Con Artist got me in a bad way!

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Con Artist got me in a bad way!

James Bordeaux
VT · Member since 2019 · 14 posts · 2 votes

Hi Everyone,

I need some help. First time fix and flip turned sour and turned into a rental (Not because I wanted to) Ran out of money and needed to get a renter fast to help keep house a float. The 2nd contractor I hired turned out to be a con artist. While he was helping me "fix my house" and took me for 3k in extra repairs got me a tenant and helped get some of the rent money. Now, he's gone with no communication from him (phone voice mail isn't even the same person), the renter (who has a fake voice mail) or anyone else for that matter. We signed a lease agreement that tenant would pay rent plus an extra $350 to cover utilities. (I know, you are all already going rookie mistake, hind sight I assure you)  So, now I have someone living in my house and I am about to file bankruptcy (CHP 7) and have no money to pay for an eviction.  If the "con-tractor" is known for artistry of conning people and has a felony record, can I just call cops and kick them out and turn off utilities? Can they sue me if I don't pay the utilities? I can't prove that anyone actually lives there. And I only got a portion of rent from September. Oct. was due no later than the 7th.

Again, I have no money for lawyers fees for evictions or paper serving or what ever else they will charge for. I have no money to get anyone on the ground to see if there are any issues with the house or check up on it (management company). But, I do have confirmation from a lawyer that the person (con-tractor) is a felon and is widely known for conning people.  

What are my options here? Frickin sewer and water bill is 200 bucks!!!! WTF! 

Please help! 

Thank you,

Lessons learned.

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Patricia Steiner
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
6y

Let's start here:  you have an executed lease (good job!) with a tenant who isn't paying you per the terms of the lease (it happens...).  Leave everything else behind you - you survived all that.

You cannot turn off utilities.  Under your lease, you provide those and he is suppose to pay you a fee as part of his lease.  But you can do quite a few things including:

1.  Today, right now, send him a Notice To Quit For Non-Payment of Rent.  If you have his email, send it that way - and post/tape it on his door in an envelope - and mail it by certified mail with proof of delivery plus address correction requested.  Go online to get your state's form; fill it out - do it today.

2.  And, while you're at that, give him Notice To Inspect.  Every state has a notice period that the landlord must give the tenant in advance of entering.  Here's Vermont State Law:

"Landlords may enter the property between 9:00 a.m. and 9:00 p.m. with 48 hours notice for specific reasons: Inspection of the property."

Post that Notice on the door as well:  all it has to say is "As per Vermont Landlord Tenant Laws, I will be inspecting your unit at 9 a.m. on ____________, having given you the required 48 hour notice."

Then go...take a witness with you.  Knock first then enter with your key.  If he's not there, take photos; document whether he is living there or not and the condition of the unit.  If he is there, let him know that you have started eviction proceedings and he needs to leave.  

3.  Go to this site:  
https://www.american-apartment-owners-association.org/landlord-tenant-laws/vermont/

Scroll down the page to Abandonment and Termination of Tenancy...those are your rights.  Know those and do those.  If he's abandoned the property - great!  If he hasn't but he isn't paying, you could be 14 days from kicking his butt to the curb.

Bottom line:  You are stronger than you think.  You have more control than you think.  You have to know the law so you can act - and fast.  

And, as for that contractor...good riddance. That's in the past.  Fix what's broken and get on with your life and running your investment business.  

You've got this.  

14Reply
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  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    Do you have anything in writing?  If not, call the cops and tell them there is a trespasser.  Have the water and sewer turned off.  Find out if there are any outstanding warrants for his arrest and if so, turn him in.

    2Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y

    I know you don't want to hear this but you need a lawyer. The one handling the chapter 7 may be able to help. Tell them what is going on.

    3Reply
  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    6y

    Let's start here:  you have an executed lease (good job!) with a tenant who isn't paying you per the terms of the lease (it happens...).  Leave everything else behind you - you survived all that.

    You cannot turn off utilities.  Under your lease, you provide those and he is suppose to pay you a fee as part of his lease.  But you can do quite a few things including:

    1.  Today, right now, send him a Notice To Quit For Non-Payment of Rent.  If you have his email, send it that way - and post/tape it on his door in an envelope - and mail it by certified mail with proof of delivery plus address correction requested.  Go online to get your state's form; fill it out - do it today.

    2.  And, while you're at that, give him Notice To Inspect.  Every state has a notice period that the landlord must give the tenant in advance of entering.  Here's Vermont State Law:

    "Landlords may enter the property between 9:00 a.m. and 9:00 p.m. with 48 hours notice for specific reasons: Inspection of the property."

    Post that Notice on the door as well:  all it has to say is "As per Vermont Landlord Tenant Laws, I will be inspecting your unit at 9 a.m. on ____________, having given you the required 48 hour notice."

    Then go...take a witness with you.  Knock first then enter with your key.  If he's not there, take photos; document whether he is living there or not and the condition of the unit.  If he is there, let him know that you have started eviction proceedings and he needs to leave.  

    3.  Go to this site:  
    https://www.american-apartment-owners-association.org/landlord-tenant-laws/vermont/

    Scroll down the page to Abandonment and Termination of Tenancy...those are your rights.  Know those and do those.  If he's abandoned the property - great!  If he hasn't but he isn't paying, you could be 14 days from kicking his butt to the curb.

    Bottom line:  You are stronger than you think.  You have more control than you think.  You have to know the law so you can act - and fast.  

    And, as for that contractor...good riddance. That's in the past.  Fix what's broken and get on with your life and running your investment business.  

    You've got this.  

    14Reply
  • Garry HoffmannPro Member
    Real Estate Agent · Logan, UT · Member since 2017 · 24 posts · 5 votes
    6y

    @James Bordeaux where in Vermont are you.

    Do not cut power or anything that the tenant can sue you over, they will and will win. The cops won’t do anything, squatters rights in Vermont are a terrible joke. Find someone with experience get them to help you out, preferably local. Maybe they’ll buy it off you.

    0Reply
  • James Bordeaux
    OP
    VT · Member since 2019 · 14 posts · 2 votes
    6y

    Hi Gary hoffmann, 

    im Waterbury. My rental is in alabama. 

    0Reply
  • Vincent Miller
    Investor · Williston, VT · Member since 2016 · 28 posts · 19 votes
    6y

    Hello James,  

    Sorry to hear about your loss.  I have to agree with @Patricia Steiner.  Additionally, if you are out of state and cannot readily visit the property, you must hire a lawyer and evict the current tenant if they broke the lease.  You could potentially negotiate a move out with the tenants, but they do not sound like individuals that will live up to the agreement.  

    This is a tough time for you, but you will get through this with some legal assistance. I have worked with a legal firm in the Birmingham area to form an LLC that I can recommend. Let me know if your property is in that area and I can send you the contact info.

    Good luck!

    0Reply
  • Scott Starkey
    Rental Property Investor · Birmingham, AL · Member since 2018 · 22 posts · 29 votes
    6y

    Hi!  I sorry to hear about this.  I’m an investor in Alabama, and my business partner is a lawyer.   What part of Alabama is the house located?   If it is within my area, I can help you.   Just message me.

    I can post a termination notice for you; or at the very least, I can drive by the home to check on it; again, if it is within a reasonable drive.  Also, I have all the correct legalese language that is needed for the termination notice.   However, I will need the copy of the lease.

    I’ll be in meeting all day today until around 3PM CST.   If I can be of any assistance, please let me know; so I can get more detailed information of the situation.     

    Depending on the county, the eviction process can take anywhere from a few months to 6 months.  Plus, the court costs can be upwards of almost $800, with the filing fees for the eviction, the default judgement, etc.  

    I know you probably don’t want to hear this, but if there is, indeed someone living in the house, you may want to save the time and hassle and offer “cash for keys”.  Offering $300 typically works for us when we first purchase a rental with an existing bad tenant.  

    On a different note, if you are filing a Chapter 7, are you planning to “reaffirm” this rental house?   If not, you can let it all go and not pay any utilities.  If someone sues you, so what?  You will include the lawsuit in the Chapter 7, and it will go away.  

    4Reply
  • Kevin Nickerson
    Member since 2019 · 56 posts · 16 votes
    6y

    As mentioned, an attorney is most likely going to be your answer. Or, instead of filing BK, why not offer the property up to an investor on this site? Someone with more experience maybe interested in buying the property even with the current troubles. This would hopefully keep you out of BK and you wont have to deal with the eviction either. 

    1Reply
  • James Bordeaux
    OP
    VT · Member since 2019 · 14 posts · 2 votes
    6y
    Originally posted by @Kevin Nickerson:

    As mentioned, an attorney is most likely going to be your answer. Or, instead of filing BK, why not offer the property up to an investor on this site? Someone with more experience maybe interested in buying the property even with the current troubles. This would hopefully keep you out of BK and you wont have to deal with the eviction either. 

    Hi kevin. Selling the house was a plan, but with 60k in debt over it, selling at even 25k without a heating system isnt goong to help me get dents under control. The bankruptcy will clear all of it and i can start fresh. 

    0Reply
  • Mary M.
    Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
    6y

    @James Bordeaux You have gotten some excellent advice up thread.  The only thing I can add is that bankruptcy is not as easy harmless as advertised. It will follow you for 10 years, and even if you are able to be perfect and never pay late you will have that dragging you down. It WILL affect everything.  If there is anyway to not do a BK I would advise doing that. 

    I know you are a bad situation, but you have options. 

    1Reply
  • Kevin Nickerson
    Member since 2019 · 56 posts · 16 votes
    6y
    Originally posted by @James Bordeaux:
    Originally posted by @Kevin Nickerson:

    As mentioned, an attorney is most likely going to be your answer. Or, instead of filing BK, why not offer the property up to an investor on this site? Someone with more experience maybe interested in buying the property even with the current troubles. This would hopefully keep you out of BK and you wont have to deal with the eviction either. 

    Hi kevin. Selling the house was a plan, but with 60k in debt over it, selling at even 25k without a heating system isnt goong to help me get dents under control. The bankruptcy will clear all of it and i can start fresh. 

    0Reply
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