All Forum Posts by: Cory St. Esprit

Is it worth keeping a problematic tenant who will likely cause you to lose other reliable tenants? This will happen sooner or later. Then you’ll find yourself with a vacancy anyway. Obviously, this is what you hoped to avoid in the first place by keeping the troublemaker. So it’s not worth it.

I’d politely decline to renew once the lease term ends and find someone new.

Thanks. That's what we ended up doing. She's going to stay until the end of the lease term, which is nice. Funnily enough - since she got the notice, they've been the perfect tenants (but I'm not letting it change my decision).

1 Vote

Pittsburgh, Pennsylvania

Update again: Notice sent and they're packing up their stuff to leave today. Apparently offering them to leave early without requiring rent, they decided a few hour notice is a good idea haha.

1 Vote

Pittsburgh, Pennsylvania

Quote from @Dan H.:

How long have you owned? The reason I ask is at that rent point there is no profit on a sustained hold. this is regardless of furnished or not.

if you do not get rid of the tenant, the situation will degrade. Easy decision to get rid of these tenants.

More difficult question that was not asked is do you get rid of these tenants property and I think that is as easy a question. Managing units is work. You deserve to be compensated. Owner RE has work and risk. These deserve compensation. Your cap ex will catch up with you. Sell before it does.

Good luck

Not even sure what you're saying - sorry. Why would I sell it? I enjoy owning it.

0 Votes

Pittsburgh, Pennsylvania

Thanks for the advice, all! Non-renewal notice sent today and posted on their door, allowing for them to leave anytime between Feb 1 and March 31 with a refund of their rent on a per diem basis (if they've paid for that month).

1 Vote

Pittsburgh, Pennsylvania

Quote from @Jamie Dietz:

That seem like a very low for a furnished rental. I would not offer furnished rentals in lower income areas. I think that strategy works best in higher areas or mid term rentals near major employers.

For the furnishing, it was because the previous tenant we were helping support as she got out of an abusive relationship and a crisis pregnancy. We helped her move to PA from FL, provided a furnished apartment at a reduced rate for a while, etc. However, her life changed and she only stayed for the first year. So, instead of spending the time to move the stuff out of the apartment, we offered it as furnished. If it wasn't for the fact we used it as ministry to support this young woman prior to this tenant, I wouldn't have done it.

1 Vote

Pittsburgh, Pennsylvania

Quote from @Gregory Schwartz:

Quote from @Cory St. Esprit:

Quote from @Gregory Schwartz:

Late rent plus lease violations. For me, that's a non-renew.

But I have to ask, is this unit attracting this kind of tenant?

The area is a rougher area (low-income, Class 3 city about 40 min outside downtown Pittsburgh, many drugs in the area, etc.) - but the other units have great tenants who take care of the place, are quiet, etc. One is a very long-term tenant (18 years) and the other for 2. They plant flowers, keep the yard nice, and I really enjoy them. I have my offices for our restaurants/real estate in the fourth unit, since it was a commercial space. I won't lie - I can smell the marijuana on certain days as well.

Ok so its harder but not impossible to get good tenants. I'd non-renew them for sure and find someone who will respect your property.

Should I not do furnished anymore? I feel like after this tenant - the stuff may be in bad condition.

0 Votes

Pittsburgh, Pennsylvania

Quote from @Gregory Schwartz:

Late rent plus lease violations. For me, that's a non-renew.

But I have to ask, is this unit attracting this kind of tenant?

0 Votes

Pittsburgh, Pennsylvania

You say 10 year note, but your photo shows 30. That’s a big difference. You have no vacancy scheduled in nor repairs. If you can find $1,500 insurance for a quad, we would all love to know that broker.

2 Votes

San Antonio, Texas

One of my units is a furnished 2 bed 1 bath apartment for $800 a month. Tenant has been there 10 months and lease is up March 31, 2025. City recently did a building inspection and we noticed the tenant is smoking in the unit (cigarettes and marijuana), food waste everywhere leading to building pest issues, and there are 5 people living there now (3 adults and 2 kids). We only knew of 2 adults 2 kids and unit occupancy is only 4 per the city. The city however did not pick up on this. Tenant is often late on rent but always pays. We get noise complaints from other tenants.

Please tell me I’m right for not wanting to renew the lease. Someone told me I’m crazy since they still always pay.

3 Votes

Pittsburgh, Pennsylvania

Quote from @Cameron Marmon:

Quote from @Cory St. Esprit:

I guess the first assumption is - you still have the asset under the entity right? As in the entity is the name on the deed? If so, I would consult an attorney on the best way to proceed forward. You can typically change the way the entity works - may or may not make a tax difference, but you're only 6 months in so I imagine you're showing a paper loss anyways?

Hi, Cory. Yes, we still own the asset in the entity and the deed reflects that. Yes, we will have a loss for 2024.

Then it should be easy enough to have your attorney just change it and pay any required taxes/fees.

0 Votes

All Forum Posts by: Cory St. Esprit

Cory St. Esprit has started 20 posts and replied 88 times.

Post: Would you renew?

Post: Would you renew?

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Post: First deal (thoughts?)

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Post: Did I mess up when establishing this LLC for my wife and I?