All Forum Posts by: Marcia Maynard

Congratulations on your purchase and best wishes!

When we bought our 8-plex, here in Washington State, the security deposits were transferred to us at escrow. We also asked for the tenant files, which included the month-to-month rental agreements. We double checked the security deposit list with what was written in the rental agreements to make sure they jived. The security deposits were placed in a separate account at our credit union.

As soon as the sale was final, we wrote a letter to the tenants to introduce ourselves. We also told the tenants we would not be raising the rent at this time, which immediately put the tenants at ease.

Being that they were on month-to-month rental agreements, we were able to change over to our rental agreements fairly easily and quickly. We used a 20-day notice to terminate the prior rental agreement and gave each tenant a copy of our rental agreement for them to review. Then we made appointments with each tenant to sign new agreements and educate them on the new terms and our property rules. It was also a great opportunity to get to know the people in each household.

Then we started working on property repair and improvements. This was a big hit with the tenants, as we asked them for their input on which things we should address first and took care of their requests quickly. By being at the property a fair amount of time while doing the repairs and improvements, we were able to get a good handle on how the property worked and the character of our tenants.

We didn't need to evict anyone, but one tenant (a female stripper with a pit bull) moved on her own. She didn't like our no-smoking policy, no drugs policy and our partnership with law enforcement. She also became aware that we could not be easily manipulated.

@Tim Haag Welcome to the BP community! I've only been active with BP since November 2013 and I am jazzed and quite amazed by this resource.

When you get to your buy and hold phase, look me up. I have 18+ years of experience as a residential landlord and I'm eager to share what I know with you. It's about "landlords helping landlords to be better landlords." We live and invest in the neighborhoods of Vancouver's west side. First moved here in 1967, so I have a pretty good feel for various areas in town.

All the best to you and your family!

Sounds like you are talking about a HOLDING DEPOSIT. If so, did you use a holding deposit form? Does the holding deposit form explain the terms for returning / applying / keeping the holding deposit? Did all parties sign the holding deposit form? If not, did you have any other written agreement about the holding deposit, signed by all parties? You would be entitled to keep the holding deposit if the prospective tenant breached a written agreement that allows you to keep such.

On the other hand, if is was all verbal, then put your offer to return the holding deposit in writing, include the check, make a copy for your records, and get proof of mailing.

If you are talking about a SECURITY DEPOSIT and you actually signed a lease agreement and accepted their money, then you did rent to these people. In that case, the terms of the lease agreement would apply.

Take a deep breath and don't let emotions override good decision making.

Let her go and address the underlying causes that led to her decision to leave.

I missed seeing the second page of comments and that you had already settled with the tenant for $50. From my perspective, I think you sold yourself short. Seems there could have been more room for negotiation and the tenant could have been held more accountable.

Curious about your contract having a clause that states the tenant is responsible for the first $50 of a maintenance charge. I see maintenance and damage repair as quite different. I wouldn't charge a tenant for maintenance, but I would for damage repair.

Good proactive move by taking over the filling of the tank so it doesn't run dry in the future.

The damage was a result of her not filling the propane tank, thus not having the heating system working, thus not having hot water in the pipes, thus the pipes being affected by the cold weather, thus failing. Is it in your lease that it is the tenant's responsibility to fill the propane tank? Ah yes, she was indeed negligent. When she let the propane tank run dry the first time, did you restate that it is her responsibility to keep the propane tank filled?

I commend you for attending to the problem quickly and effectively. You did the right thing, mitigated the damage and restored your property. It may be helpful to know when the tank ran empty, as it will give you more insight into her ability and willingness to follow directions and uphold her responsibilities.

I would review with the tenant the course of events that lead to the problem and point out her role in that. I would show some empathy when talking to her, but also point out that she will need to pay for the "repair." Show her the invoice from the contractor. Let her know that it took you some effort to get the system fixed and that you will not charge her for your time. That way you are giving her a concession, which lessens the blow.

Find out if she has renter's insurance and if her insurance will cover it. If not, she may or may not have the ability to pay the full amount right away. Offer for her to pay for the repair in installments if that is the case. Don't offer to use her security deposit to cover the cost, as you need to keep that intact. If you document all that happened and she has not paid up by the end of her tenancy, you will be able to take it out of the security deposit if there are sufficient funds left to do so.

We've been quite fortunate in buying properties from estates with all cash offers.

Of course, make your offer contingent on inspection. You can and need to get into the other unit after your offer is accepted, during the inspection phase. You may be able to see it sooner. I'd ask them, "What would it take for me to see the other unit?"

Who told you the other unit was in good shape? Do they have any recent photos to show you? Is the current tenant being evicted for cause? Could be helpful to know. Evictions can go smoothly or they can be quite contentious. If the latter, there may be significant property damage left behind.

We made the mistake of buying an 8-plex once and believing what we were told ahead of time about "no deferred maintenance" and that we couldn't go into a particular unit because the tenant was sick. Neither was true. The unit we couldn't see ahead of time turned out to be the most run down and most outdated of all.

Also, get your own feel for the property.... walk the neighborhood, talk to the neighbors, and visit the property at different times of the day. Observe and listen. May be helpful.

1. Charge for the materials.

2. Charge a reasonable about for your time. (I would not charge for travel time, but I would charge for the time it took to do the work.)

3. Do not charge for the cost of the new tool.

4. Don't delay in giving the tenant your repair invoice. Also establish a clear due date.

5. Time to do a full inspection of the entire property. (This type of scenario usually comes with more damages and tenants are not always forthcoming. Ask the tenant to show you all damages to the property that they know about. Ask the tenant to tell you about any other maintenance/repair needs. Then do your own checking.)

[BTW.... After the door frame had been repaired, a professional locksmith could have done the job in less than an hour. Your charges for the lock replacement and deadbolt installation should not exceed what that would have cost.]

@Account Closed That's interesting. Never heard of that happening in our jurisdiction. Good documentation is key here. If we had to wait to do our repairs until the tenant had ample time to view and dispute the damages, it would set us back in our turnover timeline. We have a good track record for the return and withholding of security deposits. Never been brought to court about it in over 18 years as a landlord.

BTW I'm in Vancouver, Washington and all of our rental units are here too. I contribute to the lobbying efforts of the Washington Apartment Association to keep our laws reasonable and landlord friendly. I personally do not know of any landlords who create damages (or lie) to hold security deposits. Hopefully those who do are caught, held accountable, and change professions. We do everything we can to encourage tenants to do what they need to do to get their full security deposit back. We have contracts, policies and procedures in place that demonstrate this.

I appreciate your mentioning this though, as it gives me an idea of something to add to my final report ... "Please contact me if you have any questions or concerns about this report." I could add a dispute clause as well if my attorney thought it advisable, but I try not to give tenants any ideas that would onerous on me.

Ditto about addressing it in the contract and explaining it at move-in.

Here is an excerpt from our rental agreement:

"HOME DECORATING: Pictures and shelving may be attached only to drywall walls, using approved hanging devices. Approved hanging devices are available upon request from Landlord at no extra charge. Tenant agrees not to pierce any brick, masonry, woodwork, cabinet, door or floor with nails, screws, staples or any hanging device, as doing so may cause damage beyond repair."

"ALTERATIONS: Tenant agrees not to do painting, wallpapering or structural modifications to the premises. Tenant agrees not to make alterations, changes or additions to plumbing fixtures, light fixtures, heating units, or locks. If Tenant wishes to make a change, Tenant agrees to obtain prior approval and written consent from Landlord. Changes must be reversible and property must be restored to original condition at end of tenancy, unless other arrangements have been made with Landlord."

Note, we address the addition of antennae, air conditioners, mounted televisions, etc in other areas of the contract. When we do our move-in, we read and talk about everything in the contract and give the tenant a packet of picture hooks (5lb type) with their move-in gifts. When they request to paint, we talk about it with them and our approval is only given if they pay for it and we approve the color, choose the type of paint, and do the work. If we intend for the walls to be changed back to the original color, we charge them for that up front. Very few tenants ask us to change a paint color, as we mostly use neutral colors from the start.

We do regular inspections and if we find lease violations, we address it at that time. Here is an excerpt from our rental agreement about damages.

"DAMAGES: Tenant agrees to notify Landlord of damages as they occur. Tenant agrees to pay repair/replacement costs for all damages that they or their guests have caused. Landlord agrees to initiate repairs in a timely manner following discovery of the damage or can choose to defer repair until Tenant has vacated the premises. Repairs done by a professional will be billed at the professional rate. Repairs done by Landlord will be billed by the job or as labor plus materials."

Note, we do not charge for tiny picture hook holes and thumbtack holes in drywall, as we allow it. However, we will charge if the tenant tries to "fix" the hole and creates damage.