11.16.13 Tenant Tailspin
Currently living through our third terrible move out of the year.
What would you do in this situation? How long would you let this train wreck continue?
One of our tenants lost her job in the spring due to a fast food restaurant closing down. We waived half of April rent to give her a chance to get on her feet. We assumed she could get a new job quickly (since several fast food restaurants were hiring), and she told us that unemployment was coming, held up by some paperwork glitches with the owner.
We found out much later that she didn’t fill out the paperwork to get her unemployment sorted out. My husband even offered to sit down with her and help her as things deteriorated. She didn’t find a new job. She got more and more depressed.
Partial rent trickled in May through July. Not enough to stay caught up, but enough that she wasn’t more than $1000 behind at any one time. She had been renting from us for a year and half, which sadly is one of our long term tenants, so we wanted to work with her.
In late July we still thought the unemployment would come through, but we were ready to move toward ending her tenancy. She told us that she and her kids would move into a tent in a friend’s backyard whenever we said the word. Playing us? Maybe, but she moved into our unit from a garage, so maybe not.
Her next move was to attempt suicide. In our unit, causing damage to our doors and windows as rescuers broke in. At this point we realized this would not end well, but didn’t think it was a good time to kick her out.
In August the rent money stopped coming in altogether. And the unauthorized occupants, vehicles, and pets arrived. Once she stopped respecting the rules of the rental agreement, I was done, but my husband held on a few more months, knowing this would be an expensive move out and holding out hope that she would pull her life back together.
When we went to serve the final 3 day pay or quit, we discovered that she had moved out but left her kids. A call to CPS; they knew her well. About a week later we were able to get her, her belongings, her family and guests out without going to court. Her parting gift to us, though, was painting every interior wall in the entire unit spearmint green.
In hindsight we could and should have reacted differently, taking our losses sooner. We seem to say that every time. Hopefully we won’t become completely callused to the problems of our low income tenants, but boy do their circumstances stem from their poor decisions.
Comments (9)
Everyone has their own vision of what they bring, but just have caution when it comes to helping up, and not enabling, bad decisions and bad behavior.
Lisa Phillips, about 11 years ago
Very tough situation - hindsight is always 20/20.
David Rundle, about 11 years ago
That is a tough situation to be in. As investors we are more than just Cap rates and ROI, we truly do care about our tenants. However we do have to be firm. I had to ask a tenant/roommate to move out. When asking where he would be staying, he said his car, but I held my tongue and stuck to the plan. It was for the best.
Alex Anderson, about 11 years ago
We intentionally bought in the low income neighborhood, we are in it for more than just the financial return. We are managing our rentals to a 10 cap rate, but also working to impact change and revitalization in the neighborhood, and often giving borderline applicants a chance. Even several of our most solid tenants lost their stability in less than two years; it's a tough market. It's easy in hindsight or as an outsider to come up with a different approach, but I'm at peace knowing we tried our best to keep a roof over her kids (including driving her around town to get connected to support and resources), without dwelling on the $2-3K it cost.
Michele Fischer, about 11 years ago
I would have kicked her out before suicide, but even after, I now stick to the rule of the rental agreement, so everything would go according to the rules.
Lisa Phillips, about 11 years ago
I agree with Dawn. Tip to the original poster: Keep it business. But, I do get the feeling since this is a continual issue with you, you and your husband are the type to take on strays, even if they bite. I don't think thats a good outlook to have in business, though.
Lisa Phillips, about 11 years ago
If she tried to commit suicide, that is a cry for help. She needs help, and enabling someone like that is not helping.
Dawn Anastasi, about 11 years ago
I think I too would find it hard to evict someone after they had attempted suicide.
Sekelle O., about 11 years ago
Unfortunately, this was definitely a situation where she should have been kicked out back in May. She made her problems your problems.
Dawn Anastasi, about 11 years ago