Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Dennis S.

Dennis S. has started 9 posts and replied 30 times.

Post: Suggestions needed for dealing with a Tenant

Dennis S.Posted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 30
  • Votes 13

@Michael Jones  Yep.   Lessons learned and all that.   That's what we used to get rid of the original tenants in the upstairs unit.   Meeting with the other two and hearing the stories of getting punched from both of them, and the neighbors statements that it used to be a quiet house until they moved in resulted in just not renewing their lease.

That being said, while they were written up on a month-to-month lease from the previous owner, it was a 1 page double-spaced lease that essentially said, 'This is the lease that allows [Tenant], reachable by [Telephone number] to reside at [Address and Apt#] provided they pay the monthly rent of $[Amount].  This lease automatically renews each month.      [Tenant Signature] [Landlord Signature]'

Needless to say that lease scared the crap out of me and had to be fixed ASAP.    I should probably have just signed them to a monthly lease initially...  and gotten background/credit checks.    

Post: Suggestions needed for dealing with a Tenant

Dennis S.Posted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 30
  • Votes 13

@Mindy Jensen Yea...   Thats what I figured really.   Sucks to have to kick someone out after 15+ years, but ahh well.   I chose this business. lol   I admittedly very much suffer from the 'Nice Guy Newbie Landlord' problem most of the time, until someone pushes too far.

@Linda Weygant

@Linda Weygant The automatic closing hinge is a great idea actually.   I will have to look into that.  Yea, I know it will turn back around.   The first property is always the hardest from everything I have read, and it gets easier from there.  I just need to get it generating some profit to at least get back to breaking even, let alone paying for the next investment...

@Katie Stewart

@Katie Stewart I suppose I will likely be getting a hold of my Atty soon.    

@Donald S.

@Donald S. Being the first Lease, I used the pretty good one my REI focused Attorney had put together without many changes, and it doesn't mention Space Heaters. However, the new Lease I am building from that, the BP files, and my experience so far definitely does so that wont be an issue in the future.

Post: Suggestions needed for dealing with a Tenant

Dennis S.Posted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 30
  • Votes 13

First, I apologize for the length of this post, but I feel some background is needed.

Early this year I purchased a Triplex with 3 occupied units.  None were on leases so I got 2 of them signed into a year lease pretty quick.   The 3rd had a history of violence towards the other tenants and had anywhere from 8-12 people living in a 2/1, so obviously had to go.

1 of the remaining tenants in a 1/1 first floor Apartment is a single male

He has lived in that Apartment for 15+ years, and the previous owner did not pay a whole lot of attention.  This Tenant, in years prior to my purchasing the property, without permission from the previous owner has done at least the following:

  • Added a Swingset for his daughter who used to live there
  • Built a extremely not up to code shed attached to the back of the building which looks terrible.
  • Completely took over all of the interior common space and back porch with his stuff
  • Brought a Cat into the property
  • Parked an extremely dilapidated boat which has been used as a garbage container in the past, on a trailer with flat tires in the yard
  • Wired a power line into his fuse box to run a line to the enclosed back porch
  • And the last I know of, but by far the most entertaining, wired a power line from his fuse box into the common space, and back into his bathroom to power his...  Shower head.    Yes, he had LIVE exposed wires twisted together with no plastic cap hanging in his shower for years.   Why?
  • He has never paid his gas bill, so the heating system in that apartment has not been used in 15 years.  Instead, the previous landlord installed an electric hot water heater so the sale could go through.
  • Has caused the pipes to freeze in the walls by not keeping the door between the common area and the enclosed back porch closed.
  • He heated his apartment using 5-7 electric space heaters.  (This building has old wiring.  The wiring would not support the amount of power the breakers were set for, so the wires would catch fire and burn before the breakers would ever trip.   This has been fixed now as I saw that as an emergency issue)

The Furnace for that apartment is located in the Common area, so using the furnace, and keeping the door closed between that common space and the Porch will prevent the pipes from freezing.

When I got him on the lease, I gave him a pass on the boat... for now, and the Cat, and informed him that a lot of things were going to be changing, and that he needed to clear the common areas of his stuff.   The Lease also states that Gas Service is a mandatory utility to be setup in his name, or I will pay the bill and charge the amount back to him, along with an additional fee.

I told him that because the Gas lines and furnace have not been used in so long, that I would cover the initial setup cost and the first months gas, but he had to move it to his name.   So, I got recently got the gas service all setup and working, and covered that first month.   This allowed me to verify that the door being closed in the common area, with the furnace running, would be enough to prevent the pipes from freezing.

However, the Tenant has turned the thermostat all the way down, but still on, and I believe is still using the space heaters to supplement.  In addition, he keeps leaving that door between the common area and the enclosed porch open, causing temperatures to further drop in that room.

Now, he is complaining now that because I had the electrician disconnect his shower-head water heater  he can not take showers and has to go to his mothers house as the water will not stay warm long enough.   That apartment has a brand new electric water heater.   I am sending the maintenance company over to check on that and will fix it if that is actually an issue, however I have a hard time believing anything he says.  

He claims to be a contractor, and that he is currently building a house, but since pulling the power from his shower-head and getting the fuse boxes properly wired, he has called me for multiple issues such as the lights in his kitchen flickering... which turned out to be bad bulbs. But, he did not contact me about the fact that his toilet is running constantly which I found when I was there last (I pay the water bill). 

The upstairs apartment had a cockroach problem, which I took care of, and asked the tenants in both lower apartments if they had seen any sign of bugs.    Both said they have not.  1 of them keeps his place spotless, and this tenant does not.  However, he said that he had not seen any sign of anything.  However, when in there recently I moved 1 piece of furniture and they were everywhere.

In addition, his rent is routinely a few days past the 5-day grace period, with a complaint that the mail must be running slow (Even though his envelope is post-marked AFTER the grace period is over) He is trying to pay 1 month in advance, but every check he sends each month is anywhere from $10-60 short of covering the next month + the late fees.    For example, for him to be paid through December, he still owes $40, or $465 (low rent because he gets a credit for handling lawn/snow for the Triplex) if he wants to be paid up through January.   I could for example on the 8th of December receive a check for 450, meaning $40 in late fees will have accumulated on that $40 he owed to be paid up for Dec.... and poof, he has late fees due Jan 1...  even though he will only owe 15 to be paid in full for Jan...   and on and on it goes)

For Nov rent, I made an appointment with him on Thursday to pick up the rent check on Tuesday after work, which was technically 1 day after the grace period, but was going to forgive the late fees that time because arrangements had been made to pick it up... When I got there Tuesday he was not home.  I waited approximately 15 minutes for him to get home from work and sent a text.  He did not respond for another half hour.  I assumed maybe he was driving home.  When he did, he told me, 'I am at the movies.  I mailed the check on Saturday'.   That disrespect of my time was the end of my patience with him. He could have told me at any point he mailed it as he knew we had a set meeting time.

I know there is a learning curve in going from being the person who ran over the previous landlord constantly to me who does actually pay attention, and he actually has improved over the time I have had the property in many aspects, until I had his shower head disconnected.  His 1 year lease has another 8 months approximately left.   

I could Maybe file for eviction based on a couple minor breaches in the lease, such as being a few days late on rent, not having renters insurance, his likely not putting the gas in his name soon, leaving the door in the common space open, not notifying me of the bugs, and leaving all his stuff in the common area...    But, these all seem like minor issues and I am not certain if an eviction would even be able to go through based on this stuff.  And if it does, his apartment is going to need some reno work before its re-rented as its a bit of a mess too.

Anybody have any thoughts\suggestions?   I am worried about more vacancies, but at the same time, worried about frozen pipes damage...

I know that this is what property management companies are for, but as this is my first investment property in which the most expensive apartment was vacated shortly after purchase and has not been ready to re-rent until this coming weekend due to a ton of renovation needs, the property is most definitely in the red and with the credit cards hit from the renovation, its going to take a while to get this property to a point where its making a profit.    It WILL make a good profit, it just took far more up-front capital then expected with the reno and the long vacancy in the most expensive apartment.  

Post: Tenant Applicants say the dumbest things

Dennis S.Posted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 30
  • Votes 13

Unexpectedly, after being a landlord for a grand total of 2 months, I have something to add to this thread. 

We purchased a Triplex with an interesting set of existing tenants on month-to-month month to month leases..  Each of them have large red flag issues worthy of posts themselves, but the worst of them was quite a circus.   During the initial showing, though they had plenty of notice, there were at least 8 people in the 2 bedroom unit. I believe there was actually approx 15 people living there.  Many of them were sleeping  on mattresses spread everywhere, on couches, and we were denied access to the bedrooms by the tenants.  Again during inspections we were denied access.   During a follow up inspection with another contractor, there was a small child in the front yard playing with lighter fluid, and one of the adults on their bike very nearly ran into my car. Another of the adults there laughed at both him and me about it.

After we took possession of the property, large piles of garbage appeared in the back yard, and the other tenants both had 2 different stories of times that they had been physically assaulted by this group.   After one of them got a police report, his car was attacked with hammers.     

So, I went by with backup one day to the property and knocked on the door.   There was no answer, so I taped a notice to not renew their lease to the door and snapped a photo.    The next day I was notified by another tenant that they were moving their stuff out into U-Hauls, even though they had 30 days they could have waited.

We came by, again with backup, inspected the place which was a disaster, and they turned over the keys peacefully.  They informed us they wanted to move out now so they would have the rent money to put down on another place.  I did not ask how that would be different at the beginning of the next month. lol.  The promise of full refund of security deposit if there was no further damage I believe saved us on that one. (we had no move-in inspection info so were very limited on options there anyway)

So, a couple weeks later, we are still about halfway done finishing up all the repairs and replacing everything due to their home improvement methods such as stapling carpet to the reasonably new Laminate, and adding windows to every door and wall in the place with someones fist.    

This is where this long post becomes worthy of this thread.

Important information here is that we are new to this.  The new business line for our rentals has only ever been given to the existing Tenants.  No contractors, or listing anywhere has that information.  We have also not listed the apartment for rent in any service at all as of yet.

A phone call comes in last night on our business line.   We missed it.   A couple minutes later a second call comes in on that line:

I look at my wife, who is laughing at my response, and shrug as we push play on our Netflix.   A minute later a third call comes in from the same number.  I answer it again.  This time it is a different person, and after a moment I recognize this very characteristic voice:

Seriously?!?     I am still laughing over that one.    This was something they really thought was going to be an option?!?!

Post: Kansas City Foundation Contractor:

Dennis S.Posted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 30
  • Votes 13

@Michael Glaser It seems odd to me that he wouldn't take a look without the inspector, but it is what it is.    As far as when to hire a home inspector, I plan to do so on every property I purchase, but maybe I am being over-cautious.  To me it is worth the few hundred extra to have someone come and test everything in the property and point out any issues that I might have missed.

I admit though, I am new to all of this so am very much learning as I go as well.    

I believe that the rates for Legacy Home Inspections for a single family were approx $395, but I could be mistaking.   The inspection I had them do about a month ago was on a Triplex, which changed the price as there they charge a different fee per unit.

When I had the Structural Engineer come out, he was on-site the same day as the Inspection guy was.  I had the inspection setup first, so it may be that that is why he accepted it and came out.

Post: Kansas City Foundation Contractor:

Dennis S.Posted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 30
  • Votes 13

I would strongly recommend that you instead of starting with a foundation company, have a structural engineer come out and take a look at the property to get a feel for exactly what foundation repairs are needed.

You can then have foundation companies bid on the engineer's report to resolve the issues to avoid a situation where you are allowing the foundation company to come up with the estimate themselves as I have heard that foundation companies estimates tend to come in all over the place without an engineer's report to work off and limit their repairs.

I will PM you the guy that I used for a property I was looking at recently.   His charge was very reasonable and he came highly recommended by other people in the area.

Post: Conventional Financing Nightmare

Dennis S.Posted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 30
  • Votes 13

So I am new to this whole process, and trying to gather some thoughts and see if this is somewhat commonplace, or as ridiculous of a situation as I feel it likely is.

We are closing on a Triplex in the Kansas City area with a conventional loan.   The Purchase price is 100K, and we are putting 25K down.  I shopped around quite a bit for a good interest rate on the mortgage, and managed to snag 5.125 with US Bank, which seemed pretty good to me!   We had had an issue with US Bank on a refinance on our personal property about a year back, where a streamline refi became a several month process and the locked in interest rate changed repeatedly, but understand that sometimes issues happen.  We have used them for a few other things and never had an issue. so thought to give them another shot.

The Inspection came back with more issues then we were expecting, but no big deal, we can work through that.

The appraiser came through and did her thing...  She noted a couple repairs, but I wanted to have an extra inspection done on the electrical based on the inspection results. 

Then we got her report from the bank, and the house was valued right at 100K.  As thats what we were paying, no problem.  However, they had a list of 4 needed repairs from the list the assessor noted.   They needed a couple gutters fixed, foundation patching from the structural engineers report completed, a new sump pump, and a roof inspection completed.

So, we informed the sellers of the required items.   They grumbled a bit but got them taken care of.    They also were willing to discount the price of the property a bit to help cover the cost of the needed electrical repairs.

So yesterday, 8 days from closing, the lender reschedules the assessor for her final inspection.  Later during the day, we get a letter from the lender.  'We apologize but both the loan processor and underwriting missed several of the repairs the assessor required.  So, you will have to get these done as well.'    This list includes replacing a couple windows, replacing or repairing a furnace, and getting the gas service inspected to make sure it is up to code.   

To explain real quick, one of the units does not have a working furnace or water heater, due to the gas being turned off for that unit.  (not only turned off, but for whatever reason the meter has been removed at some point.  This item was on our short list of immediate fixes after closing)

So I called the lender today to complain about the short notice, and ask for some recourse as we were only notified of these other large repairs they wanted completed such a short time before closing.

The result?

....I am notified that on the e-mail we received yesterday, they still did not mention that they also now require all hot water service be repaired to that unit  prior to the closing.  There was no mention of the water service from them prior to this point.  These repairs were all listed on the original appraisal, but after underwriting and the loan processor reviewed the loan, we thought they were only requiring that specific repairs from the appraisal be completed prior to closing.

Is this anything remotely close to a normal situation?

I feel that this early in my journey in the real estate world, contacts and reputation are going to be at least as important as any actual deal that goes through, and this is certainly not helping that cause.

If this falls through, which is looking more and more likely, I will be diving back in with a different lender on something else in the Kansas City area, I will just need to find other another property. 

Post: In KC area just getting started

Dennis S.Posted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 30
  • Votes 13

Welcome to the BP forums, an congratulations on getting started!

There is definitely a lot to learn, but no need to take it all in at once.    I am getting started here in Kansas City as well, and this site has been insanely helpful.    

Post: Background Checks for Every Adult?

Dennis S.Posted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 30
  • Votes 13

Hello!

So a quick question for those of you who use any type of background/credit check/eviction/criminal history check for screening tenents.

Do you have each of your adults in the unit (maybe not necessarily the applicants) fill it out? It seems that it might become a little bit overwhelming monitarily for potential applicants if you have between 2-4 adults living in a unit and the process costs between $80-$160 (especially if they don't end up qualifying).

Do you do anything to offset those costs? Has this ever caused you a snag when renting to potential tenents?

Post: Cozy???

Dennis S.Posted
  • Rental Property Investor
  • Kansas City, MO
  • Posts 30
  • Votes 13

Hello! 

So a quick question for those of you who use Cozy for your background/credit checks. 

Do you have each of your adults in the unit (maybe not necessarily the applicants) fill it out? It seems that it might become a little bit overwhelming monitarily for potential applicants if you have between 2-4 adults living in a unit and the process costs between $80-$160 (especially if they don't end up qualifying). 

Do you do anything to offset those costs?