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All Forum Posts by: Jason L.

Jason L. has started 31 posts and replied 214 times.

Post: Outgoing Tenant Not Cooperating with Letting Us Show Their Unit

Jason L.Posted
  • Rental Property Investor
  • Delray Beach, FL
  • Posts 224
  • Votes 169
Originally posted by @Nathan Gesner:

I don't put anything in writing about the penalty for refusing showings. I tell them they have to participate and leave it at that. For the few that don't, I just let it go and wait for them to move out. Then I do my best to rent it as quickly as possible. Once it's rented, I charge the departing tenant for the vacancy because it was caused specifically by their failure to adhere to our signed agreement.

It's never been tested in court by me. I've used it less than a dozen times and not one tenant challenged it verbally, in writing, or in court. It could just be luck but I don't really care about the "why" behind it. Tenants violated the lease, I charged them, it worked. 

Again, everyone has to know their state law, understand the potential liabilities of this action, and determine whether you are willing to risk standing in front of a judge to justify your decision.

 I've re-read the lease my ex-PM had drafted with this tenant. The language around vacating the unit seems more centered around damages from just tangible negligence that would obstruct the landlord from getting the unit ready again. However it makes no mention explicitly of re-leasing. There is this line about vacating below, but again I think this is too vague in the sense of the tenant being liable for obstructing re-leasing..

I'll obviously update this language for the next tenant, but for the one I have now, it's kind of vague about whether she's actually in violation by refusing to let me show it. I agree with you that she probably wouldn't fight it, but I'm not overly confident in the verbiage of this lease agreement

I think at this point I'm just going to let her be (i.e. I'll keep nagging her but not threatening her SD or to change locks early). I think the goal needs to just be to get her out as peacefully as possible. The last thing I want is a tenant who feels they have nothing left to lose. I'll put up a listing using the materials I had from before she moved in and just say it is not ready to show yet. If all goes well and she moves out on the 31st like she's supposed to, then I might still be able to show it by say June 3rd or so and maybe have a lease signed by mid-June. I don't really know if I'll actually charge her for the time lost just because I'm unsure of the lease language, but 2-3 weeks is not going to kill me considering this is my least expensive unit.

Thanks for all of your feedback.

Post: Outgoing Tenant Not Cooperating with Letting Us Show Their Unit

Jason L.Posted
  • Rental Property Investor
  • Delray Beach, FL
  • Posts 224
  • Votes 169
Originally posted by @Taylor Roeling:

@Jason L. A bad communicating tenant is always frustrating! Did the tenant or the previous PM lose the key? If it was the PM then I think you shouldn 't make her make a copy, but go for the changing the locks plan and have a proper notice and maybe even compensation like a gift card or thank you letter. Before posting the notice though, make sure you have emailed, called and left a message and even texted the current tenant! If she hasn't responded to any of those options then that's her fault.

 The old PM lost the key (he was also my agent representing me at the close of the same house). If it makes it seem any worse, then we didn't find this out until AFTER I had let him go (in other words I let him go for other reasons but then found out he lost the key as the icing on the cake).

You might just be right about having me eat the cost of the key now (I was going to re-key when she moved out anyway). I might even be able to "negotiate" into paying for it, so that she might appreciate me doing her a solid by not charging her for her initial defiance. That said, a leopard doesn't change its spots. If she's being difficult with me showing the unit now, then it's probably naive to expect she'll suddenly start playing ball after I change the keys. And that's precisely why I'm apprehensive to supplicate to her.

Post: Outgoing Tenant Not Cooperating with Letting Us Show Their Unit

Jason L.Posted
  • Rental Property Investor
  • Delray Beach, FL
  • Posts 224
  • Votes 169
Originally posted by @Lynn McGeein:

If a tenant does not want me showing the unit, I usually just advertise it and make appointments starting the weekend it's vacant.   A tenant will make your life hard if they don't want you in there, and they are in process of moving, so it doesn't look that great, anyway.  There are tenants who will work with you, but it's not worth the hassle if they really don't want you in there.  

When I had a difficult tenant with the only key, she said she made me a copy when I met her for an inspection.  I immediately checked it and it did not open the door, which is what I was expecting, so I took her key, made a copy and brought it right back to her, then continued the inspection.  That made more sense than changing locks twice.  If she won't meet you for the inspection, provide you a key or let you make a key from her copy, then let her know she'll be responsible for the lock change, then she may be more amenable to working it out with you.        

I certainly have marketing materials to list it now for a mid-June move-in, but I guess I'm more afraid now as to why she's not letting me see it. What if she doesn't vacate when she's supposed to? What if the place is trashed? Might put those June 1st showings at risk of not happening. If an eviction was needed, then it might not be until July or August!

I think the next step like you said is probably to threaten her with the lock change charge before acting on it. Either that or to take @Nathan G.'s idea to let it simmer until she (hopefully) moves out on the 31st and then charge her for the incremental vacancy from the time I lost from not being able to show it.

Post: Outgoing Tenant Not Cooperating with Letting Us Show Their Unit

Jason L.Posted
  • Rental Property Investor
  • Delray Beach, FL
  • Posts 224
  • Votes 169
Originally posted by @Nathan Gesner:

@Jason L. I agree with everything @Steve Hall suggested.

As for the keys, you have no legal justification for charging the tenant for the lock change. The PM lost the key and they should pay for the lock change.

Written notice to the tenant, along with voice, email, and text. No response, hire a locksmith and change the locks but charge the PM for failing to maintain control of the key.

If a tenant refuses to allow access to show a property, I usually let it go. After they move out, I start showing. If it takes me three weeks to find a tenant, I charge the old tenant for the additional three weeks of vacancy caused by their failure to allow showings.

The PM was also my agent when I bought the house (I'm a long distance owner). That would explain why I never had a key. Clearly I put trust in the wrong person and hence why I let go of him. That said, good luck getting him to pay for that lost key. His reaction when I told him a few months ago was essentially, "Oops." Unfortunately, a sunk cost at this point.

The tenant is legally required to allow the landlord to inspect and not cause hardship in the turn, which she's absolutely doing by not responding and not providing a key for inspections and/or repairs (I also gave her a lockbox which who knows what she did with). Your idea to just charge her the vacancy is intriguing though (and probably less hostile than threatening her with bringing out a locksmith before she moves out), but is that even legal? Why wouldn't every landlord just charge for vacancy with unruly tenants then?

Post: Outgoing Tenant Not Cooperating with Letting Us Show Their Unit

Jason L.Posted
  • Rental Property Investor
  • Delray Beach, FL
  • Posts 224
  • Votes 169
Originally posted by @Colleen F.:

.   

You could ask her to make a copy of the current key and make sure it works and forgive the extra $50 for it as long as you get it by x date.  That way you don't rekey twice, only when she leaves.   She is happy with her $50 and you don't have to pay a locksmith twice.  

You could change the locks and give her a key,  it means you need to change them twice but if something occurs in the interim and you don't have a key you have a problem

As for showings once you have a key,  let her know you will give x hours notice (per law ) and show unless you hear from her it is extremely difficult for her. Moving people have messy lives so they don't want to parade their mess, try to get a time block from her that is good and stear people to that time.

 I was planning to re-key with a smart lock, so we won't need to change locks twice regardless (I'd still change the locks again after she left but it's a simple 2 minute procedure from there instead of calling the locksmith again). I just don't want to get involved in the game of supplicating to the tenant by offering to excuse the rent for the key. That's giving her too much power in this situation, especially when she's already been flakey with her communication. I did let her know we would give her notice on showings and give her a week to clean up her place, but like I said she's not responding to any of my messages.

Post: Outgoing Tenant Not Cooperating with Letting Us Show Their Unit

Jason L.Posted
  • Rental Property Investor
  • Delray Beach, FL
  • Posts 224
  • Votes 169
Originally posted by @Tracy Minick:

I would suggest posting notice (in our state that is 48 hours) to change the locks and of course provide a key to her.

Let her know that if she can't get you a copy this is your last resort as you cannot be without a key.  I would simply lead with that and see where it goes. Then as suggested by others if she does not comply have the locks changed, provide her a key. 

 I really don't want to call attention to the fact that she has the only key. For a tenant who clearly doesn't "read between the lines" well, I would anticipate she would read this as more leverage over me than it realistically is. I've been trying to come from the perspective that we need her cooperation and would reflect it upon examining her SD. The fact that this hasn't gotten through to her could be one of two things: A) flakiness (she's had it before; may not be malicious), or B) she's hiding something and maybe already doesn't expect to get the SD back.

I think at this point threatening to send a locksmith at her expense might be the best of a bunch of bad options though. 

Post: Outgoing Tenant Not Cooperating with Letting Us Show Their Unit

Jason L.Posted
  • Rental Property Investor
  • Delray Beach, FL
  • Posts 224
  • Votes 169
Originally posted by @Steve Hall:

@Jason L.

Don't change the locks. Don't threaten to keep the security deposit. Instead:

  • Send written notice via certified USPS of breach of lease. You should also send one not certified if you do not receive USPS confirmation.
  • Tape a notice to the tenants door using 2" blue painters tape. The notice should be on bright yellow or pink paper. Take a photo of it.
  • Call the number you have on file for the tenant and leave a voicemail if they do not answer. (Read the notice word for word.)
  • If you don't hear from her at all, schedule a lock smith to change the locks at 8 am on June 1st, and be prepared to have some work to do.
  • If rent is not paid on time for May, begin the eviction process the next day!
  • You may also repeat these steps 2 or 3 times - but no more than 3!
  • Be sure you follow Florida Law with regard to keeping her security deposit. You have several steps that you need to take.

Consider requiring First, Last & Security for new tenants. 

Interestingly, the ex-PM did collect last month and SD from her, but he actually did not collect the entire amount. She owes $850/month but she actually only paid $800 for her last month's (May) rent. This was confirmed by the ex-PM, yet she is trying to argue (without receipt of course) that she paid the whole thing. So technically she owes $50, but I'm guessing if she's going to battle me for the SD than I probably shouldn't expect that $50 on time either. I guess I could always take that out of her SD as well, but it's not enough to make the eviction process worthwhile.

Just to be clear, she's not otherwise late on the rent. She's just being difficult in regards to allowing me to show the unit again and we need her to be complicit with that. My concern right now is to just get possession back. I'd also like to start this showing this thing before she moves out. It seems like this would be legal as landlord so long as I give her notice in advance to remedy this.

Post: Outgoing Tenant Not Cooperating with Letting Us Show Their Unit

Jason L.Posted
  • Rental Property Investor
  • Delray Beach, FL
  • Posts 224
  • Votes 169

I have a tenant who lives in one of my apartments who has given notice to move out on May 31st. I should note that I had a full-time property manager at the time she moved in (they have since been removed), and unfortunately they lost the only other key to the unit I would have had. So therefore this outgoing tenant currently has the only key to the unit.

I have reached out to the tenant twice to inform her that we are getting ready to re-lease her unit before she moves out. I was clear that her cooperation would be reflected when I evaluated her security deposit. She has not responded either time. The tenant has a history of being bad with communication, but I'm getting concerned given the circumstances. Because she has the only key, I'm concerned about what my options are to get access to the unit before May 31 when she (hopefully?) moves out. Remember I literally couldn't access this unit right now even if I tried. The only leverage I have is the security deposit, but once I threaten to not return it, she could easily just trash the place or even worse not leave at all.

One idea I've seen is to have a locksmith go change the locks while she's still living there (I'd give her notice I was doing this of course), give her a copy of the new key, and then charge her for the locksmith on her deposit. Again this could get tenant backlash on her way out, but at least I'd have my own key again and she could still presumably get back most of her deposit. Does this seem like a reasonable option? Can I legally have the locks changed while the lease is still in effect anyway?

Any other ideas out there?

Post: Tenant Late on Rent - How Do you handle This Situation?

Jason L.Posted
  • Rental Property Investor
  • Delray Beach, FL
  • Posts 224
  • Votes 169
Originally posted by @Theresa Harris:

@Cameron Riley  I would never beg for the rent.  Talk to them and find out why the rent is late.  If it is a one off, tell them to pay immediately.  If this is a repeated behaviour, you need to take a different approach.  Explain to them if they can't afford the rent, then they need to find a new place to live.  I had one tenant who was horrible at handling money.  They said it was easier for them to pay twice a month, on the 1st and 15th.  Once we did that, they were never late.

 Agree with this. I don't think there's a one-size-fits-all approach to tenants. I had a (new) tenant recently who called me the day her rent was due and said she had a car issue the previous week and needed an extra 10 days to pay the rent plus late fee. Since it was a first offense, I gave it to her. She did follow through and meet her new deadline. Was this a one-time issue? Time will tell. However, the cost of eviction was going to suck for me whether I started it on the 5th of the month or the 15th. So it was in my best interest as a landlord to try to work with the tenant, rather than just moving right to eviction. If the tenant had less equity with me though, then I probably would've just put the 3-day up immediately.

Another consideration: I can see if you were someone who managed many, many units that there's a point to where the tenants become far more replaceable than it does to a small landlord like myself (3 units). So perhaps if you own like 20 units or something, then I can see just taking a no tolerance on tenant shenanigans.

Post: Should I Fire My Realtor to Represent Myself?

Jason L.Posted
  • Rental Property Investor
  • Delray Beach, FL
  • Posts 224
  • Votes 169
Originally posted by @Joel Owens:

I don't think the listing brokerage would want to discount the commission. They generally just keep the whole thing. The other factor is what price range you are buying in and absorption levels. You might not have all of this leverage you are thinking if the market is hot. Seller might see you as a headache and move to take an offer from another buyer.

They offer classes on contract updates and stuff like that from NAR or local REALTOR association. Why don't you take one of those classes if you want to do it all yourself?

This to me just seems like the (stepping over dollars to save pennies) syndrome I have seen over the decades.

You must not have enjoyed the commercial real estate space working for the REIT. Commercial is something I really love to do and I can't stand residential but to each their own.

You could always look at hiring an attorney to help but there is an expense with that too. Not having certain knowledge also comes with a certain cost. Most experienced brokers and agents work on larger deals so they have to do less closings to make more money which frees up time to enjoy life more. If they worked on smaller deals ( do not know your price point) then they have to do volume and to do volume they can't give a lot of time to each client.

Good luck. Hope you find a solution that works for you. No legal advice given. 

 Just to be clear with the intent of my post, this is not primarily a financial decision so much as it is an opportunity cost decision. This is not the same thing as if I had been working with an agent from the beginning (I mean I was, but I am leaning towards removing him because of disagreements and breakdowns in communication). The analogy I used earlier was that I'm on the 20 yard line in my search (having basically driven the entire field by myself), but to hire a new agent now would require me to pay them as if they ran the entire field all over again. At this point, I know what I'm looking for and I have the ability to legally make offers. All I really need help with is the closing steps. I'd happily pay for help with that, but at this stage it doesn't pay for me to offer a full commission for it. That money would have far more value to me as a discount off my offers. At the same time, I also don't want to insult other realtors in the area by asking them to jump in for a heavily reduced commission that was commensurate with the level of work left in my search. So it's a catch 22. But in an ideal world, my original realtor and I would have continued working together and he would have received the full commission. It just didn't work out like that.

Off topic, but I didn't work at the REIT as an agent. I worked as a financial analyst, who just so happened to have a license. I work outside the real estate industry now. I have kept my license active with this broker but mostly just to use for a referral on my rental properties. Anyway, that's why I left the commercial real estate industry. Not because I didn't like it.