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All Forum Posts by: Ralph Miller

Ralph Miller has started 20 posts and replied 47 times.

I want to thank everyone for their input!  However, this story is far from over.  I decided NOT to subsidize the electricity bill and got a huge blow back from my tenant.  I decided not to subsidize the electricity bill based on the following:

1) New tenants with little track record with me (just hit the 1 year mark).

2) Since being in my property for one year, they have put in seven service requests, which is a significant increase from the normal one and zero service requests I get from my other properties.  This makes me believe these tenants have a tendency to be problematic and prone to issues, whether self-inflicted or not.  For analysis, their service requests included replacing an oven they said had a large crack on the top that they swear was already there when they moved in, but not noted on the check-in inspection sheet.  They also put in service requests to fix the garbage disposal, replace light bulbs in the kitchen, replace window screens so their cat can sit next to any window without being able to escape outside, and now replacing the AC.  To note, I was the person who lived in this property before them and none of these things were ever an issue.

3) I looked at old electricity bills for the year before they were my tenants and found that year past usage was actually more than their usage but the cost is more because electricity has gotten more expensive.  

Given my findings, I politely told the tenant I do not intend to subsidize their electricity bill.  The tenant did not take kindly to this.  Instead of accepting my 'No', he sent me a fairly detailed reply that I felt compared to share.  I'm not necessarily looking for input, but figured this would be fairly informative to the BP community of tenant issues.

Before I share my tenant's reply, I will inform you that I have decided to put this property under management, as I just could not deal with the headache that this tenant has been. Enjoy!

Tenant reply:

"Hi Ralph,

Respectfully, I strongly disagree with your analysis, as it doesn't appear to consider the temp/usage data or the fundamental energy usage circumstances in June and July.

I've attached a Powerpoint file (it's short; two slides) to touch on two important ideas:

1) Your energy usage in Aug 2016 reflects different energy use habits, and is not directly comparable to our energy usage; this is borne out by comparison of Aug 2016 and Aug 2017 temp & energy use data.

2) My move-in in mid-August did not introduce a significant change in energy use patterns compared to what Kelly had already established on her own in that time (unsurprising given that we use all the same appliances and utilities); this is borne out by comparison of Aug 2017 and Sept 2017 temp & energy use data. We do tend to be rather energy-conscious if not simply because our combined income is, for now, rather less than we'd like, so it's best to save where we can.

And while the data is compelling, the conclusion of your analysis (that this bill does not reflect an unusual spike in energy usage in the summer months) implies that the circumstances are inconsequential. In June in particular, we left town for a week, meaning that the only utility in use during that time was air conditioning -- which, of course, was failing. I find it remarkable that a precipitous drop in A/C efficiency, causing it to run constantly 24/7 in hotter conditions due to its failure, further exacerbated by the installation of a window unit to cool a room separated from the rest of the hot house solely by a wooden door, *would not introduce a significant change in energy usage*. I don't mean to offend, but I simply cannot see how this could be literally, physically, possible, and I think that the burden of argument must lay on demonstrating how it could be possible.

I hope that you will reconsider given this analysis. Of course, you may understandably wish to wait until the data for August or September of this year is delivered, to get a more comprehensive picture.

Furthermore, in case you decide otherwise, I've decided to also attach the invoice for the hotel stay we had to book here in town after returning to a 95 degree house. Regardless of the stance of the new property manager (with whom I look forward to working) these temperatures constitute unsafe living conditions for the pets at least. Perhaps we humans are hardier -- either way, this was a cost I was more than willing to simply eat until now.

Finally, as was established, I do look forward to working with the new property manager you referenced. I understand that [name], who has really been quite helpful, is probably very busy with law school approaching so soon. But we still have not had our kitchen light bulbs replaced, months after the initial request, and we still have the window unit installed in our spare bedroom, which poses an insulation and safety problem (since to my understanding it was not secured for long-term use). I will bring these issues up with the new property manager as soon as they make contact.

Thanks,

[Name redacted]"

Post: Long Distance Landlording - Thoughts?

Ralph MillerPosted
  • Investor
  • Virginia
  • Posts 47
  • Votes 26

Thanks for the replies and the input!  Very helpful!  I've decided to try to manage one property myself from long distance and to see how that goes.  My other property is being managed by a property manager and, I must say, having a property manager definitely does remove lots of the stress and headache of having to deal with tenant problems.  But i'll do a trial run of managing a property myself long distance and see if saving on the management fee is worth it!  Thanks again!

Post: Long Distance Landlording - Thoughts?

Ralph MillerPosted
  • Investor
  • Virginia
  • Posts 47
  • Votes 26

Thanks for the input, Joshua.  Does your handyman have a spare key for the property or does he just pick the lock?

Post: Long Distance Landlording - Thoughts?

Ralph MillerPosted
  • Investor
  • Virginia
  • Posts 47
  • Votes 26

When I was in college, I rented a house with my roommate in upstate New York.  My landlord would fly to Florida from the months of November to March to avoid the cold.  I would mail him the rent every month.  If we had problems with the property, I would call/message him and he would call the repairman to fix it.  We never had issues with this process.  I didn't think about the logistics or the boldness of this method when I was a young 22yr old.  But now, as a landlord with several properties, it got me thinking...what if I was a more difficult tenant?  How can you manage a long distance property without a property manager?  So I wanted people's opinions about this.

What are your thoughts about renting your property from long distance without using a property manager?  What would you do if your tenant loses the keys and you're not around to give them a spare?   Do you hire someone to hold a spare key?

What kind of responsibility do we have to our tenants to fix things when they're not home?  

Is there any legal issues with not being near your rental properties without a designated property manager?

What other concerns are there that I haven't addressed (and I know there are many!)?

Thanks!

I have tenants asking me to subsidize their electricity bill bc it more than doubled in the month of May-June.....this is the story.  Please provide input.

About two weeks ago their AC unit broke.  I immediately had a technician go and fix it (the next day).  It was apparently the capacitor and AC motor fan.  Repairs cost me about $700.  However, the AC unit is running a little rough and it is having a difficult time keeping the house cool so I am replacing the whole thing next week for about $2500.  Additionally, I bought them a window AC unit to use for the time being.  It will have been about 2.5 weeks since the initial problem with the AC unit started.

My tenants are saying that their May-June electricity bill is twice as high as it usually is, claiming it's because the HVAC unit has been running inefficiently due to the motor fan failure.  Thus, they're asking if I can subsidize half of the electricity bill for them.  Has anyone heard of this before?  Also, the months of May-June have gotten significantly hotter since it is the summer months, so I'm inclined to believe the electricity bill increased due to the weather, not because the AC unit has been operating inefficiently.  Any inputs?  Thanks in advance!  I love the BP community!

Post: Do I pay for my tenants hotel room?

Ralph MillerPosted
  • Investor
  • Virginia
  • Posts 47
  • Votes 26
Omg I love the BP community so much! Thanks so much for the replies! Thomas I’m inclined to go your route and just rebate them for one day of the month. They said they chose to go to a hotel bc they felt it was too hot for their dog. Thanks again!

Post: Do I pay for tenants hotel room?

Ralph MillerPosted
  • Investor
  • Virginia
  • Posts 47
  • Votes 26

Yesterday my tenants AC broke. They needed to spend the night in a hotel room because the AC repairman couldn’t make it until the next morning at 11am and it was up to 95 degrees In the house.  I’ve been researching the requirement about whether I need to reimburse my tenant for the night in the hotel room or how that whole process works. Can anyone point me in the right direction or provide a website for me to review? I keep finding different policies. I am in the state of Missouri. Thanks!

Post: Do I pay for my tenants hotel room?

Ralph MillerPosted
  • Investor
  • Virginia
  • Posts 47
  • Votes 26
Yesterday my tenants AC broke. They needed to spend the night in a hotel room because the AC repairman couldn’t make it until the next morning at 11am. I’ve been researching the requirement about whether I need to reimburse my tenant for the night in the hotel room or how that whole process works. Can anyone point me in the right direction or provide a website for me to review? I keep finding different policies. I am in the state of Missouri. Thanks!

Post: Do I pay for my tenants hotel room?

Ralph MillerPosted
  • Investor
  • Virginia
  • Posts 47
  • Votes 26
Yesterday my tenants AC broke. They needed to spend the night in a hotel room because the AC repairman couldn’t make it until the next morning at 11am. I’ve been researching the requirement about whether I need to reimburse my tenant for the night in the hotel room or how that whole process works. Can anyone point me in the right direction or provide a website for me to review? I keep finding different policies. I am in the state of Missouri. Thanks!

Sorry for the late reply but I want to thank everyone for their input!   Right after I submitted this post and got my first response from @Chris Szepessy I put up an eviction notice on the tenants' door.  The tenant paid his rent two days later.  

The lease is setup so that if one person does not pay, all three get evicted.  But they do individual direct deposit to my account, so I'll just need to tell them to have one person send me the money instead of each tenant.  I figured it would be easier for each tenant to just transfer money to me individually instead of one person collecting it from the other tenants, but now i see the benefit of doing that instead.

Once again, thanks for the input!