All Forum Posts by: Wesley W.

Another solution to this problem in the future would be to move to a MTM contract.  I wrote about it recently here.

Credit unions should be able to do this at no cost to you.  Banks are becoming increasly inflexible with many parts of their policies that are alienating their customers, I find.  Unless there is a local/state requirement for doing so, I would put all the SDs into a single account for efficiency's sake - and just keep an accurate accounting of that the balance is for each tenant.  In my annual rent increase letters, I state what their balance will be once they deposit the additional SD to match the increase.

I'm going to go out on a limb here and say that this person does not belong to the identity that she held out to you.  This will be an expensive lesson for you, but you should learn from it.  I would contact a lawyer directly.  I think working with a third party "eviction company" is another mistake and just throwing good money (and time) after bad.  I think you may be able to do a "John & Jane Doe and all other oocupants" eviction depending on your jurisdiction, but consult your attorney.

What city/state is this?

I agree with @Dan H..  Even though the cash for keys might be a smarter business decision, you are reinforcing this kind of behavior within the tenant pool.  Not just for these individuals, but for all the others they brag to on social media about the bonus they got for not paying their rent.  As a whole, I think this hurts the industry as a whole.  I would not do it, on principle.  I understand I am in the minority.

On a side note, kinda funny that CT has legislation for a MINIMUM payoff to someone who has willfully breached a signed and executed legal contract.  Gotta love it.

Take your hard-earned money and invest it where it's treated better.

 I would strongly recommend moving to a MTM contract.  I wrote about it recently here.

This is a good crutch for folks that do not like confrontation or whom are still getting their landlord sea legs.  If you are the owner, they will go to you expecting a definitive answer to every request they have, and they know who exactly to blame if it doesn't go their way. 

If you are the PM (I would represent yourself as a partner in the business, instead) it gives you a chance to mull over their request, do research, seek advice and formulate a response instead of being pressured into a snap response as the sole "shot-caller".  It also conditions tenants that they will not get an immediate answer to anything unclear or outside the contract.  And when you decide against granting their request, you can blame it on your "business partner" to defer their ire.

Very pitchy.  What are you trying to sell us?

 100%

If they are asking you to lower the rent and you acquiesce, then you just trained them that everything in the contract is negotiable.  be prepared for a negotiation on everything if you accept this party as a tenant.  As others have said, if your unit is in line with the market, hold firm and don't panic.  Oftentimes, in the past, when I have gotten worried and lowered the rent, it just attracted lower-quality applicants, not "bargain shoppers."

I think your fear is without basis.  There is a mutual benefit to MTM contracts.  I challenge someone to show me its shortcomings.  If someone wants/needs to move, they are going to move, contract be damned.  The only exception I could see would be with high-end A-class assets, where those tenants might have incentive to pay if they got a judgement against them.  But I can assure you that judgement will still be less than the total amount owed (at least in tenant-friendly jurisdictions).

Regarding turnover, portfolio-wide, my average tenancy is 23 months amongst those whom I have placed and have since vacated.  However, if I counted my current tenants the average would skew much higher; some have been with me for several years, and I have one that has been with me since the beginning on a MTM for 11 years).  I have C+ class, mostly 1BR units.  I am sure my vacancy is not any less than my market competitors offering term leases.  I can also assure you I have had less trips to eviction court (or small claims), as well.

Remember to ask yourself why would a tenant not want that flexibility of a MTM?  If you ever have anyone challenge you on that, I would ask them what their concern was?

I have been using this model since 2014, have placed dozens of tenants, and shown my units to over 600 prospects, and only a single candidate ever gave me any pushback on the month-to-month.  Needless to say, they were not offered the apartment (self-screening for the win).