All Forum Posts by: Casey Crotty

Sound advice, Jennifer.  I've only scratched the surface in learning about it, and wanted to see what others thought.  Having relatively positive discussion thus far is making me think this is a good avenue to pursue, but I definitely want to get further educated on it before making a solid decision.  I have a strong appreciation for doing the up-front work to reap the long-term benefits.  Thanks for pointing out some references.

Thank you Steve, Kenneth. I should do a little clarification: I work in New Mexico, live in Texas, and own RE in Indiana. (Lots of travel time.) I used to own rental property in NM and may again in 2021. At any rate, the Sect. 8/HUD rules would be for IN. I did check the HUD website and am happy to say that what I charge for rent is right in line with the HUD FMR rates, so not much negative risk there. Honestly, about half of the tenants I currently have, have been true PITA's - so I'd be ecstatic to have someone with a little more leverage in my corner. We're in the process of escorting those folks out the door. My 2021 goals (beyond expansion) are to tighten up the screening/application process, review and decide on the Sect. 8 question, and do quite a bit of refinancing (who can pass up these interest rates???).

Again, I appreciate the feedback!

Thanks for the feedback, Dave.  Yes, much of what I read did talk about people could lose their status if they became "bad" tenants.  I appreciate the confirmation.

Hello all!  I have 13 units, mostly duplexes, and my goal is to increase by another 10 units in 2021.  It appears the COVID pandemic has hit some landlords pretty hard, and I am no exception.  With that in mind, and after reading Dr. Joe's post regarding Section 8, I'm considering two routes: first, applying for some of my units to be Section 8 approved, and second, looking at the commercial space.  For this post I'd like to focus on the Sect. 8 subject.  I've done a bit of reading on it, and there are pros and cons, but frankly it doesn't look like the "cons" are a whole lot different than if you're not accepting Sect. 8.  For example: risk of damage because tenants don't care since they don't own it; "problem" tenants; potential issues selling a building due to the stigma of Sect. 8 tenants.  So, after studying the materials, I'm now turning to the forum for practical advice and experience.  What has your experience been with Sect. 8 tenants?  If you have one piece of advice regarding this path, what would it be?  Any other takeaways?  Many thanks in advance for your time and expertise!

Nathan, I think you've missed some posts, but regardless I think what you're suggesting is at best distasteful and at worst bordering on harassment.

As I had stated before, I had told the tenants that if there was a medical condition that ruled them out from using feminine products to please provide a doctor's note.  Otherwise, each unit would be held 50% responsible for the bill.  An update to this is that I have now discovered that there are also baby wipes that were crammed down there as well, and only one unit has a baby.  I pretty much consider this case (in terms of whodunit) closed.  But now there's even more to the saga:

Upon going to sanitize the basement, it was discovered that the FRESHLY SNAKED PIPES had fistfuls - literally - of baby wipes crammed in the pipe.  These were just cleaned out by the plumbers so it is impossible that they were in there again, at least not at that volume.  The wipes were photographed and documented.  I think I now have my "willful destruction" case, because there is only one tenant with access to the basement, and it's the tenant in question.

Thanks to @Ryan B I did remember that I can now move forward with an eviction based on that, not just the rent issue.  However, I do not think that precludes having legal advice, so I respectfully disagree with Nathan's post.  I think the comparison of a couple hundred in legal fees vs a couple hundred in plumbing fees is rather myopic.  The broader issue, and the case for spending money on legal, is because of the very real potential retaliation/discrimination issue with this tenant. I think spending a couple hundred dollars on sound legal advice in this case isn't just prudent, but is in essence as close to an insurance policy as you can get.

I'm not a lawyer, but in my business role I negotiate contracts for physician groups.  I also investigate and defend physicians and medical groups against unfair insurance company practices in mediation.  I guess you could call me an "expert witness" of sorts.  Regardless, I have a healthy understanding for when and up to what point you can manage something on your own before you should turn to other resources, and I think I'm at that point with this issue.

Let’s take a step back, folks.

This is indeed a duplex. I cannot say 100% for certain who is causing the problems; I only have my suspicions. However, my leases do have the clauses regarding tenant-caused issues will be billed to the tenants. In this case, since it’s a shared system (at the point of the problem) both sides will be billed. 

I will be pursuing a 10-day notice for non-payment of rent, and will include the plumbing charges as well. I am reasonably confident of a couple of things: that the tenant in question will refuse to pay the plumbing charge, and that she will claim either retaliation or discrimination as her defense (neither of which are true and can be proven without a doubt). Since I can’t legally evict until after June 30 because of the IN emergency order, I’m using the extra time to get legal advice. It’s an expensive route but because I do think she’s going to play the retaliation/discrimination card it’s much better to go strictly by the book here. 

I appreciate everyone’s input here. 

Hi Sue,

I would agree with you except that I can’t prove that one tenant caused anything singularly. Both tenants were warned; both will have 50% of the bill. Both have been told that if there is a medical reason that they would not be using feminine products (and thus not be flushing them) to please provide a doctor's note for consideration. 

Hey Nathan,

Generally speaking I share your sentiment. However, IN is still under an emergency order so I can’t evict- yet. However, I can do a 10-day notice so when the order expires on 6/30 I can immediately get it in front of the judge. She will be billed half of the bill and the other tenant the other half, and along with the rent due (and other lease breaches) it should go in my favor. I do have to tread somewhat cautiously due to code enforcement being involved but I have everything completely done (with proof) so I believe I’m on solid ground there. 

Hi Sue-

I’ve already fixed the problem (plus a few more while we were at it), so I don’t think that’s an option. She said three times - THREE- “well if you give me my deposit back we’ll just go”. I called her bluff and told her if she’s out by 5pm Saturday, she’ll get her deposit less rent due, no questions asked. Well, after I called her on it she said that wasn’t acceptable. This is one of those tenants from hell and I’ll be glad to be rid of her. I’ll be checking in with the law firm Jeremy suggested and see what my options are. 

Hey Jeremy, thanks for the reply.

All of my units are registered with the City of Fort Wayne as required.  I can’t specifically say if they are registered with Code Enforcement.  One would generally assume that if they’re registered with the city then they are registered with a branch of that city, but you know what they say about assuming.

I am generally very good with the law, though my specialty is healthcare law (and in a different state at that).  I have reviewed the IN code and understand the three categories of eviction for the state.  This particular tenant has cause for eviction due to:

1. Non-payment of rent due, and 2. Three different breaches of the lease agreement.

Unfortunately and so far as I can tell, you can’t terminate a lease agreement in IN due to breach unless the tenant is specifically breaking the law.  Of course, you can terminate a lease agreement with 10-day notice due to non-payment, but it’s my preference to have a “back up plan” should they come up with the amount due.  In this instance, I want to know if the fact that they withheld a legal notice from CE to the Landlord would constitute an egregious enough offense to be able to evict.  If not, then I also want to know if the fact that they hid the sewer issue from me for at least three days, and without notice, would constitute “willful damage” to the property since I was not notified and there are other tenants that rely on that line to properly operate.

Thank you for the legal services reference!  I have contacted a group there in Fort Wayne and am awaiting a return call.  I’ll look up Perry Law as well.  

Regards,

Casey