All Forum Posts by: Robert Johnson

Life is full of the unexpected.  I just sold one of my best rentals because I've decided to reduce my exposure to real estate.  For decades it has paid me well.  No complaints here although I think the moratorium is unconstitutional.   It's simply a seizure of property without compensation.  In some instances the government is now providing funds but many landlords are taking the opportunity of a hot housing market to bail out.  The law of unintended consequences is starting to unfold.  In the area where I have my rentals there is a shortage of units available.  Condos at seaside resorts which were rented by the week, are being literally snapped up and converted to permanent housing.  Many of the landlords I know here have sold out for double what they paid in most instances.  The prices here have increased significantly.   Although the moratorium was well-intentioned it will eventually be declared unconstitutional.   In the meantime opportunities abound in many fields.  The moratorium will soon be over because there isn't any real reason to extend it at this point.  A lot of tenants will have burned their bridges behind them but that's their issue.   Now that prices are way up here I am selling off half my units over the next year and am keeping the cream of the crop.  No matter what any external force does you must react appropriately for you.  I turn 71 Monday and have never had it so good.   Market forces and demand will overpower the moratorium and it's already occurring.  Just hang onto good business practices and the future has never been brighter. July 4th is just around the corner and I say Happy Birthday America.  

I have 7 rental units in the area. Three are in North Myrtle Beach.  I sold one and will be closing on it soon. It was one of my greatest rentals but I am downsizing my operation.  Longer term rentals are the better market here now.  I recently raised all my rents and converted 3 that I rented by the week during the summer to long term rentals.  Short term rentals must be cleaned and good luck finding anyone here to do that now.  There are labor shortages here.  In short, this market has shifted and rather quickly.  For now I have converted to long term rentals.  Just make sure to get at least two months upfront.  The locals know the loopholes in the laws and try to put down as little as possible.  I had no trouble finding highly qualified long term tenants. STRs will work here.  I have a house where all the adjacent houses on that street were snapped up by a development company.  They offered to buy mine also.  The beach access is across the street. They built mega houses where they charge tens of thousands a week and they are booked solid.   Sea side property rents are up everywhere so it's a dynamic market. This area is really building with solid fundamentals. 

Some tenants are clever and come up with difficult seemingly unsolvable problems.  Smells are subjective to a great extent.  Instead of a plumber the PM or a representative should have responded.  A letter with their findings should have been sent.  If tenant still isn't satisfied then you send notice of the move out consequences.  Feel free to charge for aggravation.   My leases all have nuisance fees chargeable to the tenant. I don't hesitate to bill them for any nuisance contacts. All repairs under $100 are their responsibility.  I would have billed the smell issue  every step of the way.  I had a lady one time who liked to complain.  Her biggest complaint was that the rent was too high.  She was a downright B.  Repair people would call me and tell me they wouldn't return because she was so unbearable.  One guy told me she scolded him the entire time he was there.  I started billing her for the alleged issues. She demanded to know how big the water heater was.  I asked her if she had run out of hot water and she said no.  I then said why do you want to know that? She said she had a right to know that.  She called the city and tried to get them to inspect the house.. I charged her a $75 administration fee for having to respond to that which was just a phone call.  One day she finally moved out after informing me I was greedy for charging rent that was too high.  She lived there for 3 years. Three days later I rented the house out for $500 more a month.  The new tenants are overjoyed to live there. That was 3 years ago and they are still there.   It is 3 doors up from Ocean access.  Perhaps you will get a better tenant once Mr. Sensitivity moves on.  Most areas now have shortages of units available because many landlords have exited the business or won't rent due to bad government policy manifested by the moratoriums. I recently tacked on 20% increases on 3 units where tenants moved on and I get as much up front as possible.  All 3 rented within 24 hours.  One paid a year up front. I've never had it so good.  I would imagine wherever she went the new landlord is enjoying her company. Thanks to her I tightened up my leases even further and am making more money.  Complaints are opportunity.  

The tenant could be testing you out.  Some people simply resent paying rent.  Regardless,  it must be collected. Instead of waiting to see if the tenant will pay, simply get in the habit of contacting the tenant.  They know the rent is due.  Many tenants now are simply taking advantage of the moratorium so if the tenant pays you're lucky.  In the meantime, don't be shy.  And don't be pretentious.   Just be straight and to the point.  "I am missing your rental payment for May 2021 in the amount of $1,000.  Please make your payment as required by your lease immediately.   Thank you. "

Did you actually verify the bill?  Either they used it or they didn't.  Something is wrong.   I would need a representative from the water company there and walk through it with him. It's possible the tenant was under charged for a period maybe. 

From a news article.  Decision by federal judge. 

https://www.twincities.com/202...

"U.S. District Judge Paul Magnuson granted the injunction on Monday, writing that it’s likely the landlords ultimately will win the case. The ordinance likely is unconstitutional in two ways, the judge wrote.

First, the landlords argued that it violates the 5th Amendment, which prohibits government from taking private property for public use without fair compensation.

“Plaintiffs claim that the ordinance operates as a per se taking because it singles out private landlords to ‘address a perceived, though vaguely identified, societal problem’ related to housing needs. The Court agrees,” Magnuson wrote.

Second, the landlords said the ordinance violates their 14th Amendment right to exclude people from their properties without due process."

Does it matter if the moratorium is extended?  Once you've been mugged and financially raped, what difference does it make if the same people have the alleged legal authority to come back and mug you again?  Landlords have had their assets stolen in the greatest theft of property ever committed in history and now the docile question is asked, will the moratorium be extended?  That isn't the right question.  The right question is how are these power hungry thieves getting away with it?  You have rights and courts are beginning to recognize those rights.  The proper way to have done this would have been to set up an asset relief program similar to those formed after the 2008 meltdown.  Banks were protected and helped to liquidate bad assets.  Why are landlords being treated differently?  I'm sure by now many landlords showed goose eggs on their schedule E or whatever.  If the government has the power to do this the question isn't will the moratorium be extended.  The question is how can this happen under the Constitution of the United States. 

Lessons learned.  Make sure purchase contract states that on date of settlement property must be vacant or fines start running. Landlords are passing unresolved situations onto purchasers.  If the purchaser understands the consequences so be it. 

Yeah.  Here it's just the opposite.  Landlords whose properties go vacant won't lease them while there is a moratorium.    This has led to an increase in rents and wild deals being cut.  There's a shortage of units for rent and those with weak credentials are now at the end of the line. Atlas is shrugging.  

The CDC extended the eviction moratorium through June.  That's incredibly horrible policy and the after effects will impact tenants who refuse to pay their rent.  It's the greatest property grab and asset seizure in human history.  Many leases are coming up for renewal and it's not clear if that's the end in some jurisdictions.   All that will happen now is landlords will demand bigger deposits, better credit and perhaps month to month leases.