with me uggggggg

    Do I continue with the eviction process? She has already given her 30 day move out of April 15, well she gave it to me, conveniently , Feb 16th.

    Or can I give her a date to move out by? With a month to month lease?

    And I’m also running into the problem of trying to figure out how to fill out the paperwork to continue eviction, if we take that route,in cook county, IL.

    I’m getting some results saying you have to e file it cook county, and other sites say no, you have to file at courthouse.

    It seems in this situation, I wast  aware of my poor management,after the fact,  being to kind,letting the late rent slip countless time among other things, until I actually typed it out in my question, and read it back to myself did I really realize it.

    I really appreciate, and accept the  constructive criticism that was brought to my attention. I really needed to hear that.

    I will, without question, be doing some long and hard thinking moving forward, to be sure I’m not losing site on the investment, and also to avoid situations like these. Or if I should remove myself all together.

    Looking back again, I believe my thinking was, it would be easier to let the late rent payments slide  (she is our only tenant out of 8 total)  that does this, and what distorted me again was being faced with going through the eviction process, having to paint-get the apartment,get it  move in ready again and things of that nature.

    lessened learned thanks to everyone’s feedback, look what I’m going though now.

    Sorry, one other question, she got a dog last year, of course withought asking us. Are we allowed to tell her she has to remove the dog now, so we can show the apartment?

    It’s one of those small dogs, that barks NON stop, and she doesn’t take it out, she lets it one and poop on a pad IN the apartment.

    I do t want that smell,  or the dog causing problems when we try to show it.

    any additional advice anyone may have about this new information would again, be so much appreciated.

    I know it’s a lot, I am really sorry for that. I could have never forseen all this new stuff she is pulling.

    Lisa

  • Real Estate Agent · Forest Park, IL · Member since 2014 · 255 posts · 141 votes
    7y

    I'd recommend talking to an attorney about the eviction. For the amount of days you'd potentially need to be in court and pay for parking etc, after doing a successful eviction on my own once, I determined it is very much worth hiring an attorney. I'd give the 30 day notice to an attorney and verify that it will hold up in court. You may not need to deal with serving notice as the notice has been served to you so you may be able to cut a lot of time out of the eviction process should the tenant not leave. If you initiate an eviction now, you may be in for a lot of service and court appearance costs as well as additional months of lost rent if you could have used the 30 day notice without needing service. 

    As a bonus, even after all the court dates and the judge ruling in your favor, they give the tenant several weeks to move out. When they move out, you have to file and pay for the sheriff to come out, who can take 2-6 months more months (of lost rent).

    The dog might be against your lease, but guess what the cure is if they don't comply? Eviction... and you are already at that point it sounds like. 

    I use and recommend Marvin Husby for an eviction attorney in Cook County.

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