All Forum Posts by: Tammy Richards

Argh... the life of a new landlady..

Served this inherited tenant a 30 day notice last month.  Lack of one legal clause necessary in Maine led me to serve another today, asking her to vacate in 30 days (she is a tenant at will).  THEN I read in the paper that she has been arrested, with her boyfriend, for distributing drugs.  The paper noted "An investigation into drug dealing from (tenants)  residence has occurred over the last six months, and tenant) allegedly would drive out-of-state distributors .... to purchase heroin and crack cocaine for resale..."

She's Section 8.  I am not sure what to do - I e-mailed a lawyer.  I have only a partial copy of her lease from prior landlord.  Not sure whether or not to call the police... 

Help!

Congratulations!  You might want to check into the Southern Maine Landlord Association, they have some nice resources, including keeping property owners informed about Portland's new requirements related to fire safety (a result of a bad fire last year that killed several University students).  

Welcome Garrett.  You are wise to start young.  I think you are also well-located, depending on what you decide to focus on.  Old Orchard Beach is much more affordable than York Beach, Wells, and other southern Maine beach areas - I think there's opportunity there.  

Update:

Thanks everyone again for the good advice.  It helped me take action sooner than I might have.

@Jeff Rabinowitz - gave 1st floor tenant 30 days notice yesterday - she was shocked as I think I had been so calm and pleasant with her that she thought she had an ally... happy it could happen outside the building.  Being a sole female landlord is making me familiar with a number of good smartphone safety apps.  When I visited my other tenants after, they  complained about the noise from the feud on the other side of the building.  

We'll see if she actually leaves... without a fight... already researching security measures... she's Section 8 so I'm hoping her fear of losing voucher will keep retribution down.  Also not going to rush into getting 2nd floor onto a 12 month lease until I can observe more about their interactions with other tenants.

@Jeff B. still looking for a good lease clause about tenant disagreements.  Also looking into soundproofing!

@Roy N.  - great idea, to have them put it in writing - makes it more onerous.  

@Michele Fischer - thanks for the tag advice, and for the advice to join the local property owners association - I have found some good forms on their local website.

@Matt Clark - yes, the sweet spot... I did decide to speak with the 2nd floor tenant who tossed the 1st floor tenant's stuff on the street - as that crosses  a line for me. From the reaction that I received, I think 2nd floor is train-able, though we'll see.

@Jeff Rabinowitz - giving 1st floor tenant notice tomorrow.  She's a pain.

@Jeff B. - thanks for the lease advice, I'll pay attention to that type of clause.

Drawing up a draft lease now, thought unfortunately Section 8  says they need 60 days to process revisions to leases.  My plan is to introduce the new lease in a month or so to the other 3 tenants, and give them a sample copy to review.  I'll talk it through with all of them, will be able to gauge their reactions, and they can decide to stay or go.  I figure it's a good way to start teaching them how to be tenants that I want in my building... and if any are a royal pain in the meantime, I can not renew their lease without cause.

@J Beard - the leases I've inherited are stock Section 8 leases, I've connected with a local lawyer as I want much more clarity around expectations in my leases.  I hadn't considered "disturbing other tenants" clause, so I'll keep that one in mind.  Would you happen to know of any resources for good sample leases?  I'll have my lawyer review, but want a comprehensive draft.

@Jeff Rabinowitz - yes, I think I'll need to go that route.  It will give me time to spruce up her unit - which is the nicest one, and brings in the least amount of rent thanks to her initial lie.  

Well, I've owned my 4 unit for all of 12 days and got my first tenant call loaded with drama.  The building is a low income rental for families, 3 bedroom units, 3 of the 4 units are section 8.  When I first met 1st floor tenant prior to the purchase of the building, she complained about the noise made by the 2nd floor tenants, and told me she was looking to move out.  The 2nd floor tenants make references to the nasty 1st floor tenant.  Both pay their rent on time, according to prior landlord.  

So today, the first floor tenant calls me.  She's upset that the 2nd floor tenants apparently tossed the wreath she put on the door into the street, and tossed a rug she had in the hallway into the street (they share an entrance way).  She then goes on to complain about how noisy and disrespectful they are.  I  figured I needed to stay out of the drama - and I told her that if the tenants were breaking the lease, I could do something, but that they needed to handle disagreements among themselves.  If they were disposing of her property, she did have the option of calling the police.  I also let her know that I knew she was unhappy months ago, and that if she wanted to move, she was on a month to month lease and that was an option for her to move, and that I was open to helping her by releasing her security deposit earlier if she needed cash to move.  During the conversation, she said she'd call the police, but that I'd get in trouble because there's an ordinance that landlords need to keep their buildings from being disorderly (I've since looked into this, I'm not too worried).

Throughout I was calm, respectful and polite - and I think she sensed that so I was able to calm the drama a bit - but honestly, I don't like this tenant.  When she moved in under the old owner, she got in saying she had a 3 BR voucher, but then only had a 2 BR voucher, so she pays less rent than anyone else in the building.  She's taken over the one parking spot, and has a boyfriend who has mysterious friends from Massachusetts.  I can give her 30 days notice - she's on month to month - but wanted to give her the option to make that decision.  

Should I intervene more/get involved?  I am interested in why the 2nd floor tenants removed the wreath/rug... should I call them?  Do I need more explicit leases about who can store stuff in the common hallway?  Do I call the police and warn them of the drama?  Other ideas, thoughts?

Thanks!

Man, I am so mad.  I just purchased a 4 unit, in need of repairs.  The purchase and sale agreement stated seller would contribute up to $8000 closing costs.

Because the units are occupied, and because the closing was mid-month, I was expecting to receive @$4000 in security deposits for the current tenants, and $2000 in prorated rent amount.  The $4000 was to go right in the bank, in a separate account, as legally required.  The prorated rent of $2000 I was going to put into immediate repairs.

I was supposed to bring $1000 at closing, but an updated closing documents sent to me state I didn't need to bring money. Sweet... I thought....

However, at the closing, a discussion occurred around the new financing regulations, and that checks can't be passed, so that the security deposits and prorated rent had been "rolled into" loan.  As I was signing documents, I asked for clarification, and my realtor said something to the effect that they had gotten around this via my downpayment deposits held by my realtor.  I thought, naively,  that meant that I'd get a check for $5000 from my realtor (the amount they down payment).

My realtor all along has been saying "you can use prorated rent you'll get for repairs" so I know he was assuming I'd get the rent at closing.  I have purchased multi-units years ago, and that was what typically happened.  Therefore, there is nothing in the P & S agreement - about my receiving security deposit and prorated rent - only the statement that up to $8000 towards closing will be paid by my seller.

Now my realtor says that the security and prorated rent were included in the loan.... and in reviewing the paperwork, it looks  like I the seller contributed almost $8000 in closing costs.  So actually, the seller made a nice $5000 extra.  Which I ate.  

So now I have to put in $4000 to that separate account - leaving me with no money over the holidays, and no money to even start repairs. I'm seething mad.

Advice?  Other than I should have made absolutely freaking sure I understood what was happening at closing... I am kicking myself over that one.  

Where in the state are you looking?  The market varies greatly with location, as it does in any state.   Your profile says you are located in Wilton, which I'm unfamiliar with.  Looks like it is trying to develop and/or has a tourist base... are you looking locally?  You are an hour to Augusta, I see - Augusta has population density, lots of apartment buildings/market for rentals, and a more stable employment base than much of the state thanks to it's status as the state's capitol/state jobs.  You're also about an hour from Waterville - another high density city with very good employment due to two excellent colleges and some strong medical facilities.   

So my advice is to encourage you to ask a more specific question - at the very least define an area, so that the investors you wish to connect with have a sense that you've done some research, and have knowledge and an interest in working in specific areas.  "Maine" is a pretty big place (though in comparison to most it's pretty small).

Hi Mike,

I hope to join you soon as a multi-unit owner in Southern Maine, and I'm making decisions  on a lot of similar issues related to utilities and heating -  whether to include electric, whether to separate heat out (and what system is best for large, 3 BR units).  In my area, virtually all rentals have heat included - which is different than other areas for sure, so I'm leaning towards providing it, but increasing energy efficiency.   I am also wondering what my vacancy rates will be - assuming high turnover, but hoping to figure out ways to keep that down.  

Not sure where you've purchased in Maine - I'm in the Portland area, where costs are very high, it's been tough to find a decent deals. But for places outside greater Portland, as long as you research what rents you can get (they can be very low), and keep an eye out for opportunities to increase energy efficient/decrease costs, I think that it's possible to find stuff that can work on the MLS.

Sounds like you have done the heating work, but you might want to look into Efficiency Maine programs in the future - Kenny LaVoie's got a good strategy of putting money into making the properties weathertight to decrease costs/increase cashflow through using that program.

Hoping to close in a couple of weeks, and will let you know!

Best,

Tammy