Whole building of bad tenants

Whole building of bad tenants

Landlord · Dallas, TX · Member since 2011 · 63 posts · 7 votes

Problem building. In my real estate career I've been pretty lucky so far. I haven't had any "bad" tenants. I've had a few that occasionally paid the rent late a few days or had to do more repair work than "normal wear and tear" after a tenant had moved out. Until now that is. I've inherited a problem building. I purchased 4 townhouses, all one structure. None, zero, zilch...of the tenants pay their rent on time. It was a huge red flag when, per the contract, i asked for the security deposits, and was told they had all used them for the previous months rent. The previous owner was very generous/stupid with them. I currently have 1 unit empty. Another tenant pays but has always a couple of days late. When she does pay its always accompanied by a compliant. Here is my rent but I need.... minor thatthings most tenants wouldnt even complain about or do themselves. I use a property manager so even though it's little things like replacing the weather stripping on the door And unclogging a toilet anyone with a plunger could unclog I have to pay fees. She's done this every single month. the next two tenants are headaches. I've sent out two eviction notices each. They always let it get to the final stages and the cough up the money then next month rolls around and they don't pay. And since I inherited these leases they included nothing about court costs or fees. Now one tenant is paying $25 more than the other two. She just happened to move in during the height of the renting season for the city and paid a little more for it. Now she's found out her neighbors pay less. So her last rent payment, which was 15 days late was $25 short. When she was notified it was short she said she wasn't paying more than the others. That it wasn't fair. She asked the property manager to ask me to lower it. I told the property manager no. Then she said in a very round about way i should reconsider because it is now at the low of renting season and I'd get $25 less now anyway she's afraid the tenant would stop paying and use the eviction time to save up money to move. I'd also have to fix the place up as I'm sure it would not be in broom clean condition. These 3 tenants have given me more headache than all of my others, ever, combined. What would you do?

0Reply
31 views

Most Popular Reply

Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y

What, exactly, does this PM actually do for you? Other than incurring a charge for every complaint from the one tenant? Sure seems like you're dealing with a lot of stuff and paying for a PM, too. Maybe time for a new PM.

I'd start by getting them onto new leases. If you're on month to month, give them whatever notice you need and put them onto a new lease. If they move, good riddance. Maybe you should bump the ones paying less up to the $25 higher rate. In the new lease, outline all the actual terms. Make the new leases month to month. That way, if you choose to keep them, its your choice. If you don't want the hassles, terminate their leases. Then there's no making a payment to stop the eviction. You're terminated. If they don't leave, evict.

See this reply in the discussion

11 Replies

Jump to latestLatest
  • property manager · Las Vegas, NV · Member since 2012 · 502 posts · 171 votes
    13y

    Sounds like time for a tenant boot camp. Hold their feet to the fire until they either change their evil ways or move out. Every property can be turned around if you hang in there. When they realize your not scared to toss them out, it usually calls the bluff. If they are going to stay, try and get them on your lease on renewal too.

  • Landlord · Dallas, TX · Member since 2011 · 63 posts · 7 votes
    13y

    Thanks for the reply Tiger. So are you saying you'd tell her no and see if she moved?

  • Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    13y

    What, exactly, does this PM actually do for you? Other than incurring a charge for every complaint from the one tenant? Sure seems like you're dealing with a lot of stuff and paying for a PM, too. Maybe time for a new PM.

    I'd start by getting them onto new leases. If you're on month to month, give them whatever notice you need and put them onto a new lease. If they move, good riddance. Maybe you should bump the ones paying less up to the $25 higher rate. In the new lease, outline all the actual terms. Make the new leases month to month. That way, if you choose to keep them, its your choice. If you don't want the hassles, terminate their leases. Then there's no making a payment to stop the eviction. You're terminated. If they don't leave, evict.

  • Durham, NC · Member since 2012 · 498 posts · 48 votes
    13y

    Or sell the property and the nightmare is gone.

  • Real Estate Investor · Hampton, VA · Member since 2012 · 562 posts · 109 votes
    13y

    Sounds to me like you have to clean house. I would start with officially notifying the tenants about new ownership and new leases based on your state/local guidelines and ordinances ( you may be able to find it online) In the lease you have to clearly state the rules/regulation and terms of the lease and put the tenants feet to the fire. You may also want to consult with an attorney, to ensure you are on the right side of the law regarding the processes, your rights as a landlord, leases and eviction process.

  • Syracuse, NY · Member since 2011 · 53 posts · 47 votes
    13y

    There are a lot of factors here. Are you covering costs the way it is now? How easy is it to rent during winter in your area? In my area I'd try to keep them on until March when it's much easier to rent properties. It's better to have slow payers in a building than to have a bunch of vacancies and have to pay the heat bill.

  • Rick BassettBusiness Member
    Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
    13y

    As others have indicated it probably makes sense to clean house of all the tenants and the PM. Dump the PM first as they clearly forgot who they are working for and then move through the legal process of moving out all existing tenants. Get rid of that chronic complainer first. Clearly the tenants are all talking to each other and their favorite subject is "Screw the Landlord 101".

    Clean the units up as each move out and put some lipstick on the curb appeal to attract a new round of tenants who all come in under the new rules/new lease.

    Bassett Property Management5108 Reviews
  • New York City, NY · Member since 2012 · 253 posts · 7 votes
    13y

    I agree with Xing Zhu is selling the building a realistic idea for you? Replacing all of the tenants sounds like a major hassle and just might not be worth it over the long haul.

  • Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    13y

    I would get tough with these four clowns and let them know that they will pay on time or move. Even if you end up evicting all of them, it will be late January (or later) by the time that all happens. By then, you will be right into the tax refund/almost spring/let's move season. I would let these dirtbags know that you mean business.

    As far as the lady deducting $25. I would send her a pay or quit notice today. If she doesn't send the money, I would toss her out first.

  • property manager · Las Vegas, NV · Member since 2012 · 502 posts · 171 votes
    13y

    Rob K supplied my answer. Get the notice filed.

    The PM you are using should then post January notices the day anyone is late. When it is clear you will be enforcing the lease terms, it seems to wake folks up. Good luck, hang in there.

  • New York City, NY · Member since 2012 · 253 posts · 7 votes
    13y

    Good luck Michelle Marty maybe a notice from your PM will get the tenants in line.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.