When shopping Landlords, what are the biggest red flags?

Question

Hello Everyone,

I am a HCV/Sec 8 renter on the threshold of leaving my (cherished) property manager of nearly ten years for a new home. Over the past decade, I have become accustomed to a high standard of landlord excellence; they are the acknowledged best in the region and we really loved working with each other.

My prospective PMs have a very different reputation, but they also have my house. In the process of attempting to close this deal, I have been made uncomfortable more than once: starting with this otherwise immaculate property failing inspection due to electrical code compliance.

While that was a bummer, it wasn't anything that $75 of GFCIs wouldn't handle. What was odd was that the owner flatly refused make the repair, and the PMs suggested I could take care of it out of pocket.

I have never had such a request made before. I wasn't opposed, but I wondered if it augured the start of a long adventure of unanswered maintenance calls, surly managers and assiduous documentation. I haven't ever had to do That before either; but I know in my town, more PMs have reputations like these people than my current landlords.

For this property, I think it might be worth it. But the problem with being crazy in love, is that Crazy is often a big part of it. I can't let emotion cloud my good judgement.

I've severely truncated my story, as I am more interested in listening than talking, so please what Landlord behaviors do you find to be deal-breakers, and what ones do you just shrug off?

Rob K. · Answer

Have you asked your current property manager (that you really like) if they have any other houses you could rent? Then you could get the kind of house you want and keep the same management.

Shelley Hilton · Answer

This is a good point.  This was probably a college roommate rental up until now, he could very well be done with spotty occupation and student hygiene.

Shelley Hilton · Answer

@John:
What confuses me a bit is that by the time this deal fell apart, I had already been accepted. The meticulous and well-done updating that could be found throughout the house made all parties involved feel that the inspection would be the merest formality: keys on Friday and all that.

My sense of the owner situation is that he had a complete rewire planned for some years down the road, and is feeling mulish about having his hand forced. He isn't going to be told what to do, and he'll eat rent than do so. This is Montana, where a landlord's representative  once famously said, "Some landlord-tenant issues can only be solved at the point of a rifle."  However, my impressions are based on hearsay, so I am not sure.

The thing about Section 8 is that just as I am simply not permitted to be a bad tenant (as if I would!), I am also not permitted to be taken advantage of. The Housing Authority made it quite clear I could and should not pay for things out of pocket when I don't even have a lease, but that improvements to properties may be offset by an increase in rent.

All my family thinks I'm nuts to want to continue working with these people, but I truly love this house. The best advice the HA had for me was, "You know what it's going to be like trying to get maintenance done or anything else, but maybe as this property is so well-done it won't be an issue," which was sort of my square one position too.

@Steve:
I do not have a complaint per se, I am just hoping for a landlords-eye view of what policies are 'Well, that's life in the big city' versus 'Unethical and probably illegal, run now!', not necessarily just pertaining to this situation, but to be a better informed consumer.

@Rob:
I wish! But not at this time, and my voucher time window is rapidly closing. I was hoping to have this settled before I needed to register my daughter for Kindergarten. A little unnerving to be this close to the wire and not sure where your home school is even going to be.

Steve Babiak · Answer

There is another thread that has a somewhat similar topic; on that thread I have a post where there is a landlord review site. The site I posted there seems relatively new, but maybe there are others you can discover.  Feel free to give a review of the landlord you're leaving there.  And read the comments on the various landlords being reviewed, to pick up some of the problems that tenants encountered.

http://www.biggerpockets.com/forums/81/topics/84496

John McCombs · Answer

Your story may help us as landlords and investors to answer the same question- what do we find as deal-breakers?  The answer will be just as different for every investor, just as it would be for every tenant.  Is this tenant a good match for my property?  Is this landlord a good match for my needs as a tenant?  Although my experience is not in Section 8, I do often need to find a match between each house and a tenant for that house.  There is still a risk both for the tenant and for the landlord when you sign a contract.  I can definitely understand your reservation about a landord who doesn't want to install a gfci.  Is this landlord living closer to the edge than you, a Section 8 tenant? Is he/she unwilling to spend anything on his properties because he/she is out of balance and won't respond to basic human safety concerns?  Is this landord only fed up with regulations that he/she believes have no merit?  (The Section 8 "Bible" recommends the bare minimum rehab) Maybe the landord hopes that someone loves the house enough to invest just a little of their own money/effort to partner together on the landord/tenant partnership?  Maybe this landlord has been burned by so many tenants, he is hoping to find one who is willing take an extra step before releasing his/her nest-egg-house to another person.  Who knows?

When shopping Landlords, what are the biggest red flags?

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