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Updated about 10 years ago on . Most recent reply

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Anthony Gayden
  • Rental Property Investor
  • Omaha, NE
3,308
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2,030
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Lack of Sympathy

Anthony Gayden
  • Rental Property Investor
  • Omaha, NE
Posted

I started this thread because someone called me cruel for putting a tenant in eviction proceedings during the holiday season. This is after this tenant has paid me late for the last 6 months straight, and owes me over $1000.

I feel as though my past experiences have made me less sympathetic to my lower income tenants. I was there, not that long ago. I worked full-time at Wal-mart for 7 years. I lived in an inner city area, and struggled to get by. I was in debt up to my ears. After I finally left Wal-mart for a better job, I suffered a devastating lay off in the middle of the recession, and was unemployed for nearly 6 months. 

Throughout all of that, I never missed a rent payment, it was the first bill I paid every month. The most important.

I have very little sympathy with them, especially when my rents are below market levels, and I see them driving cars newer than mine. I see them talking on the latest smart phone, and I see their trash can is full of empty beer cans and cigarette packages. They are my neighbors, but they don't know I own the place since I use a property manager. 

They beg the PM to ask me for leniency, and I always say no. Is this normal? Am I just being a jerk?

  • Anthony Gayden
  • Podcast Guest on Show #21
  • Most Popular Reply

    User Stats

    238
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    230
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    Mitch Coluzzi
    • Investor
    • Des Moines, IA
    230
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    238
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    Mitch Coluzzi
    • Investor
    • Des Moines, IA
    Replied

    I think of tenants like employees. As an employee, you interview for a position. If you are the best candidate and meet all requirements, you are awarded the position (become a tenant). As an employer I will outline a basic job description (lease) which I expect to be followed... If, as an employee, you deviant from those guidelines or fail to perform at your job duties, I will give you a warning. If that warning is not heeded or your job performance continually declines... I will be forced to find a new employee.

    The first month of employment sets the tone for all months thereafter. All employees must be trained, as the boss it it is my responsibility to advise you on my expectations and ensure any questions are answered.

    Because I have many employees, I have to apply consistent practices. If I allow any of my employees to show up late (pay late) or work short weeks (partial payments), others will expect the same treatment.  

    That said, I provide a safe and stress free work environment. I take care of all problems at the workplace quickly and professionally. In return for my respect and consideration, I expect my employees to perform their job duties (pay rent, follow the rules).

    Be a good employer, and people will WANT to work for you. You will have people who think you are a tough boss, sometimes you may even believe it... but in reality you are doing your job and keeping your employees on track.  Firing someone is NOT an enjoyable activity, but it can be a necessary part of business.

    Parting Wisdom:

    Remember why you are in business: for most your goal is to make money for the company AND provide a reasonable service at an affordable price. Having bad employees or being inconsistent is not a good way to accomplish that goal.

    Now, if enjoy being a non-for-profit company, by all means do the good work... just be aware you will under-funded, working for donations, and relying on volunteers... The good news is, you will not have to worry about paying income taxes!

    Be Firm:

    Employ a pay or quit strategy. If you do not have rent in hand on the due date, serve notice and follow-through. Tenants will respect you for this instead of walking on you. Remember, this is YOUR company, whether you have one unit or five thousand you owe it to yourself to manage it properly.

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