All Forum Posts by: Patrick M.

judging by the numbers it looks like 2 units.

Hey Jeff, I think you should forget the "rudeness" and consider what you have here.

1. You should have never backed off of your rent increase. This was a terrible move by you and whatever you do going forward you need to make sure it is lawful, that it is in your interest and that you stick to your guns. If you are going to back down from a tenant you are in the wrong business.

2. What I see is you having rude and condescending tenants that abide by their lease terms. So instead of hiking them to $1k with a remodel consider increasing them by a smaller amount without a remodel.

3. If you have your heart set on a remodel, and you would look to rent it for $1k afterward- why not? You have a built in tenant who takes care of the property and abides by the lease. No brainer to me. I don't take stuff personally unless it is threatening behavior. But I think I would enjoy cashing that $1k check even more :)

Ultimately, your tenant may see some other rental in the interim that is under $1k- or as I suspect, they are perfectly capable of paying a higher rent and are not going to because, quite frankly, you are a push-over. Thick skin buddy!

I'm with Tim- what is the debt for? Hospitals and Dr.'s can be horrible when it comes to selling off uninsured/ under insured debt. Same with lawyers (think divorce). They will sell it off in short order to a collector who will begin tacking onto it. I would ask for their explanation if they otherwise look good. 

I provide my new tenants with

1. A beautiful, clean apartment.

2. 24 hr. hotline for any problems they may have with their rental. (I would kill for one of these!)

I didn't get into this to make friends or to be liked by more people.

Now - That is not to say that I didn't want to give my wonderful young couple who rented my first rehabbed apartment a gift. It is only human. But my "mentor" slapped me around for thinking of it. ;)

I concentrate on being the best landlord I can be, and with numbers 1 and 2 above, that goes a whole hell of a lot farther than a box of chocolate or a pizza. It also reinforces the responsible, business relationship that the tenant and I entered into.

I spoke to long term landlords in my area before putting down laminate in an apartment. Which name brand should I buy Pergo, etc. They both said No way, they use traffic master and have been happy with it for the long term... $2 cheaper a square foot.

I was surprised as they had higher end rentals but I loved the lakeshore pecan and it was raved about by every potential tenant as well as the CO inspector. When I was installing the laminate I was also surprised to see that it was manufactured in Germany.

I would not be concerned with projecting capital expenses and I would never project any for a potential buyer. As a buyer, I "thought" I had a good idea after inspecting the property and units what I would need to do. I wanted to know Rents - (Utilities+ water/sewer + Taxes + Insurance) = positive cash flow. Then I figured my financing and, again made sure there was a positive cash flow.

Many capital expenses can be done on your time schedule, if not then they are glaring issues that a buyer will see.

I've done both. What it comes down to for me is space. If I have walls open and can get a 1 piece tub/shower in and it is a spacious enough bathroom I will do it. Where the space doesn't allow for it I put in a 1 piece shower stall. I always go with one piece, up the walls. The cost difference is negligiable. 

If you are targeting family and pet owners definitely go with a tub. Also I would think that your home would be more marketable in the event of a sale, especially if sold to a first time family buyer.

Perhaps consider paying $25 to have a tenant report. I have any new tenant sign photos of the apartment I print out, seems that would have short circuited this. Also consider retaining an attorney to draft a lease that you can reuse.

I am very sympathetic to your troubles and your loss, but I also believe you bear some of the responsibility in not protecting yourself. I enter into all of my leases with the assumption that I will have to provide supporting evidence to a court to prosecute an eviction and likewise to defend a claim by my tenant. The moment you noticed someone else at the rental you should have drafted a notice to cease and informed the tenant you would schedule an inspection to ensure he was the only resident. Bad tenants hate getting papered! A notice to cease is awesome because it allows you to begin telling the story- your version. So when you filed for eviction and you have six different notices documenting what has transpired in real time you have effectively gotten to the judge first. Also the judge is going to see that you are a contentious and professional landlord. This has served me well- but this is only one component of my responsibilities.

I love owning a rental property because it allows me to engage in different jobs and responsibilities. I find that to be very exciting. But I also want to be the best in my duties... so look at it a different way:

If you hired a broker to vet your tenants and a property manager and you found yourself in eviction court every 2 years would that be acceptable to you? On a three family house? I would find it unacceptable on a 10 unit building. I would fire both immediately. Also, if I was one of your other tenants I would be very put off by all of the drama and nonsense going on because my landlord rented to jerks.

I hold myself to a very high standard and I also have a tremendous sense of responsibility to my tenants, neighbors and town. But I also find it very fun and I have had a great mentor without whom I would be lost.

I highly recommend the book "Landlording." But also consider using a broker and property management company, with the trouble and financial loss you are dealing with now it would more than pay for itself.

The Asbury Park Press just did an excellent 4 or 5 part series on the state of landlord/tenant around the state. I was appalled at what landlords get away with and what tenants are put through. From decrepit, overcrowded apartments to using the LLC to duck legal responsibilities, it is bad. We all know they are the vast minority, but they are the ones that are going to dictate public policy and the ones people remember. And do you think there was one story on problem tenants- nope not one... and God knows there are some good stories out there.

Anyway- best of luck, I hope you can come out of this for the better! 

I would also recommend you do it yourself. You have a very straight forward position and as a landlord I would like to think that a Judge will rule out charging you for painting, carpet cleaning or other wear and tear items. Also, remember, if the landlord holds the property in an LLC, as many do, he should not represent himself in court in NJ, he is supposed to have an attorney. You should raise this immediately before the court- He may look to cut his losses rather than hire an attorney.