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All Forum Posts by: Jeromie Williams

Jeromie Williams has started 13 posts and replied 20 times.

About a month ago, I had a new tenant move into the upstairs unit of my property.  Almost immediately the tenant in the basement started complaining about noise from thier unpacking, her cat and dog making noises, and marijuana smoke (which she has for medical purposes). I would reach out to the upstairs tenant about these issues and they assured me that they would only smoke outside and that they took steps to mitigate the noise in an effort to be as respectful to the tenant downstairs. 

However, I still received complaints from the tenants downstairs about smelling weed and that their asthmatic kid was having trouble breathing. When I would reach out to the upstairs tenant they would give a completely different story about how they are doing something mundane or not even be home at all. When I got a complaint from the downstairs tenant at around midnight about how they couldn't take it anymore and that they were leaving for the night because of the smell, I decided to visit this tenant and see if it smelled like weed. When I went into the tenant's apartment I discovered that it didn't smell anything like weed or a strong smell of fragrances or air freshener that one might use if they are trying to hide the smell.

Since I didn't smell anything and the tenant downstairs isn't happy I offered to allow them to break the lease and find somewhere else to live where they could be much more comfortable. They agreed that they would take this option and look around for a new place. A week after this agreement was made they called me telling me that they wanted to call the police on this tenant because of the smoke. I called the tenant upstairs and questioned them about it they were confused because they were just cooking dinner. I told the tenant to call the police because if they feel that the tenant is actually smoking weed and lying to me. The tenant then came back to me saying the police advised them to go to the courthouse and file charges but, not charges I guess (Idk what this part means) towards them and myself because they are my tenant. The downstairs tenant said that they have messages (probably from very early on) that they didn't realize the weed smell was significant. I asked for a screenshot and they just replied "the tenant upstairs has screenshots of the convo as well."

On the other hand, the tenant upstair feels like they are being harassed with the constant complaints towards them, every time they shower they hear the toilet flush which makes their shower scolding hot. They have also overheard the tenant below plotting with people on the phone about how they will get the tenant upstairs out and that they will sue me if I don't make this right. Lastly, I have heard from the tenants that have been there the longest that the tenant downstairs complains about everything and is untrustworthy as well.


I'm kinda at loss on what to do here, any advice on what I can do moving forward from here?

THIS IS IN BALTIMORE COUNTY

Thank you so much, this was super helpful.

Originally posted by @Joe Splitrock:

@Jeromie Williams legally speaking, you can only sue someone for rent when it is past due. I assume she paid June rent, so you can't sue her until July and at that time you can only sue her for unpaid July rent. Theoretically you could sue her every month for rent, but the court may not award in your favor. Although she is breaking a contract, you have responsibility to mitigate your losses by rerenting the property. You can't just let it sit vacant and sue her every month. You have to show good fait effort to rent. The damages you can recover from her are limited to your ACTUAL loss. If you get a new tenant in the property on July 1, your loss is limited to 13 of 30 days worth of rent, so 13/30 times monthly rent. You could also charge a leasing fee to cover your time finding a new tenant. The fair market value of that is 1/2 to 1 full months rent. If there was any damages or cleaning required, you could also charge that amount, but with only 17 days in the property that seems limited. Ultimately a lease break is worth 1-3 months rent depending on how it is handled. You would never be awarded a full years worth of rent and even if you were, if you rented that property to someone else during that year, you would have to refund back to the tenant because you can't "double dip" rent.

Also be aware in a normal situation where someone stops paying rent, you would normally pursue eviction. If a tenant is evicted, you are only able to collect rent up until the eviction date. You can't hold someone responsible for rent after you throw them out. In her case it is actually considered abandonment, so there is no reason to evict.

My suggestion is notify the tenant that they have a lease obligation. Tell them as a landlord, your responsibility is to remedy defects such as pest issues. She gave you no opportunity to remedy and immediately left. That doesn't eliminate her responsibility under the contract. Give her three options:

1. She is responsible for rent and utilities until you place a new tenant, whether that is two weeks or three months, etc. On top of that she must pay one months rent as a leasing fee. That is to compensate your time to find a new tenant. Let her know that is the going rate with third parting leasing agencies (get proof of that and if the going rate is less, charge less).

2. Offer her a simple lease break option. For example, she must pay two months rent. Whether it takes you one day or three months to rent the property, her fee is just two months rent.

3. She continues to pay rent and utilities every month through her lease as per the current agreement. (Obviously she will not like this option, but the point is showing her this is the current agreement. Let her break that agreement in favor of option one or two.)

Present these options in the form of a lease break agreement decision. Talk to her about how she wants to proceed. She will likely demand to pay nothing and ask for her security deposit back. I would explain to her that the problems she reported were new issues and they do not render the property inhabitable, therefore her braking the lease is not allowed. Her responsibility is reporting problems and yours is addressing them in a timely manner. Ultimately you may want to just negotiate something less for compensation. I would negotiate down to remainder of June rent and keeping the security deposit. Just be very careful with communications, because if she takes you to court, you need to show you responded properly. If you have not already done so, hire a professional pest control company to evaluate the rodent and pest compliant. If there are dead rodents, pay them to remove. Keep paperwork and get signed statements from them attesting to the actual situation. You will need this in court as proof you took action.

For future reference, do not tell a new tenant that there was a historic problem with rodents. Fix the issue, clean up the mess and if the new tenant reports a new issue, deal with it immediately. Even if a lease says "tenant is responsible for pest issues", that doesn't mean you are not responsible in certain circumstances:

1. Pre-existing pest infestations are the owners responsibility. If someone is reporting an issue within two weeks of moving into the property, that is a pre-existing situation. Even if they did a walk through, you can't expect them to see every little issue. We give tenants two weeks to report any defect that needs attention.

2. In multifamily properties, pest infestations can be created by tenants in adjoining units. Roaches and mice travel between units, so holding one tenant responsible for an issue created by another tenant is not fair. If this is multifamily, you should be taking care of any pest issue.

I would go further and say even if your lease says that pest infestation is the tenants responsibility, you may still want to take responsibility and deal with it. If the exterminator determines the tenants actions lead to the issue, you can notify them, "this one is on me, but if you keep doing X, they will come back and you will need to cover the cost next time to deal with the problem." I know some hard *** landlords just make the tenant cover everything and blame them for all problems, but that often leads to conflict and situation like you have. It is cheaper in the long run to pay $100 and fix these type of issues.

I had just got an email from my new tenant that decided to vacate the premises because she had "discovered conditions within the apartment that she deemed unacceptable for her to continue with her lease." She claims that a week after moving in she found some rodent poop in the bathroom and ceiling, as well as, dead mice in the ceiling. She also states there are large open holes that allow easy access for mice to come in and out as they please. Next, she informed me that beetles were coming through the carpet "especially where dirt can still be seen from the lack of the ground floor being completely cemented." Lastly, she found it "extremely disconcerting that when I was explaining the issue of mice and what was found I was asked whether or not the mice were dead or alive. I believe it is a fair assumption to make that no person would want to live with feces or carcasses above their head."

This is a gist of what was sent to me and as a still new landlord this has me very confused. I would like to explain my side and then ask for advice from more experienced people (of course I'm aware that I will still need to get a lawyer to talk about this with.)

For context, we informed her that before she moved there had been mice but we called pest control twice, before she moved in when renovations were done and months prior. The tenant that had just left the month hadn't seen mice for a couple months before he moved out. During renovations the contractor also went around the outside of the building to seal up any holes they found to make it hard for them to get in. This is my first time ever hearing about beetles coming through the ground. The asking if they were dead or alive was to see if there was infestation, but I truly believe the dead mice that might be in the ceiling have been dead for quite awhile and the reason I hadn't gotten them removed was because I didn't know they were there. I was told by the first pest control person that mice are so small that they decompose quickly so I wouldn't have to worry about cleaning up and that they leave no smell when decomposing.

The lease I had her sign was the one BP offers, which states that she agreed that when she moved that it was rodent proof. She also did a walk through as well before she signed the lease to make sure it was up to her satisfaction. Currently, I'm doing a tour in South Korea so I'm not there in person. My girlfriend is managing the property so has been there in person.

Additionally, she changed some things that weren't really properly explained or given approval for, like she wanted to change light and we assumed light bulb, but in her letter she says something about "The light in the bedroom was replaced and energy efficient lights were added in its place they were installed by a code official." That sounds more like a light bulb than the impression we got. She also changed the ceiling panels in the bedroom which I never approved of.

So, I'm wondering what my options are because I think I have a good case for taking her to court to get the rest of the rent money and she said she already vacated the apt, when can I try to lease it out again?

Post: Found a 5 Unit but I don't know if it's the property for me

Jeromie WilliamsPosted
  • Investor
  • Halethrope, MD
  • Posts 21
  • Votes 9
Originally posted by @Caleb Brown:

What would the ARV be? Also what's the current cashflow now vs after rehab?

I honestly don't know since the area is mostly made up of single-family homes. I don't know other ways to calculate an ARV without comps.

The property generates $3350 from rent so I believe the cashflow is 1300. After rehab, I think cash flow could be at least 2k conservatively but I feel that 3k is very doable.

Post: Found a 5 Unit but I don't know if it's the property for me

Jeromie WilliamsPosted
  • Investor
  • Halethrope, MD
  • Posts 21
  • Votes 9

So, I found a five unit property that is listed at 250k but looks like it needs some cosmetic work done to it. I just got back from the open house and I saw that the owner was kinda neglective. The units weren't kept in the best conditions nor were they updated but it's livable becuase it's fully leased out. So I came on BP to ask how do I know on a buy and hold when im upgrading a property when is to much money to invest. 

Lastly, the realtor told me that the seller would be open to selling the LLC that owns the property becuase he isn't worried about making money off the deal becuase the outstanding loan amount is about 230K.
 

Post: How do you network during this pandemic?

Jeromie WilliamsPosted
  • Investor
  • Halethrope, MD
  • Posts 21
  • Votes 9

Since I'm still new to the real estate lifestyle, I don't have many contacts in this field. I started going to meet-ups late last year obviously not even knowing what I wanted to do in real estate. Unfortunately, now that I have more confidence in what I want to do the pandemic struck which has forced meet-ups to either cancel or move online. So my question to everyone is how should someone go about still making connections when everyone is practicing social distancing/moving to an online space?

Post: Baltimore Multifamily Shines During the Pandemic

Jeromie WilliamsPosted
  • Investor
  • Halethrope, MD
  • Posts 21
  • Votes 9

I loved this analysis!

Post: [Calc Review] Help me analyze this deal

Jeromie WilliamsPosted
  • Investor
  • Halethrope, MD
  • Posts 21
  • Votes 9
Originally posted by @Forrest Faulconer:

Numbers look good, question is, how are you getting 3% interest with $0 down! Jealous!!

Forrest Faulconer

VA loan :)

Post: Using my VA loan to house hack

Jeromie WilliamsPosted
  • Investor
  • Halethrope, MD
  • Posts 21
  • Votes 9

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Halethorpe.

Purchase price: $249,000
Cash invested: $7,000

Currently a 3 unit house hack

What made you interested in investing in this type of deal?

Looking for 3 or 4 unit to house hack.

How did you find this deal and how did you negotiate it?

Found it on MLS and since the house had been on the market so long I was able to negotiate the seller most of the closing cost.

How did you finance this deal?

VA loan

How did you add value to the deal?

As of writing this I'm looking to add another 2 bd/1 ba and washer/dryers in all the units. Also, new flat top roof.

Lessons learned? Challenges?

I learned that I should have made sure the roof was replaced because I've had mulitple leaks since I bought it.

Post: [Calc Review] Help me analyze this deal

Jeromie WilliamsPosted
  • Investor
  • Halethrope, MD
  • Posts 21
  • Votes 9

View report

*This link comes directly from our calculators, based on information input by the member who posted.