All Forum Posts by: Adam Martin

I would also need a before picture to have something to compare to but based off of these I'd say I'd keep them.  You specifically ask if I would renew them though and I wouldn't, however I'd let them stay m2m.  If issues come up I could non renew at any time and this would give me greater leverage if things were to deteriorate further, it isn't like you are worried they will leave with no long term lease.  There is a difference between filth and clutter and this just looks like they have a bunch of junk they can't let go for some reason.  If there was rotting food or trash everywhere I'd have a different story which is why the before would be helpful if that is what they got rid of they are out.  

If I had a tenant that just fell on hard times and couldn't pay I'd probably take a shot at it but if a professional tenant slipped through I'd fight a pro with a pro and hire an attorney.  If you do end up needing to go to court I'd suggest stopping by over at the courthouse to watch some cases play out to get a better idea of what to expect and the overall attitude of the court.  Honestly I want to do this out of curiosity but just haven't prioritized it.  

This is a 2 part answer, pay attention to the first, the second is a joke but it does make it more interesting since they are paying for only a room which opens up temptation, don't fall for it.  The first thing I would do is issue an official notice stating how much they owe as well as a lease termination and if they don't pay it within the period prescribed by your state and leave they are being evicted and or sued in small claims for the past due rent.  The second is let them know that you fully intend to go through with the eviction however if they can be out by next Sunday you will cancel and forgive all debts.  You aren't going to see the money anyway but remind them that finding housing after this is going to be next to impossible and staying is just kicking the can down the road which may be a long one for them with an eviction on their record.  If this doesn't work then file the eviction and be sure the proper documentation has been served officially.  Since they are only renting the room you are able to have your brother move on in, if possible have another sibling move into the 3rd bedroom as well mostly just for a second set of eyes.  Go through the process and don't fall into the temptation to fall into a self help eviction and end up having to pay them money.  If you all don't move in I'd install locks on the doors to empty rooms with cameras you can monitor remotely, you don't want them moving in any extra people or having extra space to damage.  

Part 2 the fun one: Don't do this.

They are only renting a portion of the house, still have 2 or better all 3 siblings rent the other 2 rooms.  Still file the eviction but a persistent reminder to leave at every passing, maybe even one of those retirement countdown clocks until the eviction hearing.  The common area is for the common good make sure you all get to enjoy it.  Does anyone like anything weird because maybe you could share your interests on the common tv.  Everyone needs basic nutrition and the average American is deficient in many nutrients that can be found in fish.  Cook plenty and don't be so picky with your leftovers where you are free to microwave them for a quick on the go bite on the way to wherever you are going to get out of the house.  Same with broccoli and brussel sprouts that stuff is great for you.  You may also want to broaden your pallet and experiment with certain ethnic dishes.  They have decibel readers on Amazon and counties have noise ordinances, don't go over them but it is not illegal to go right up to them.  If parking is at a premium, make sure that you all are getting the best spots.  What does your state/county say about hability standards and temperature because a nest thermostat may help you all pay utilities if they are in your name, don't go below or under the legal limit and don't risk your pipes.  Also, a lot of hot water heaters can be turned down where there is still hot water but not a lot to save the environment and your utility bills.

Really though it is fun to fantasize but keep it at that and it sounds like this person is either in a bad situation themselves or taking advantage of yours.  File the eviction and the process there aren't any shortcuts outside of cash for keys which is another avenue.  Is this person working because this may be the route to go if they have no income and no ability to leave but assuming they are working offer the clean slate leave first and see what happens.  

There is only 1 way which may be quicker and legal and while it hurts pride and defies all reason of fairness you could always tell him you’ll give the deposit back if he just leaves by a certain date and leaves the house in good shape.  This is done in conjunction with the 3 day pay or quit and if he isn’t out let him know the eviction is going to be filed same day. You may ultimately be out less money and time this way.  Otherwise if there were legal shortcuts  we’d all use them instead of eviction.  Try to get him to reason that he can either leave with some cash in his pocket or get kicked out by the sheriff with nothing and from there it will be almost impossible to find housing for the kids.  Under no circumstances do you give the money before you get keys.

Also in the future if an applicant can’t get utilities in their name  that is a huge red flag and you are almost 100% going to have this same issue.  If they don’t pay utilities they probably won’t pay rent at some point

Vacancy is a killer for profit but is something that we have to plan for.  Rarely can a qualified tenant rent today as they usually have to give notice to their current landlord or are relocating and not waiting until the last minute.  If someone is looking to move ASAP that is normally a huge red flag.  I'm assuming they want to move in on the 1st, often I remind tenants how much effort it is to move and let them know it is going to be hard to do in a day especially if you need to clean and try to get your old deposit back.  I'm a big fan of splitting the difference and frequently have leases starting on the 15th so they have a couple weeks to move and clean.  I'd say I'm about 50/50 on acceptance of this but if not I'll hold for a few weeks no issue but never longer than a month and that's only if I find someone to start on the 1st of the following and I get it rented fast.  I collect first month's rent and the deposit ASAP and the house is still on the market until I get the funds.  While I don't advertise this up front if they turn me down on splitting I'll still offer to let them move in the weekend before the 1st to give them time and also get the house occupied and utilities out of my name earlier.  

There are plenty of people who have been able to start a career with nothing more than drive and a dream so I'll let them post how they did it however I'd wager that they are the minority and the hard situation is this is a cash intensive business.  That doesn't mean it is hopeless though and there are plenty of things you can do.  The first and probably least popular for the servers I know is it is a cash business and historically tips are underreported to save on taxes but that also makes qualifying for loans tricky so you need to make sure you are claiming tips.  House hacking is the way I would start to buy a home to live in and then rent it out and start fresh after you have the reserves built up to do it again and rinse and repeat.  If you get some roomates you may be able to live rent free or close to it to help you save for the next one.  You say you are motivated and have the time, just no money.  I'd spend this time making money the traditional way.  Many restaurants are understaffed so I suggest picking up as many shifts as you can to bring in more cash for down payments and emergency funds.  I have never understood why tips are based on 20% of the meal but that is where we are so I play along.  That said though paying 20% for 25 worth of wings and beer with my friends is much more manageable than spending 20% taking my wife out to a nice $100/$150 dinner and really that is low compared to some restaurants I just can't see myself going to.  Keep your eyes peeled for restaurants that tend to have higher prices and maybe you can make more money working the same amount of hours by just changing location.  Fun and exciting podcasts and youtube videos make this seem like a get rich quick scheme using nothing but other peoples money however for the majority of this it is a build considerable wealth slow and overtime it grows exponentially.  I don't want to take the wind out of your sails and as mentioned think house hacking is the way to go and something I suggest to a lot of people in my circle looking to start out and wish you the best of luck.  If you already own look into the numbers to see if it would make a good rental and if so you are already started, just find a good one to move into.  

Accidents happen however that does not mean there are no consequences for them however this is exactly what insurance is for. It sounds like their car is in bad shape so assuming they have insurance this is going to be covered and outside of their deductible they already have to pay they aren't out any additional money.  Before pushing it I may just have a conversation making sure they are ok and asking what their plan is with their car and if their insurance will cover it.  If so ask who it is through and once you get this let them know that they need to add your fence to the claim.  

I feel like they are going to fall into the category of their income is not verifiable and I require verifiable income of 3x rent.  I also run a background heck and feel that prostitution is one of the ones I would pass on.  If however they have verifiable income and work out of a legal brothel outside of Vegas and everything else checks out I’d rent to them.  

Also  just out of curiosity how do you know they are prostitutes I’m really just wondering how this came up.  We’re they upfront about it, did it come up in the background check or did you just recognize them from the corner.  

I always give the copy since they are in the bag from Home Depot and shows they are new.  Buy kwikset smart key locks and changing the key is fast and cheap where you can change the locks in under a minute per door.  

I'm seeing more than a couple strikes here which make me really want to question what is great about her outside of the 6 months of guaranteed rent which is great but may be just kicking the can down the road.  Getting evicted and having an eviction filed against you 2 different things.  Things happen and I get that they were in bad circumstances however they actively chose to freeload and not leave causing the eviction to have to go through and most likely pushed it until they were removed by the sheriff.  Maybe if it was a long time ago and they had a good job history and credit it wouldn't be as much of a risk but they are getting a new job that who knows if it will work out.  They are currently moving, have you asked why as I'd be very suspicious that they are being evicted.  I'd wager they have told you they are paying cash so you can't double check, they are not.  This is a house hack so you are going to be living with this person so I'd be more vs. less strict.  It will be stressful evicting a tenant.  Multiply that by a significant multiplier when you are evicting someone under the same roof that you see every day.  Vacancy is expensive but part of the business however I'd rather not being getting paid for an empty unit I'm trying to fill than take my chances and end up with not getting paid from a tenant who won't leave.  Also if they got evicted once there is a decent chance that was not their only offense.  If you look at most any post about a problem tenant there is always at least 1 person who will quickly recommend cash for keys where you pay them to leave. They get away with a clean record and money in their pocket with no warning for the next victim and have been conditioned to try it again. 

While I wouldn't take the chance on this one there was 1 time I did rent to someone with an eviction a few years prior and it worked out fine.  He was a Marine stationed in CA and when he got out he subleased and they did not pay.  He had moved so he never got the notification but his address verification checked out so I took the chance.  They stayed 3 years and bought a house.  This was early on as a landlord but even though it worked out I probably wouldn't do it again. I did fine during Covid but it has really made me take a harder look at my screening and upped my standards.