All Forum Posts by: Wesley W.

Further adding to @Greg Scott and @Bruce Woodruff...

I believe that the ESA accommodations for housing fall under HUD. Since these folks are "guests" of your tenants, it's possible that would fall under ADA, and it's possible you can disallow the dogs access to the property. As Bruce said, ESAs are more restricted that service animals when it comes to this kind of stuff. (Even odds they are not actually ESAs, but I digress.)

As others have said, I think your first course of action is to (a) get your PM to earn their fee and enforce the lease (unauthorized occupants); failing that, (b) hire a new PM that will enforce the lease.

Once you do that, the viscous pseudo-ESAs upsetting your neighbor problem goes away.

Not to pile on, but this problem was created by your PM being asleep at the wheel and allowing these people to stay at the property in the first place.  Are they doing routine quarterly inspections?  I'll bet you a dollar I know the answer.

Check with your jurisdiction for any crazy progressive rules, but I do not see why not.  You entered into a contract for one year, and your negotiation has not created a mutual benefit.  We live in a capitalist society, and you should be able to charge what the market will bear.  Can you reject the price hike from your grocer, gas station, utility provider, property taxes?  Your expenses are going up, and thus you need to charge more for the service you provide in order to remain profitable.  I know some people bristle at landlords making "profit" but a basic understanding of business will show that a small business owner's first dollar of profit is their first dollar of income.

@Greg Scott nailed it.

I will also add that since an ESA is an "accommodation for disability" under HUD, the animal's owner is responsible for any modifications to the home in light of that accommodation (think wheelchair ramp). That being the case, I would say the tenant should be charged for the modifications to the fence. I would collect the money in advance of any work being done.

Having said that, I think this ESA nonsense is a red herring.  As Greg mentioned above, what are these people doing staying at the property with their dogs?  They are not on the lease.  They, and their "ESAs" have not been vetted. Your PM needs to be more attentive to reinforcing the lease and protecting your rights as the property owner instead of just collecting their fees.

Each multifamily building I own has its own bank account. It's written into the lease that tenants must deposit their rents into that particular account (either by online bank transfer or by walking in a check/cash); I do not collect rents directly, nor would I if anyone asked. Systems don't work if there are any exceptions. Each tenant living in a building has their own unique rent amount, so even if they do not leave a notation with the rent payment, I know whom paid the rent based on the amount alone. I get an email alert each time a deposit is made.  I have used this method for about 11 years over multiple buildings with no issues at all.

I do not like the third party vendors you mention, for two reasons.  If you read their TOS they have virtually unilateral clawback ability, in some cases months later.  Secondly, this is just another needless link in the chain between the tenant and our business to pass along payment.  There can be service outages or other issues that can delay those payments.  At the very least, it takes longer for the funds to pass through the vendor.

It could be just a knee jerk reaction to getting the notice, but I would plan on starting an eviction proceeding the day after her lease expires.  I would engage a reputable landlord attorney in your market right now, so you are ready to go when the day comes.

I know you are trying to avoid an eviction, but sometimes that is the most efficient course of action.  It's money well spent, I can tell you from experience.

What's your plan to avoid an eviction?  Keep asking her to leave?  She won't be paying rent if she holds over, I can tell you that.  The longer this drags out, the more psychic energy, money and time it will extract from you.  It will sour you on this business.  She's already told you what she's going to do (or not do, as the case may be).  When people show you who they are, listen to them.

I have not read anything at all about the OBBB impact on Section 8, but my guess is the states where those programs are more robust will step in if there is a shortfall of Fed funds.  They will acquire that revenue by raising taxes on the worker bees, as they always do.

 I recommend renter's insurance but don't require it.  I have a landlord dwelling policy for each building and a commercial umbrella policy for the portfolio.

I'm not familiar with NJ law, but I would move on and issue a notice of non-renewal in writing, and properly served.    Inherited tenants very seldom work out, and he is so far below market that he has "what's fair" anchored at the old rent.  Raising rent will just piss him off and embitter him (sounds like that has already happened).

Hire a lawyer and rip off the band-aid with an eviction if he stays a day longer than the lease.  The money you spend on this now will repay you many times over when you look back on this in a year.  The longer it takes to disentangle yourself from this party, the less profitable and enjoyable this stabilization will be.  He will do everything to hold on to this sweetheart deal and tell you anything you want to hear to delay the inevitable.

Everyone is free to run their business how they wish, but that's what I would do.

 Great questions.  Keep asking them.  I have found credit unions to be the easiest to work with.  I have about 20 accounts with one that is based in my market.  Super convenient for tenants because there are at least a dozen branches in the area, and one is in the small city where I own my buildings.

I never give out my personal number.  I use Google Voice, but I only give that number out to prospects whom have made it to a showing invite (so they can confirm, see earlier post).  I omit the phone number from all my ads; there is usually an option to hide it but you have to opt out so it shows by default.  My Google Voice has a special ring tone, so I know it's a tenant when they call.  I only communicate with prospects via text to confirm.  I would not answer nor entertain a phone conversation with a prospect.  (time is a finite resource, and the signal to noise ratio is not beneficial)

NOTE:  I pasted the post from an earlier contribution I made;  I now charge $250/$25 per pet, FWIW

Here is my system that I have shared on the forums previously:

It all starts with online ads, within which are several pre-screening questions I request be answered in their response to my ad. Here they are:

1.) Your first and last name

2.) Your direct email address

3.) Your phone number
4.) Total number of people that would occupy the apartment
5.) Proposed animals (size/breeds) <--- NOTE I DO NOT USE THE WORD, "PETS"
6.) Monthly pre-tax income for household (minimum $5000)
7.) Date you wish to move in

8.) Do you currently have enough funds to pay first month’s rent and a security deposit?

Next, here's a canned email response I use for everyone who answers my ad with the aforementioned questions answered. If they don't answer my questions, I know they have not read the ad and are just clicking and "tire kicking" or they lack the intellectual focus for me to have any business relationship with them.

I market on Craiglist, Zillow, FB and Apts.com and get great leads from each in my market. Problem with Zillow and FB is they have this annoying "1-click reply" where people can just click on your ad without reading it and you get an automated message "Joe is interested in your apartment at 123 Main St." To these responses I just cut/paste the ad narrative into an email reply. This is a waste of my time, but I am stuck with that if I want to market through them.

Here is the email response:

Thank you for your interest. We have a minimum income requirement to qualify for this unit (4 times monthly rent); based on your email, it appears you meet that qualification.

Whether or not your household currently has pets, I am going to share our pet policy. We allow cats and most dog breeds except for the following:

- any breeds/mixes known under common parlance as “Pit Bull”

- Rottweiler

- Doberman Pinscher

- German Shepherd

- Alaskan Malamute / Siberian Husky

- Chow Chow

- Presa Canario

- Cane Corso

- Mastiff

- Great Dane

- St. Bernard

- Akita

- Wolf hybrids

Unfortunately, these are prohibited for insurance reasons. Keeping pets requires a one-time nonrefundable pet fee of $200 (per pet) as well as an additional $20 monthly rent for each approved pet. We would need photos of each proposed animal, as well. As pet lovers ourselves, we typically like to meet your pets at some point in the process, too. We are fair housing compliant regarding animals.

Our tenants’ safety and the peaceful enjoyment of their home is important to us, so we do a credit/criminal background check on all applicants aged 18+, as well as employment and prior landlord verifications. Big concerns are bankruptcies/repossessions and crimes against people/property. We require a minimum credit score of 620 (averaged between occupants) to qualify. If your household income is more than 5 times monthly rent, a guarantor may be an option in lieu of a sufficient credit score. We can provide a complete list of our qualifying criteria upon request. If you don't foresee any major obstacles to qualification, I'd be happy to set up a viewing for you. Let me know what you think.

As a matter of information, smoking/vaping is prohibited inside our rental units. This includes marijuana.

If you decide that the apartment would meet your needs and wish to proceed with the application process, we would need copies of a month’s worth of your most recent pay stubs and photo ID for all applicants aged 18+ (I can scan at the viewing). The pay stubs can be hard copies or digital PDFs generated directly by your employer and sent via email; we cannot accept screen captures to verify income.

Once your completed application materials have been received and it appears that you would meet our qualifying criteria, we would send you a link to perform a credit/criminal background check (this minor expense would be yours), and if those results come back acceptable, we would offer to proceed. A “contract to hold” binder payment equal to a month’s rent would also be collected at that time.

This holds the unit for 5 to 7 days until the lease signing, and once the rental agreement is signed this binder payment becomes your security deposit. At the lease signing, you will need to put down another $1250 (not including pet fees), which will serve as your first month’s rent. So, the total base move-in costs would be $2500, all paid prior to lease signing.

Since choosing a place to live is a very personal decision, please feel free to do a “drive by” of the property, located at 123 Main St., so you can get a feel for the neighborhood. (I will ask that, out of respect for our current tenants’ security and privacy, to wait until your viewing appointment before walking the property.)

If everything above is agreeable to you, let me know your availability over the next few days and I'd be happy to take you through the apartment.

Thank you, and I look forward to meeting you at the viewing.

Note how I reiterate the qualifying criteria as well as itemizing what the move-in costs will be. I also suggest a drive-by so they are not unpleasantly surprised by the neighborhood when they to the showing, and just keep on driving by anonymously as I wait outside. This email gives people yet another opportunity to self-select out of the application process based on my expectations and criteria before an actual showing in scheduled. I also am not using the word "deposit" anywhere, because a deposit, by definition, can be refunded. A "non-refundable deposit" is legally confusing.

If they do request a showing, I send them this email:

Hi John,

Please read this entire email.

How about a viewing on X at X pm? If that works for you, please reply to this email within 24 hours to accept this appointment and I will add you to the viewing schedule.

Also, as a means of courtesy to both our busy schedules, please confirm via text or phone call at least 2 hours prior on the day of the viewing to my cell phone (number).

I’ve also attached our rental application. I will have hard copies at the viewing, but if you print and fill it out prior to the viewing, this would save some time should you want to expedite your application in the process. Please take note that we will not review any application with missing/incomplete information. I would also need the last month’s worth of pay stubs and photo ID of all applicants in order to proceed, as well. Lastly, please make sure all of the adult members of your household are able to attend your appointment. We do not approve applications from those that do not attend the viewing in person.

As a reminder, the address is 123 Main St. I look forward to meeting you on X.

I do not use Zillow applications, as I do not think they are as thorough as I need them to be. I use my own application, which has an imbedded authorization to release information for their employer and landlord.

If they have not confirmed an hour prior to their appointment, I send this text to their phone (which was required as part of their contact information I required in the response to my ad):

As I had requested in my email, you have not yet confirmed your apartment showing for this evening, scheduled for 7:00pm. If I don’t hear from you in the next 10 minutes, I will assume you aren’t attending and I will move on to my next appointment.

Using this system as dramatically reduced any wasted time I used to endure as part of the showing process as well as giving me data about their timeliness/responsiveness/respect for others' time.

I often schedule several viewings at a time, 15 minutes apart. I book marginal candidates in between strong ones to create a scarcity mentality. I will not book any viewings unless I have a strong candidate. I leave the marginal ones waiting, letting them know I will reach out when I have a showing date/time.

At the showing, I collect their completed application (sent via PDF prior or filled out on premises), scan their photo ID and last 2 pay stubs.

Then, I do some digging around online (social media, court records, Google) and if it looks like they are representing themselves to me accurately, I contact them and send them a link to do the background checks (paid by them directly to the vendor). I use tenantbackgroundsearch.com. If that comes back acceptable, I set up a "contract to hold" meeting - usually the day after the email since qualified applicants need to be "closed" ASAP. (During this whole time I continue to market/show the unit. I continue to funnel people into my process until a lease is signed.) Note that I do not put a lot of time into due diligence until the "contract to hold" meeting, when they put some skin in the game.

At the "contract to hold" meeting, I collect an amount equal to one month's rent. I ONLY accept cash. We sign an agreement that commits their non-refundable payment for a brief period (usually 5 days), during which time I call landlords and employers, and dig online. If there is anything untoward, I have a right of rescission and I give the money back. I also ask the prospects to let their employers/landlord know I will be calling. I have found that this reduces the time it takes to connect with them.

Once my due diligence is complete, we meet again for a lease signing, at which point I collect the rest of the move-in fees. I only give them a short time (usually 5 days total from the contract to hold) to meet for the lease signing before they lose their exclusive rights to the unit, so this prevents someone from dragging their feet after they've signed the contract to hold.

Once the lease is signed, I take down the ads and send out emails to people in mid-marketing flow letting them know that the apartment has been rented but I will reach out if something falls through.

Regarding rent collection...

Each multifamily building has its own bank account. It's written into the lease that tenants must deposit their rents into that particular account (either by online bank transfer or by walking in a check/cash); I do not collect rents directly, nor would I if anyone asked. Systems don't work if there are any exceptions. Each tenant living in a building has their own unique rent amount, so even if they do not leave a notation with the rent payment, I know whom paid the rent based on the amount alone. I get an email alert each time a deposit is made.