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All Forum Posts by: NA Burkart

NA Burkart has started 4 posts and replied 22 times.

Post: Tenant sublet house without permission...

NA BurkartPosted
  • Investor
  • Cedarburg, WI
  • Posts 23
  • Votes 4

Thank you  for all your replies.

@Robert Melcher I did obtain written signed notice for her to vacate on 03/22/16.  I then found out she had already sublet the house prior to my closing on it.

@Colleen F. In WI, because I own the house, WE Energies was notified that I was new owner.  The tenant had cancelled service, so the bill came to me.  This is common upon the sale of a home in WI.  Also correct, she did not profit.  As far as advising on a contract that I am not a part of...The contract involved my property!  He (tenant B) had no standing.  However, I wasn't about to just kick someone out who had been fooled.  We worked out a verbal agreement.  He has already moved out.  

@James DeRoest  That was exactly how I saw this situation.  The subject she rented to the house to had no legal standing to the property, for the lease was not valid.

@Matthew Kreitzer I spoke with my attorney today.  She believes that once the tenant attempts to file and finds out it will cost about $300 to file and have serviced she will probably drop it. 

Thanks again for all the input!!

Post: Tenant sublet house without permission...

NA BurkartPosted
  • Investor
  • Cedarburg, WI
  • Posts 23
  • Votes 4

I am looking for opinions on this scenario. A fellow investor was looking for some cash for a new investment. I agreed to purchase a SFR from him. It was tenant occupied, managed by a PM that I knew. A good cash flowing property that is in my wheel house of an area. I closed on the property 01/04/16.

I spoke with the tenant numerous times, all was well. The lease was ending on 02/29. We discussed options and she wanted to move out 03/22/16. The agreement reached was she would pay $650, a proration of the month, and turn over the keys on that date. This discussion took place early January.

Then I was unable to reach the tenant. I had appointments with my handyman to do some work, she was unavailable. Finally after a week, I stopped by and knocked on the door. A male subject answered. I asked for the tenant. He stated she was not there and he was the new tenant as of 01/01/16. He produced a lease that my tenant created and signed. She placed an ad on Craigslist and rented the house for $150/week. (A lot less than she was paying)

Fortunately, the person she rented to was a good guy. I advised him not to pay her, for she broke the lease that was in place. I also advised him not to pay me, I did not want him to have any standing to the property. He took very good care of the property.

I spoke with my attorney who advised the tenant broke the lease and therefore forfeited the security deposit.

After numerous discussions with the original tenant I learned she had family issues and felt that was her only option. I honored my agreement with the the original tenant. I was as understanding as I could be. She did not pay the full agreed amount for the the month of March. I deducted that amount and the amount of the gas/electric bill from her security deposit. Check and detailed letter was mailed within the 21 day period.

Original tenant called very upset and is threatening to sue not only me, but the tenant she rented to. She is saying that I was wrong to tell them not to pay her. So she wants over $1000 from him and double damages for the deductions from her Security deposit and gas/electric bill…she said the current tenant should be responsible for those charges.

I was very calm during our discussion, but told her I regretted sending her anything at all. I referred any and all contact to my attorney, who is not working at this time. (Otherwise I would call her)

Opinions? Ready Go!      

Post: Eau Claire, WI Roll Call

NA BurkartPosted
  • Investor
  • Cedarburg, WI
  • Posts 23
  • Votes 4
Blayne Midthun Casey Kooiman sorry Blayne, I read Casey 's post and I confused it with yours.

Post: Eau Claire, WI Roll Call

NA BurkartPosted
  • Investor
  • Cedarburg, WI
  • Posts 23
  • Votes 4
Welcome Blayne Midthun I am from EC and now live north of Milwaukee. I have several units in Milwaukee as well. Are you using a PM for your Milwaukee properties and what area are they in? I have been looking for a duplex in the EC area. I still have family in the area. In fact I'll be up there next weekend! Good luck!

Post: Buy & Hold in Milwaukee

NA BurkartPosted
  • Investor
  • Cedarburg, WI
  • Posts 23
  • Votes 4

@Garnett Broy   Let me know when you are coming to Milwaukee.  If possible, i could meet up with you and look at the listings you have narrowed down.  I am familiar with the north side of Milwaukee.  Are you working with an agent?

Post: Professional renter. Need advice/perspective...

NA BurkartPosted
  • Investor
  • Cedarburg, WI
  • Posts 23
  • Votes 4

I am looking for different perspectives on this issue.  I’ve had a tenant for just over a year. She hasn’t been easy to deal with.  I was getting the rent late every month.  But the markings on the envelope showed it was postmarked prior to the due date.  Thus I could not enforce the late fee.  At one point, I finally received the rent on the 18th of the month.  I’m assuming she had a meter at work.  She would post mark the envelope, and then mail when she felt like it.

I turned her over to a PM.  Things are smooth for a bit.I got a couple of work orders for the rental.  No big deal.  Lease is up and the PM advises me that if I fix a couple things she will sign a New Year long lease.  I fix the requested items; she did not sign the lease.  I received notification that she had not paid the water bill most of the year.  Bill was $1200.00, which will be added to my property taxes causing me another 10% penalty if not paid by 11-04-14.  Because tenant would not communicate with PM, I paid the bill on 11-02-14, only to find out tenant entered into a payment plan with Water Company.  Long story short, I paid $37 for a stop payment fee and the check did not go through.

Last month, her rent was late.  She told PM she would not pay the late fee.  I advised PM to add the late fee to next month.  She was late this month as well.  Total bill for rent and two late fees was $1250.  Tenant attempted to pay the $1150 but PM’s software does not allow partial payments.  She advised PM that she was not going to pay the late fee and would discuss the matter with me.  I have an inspection and meeting scheduled with her on 12-15-14.  I told PM to drop the late fees and try to collect $1150 rent.  I told PM to strongly advise her that it needs to be paid today.  I have not been advised if she has paid.

Via text, I advised tenant that I wanted to change the furnace filter and get her input on PM.This meeting is scheduled for 12-15-14.

I am open to all suggestions, but my thinking is along these lines:

  • A.  Hear her out and present her with a bill for the fees (the two late fees and the $37 fee for the stop payment of the check).  This bill would be served with a five day pay or quit.
  • B.  Just serve her with a 28 day notice to vacate.

My hesitancy is this.It’s cold here and the market for tenants is slow.Especially on an $1150/month unit in this neighborhood.  She has a good enough (14 year) job history, that if need be, I can get monies through court later.

She has so much attitude that my PM doesn’t even want to deal with her anymore.  I know, I know, this all stems from my screening process.  She really is my only difficult tenant.  According to PM she is making excuses and nothing is ever her fault.  Also looking for advice on how my converdation with her should go.  I always try to treat my tenants as "customers".  I'm probably too nice.  Sound off and Cheers.

Post: Milwaukee area buy and hold properties

NA BurkartPosted
  • Investor
  • Cedarburg, WI
  • Posts 23
  • Votes 4

Really liked your podcast @Mehran K. !  Nice job!

@Robert Taylor

@Dan C.

My two cents... I recently hired a PM. One of the biggest perks was that the first 90 minutes of any call was free. He stated if the tenant calls, usually it can be handled within 90 minutes. If not, or if there is going to be a cost involved over my set limit, they call/message me. I'm also paying 6% of the gross rent for that property. PM me if you want their name. I've only been with them for two months, but I haven't heard a peep from the tenant. Beautiful.

Post: Thanks to BP podcast!

NA BurkartPosted
  • Investor
  • Cedarburg, WI
  • Posts 23
  • Votes 4

The Biggerpockets community is unbelievable. Never before have I met a group of people so willing to share their “Secrets”, advice, and opinions (without sounding condescending) openly. The site not only motivates me to help others, but also restores my faith in humanity. My favorite part is the podcast.That podcast has helped me get through many shifts.

The podcast recently led me to Mike Butler’s book Landlording on Auto Pilot.This leads me to the reason for this post.

I’m sure most of you know we had an extreme winter in Wisconsin this year. One of my tenants, my very first tenant, complained to me about the heating costs in February. As politely as possible, I explained the winter had been very costly for everybody. I explained a couple options; she could do rugs on the hardwood floors, plastic on the windows, etc.

I must have caught her on a really bad day.Her response was less than favorable. Seriously, she let me have it.Mind you this tenant is a very strong person, very educated, and excellent in her field.Previously, she had even discussed buying the house from me. After she “vented” all over me via text message, I just let it be. She was mad, very mad.But her text message did not ask any questions so I did not respond to it.

The very next month I hired a PM for a different property. Just to test the waters. I considered putting the first tenant under PM as well, but we are still in the trial period for the PM.

I read Mike’s book. He says after 36 consecutive months he gives the tenant a free month of rent. My tenant has been with me since the start; four years.She was never late with the rent.

I stole this idea from Butler. I sent her a letter stating how great of a tenant she was and that the winter was hard on everyone. I told her I wished I could help more. I sent her a coupon for one free month’s rent to use whenever she wanted. She could save it for the cold winter if she’d like to…it didn’t matter, whenever she wants.

The text response I received was unbelievable. In fact, in all honesty, I have a very trying job. Several times, I have looked at her response just for a “Pick me up”. That’s how good it was.

From laughs, to strategies, to laws, to just getting perspective on any of our concepts, Biggerpockets has created a very nice resource and community. Thanks for everything!

Dave Burkart

@Brandon Turner

Sorry if I missed it, but it seems to me, if you have a security deposit, just let it go until she's gone. Withold the damage amount from the security deposit. Then make her sue you for the $200. It's going to cost her over $100 to file...probaly not worth it to her.