All Forum Posts by: Michael Gardner

If they are month to month, I’d be giving them notice. Likely they are well below market rent, if they’ve been there for 10 years, it likely needs some rehab. I’d get rid of them, fix it up, re rent at market value to a new tenant that you have screened and won’t be wanting to play by the old owner. 

@Michael Gardner you may want to pause before acting onthe advice given so far. Here are some other thoughts to consider:

1) Ask the previous PMC for a rent ledger for the past 24 months. It should support the tenant's claim of paying bi-weekly. It will also tell you if they pay on time or not.
---Why is this important? Well, how would you feel if you've been paying bi-weekly, have your budget built around that schedule - and now someone wants to change it?

2) Check the lease about the fridge. You may be liable to repair or replace. Hopefully, you are not.

3) How long has it been since you mailed and emailed the notices? 
---Not everyone reads these right away, so you have to allow 1-2 weeks.

If you did mail them over 2 weeks ago, them calling you about it is not a good sign. Most likely means these tenants are lazy and/or trying to use any & every excuse to avoid/delay paying their rent. 

What you have not shared is if these tenants are paying market rent and if this property is Class A, B or C? 

None of this would be acceptable for a Class A property, most not acceptable for Class B, while it would be expected for a Class C property/tenants.

You really can't apply Class A expectations to a Class C property/tenants.

@Michael Gardner I have experienced this a few times when purchasing a property with tenants: The tenant says they paid a different amount, late, increments, etc. They are only trying to see how lenient you will be and what they can get away with. Unless it is actually written in the lease, which I doubt, but who knows. I agree with @Nathan Gesner in that these tenants are already showing what type of people they are and perhaps you don't want to deal with high maintenance tenants like that going forward. 

Welcome to BiggerPockets and congratulations on your first purchase and post!

1. Don't believe the tenant. Follow what is written in the lease. If it says rent is due "on or before the first day of each month" then that is what you enforce. If it doesn't specifically say, then talk to the previous owner and/or management company to confirm what they permitted. If they allowed two payments a month, you may be stuck with that until the lease expires.

2. Do not offer a discount for a broken fridge. You just bought the place, so it's obviously not your fault. Even if you owned it for six years, you're not at fault for an appliance breaking. Nobody compensates you when your fridge breaks in your home, so the Tenant isn't any different. They need to take personal responsibility for their belongings.

3. This shows why I wouldn't trust #1.

These tenants are probably paying below market and they already have a few red flags. I would keep a close eye on them and get rid of them as soon as you legally can.

Congratulations on your first rental property! Switching ownership can be tricky when long term tenants are used to what they are used to. 

Some people have a more “my way or the highway approach” and some just want steady rent payments. we don’t know your tenants and your specific situation. Use your best judgment with the tenants. It’s a give and take on both sides. I would eventually get them paying the first of every month. If it’s not specified in the current lease then they could technically be breaking the lease. Either way you want them on your lease once their old one is up. 

As far as the fridge goes. Is it their fridge? 
i would get them using their own fridge asap. You don’t want to be responsible to replace it and deal with these problems as the tenants will make it your problem. If you want to keep the peace you can give them x amount towards a new fridge or deduct it from rent. Be warned they may damage stuff getting the thing in there. But you won’t have to deal with fridge not working in the future. 

As far as them not paying they will have to get used to the new method. Not paying is unacceptable if you properly went over it with them. If it’s a genuine confusion then you don’t have to charge a late fee. If they are just hassling you. Then I would make sure they know if they don’t pay they are in violation of the lease and can get evicted.