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All Forum Posts by: Eric Hathway

Eric Hathway has started 32 posts and replied 97 times.

Post: Tenant late fees go to owner or manager?

Eric HathwayPosted
  • Investor
  • Southern, NH
  • Posts 99
  • Votes 28

thanks for the help, folks. I'll check the contract tomorrow.

Post: Tenant late fees go to owner or manager?

Eric HathwayPosted
  • Investor
  • Southern, NH
  • Posts 99
  • Votes 28

I was informed today by my property manager that he keeps all the late payments when tenants pay rent late. Is that the norm or should I contest this? 

I know it could probably go either way and depends on what is in the management contract, but am I getting hosed or is this standard?

These are all good answers. I am getting an agreement in writing that he will keep his place clean and if he doesn't that he will be evicted. It may just be a matter of time until it gets to that point.

I want to make something clear; I have only owned the building for 2 months. His rent amount was from the previous owner. I am not treating anyone any differently than anyone else. I am tackling these issues now as the new owner. 

I also asked the property manager to have him sign an agreement clearly outlining the sanitary standards and explaining he will be subject to monthly inspections. Failed inspection will mean eviction. This has to stop. I will do my best to help him, but I'm not hiring a cleaning service. Social services can help him and he will be required to maintain his living space. 

I just got off the phone with social services. They have opened a case and have assigned him a social worker who now has to meet with him in person and see his living conditions. I hope this leads to an answer, but at least I feel better I tried to help the guy.

I recently acquired a building and there is one unit which is disgusting, smelly, and dirty. There have been multiple complaints of the smell by the other tenants. The smell equals that of underwear that has been worn for 2 weeks straight in 90 degree heat with a constant Taco Bell diet. Furthermore, it is the first unit of 11 when you walk in. Every tenant walks by and new prospective tenants as well.

The tenant has been there 10 years and always paid on time. His rent is $100-$150 under market value.

It sounds like an easy decision to evict, but he is a single, older male with multiple medical conditions. He certainly doesn't have the financial means to find another place and has disabilities which require him to have close parking and a handicapped accessible unit, therefore, limiting his options to find another place. He has no local family around.

Part of me wants him out because he is hurting my investment property and he is disturbing the other tenants. I am losing $150 a month in cash flow for as long as he stays and he will never leave on his own.

The human part of me fears what will happen to the guy if evicted. He honestly might die living in his car.

If I raised his rent, he wouldn't be able to afford it, and that would lead to eviction, so that would basically be the same as evicting him because of the complaints.

I'm in a tough spot. I've only met the guy once, should it be on my conscience to keep him with a stable living environment?

The maintenance man goes in and cleans up his unit every 6 months. Here is his unit before a cleaning:

What should I do?

Thanks Gino, I just ordered your book on Amazon this morning.

Wow, such great help everyone. I really feel comfortable about moving forward with my goals. It just came quick that one tenant moved out before I could do the basics to the exterior and entry. I did put up a new address plaque, replaced an exterior light, and repainted the front door. I bought new mailboxes that I'll have installed after the entry hallway is painted. I also got a plastic sign printed with the new name of the building and "welcome home". Hopefully all that will be updated by the time the vacant unit is renovated and ready for showing. 

Thank you everyone for taking the time and giving such great advice.

Luckily it hasn't gotten awkward (at least yet). He is a numbers guy and I presented numbers to him very similar to what @Mike Dymski mentioned. He understands why I would do it, but he is content leaving the building the way it is. He got rid of the basement storage in his buildings to avoid the headaches where I want to build them in mine for income. Just two different priorities.

It's looking like we will do this first vacant unit and see how it goes.

Originally posted by @Nancy Curran:

I've done what you are trying to do and it works well. Especially younger people who want a safe, nice b area at lower prices. I would do all kinds of little things. When an appliance broke, I would buy a used stainless appliance. Once I found a close out on marble tiles and put them in a bathroom. I found a mother of pearl framed bathroom mirror. I was able to raise the rent a bit that attracted better tenants. Then I did it again for the next turnover. And again. 

Exactly!! Great tip about the younger folks.