All Forum Posts by: Amy T.

Pretty sure I was looking for advice, not a lecture. I’m quite aware of the shoulda coulda woulda’s involved here

we have done this. Unfortunately it didn’t pan out. The renter basically stopped maintaining the yard and if you arent doing a drive by regularly you won’t know. It CAN work I m sure, but didn’t for us. 

Yikes! How do I change it so my first and last name dont know up with my posts! 😬

Bear with me. These things are always a bit complicated. Our rental is a triplex in California. We had a new tenant move into the middle unit about a month ago. Tenants on either side have lived there for 7+ years. Tenant on one side, we'll call her "Smokey" has been causing issues. When Smokey moved in we had low quality applicants to choose from. We knew she was a smoker and agreed she could smoke outside the unit. We put no smoking clauses in her lease in several places. At some point along the way we knew she had started smoking inside, but the damage was done and she was paying her rent on time so we ignored it. She also got a small dog sometime over the years. We had long time renters in all 3 units who didn't call us for anything so we didn't immediately become aware of contract breaches. 

About a week after the new tenant moved in I had to go over there for something. When I was in the unit I smelled cigarette smoke. I contacted the new tenant and told her she signed a lease that it was a no smoking unit and she needed to abide by that.  She told me she actually wanted to talk to me about that. That she didn't want to make waves in her new place, but that it was actually the the other tenant "Smokey" causing the odor and that she was worried about her kids breathing it in.  

So we sent Smokey a letter reminding her of her lease agreement to not smoke inside the unit and also let her know that we were adopting a no smoking policy for the whole property which would take effect in 30 days (which we could do per CA laws).  Well Smokey flipped her lid and started a verbal attack on the tenant, yelling profanities at her through the walls, out her window, etc and at one point yelled the threat "if you F with me I'll F with you!". And continued to smoke heavily in the unit. Sidenote, we arent sure what has changed in her behaviors because we didn't smell the smoke in the other unit for years, but now we were smelling it heavily. We also knew she was a bit kooky, but more of an annoying talk-your-ear-off kooky. We had never experienced any hostlity or issues like that.

When the new tenant called us about the hostile environment we went over to the property immediately. The cigarette smell was nauseating. Smokey was being loud, but no longer yeling obscentities. Still my husband went over and spoke with her. She was intoxicated and denied everything. 

Our new tenant told us she didn't think she could stay there anymore. Between the smoke and fearing what the crazy lady might do. We told her we understood, and when she asked about her lease we told her we would let her out of it. 

We followed up with Smokey (who is on a month to month lease) with a 60 day lease termination (CA law we have to give 60 days if they have lived there longer than a year). We told her she had 60 days, then followed up with a 3 Day Quit notice which told her she had to quit smoking in the unit and get rid of the dog within 3 days. There is more to this part of the story, but my main questions right now have to do with the new tenant who moved out.

I just met her to do the walk-through and she told me that she wants us to pay for the cost of her moving van, babysitter she had to hire when she moved, moving boxes, and I am not even sure what else at this point. I was completely blown away at her demands. We had no control over the situation and did everything in our power legally and ethically to mend the situation. I don't even know if we had to let her out of her lease or not but felt it was the right thing to do. 

Can she come after us for her moving fees? I'm afraid she is also going to try to get us to pay her storage fees and who knows what else.  I think she may try to say she didn't stay there a bunch of nights because of the smoke and yelling that took place before our knowledge of the issues. To the best of your knowledge, what (if anything) are we obligated to pay for? 

Also, she was pretty much out of the unit yesterday but left a headboard in the patio that she said a friend is coming to get later today. When I am prorating her rent do I count her still being there today since she left a big item? I know I sound petty, but at this point I am not willing to give her any freebies after her demands.

Sometimes I really hate being a landlord...

Thanks all. We're looking into the 20 year :)  

Thanks everyone. 

Andrew - we're not taking any cash out, so no reserve. Our goal is pay down, pay down, pay down.  We have taken cash out in the past to invest in another property and that deal went bad (good riddance 2009). We have a chunk of equity in the property, but not as much as we should had we not pulled cash out way back when. So we are less likely to leverage this property again. If all goes as planned and we get this paid off in 15 years, the cash flow could be half our retirement. 

We have a tiny reserve built by rental income- maybe $3k. We have been putting extra on principle.  I have just returned to work part-time so we can build up a reserve, but would obviously rather that go to kids college tuitions (only 3 years away) than rental, but it will be there nonetheless.

Thank you for your opinion Andrew.

Matthew - we already own the property, we are just deciding on our refinance (which we need to do, it's currently an adjustable rate and we want a fixed rate before rates go up). Right now the rents cover the monthly mortgage and then some. I always pay extra on the principal. It's just a matter of how much a lower interest rate is worth, and how tight do we want to make our payment with income to get that lower rate. We want the best rate possible but don't want to get ourselves in trouble by not having much cushion. We should be able to handle normal repairs and the occasional vacancy without it causing a big financial burden. 2 of our 3 renters have been there 6+ years and we have 1 brand new renter. 

We are self-employed and we hope this property will be a big part of our retirement income. So getting it paid off in 15 years would be ideal (we are 41 and 45). 

We just found out we qualified for a 15 year refi @4 % on a 2 unit property (it's actually 3 units but it's on the records as 2). The monthly payment would be almost exactly what the rents bring in. So any repairs, any vacancies, etc will be out of pocket...until we raise the rents. Our rents are under market value by about 20-25% so we have room to raise them over time. However, it feels a little risky because the rental market could tank and we may not have much of a cushion. Another option is to go with a 20 year loan which will lower the payment by approx $500/month. We could keep our plan of paying on the 15 year schedule unless something catastrophic happens (rents tank).  The trade-off is that the loan would be at 4.4%. So we end up paying a lot more interest over time. 

We live in, and the property is in the california bay area, so we are talking about a large chunk of money. 

What would you do?  

Complete newbie here (first post even!), but why not hire a stay-at-home-mom seeking P/T work to answer and return those calls, collect information, and if it's local have them do a drive-by of the neighborhood and house and take some photos for you.