Inheriting tenants! How much can I expect them to change?

[Tyler Kortz]

First bigger pockets forum post so thanks in advanced for any advice!

I purchased a 3 unit about a month ago and have turned over 1 unit, will be turning over another Jan 1. Rents were significantly under market so I am turning over in order to raise rents. The last tenant is month to month and would like to stay even with the rent increase however she is putting up quite the fight about how she pays rent. I told her by Jan 1 2021 we will no longer accept check or money order - Only credit/debit or ACH through our Managment software. Her argument is the fees she will incur by paying with these methods. Do I eat the fees just for this 1 tenant just to keep them happy? My only thing is I want to be consistent and keep a firm hand on my properties. (ie. where does the softness end) I almost feel like saying this is how it is matter of fact. I am also requiring the signing of a new 1 yr lease to incorporate rent increase, late fees etc. Am I asking for trouble with this tenant or do I tell them we won’t be renewing their lease?

Thanks!

[Todd Pultz]

@Tyler Kortz this is only my opinion, so hear it for what it’s worth and ignore it if you don’t like it. I know a lot of people on bigger pockets talk a big game and tell us how hard they are and rule their tenants! (Exaggeration) but, that is not how this game is played. Real estate is about relationships and you will make it further through developing those even with your tenants. We run less than a 3% vacancy annually with the majority of our units and units we manage for others in challenging C areas, but it’s because we treat our tenants right! We provide them with as many options to pay rent as possible with our Buildium software being our preferred method through credit card or ACH. But they can also drop their rent to our office, they can mail it to our office, they can pay through various retail branches. For gods sake, if they want to send it through a freaking messenger pigeon, I’ll take it.

Your being a bit stubborn and in my opinion setting yourself up for failure long term. If she is paying tenant and not a problem, give her the ability to pay rent how she needs to as there are so many options. If she’s going to bring you a money order, she can take that same money order and deposit it in your bank account

Arguing over not taking a money order is a waste of time and counter productive. I think I read your increase correctly and it works out to like over 2k extra a year? If that’s the case, and you won’t spend that turning the unit and evicting, then stand your ground, but remember what your sworn testimony to the eviction judge is going to be...............judge: “sir do you affirm the tenant is delinquent in rent in accordance with their lease.” YOU: “yes your honor, they are delinquent because I refused to take their rent in the manner they wanted to give it to me after I bought their building and immediately raised their rent a few hundred dollars without making any improvements to their unit because that is the advice on bigger pockets and everyone on bigger pockets said I don’t have to take money orders if I don’t want to and tenants will get in line if I send them a firm letter and stand my ground”

Just my opinion!