All Forum Posts by: Wesley W.

 It depends on your jurisdiction, but you have the gist.  If pressed, the "tenant" will have to prove they've resided there for at least 30 days (YMMV).  Some of the ways they will do that in front of a judge are what you've mentioned.

Hopefully one the lessons you'll be taking away from this is always have a written lease and make sure all the provisions are being adhered to.  Mine has provisions regarding unauthorized occupants and visitors.  Pay an attorney to help you draw one up.  It's money well spent.

Many folks locally are selling their portfolios here and redeploying in more "legislatively equitable" markets.  This business is hard enough without the deck being stacked against you.  Why intentionally swim against the current?  Go and invest your money where your efforts are more respected and appreciated by the local and state community.

When I first got into the business, I got one from my landlord/tenant attorney.  Over the years, I have revised it repeatedly based on situations that I have encountered or good ideas I have gotten from others' leases.  I would start out with one from a local attorney to begin.  I worry a lot of these "boiler plate" leases miss local statutes or customs in your market.  I would sit down out with a local attorney and craft one together. That way, you know it is valid in your municipality, and you've established a relationship with a lawyer that you can call on to defend your (his!) lease in court.  Super important to have those team members with you as you embark upon your landlording journey.

This is why I do not use third party vendors for rent collection.  My system is as follows.

Each multifamily building I have 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 prefer not to use any third-party vendors (Zelle, etc.) because firstly, that creates another link in the chain that can break down between the tenant's deposit and my bank account. There is an occasional thread on BP where the vendor has a system crash of technical glitch and transfers are delayed. In a perfect situation, the payment will still be delayed (even if by hours) using this additional system.

And secondly, many of these vendors have "clawback" provisions where, in their terms of service, you give them permission to go back into your account - even weeks after the fact - and reverse a deposit that was made by your tenant.

My system is simple, allows for tenants to pay through multiple means, and does not cost me anything extra.

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.