All Forum Posts by: Ihe O.

You seem to be a big tenant advocate on BP. No problem with that. So, what if the situation is reversed and the landlord has cancer and is struggling to pay their bills. Would you also advocate the tenant pay for repairs or paying extra rent ?

If we are going to take this to a personal level, surely it goes both ways, right ?

A sensible employee doesn't threaten to quit every time his employer does something that may contractually entitle him to. That doesn't mean that the employee is an employer advocate.

A sensible employer doesn't threaten to fire an employee every time the employee does something wrong. That doesn't make the employer a charity.

A sensible spouse doesn't threaten divorce or separation every time something goes wrong in the marriage.

In almost no other walk of life do sensible people threaten to terminate relationships as soon as something doesn't go by the book.

A sensible landlord doesn't threaten eviction every time a tenant is late.

It doesn't mean that the business is being run as a charity nor does it mean that such a landlord is a tenant advocate. Neither does it make one a charity or a tenant advocate to recognise that it is in a business's best interest to retain it's customers so routinely threatening to fire them is probably not the best client retention strategy.

To your specific question. Landlord tenant relationships are not symmetrical, tenants have few other obligations than paying the rent. If a landlord has cancer and they are running a business and not a charity then they should probably have a contingent arrangement for the management of the property if they are no longer capable of doing so.

You suggested earlier that the landlord make it personal. "So if I were you I would sit down with her and try to find out more about her situation beyond her just being late" However, your suggestion to make it personal only goes one way? Your state that landlord should have a contingency plan but the tenant should not have one is ridiculous. IF your contention is to make it personal, it has to go both ways

"In almost no other walk of life do sensible people threaten to terminate relationships as soon as something doesn't go by the book."

If I fail to pay my electric on time....it gets cut off

If I fail to pay my water bill......it gets cut off

Cell phone bill, Insurance and insert all other payments.....they get cut off

If I am on Section 8 housing and I do not go to my appointments or fulfill the requirements.....my benefits get cut off

Can you tell me any contractual agreement that if I do not pay that I do not get terminated ?

The word missing from each of your examples is eventually.

Sensible businesses do not jump to the threat of temination as a first, primary or only option.

0 Votes

Originally posted by @Thomas S.:

Having cancer does not absolve a individual from fulfilling their financial responsibilities.

Good will is a two way street. Good will is destroyed by tenants that do not pay rent on time as required by their contract.

Sorry but you don't know the meaning of the word. Goodwill is about relationships not contracts. Many businesses would not survive if they kept threatening to terminate relationships with late (even habitually late) paying clients.

Businesses have Customer Relations departments because they have a bigger vision of business than you do, not because the contracts they have with their clients are not enforceable.

0 Votes

Originally posted by @Thomas S.:

@Amy Beth

"forgive the past due rent"

Where is the advantage for the landlord for forgiving past due rent. It has no bering for the tenant in choosing to voluntarily leave or be evicted. Is every tenant claiming to have a serious medical condition to be excused for rent owed. Should we start asking for proof from their doctor. Is a death in the family sufficient justification for not paying rent. What about a heart attack or stroke. Why would a landlord, as opposed to any other creditor, consider forgiving debts. Are we all really that bad at business. Why do so many investors consider landlords to be a special sector of the business community required to place our customers personal life situations ahead of business concerns. What is wrong with this picture. Are we all really only doing this as a hobby.

Absolutely release her from the lease or evict but there is no justification for releasing any tenant from paying money owed to creditors, landlords included. We are not social workers.

You seem to have this Alice in Wonderland notion of business that has never heard of the concept of a bad debt. Sometimes (not always) a business has to do eat a loss - it's that bit of business that is known as risk taking.

0 Votes

Originally posted by @Greg H.:

@Ihe O.

If we are going to take this to a personal level, surely it goes both ways, right ?

A sensible employee doesn't threaten to quit every time his employer does something that may contractually entitle him to. That doesn't mean that the employee is an employer advocate.

A sensible employer doesn't threaten to fire an employee every time the employee does something wrong. That doesn't make the employer a charity.

A sensible spouse doesn't threaten divorce or separation every time something goes wrong in the marriage.

In almost no other walk of life do sensible people threaten to terminate relationships as soon as something doesn't go by the book.

A sensible landlord doesn't threaten eviction every time a tenant is late.

1 Vote

Originally posted by @Thomas S.:

@Ihe O.

"If that entails you losing out on rent so be it."..........You evict

Business does not survive on charity...money has no feelings.

Money doesn't pay rent by itself it's owned by people all of whom do have feelings.

Business does not survive on charity but it does survive on goodwill and many people would rather not do business with an emotionally ignorant counterparty which it is why it's good to remember that being a landlord doesn't also have to mean being a jerk.

0 Votes

Originally posted by @Winn Merwin:

Hello BP,

My wife and I bought a duplex in Augusta in March 2017. One of the tenants was inherited. He was paying $600/ month at the time. As we took over, we increased his rent to $635 (market at the time was $750. We thought we would give him a break as we were friends with the previous landlord and by all accounts he was a good tenant. We assumed our current property manager would get him to sign our lease (we have other properties), but she did not. This was due to a failure in communication on our part.

He remained month to month on the old lease which had lawn care included. At a cost of about $60/mo. We never intended to include lawn care but as it was our mistake, we ate the cost for the past year.

In March we gave him 60 days notice (per GA state law) that we would be raising rent to $685 to cover cost of lawn maintenance. He said "no problem" and remained month to month.

Later in March, our property taxes went up about $60/half of the duplex.

Our current monthly expenses for his half of the duplex are $682.5 after reserving a combined 20% for future Cap. Ex, Vacancy and Maintenance

So you are making a 20% margin on him at $685 and he is a good tenant and you haven't factored in the acquisition cost of a tenant at the "market rate".

I would be leaving him alone.

0 Votes

Originally posted by @Sai T.:

Hello BP,

I just got below email. I'm n last 7 months Tenant paid the late fees 3 times! BTW late fee is $75/-

"Hello

I will be paying my rent Friday 5/5 with late fee attached I paid my sons last cancer treatment so I will be on time every month from now on sorry for any inconvenience."

I'm thinking to waive the fee as a courtesy but I'm not sure 🤔 should I do or not ? Please advise.

Thank U

Waiving late fees in circumstances that you feel may merit it doesn't mean you are a charity.

It means you are a businessman with an awareness of the value of goodwill.

Big serious businesses do it all the time and call it customer relations or customer retention policy.

0 Votes

I'm going against alot of the sentiment being expressed in this thread.

Losing out on rent for a period doesn't make you a charity it makes you a businessman because these situations are part of the risk that you take on when you get into this business. That said you haven't lost out on any rent yet she's late not delinquent.

She has a life threatening ailment that she didn't bring upon herself.

You have a self-inflicted problem - you took out a mortgage that you don't seem to be able to afford without rent.

She should do whatever she needs to do to survive. If that entails you losing out on rent so be it.

Eviction eh. If I had cancer I'm pretty sure I could find medical reasons to persuade a court to adjourn your hearing and it's not like there will be money to pay that mortgage while you are waiting for the eviction to go through. In my jurisdiction it takes months to get someone out.

So if I were you I would sit down with her and try to find out more about her situation beyond her just being late.

2 Votes

Originally posted by @Nathan Gesner:

@Ihe O. Your subject line is that you are a "Hood Landlord" then you start your post by telling us you don't run credit checks. In fact, you state the lack of a credit check is the "relevant context" to the discussion. So I provide an example of another "Hood Landlord" that also does things differently than most. I'm not sure why that's confusing.

Most people start a thread to engage in dialogue, educate others, or learn from others. From what I've seen recently, your only purpose is to be contentious. If that's the case, please let me know so I can give you the appropriate berth.

Sounds like you might have been talking about Westminster Apts, the investment company owned by Jared Kushner. No I don't operate like that.

0 Votes

Originally posted by @Nick C.:

Different strokes for different folks. As long as you're happy and making money, that is what's important.

I would think criminal history would be more important than credit history. Hopefully you at least screen for that...

I said I screen but not for credit history and I will restate why - because it is not relevant for that tenant demographic. Why would that lead to speculation that I don't screen for criminal history.

1 Vote

All Forum Posts by: Ihe O.

Ihe O. has started 15 posts and replied 387 times.

Post: Tenant is late and has cancer

Post: Tenant is late and has cancer

Post: Tenant is late and has cancer

Post: Tenant is late and has cancer

Post: Tenant is late and has cancer

Post: Help with good tenant who complains about rent increase.

Post: Should I waive the late fee

Post: Tenant is late and has cancer

Post: I am a Hood Landlord

Post: I am a Hood Landlord