All Forum Posts by: Marc Roth

The insesivity of the responses here is astounding. Just because you never experienced something that is quiet real and possibly very dangerous depending on what type of entity you’re dealing with doesn’t mean it doesn’t exist. 

There are many things unexplained and until you experience it making fun of it or jokes something you have no knowledge of is just cruel and inhuman especially with a child involved which is clearly no concern of anyone. After all the sole focus is collect your rent so who cares if this does actually exist and could do harm both mentality and physically. 

Fact is there are things beyond the world we see that can’t be explained and can be a real issue to deal with. 

If you actually want a sensible and concerned answer as the owner then take some type of responsibility. I would find out what the tenant would like to do. Explain to them that’s beyond your control and offer support in the only way possible which is see if they want out of the lease. If so, then do it. If not, then there is nothing you can do. 

Since you now know it’s been reported and they have told you it exists you must disclose whatever you do know even if you haven’t seen or experienced it yourself to any future tenants or buyers. 

There have many, many cases of this exact situation. If by chance it’s an evil entity (Even if you don’t believe they exist) and something happens you have a great chance of being held responsible if you don’t disclose it. 

Being pursued by something you have no way to battle is no joke. It can be terrifying and life threatening. It’s not something to take lightly regardless of the many insensitive and inhumane responses. 

Do as u wish but I tell u now go look it up. You are responsible since you now have reports of it. 

Water is another animal unto itself. 

We do Electric and Natural has audits constantly. Many mistakes are found and refunded all the tone from the Utility as well as alternative third part suppliers 

Water is far worse. If you’ve never had a Water audit done especially in a place like Arizona it’s a necessary fact of life if you’re going to own property.

Depending on the situation it can all be done on contingency basis. Be careful though not all auditors are created equal like anything else. 

I’ll suggest two things

First, contact the Utitity and it’s website about the sub-meter. Personally I’d let a professional do it. 

Second, you have an escalation clause in your rental agreement for Utilities especially in an area like Phoenix that has no deregulated Electric supply rates. In 19 other states u can buy a fixed contract versus a variable one like Arizona. 

That being the case you should be have a clause in the lease that allows for a 5-7% increase in the utility cost with a built in 10% profit of their usuge on a submetered basis.

You’ll be making 10% on top of the bill and another 5-7% compunded every year. 

That’s how you can use energy as an additional profit center even as a small landlord 

This is exactly what we do. Unfortunately some landlords don’t consult with us first before putting leases in place in setting up a long range Energy Managent plan in coordination with the leases they sign. 

There is most certainly a methodical and intelligent way of installing sub-meters and ensuring an additional profit. This increases the value of any property as well as making it easier to refinance or leverage to buy additional properties. Lenders and property owners/managers love these additional income streams. With continual increases in Utility costs it’s an area that is many times ignored until an issue arises or a big bill arrives. 

It’s not as simple as people believe since Utility bills are complicated by nature. Every Utiilty is also different so you have to know that market, what’s available and how to put into effect a concise plan with guarnranteed supply rates in the case of Electric and Natural gas. 

Way too much to go over on a forum so if you want help feel free to PM me and I’ll see what can be done. It also must be coordinated with your Real Estate attorney since we leases are involved. 

It’s good to see some people most importantly @Ralph Noack see the point and responsibility you have no only as a landlord but as a human being. 

And so what if they “Get scared off”? You get another tenant and do the right thing by being proactive and honest. It also protects yourself in dictating what you know. If something were to occur at the very least you did the right thing. I could never forgive myself if something were to happen and i did nothing about it. 

Clearly others here see their tenants and their responsibilitoes as people as just a dollar sign. I’ll let those actions speak for themselves. 

If that were my kids though I would eventually find out the truth and come after them with all the legal means available. Guarantee to be a local new report and all over the web. 

Then let’s see how the that kind landlords rentals go. 

I always take the attitude unlike our friend here Michale Plante to treat others like I want to be treated. It’s probably not illegal in any way not to tell them however from a moral and ethics point of view it shows who you are as a person. 

Two young girls entering a new area with no knowledge of a possible security issue should be aware. I would install some cameras and some type of security.  You have the repsosibility since you already know by using some common sense regardless of what Michael said that it’s them. They are watching and you know it. 

What if this were your kids? 

I would guarantee that if something were to happen think about how you’re going to react when you find out the owner knew all about the issues. Then he or she didn’t say a word or take any precautions because they want a paying tenant? 

What kind of person does that? And that’s exactly how some judge might find it if you find yourself in court or something worse like they get hurt. You’re now responsible for putting your pocketbook before their safety. 

Your property so do what u want with it but you have to decide what kind of landlord you’re going to be. 

No problem i have plenty of sources and a solid network around the area. I can always get someone somewhere

Do you own any Multifamily now? 

Shane H. You’re making a business decision but I don’t get what going on FB does for you?

You bought property to be a landlord. Now you’re one. This is just part of it. 

I’d suggest given what you wrote about your past experiences with this tenant and other that you focus on a better processs of tenant selection. 

My guess is this isn’t the first time this Captain has done this so there were signs to look for along with other non paying tenants you’ve had. 

Part of the reason people back East as you call us rarely can do transactions on a handshake anymore is exactly this reason. What are we suppose to do go on FB or whatever and report it to the Internet? Complete waste of time, energy and thought. 

Like I said you wanted to be a landlord and maybe this will be some type of lesson for you. He’s not going to change and you’re not going to change him or anyone else. Many are not cut out to be landlords. If a couple of thousand dollars bothers you that much then maybe it’s not for you. This situation is just a line item on a spreadsheet marked cost of doing business. 

I’d think at the very least about getting a property manager and focusing on building your portfolio of properties if you’re going to be a landlord for a living. You’re way too emotionally tied up in the day to day. 

Just my two cents...

How are you immediately making money? 

Hence the issue with low priced and low income areas in general. The one’s i know of that are successful built the management of them from within themselves not outside one’s.

That’s also why they say when buying and being a landlord like you are to live in the area. 

The one thing i would try with your idea which i think is good if someone will go for it is your local REIA. They may already have property managers that specialized in that area or that type of property. I'd let them propose first before giving away a piece of of net income.

The other option is to sell it and buy something in the new area you’re moving to. Being a landlord is hands on and available 24 hours a day, 7 days a week and 365 days a year even when there r no issues. That’s exactly when they happen. 

Good luck