All Forum Posts by: George Red

My 2 cents...

I faced a similar situation in a unit I lease. The tenant (inherited) habitually paid late and I just let it go at first because she always paid. Rent kept coming later and later in the month so I reached out to connect with her and shared the expectation that starting the month after next I expected rent in accordance with the lease or I would begin enforcing late penalties. I gave her some runway to get her finances in order and although she can be a bit of a squeaky wheel, she pays on time for the past 2 months.

As the person is still paying, I would just stay on them about the late payments, collect the late fees and inspect the property to be sure they're not damaging the inside. Assuming they're on an annual lease, I would not renew and go month to month at the end of the lease. As long as they're paying and not damaging the property I would take that over having to turn the unit, handle a vacancy and then trying to find a better tenant in said C area. A paying bird in hand so to speak... as long as they're taking care of the unit and paying. Ultimately it may be too pricey for them but they've already moved in, I'd ride that train until they got there. The turn cost and placement will be the same... you'll just get rent from now until then. Caveat being as long as they're taking care of the unit. Hope that helps, LMK if you have any other thoughts or questions.

- G

Hey all, looking into credit unions in the KC metro area and finding a bunch of options... looking for first hand recommendations for good local credit unions that people leverage in their investing portfolio for flexibility on loan products, rates etc.. Anyone that people know of that will do a heloc on an investment property? Any insight appreciated!

Hey @Darius R. Mathis, I invest in KC and live out of state... happy to be of any help that I can as you start off. Let me know if you want to connect or have any questions as you enter the market.

- George

@Nathan Frost I'm one of those boring long term hold guys... I've had some section 8 but don't base a full on strategy around it. All the section 8 I've had were inherited tenants. One hoarder, some drug use on site and one perfectly fine... batting 33%. Cant speak to your other options.

Go KC MO go... the Ohio pump is real!

I have a primary residence in CA and 5 investment properties OOS and I have insurance (and an umbrella policy on properties under my name directly) on all property. I'm wanting to connect with an asset protection specialist to ensure that I have legal entities etc. setup correctly and I'm covering all my bases. My question is, as a resident of CA does it make a difference if I'm using an attorney/asset protection specialist in my home state or in the state where I own rentals?

Not sure if it makes a difference, looking for first hand thoughts here. Thanks in advance.

I echo what @Jon K. said... if you're still interested after doing some additional due diligence, try starting with 1-3 as opposed to jumping into 10. You may not like the space so it may be better to put your foot in the water first. Also, as you're meeting this person through IG I would be sure to have all legal precautions and real estate attorney in place for transactions as you don't know this person from a hill of beans. Can they provide examples of clients they've worked with before, how do you know they're legit... all the things.

- G

@Eric Gerakos this may be a silly question, but how do you deny partial payment... the tenant has been paying by Venmo/Cashapp (which may be a problem in itself) or are you just saying in terms of setting expectations with the tenant.

Per the original issue, circling back to confirm that I connected with a lawyer I've used before and they suggested to just issue a standard termination of month to month tenancy which requires 30 days. So if everything goes well tenant should be out by end of June (fingers crossed) and if she stays afterwards then proceed with eviction. If she does not pay moving forward I will have the option to file an eviction based on non payment which I may run concurrently during the process of the 30 day notice. Ohhhhh the fun part of land lording.

I have an inherited tenant that I was putting up with because although her rent was always late... she did pay and I wanted to avoid the turn cost and headache of getting her out. Short story is that after a "reset" about paying on time last month it's 5/19 and I have half the rent and just had to send a plumber out to address a tenant caused water issue and I'm done at this point. I do not think she will go quietly and I'm trying to gameplan out process and wanted insight from other investors... when you're about to send someone notice to vacate and don't think it will be a clean process... do you also start the formal eviction process at the same time as you send the 30 day notice to vacate if they're behind on rent?

My assumption is that she'll say 30 days is not enough time to find a new place (if she can't promptly pay her under market rent, how will she come up with first and security deposit elsewhere), will not finish paying her May rent and won't pay June either so trying to see if it's best practice to have that eviction filing in process as an incentive for the tenant to move along quickly.

As a note to others in a similar situation, what I've read here in the forums that I didn't adhere to was "stick to the lease" and if someone is a consistent problem, they're not going to turn on a dime and get better, you have to protect your investment and part ways when things aren't working.

Any insight appreciated.