All Forum Posts by: Jason Boulay

To me a 'good tenant' doesn't fall behind on their rent, they may just be late a month here or there, not pay a small fraction of the rent.

When I come across a situation when someone can't pay their entire rent balance, I start the eviction process and enter into a court ordered stipulation. In the stipulation, I lay out an aggressive payment plan where it spells out that the tenant pays X amount of dollars on specific days by a specific time via money order to get caught up. The first payment must be paid on the day of court or the day after as a payment of good faith (as it's usually been some time since I've seen a payment). Then weekly or bi-weekly payments depending on their paycheck schedule. As long as they make these payment they will be caught up and I will forego the eviction. I am in Rhode Island, so I was in court for past due January's rent at the beginning of February. I'll create the stipulation to have January and February's rent to be all paid up by the end of February. I generally don't like to stretch it into March.

If a payment is missed (there is ZERO flexibility), then we return to court immediately and get possession and the judgment. In my leases the tenant is responsible for legal costs and attorney fees, so those are rolled into the payment plan. I find this to be the best option rather than setting a payment plan outside of court as it almost ALWAYS comes back to bite me. I find that doing it outside of court, I end up with a larger balance than they originally owed, it's weeks or months down the line, and then I ultimately have to start the eviction process anyway costing me more money, time, and effort in the end.

If a tenant is unwilling or unable to pay rent by court order stipulation that they agreed to, then you know you have to cut ties as you will NEVER be able to collect rent from them or believe anything they say regarding payments. I offer the stipulation option once and I make that clear when entering into the stipulation. If you have to return to court multiple times to get your tenant to pay rent, then you need to find a new tenant.

Credit score/history should be a factor while selecting a tenant, but not the only factor.  The household income requirement/employment verification, previous landlord references from the last few years, a background policy, etc.

I'm a little late here...but there's a section in the purchase and sales agreement regarding tenants and occupants.  This can shift the responsibility to the seller to leave a particular unit vacant to comply with your lender's requirements.  Keep in mind that this will be factored in when considering your offer.

If the tenants are on month to month leases in RI, the seller can terminate their lease with 30 days notice.  Once the seller put the house on the market, he should have gave a heads up to the tenants that are on month to month that there's a chance that the new owner may want some or all of the tenants out.

Tenant aren't really expecting stainless steel appliances in a C class neighborhood.  In my opinion, you wouldn't be able to demand more rent having them.  There may be a lack of care given by C class tenants to the appliances, so there's some likeliness of scratches or dents on the stainless steel.  Those imperfections are going to stand out much more so with stainless steel, negating the improvement of stainless.  At least with white or black, you can paint small imperfections, increasing the life of the appliances.

Recently, I've started using VCT tile that is a vinyl plank flooring rather than vinyl.  It looks similar to hardwoods, which appeals to many tenants.  The product is very durable and individual pieces can be replaced as needed.  I tend to put it bedrooms also as a tenant always has the option of putting an area rug over it if they prefer a warmer feel, whereas there's no alternative if there's carpet in the bedroom.

I would take the same approach I would with any inherited tenants that are on month to month.  I would notify everyone that you have a policy of particular credit and background standards (actually create a policy, preferably in writing).  As a result, all current tenants must go through a screening process to ensure they meet those qualifications if they intend to stay.  Have all tenants fill out applications and screen them.

If they are smart, they may elect to leave peacefully on their own if you specify a thorough background check.  If they don't meet your qualifications, you can terminate their month to month tenancy with 30 days notice of the end of the next rental period.

@Raymond Lewis

Unfortunately, when managing over 375+ units, evictions come up.  Nonpayment of rent is usually the quickest.  Once the tenant falls behind on rent more than 15 days you can send a five day demand letter.  If they fail to cure the five day demand, you are able to file for an eviction hearing.  Generally speaking, you can file on the 22nd of the month (if rent is due on the 1st and the five day demand was mailed on the 16th).

The court hearing is scheduled 9 days after, so depending on the number of days in the month, it's usually scheduled on one of the first couple of days of the following month.

If they fail to appear, you can easily get a judgement for money due and possession the day of court.  If they appear, the preference of the court is a stipulation that both parties can agree on.  Tenants are usually under the impression that they have a couple months to get out. That is not true. 

If possession is awarded, the tenants have 5 days to appeal.  If they don't appeal, the execution can be ordered for an eviction to take place under the supervision of a constable.  This is costly for the constable, movers, and storage fees.

I've worked with a particular attorney for a number of years and if you message me I can share his contact information if you'd like.  I may be able to answer any other questions you may have. Unfortunately, I have a LOT of experience in this area, although I am not an attorney.

It's unfortunate that you had this issue come up this early in your real estate journey.  Don't let it get you down!

One thing I would strongly recommend is to contact a public adjuster.  The goal of the insurance company's adjuster is to payout as little as possible.  Although a public adjuster will charge a fee, they can review your situation and see if they can get you more money than what the insurance company would offer.  I know a few people who have had insurance claims and have done well with a public adjuster.  PM me and I can provide contact details for one.

There are a few larger apartment communities in the Newport/Middletown area within a couple minutes of the base. I used to manage two of the communities a few years back. There is a large military presence in the area. PM me and I can give you some more details.

Welcome to BP @Melanie Ruiz!  The website and forums on BP are such a great resource!  I can't say enough about the RIREIG for the educational seminar and networking opportunity.  I hope to see you at the next meeting.

Welcome aboard @Kevin Baird!  BP is a great resource!  I hope to see you at an upcoming RIREIG meeting!  As @Anthony Thompson said, they are very informative, regardless of your experience level, and a great networking opportunity.