All Forum Posts by: Matt A.

Im currently self managing 6 units between Easton and Whitehall, however I do have a great relationship with KPMM Bethlehem (they are NOT the same company as KPMM Allentown). Jeanne Rossi is the one to chat with. I currently use them for some of my maintenance (when Im unable to do it due to other commitments), and ad-hock other issues. 

Very easy to work with.

When buying a property with tenants ALREADY IN PLACE, I now start here... no release from the tenant required!

https://ujsportal.pacourts.us/

If I find some particularly egregious stuff Ill insist the seller have them removed BEFORE closing if on a month-month basis. Otherwise Ill re-trade based upon the history. For example, I found in one of my buildings a tenant that had just had action taken by the previous owner - had I known how to do this PRIOR to buying I would have caught it... I know now however and the tool is invaluable. Its a little wonky that you have to search by county, however its better than nothing (and its free). Not sure what other stated offer, but this sure helps. With a new tenant there are many screening tools available. I've tried several and still have yet to make a decision on what I like best. Basically setting expectations high and starting firm & fair seems to work (with minimum credit, employment, income hurdles in place) well.

While not perfect, Im confident that Im alleviating 90%+ of the headaches up front in this manner.

I've gotten to the point where I wont accept ANY excuse. Follow the lease to the letter, As Alice Coopers song went "no more mr Nice Guy" is my new motto.

I have a challenging tenant myself, inherited and Im in the final stages of eviction (this tenant is a pro - knows the laws and has played the game well). Hope to have the final disposition this week at Common Pleas Court, then off the the sheriff's office for removal. This one has taught me a LOT, and while I don't wish this process aon anyone, you WILL learn a whole new dimension to your business going through this process.

I might even write a small chapter on this one in the future.... then again, doing it first-hand is the best education/tuition you can get.

I agree with the above suggestions - better screening, plain and simple! We are pretty tight on ours, however THIS nightmare slipped through as he was inherited with a building acquisition. Ive developed a system for screening those tenants as well (its actually quite easy using on-line tools, and Pennsylvania is pretty good about posting this stuff on-line).

Hate to bring up an old thread - but Im right back at another eviction, another inherited tenant. This one is proving to be a tougher nut however. While I do have a judgement and I can (and will) be at the magistrate's office first thing Tuesday, Ive got good reason to suspect this particular tenant is appealing the eviction. (hasn't paid rent - habitually late when he did, just got fed-up and after 10 days late filed (lease does not require notice).

My bigger concern is the lease ENDS in 90 days anyway, and yes, we ARE going to give additional written notice that we are not renewing it... I also think he is going to use the "not fit for habitation" defense... he has no oil in his tank (I dont pay for that - lease says I dont either) although I know he has wrecked the boiler as well. Always something.

Im hoping that I can beat the appeal as I have not been served, and Im also filing a new notice for failure to pay THIS month. What concerns me is that I might have a professional tenant and this may prove challenging to remove.

Guess its all a learning experience but I sure hate to spend more money ridding my building of a non-paying tenant. Bigger question, Suppose he does beat the eviction - how tough is it to remove him once the lease expires? can THAT be appealed? (It would then be December 1st and my fear is someone in the courts will feel sorry for this guy as its cold out at that time. 

Goin through this now myself (on two fronts nonetheless). 1 tenant we have again filed as he cannot seen to figure out when rent is due (and Im sure he is crashing around in frustration as HE is supposed to dictate the terms of WHEN he will pay to us... one of those hot-head types). This is causing agida with the tenant next door who has a 60 day notice to terminate (only at the end/anniversary of the lease, then an auto-renew for another year)... who "was" planning to renew then suddenly had a change of heart and wants to immediately vacate.

Im all for letting the "change of course" tenant go, however I want her to understand that Ill legally hold her accountable for rent until Ive re-rented the unit (we allow tenants to report to credit agencies as well, this one does), and I fully expect her to pay until such time. I do like the suggestions about getting a written intent - that protects me during showings. As for her reporting, Im not shutting it off, however Ill let her know how it may affect her.

The other knucklehead I just want evicted, and am in court next week (actually one of my managers is) to have his case heard. Him Ill let go without a dime additional so long as he vacates by months end.

My moral is "be adult and work with me", Ill work with you.  Sugar will attract far more bees than vinegar... and that's how I want to be known for running my business.

@Sonya Suggs - instead of wasting money on guru seminars, might I suggest listening to a bunch of BP podcasts, get to know one of the hosts (that lives in the same state as you) and possibly buy him a few lunches or dinners and get some first-hand knowledge form someone actually DOING this business.

Not saying that coaching is all bad (in fact we use a couple ourselves), but the "guru stuff" is an absolute waste. You do need to actually get out there and pull the trigger yourself.

@Chris K. - you comment ..."work with professionals who can help you".... - spot on, and why I would personally outsource this to my management company. They have done far more of these than I ever care to do. 

Being that your part of the legal field Im sure your advise is more "legal" than mine. My comments are the layman's who has had to do this, and simply the simple steps I used to accomplish the task, but the net of it is, "let a professional do it".

Good to understand the framework as an investor/owner, but I sure don't need to concern myself with the nuances, that's what were all building a team for.

Nick - First eviction? congratulations... these are always fun. Google is your friend on the laws on this one. Ive used KPMM to handle an eviction for me in the past. Its actually quite simple. 

As for the one where the lease runs out - be sure you have  a copy of the lease before you close - it probably says 30 days notice (although I have one from a previous owner that gave the tenant 60 days)... know the terms. Send it in WRITING, certified if you want proof, that your not renewing. If they stay past the 31st then you can file with the magistrate for eviction. This is where I personally would use a property manager of attorney that knows the nuances of the law.

Far as Im aware you inherit the terms of the lease until the lease expires when you buy the property, hence why I always want a "lease review contingency" in my contracts.

My last eviction cost $151 in filing fees in Whitehall at the magistrates office, case was heard 15 days later and we won. We were then waiting 10 "business" days to file for possession, however our tenant came up with all rent in arrears, the next month, fees, etc. - we decided to keep them, but may be again going through the process if they don't shape up quickly (can I pass this guy to you... especially if your going to have a vacancy soon :) ). Seriously, I wouldn't want anyone from here to inherit the guy.

One thing I do when making an offer is review all leases, but also review the tenant. YOu can search the PA judicial portal (Google that one), drill into the county and search for criminal and civil proceedings. Its a supplemental thing I do when evaluating a new tenant and I've found some good information on that site.

Personally, get a property manager to handle it. KPMM has been very reasonable for me and it completely removes the headache. Good luck!

@Basit Siddiqi, havent been on the site for a few days (been out making offers and that four letter word... "work" keeps getting in the way).

Careful on the way the sellers interpret a finance contingency - they just might finance your deal albeit NOT at the amount of the agreed price, hence why I use an appraisal contingency. In my example I was all set and the lender had provided an approval letter.... if the appraisal comes in low they typically will still do the deal, just at 75% / 80% (or whatever terms your getting) of APPRAISED value or sales price - typically the LOWER of the two... so in essence that escape clause is now off the table. You simply have to come up with the difference in cash.

Next time your in town look me up - Gladly meet you for a coffee or something.

Cheers

Matt

I ALWAYS put an appraisal contingency in my offers. Depending on what your offer looked like you may/may not be able to bail and get your earnest money back. That said, the appraisal will "stick" with the property for 6 months or so, meaning that nobody else will get anything other than a$36k appraisal - so the seller has some incentive to renegotiate depending on his urgency to sell.

I had a similar thing happen about a  year ago - ask was $175k (or so), offer accepted at $163 WITH APPRAISAL CONTINGENCY), appraisal came in at $145 and I agreed to add another $5k to the deal (the agents also sweetened it up to the seller by cutting their commissions as well). I waited till 48 hours before closing to spring the news and was ready to walk, in fact I had already sent the contract termination over and they knew I was seriously going to "leave it". In the end I got the property (although the agent was so pissed that he wont work with me anymore as he didnt earn his full commission - that's another story), but I do have a property that cash-flows almost $20k annually now!

Im not sure how Wells will react to a second appraisal, you could ask that it be reviewed.... that's typically an uphill battle. Personally Id adopt a "take it or leave it" stance. Heck, the $50k properties in Allentown are in borderline war zones anyways.... for me those are NOT the tenants that I want (getting paid is a major hassle). At two grand cash per year your going to be negating with a single months vacancy plus re-rent costs. I think youll also find your maintenance/repair fund falls short, I own some 1900's properties and crap is always needing fixed, but thats just my opinion. Personally the deal is way too skinny for me. Good luck.