All Forum Posts by: Jennifer T.

I can't speak for colder climates and am not downplaying any other advice.

But the bolded was definitely my thought.  One roach?  Well my goodness, that's just an average Tuesday in New Orleans, lol!

Along these same lines, in my lease it is capitalized and bolded that the security deposit cannot be used for the last month's rent.  I don't know if it's the areas  or city (New Orleans) my rentals are in, but I've received this pushback from about 25% of my previous tenants.

My "favorite" tenants who argued this had only paid first month's rent and half the security deposit upon move-in.  With the promise that they would give me the rest of the security deposit when they received it back from their previous LL.  This was very early in my rental career.  I NEVER accept less than first and full security now.  They only gave another $100 for the security and were problems by the second month.  They wanted to break their lease early and, long story short, also wanted to "live out" the scant less than 3 weeks they had of their SD.  I told them no.  I would work with them on a move-out plan (and offered them one) and would return their SD promptly, assuming they didn't have any damages or unpaid rent, but that is not what the SD is for and they absolutely could not "live it out".  They were transplants from GA.  They were mad and pretended to be "shocked" about it.  They started to tell me it must be extra strict in NOLA because, everywhere else they've lived, they lived out their SD.

What I wanted to say, but didn't because there is no use in provoking an argument was, "I'm so confused!  Was it a lie that you didn't pay the full SD on move-in because you were waiting to get it back from your previous LL?  Or are you lying now by saying you've always lived out your SD?"

Not related to the above:

--I also include in my leases that I can control what they have in the yards.  It's nicer and more professionally sounding than that in the lease clause.  But that is the gist.  That was after I had a tenant who parked a dead car with no plates diagonally across the front lawn, along with a broken dryer.

--Tenants are also responsible for their own pest control after the first 14 days.  Because it is usually something they are doing to cause the pest problem in the first place.  With that said, I do take it on a case by case basis.  If I don't feel a tenant is doing anything to cause the problem, then I will take care of the cost.  If it's fuzzy vermin, like rats and mice, I will also pay for it if the tenant can't so the property doesn't get destroyed.  But it needs to be paid back over a plan.  
  

I know how hard it can sometimes be to find the right lender, so I am leaving this review for anyone who is considering MoFin Lending.

Overall, working with MoFin was a fantastic experience.  I had bridge loan with Patch of Land and, long story short, was running against the clock to refinance it out and into a long term loan.  As an aside, Patch of Land was absolutely awful to deal with.  They made so many errors throughout the process and then, just for the icing on top, were difficult to communicate with.  You pretty much have to harass them with multiple e-mails and/or phone calls to get an answer to even the most basic questions/concerns.  They were such a nightmare to deal with.

Especially after the horrible experience with POL, MoFin was like a breath of fresh air.  They were always responsive when I called or e-mailed.  Their requirements, interest rates, and fees were clear from Day One.  No last minute "surprises".  Once they were processing my loan, they had a great website where I could upload all the docs they needed and it also served as a "checklist", where I could see at a glance if I was missing something.  Maybe it was just bad luck but, all the lenders I've used in the past required e-mailing EVERYTHING, documentation-wise.  Which I always found to be so clunky and, even worse, unsecure.

It was the smoothest loan process and closing I have ever had!  A few weeks after I refinanced out the loan I mentioned above, I also completed a cash-out refi with MoFin, on a duplex I owned free and clear.  That loan process and closing also went smoothly.

I am not being compensated for this review nor do I have any ties to MoFin Lending, other than being a borrower and satisfied customer.  A special thanks to @George Despotopoulos and James Im.

I've had an issue with one tenant not paying their full rent and one tenant who has been in arrears for about half their rent.

The first tenant told me in May that she didn't have the rent money and didn't know when she would have any money, because she had lost her job.  Previous to that, she had always paid her rent though usually a few days late.  But she was a terrible tenant otherwise and was already under a Cure or Quit notice for constant, excessive noise.  She seemed to have the attitude that she didn't need to pay her rent at all, because it was COVID.  I corrected that thinking and told her she needed to pay rent to continue living in the house, but we could work out a payment plan.  Then I started asking her questions she really didn't want to answer because they revealed her lies.  Like, "When did you file for unemployment?"  Oh?  You haven't filed for unemployment yet?  Why?"  Long story short, she finally said, "Since you aren't being understanding about COVID, I will have the rent on Monday (this conversation was on a Friday)."  And she did.  So glad her Rent Fairy Godmother visited over the weekend.  I was pretty sure she had not lost her job and knew for a fact that her live-in b/f had not.

They paid June's rent without a hitch.  But then didn't have July's rent.  I ''sort of" made a cash for keys agreement, where I agreed to return up to $700 of their security deposit (total had been $1,200) if they were out by July 8th, returned the place clean and with no belongings, and there weren't any medium/major repair issues.  They met the first two conditions, but there was substantial enough damage I didn't return any of their SD.  But also did not go after them for the damage that exceeded the SD, which had also been part of that move-out agreement.

The other tenant has been my tenant for about 5 years and has always been a marginal one.  She was running a little short on her rent for most of the year (not COVID related).  But then things took a turn for the worse in October when her adult daughter (also a tenant in that home) was supposedly hospitalized for COVID and was out of work for a couple months.  Except the daughter said in my presence, not to me but to one of her friends, that she was lucky she'd only had mild symptoms.  Hilarious.  This tenant usually ignores me, until I post a 5 Day Pay or Quit notice.  So that is what we have continually been doing so she doesn't fall further behind.  She does keep paying, but is making no progress on the $475 (total rent is $1100/month) she has owed me for a few months.  Normally I wouldn't be this "understanding", but I feel between a rock and a hard place.  Eviction courts are open here but, if I file for an eviction, I won't see another dime and it could take much longer than usual because of backlogs.  Plus, I could see judges being more lenient right now.

I wish I had the perfect answer!  The best tactic I use is being sympathetic with their plight, but they will be far better off if we work out a moving-out plan, which will not come up as an eviction on their record.  And that I think an eviction history will carry even more weight and much fewer rental opportunities in the future, than it already does.  
 

My properties are in New Orleans.  I know well the crazy high insurance rates for named storm coverage.  While I've never quite had to go this route, I have also looked at quotes where liability is separated out and is a totally separate policy.  It's surprising how much cheaper it can make things.

Here is my guess as to why.  Compared to other areas, there aren't many insurance companies that will cover properties in Hurricane Alley.  So the competition isn't there.  However, that is not true for just the liability portion of insurance.  So at least that part of the insurance can get very competitive rates.

I use a company called NREIG for most of my rental properties and highly recommend them.  They cater to RE investors and non-owner occupied properties.  I've found their rates to be very competitive for property insurance and are usually the lowest or close to the lowest that I can find.  However, their rates for flood insurance are terrible (at least in NOLA), so I have my flood insurance elsewhere.  Which is what it sounds like you are doing anyway.
 

When I buy properties with inherited tenants, I don't even get into what is/isn't tenant damage.  I base my purchase price on what is the condition right NOW.  On that same token, when an inherited tenant leaves, I only subtract tenant-caused damage that happened after I acquired the property.  I'm not getting into "tenant: it was like that when I moved in" or "seller: the tenant caused that damage, you can take it out of the security deposit turned over at closing".  No, no, no.  It is what it is, when I buy it.

If the tenants and/or seller feel shady to me and there isn't really proof they paid their rent, I assume the worst...that I will have to go through an eviction(s)...and adjust my purchase price accordingly.  My caveat is that my properties are in a landlord-friendly area and evictions are relatively easy and fast, if it comes to that.  Or at least they were in pre-COVID times.  Unfortunately, that does make it another ballgame. 

This might depend a lot on where you live because it is substantially harder to get rid of a deadbeat tenant in some states/jurisdictions then others.  But "just having had surgery" is not a legal excuse for not paying rent, though it could potentially give him some sympathy points with a judge.

I guarantee you that some, if not all of this, are lies.  He is just playing you for more time.  You should have filed for an eviction a long time ago.  If you haven't already, bone-up on the landlord-tenant laws where you live.  Your first step if you have not already done this, is to file a Pay or Quit notice on his door.  You would be amazed how fast people either pay or get out when they see legal proceedings have started.  Not always.  But often.  However, if you live in a tenant-friendly area, I'd suggest going straight to a RE attorney or eviction service to handle all of that for you.  Because if there is any mis-step in the process, you have to start it over.

Mainly, though.  Don't beat yourself up over this!  Fix the problem as fast as possible, which unfortunately might not be that fast, and learn from this.

Next time, do a third party background check (criminal, eviction, credit) and also call previous/current landlords and job reference/income verification.

Always keep in mind that, just because you know your tenant in person, doesn't make this any less of a business.  Their financial problems are their financial problems.  Do not make them yours.  Especially for a brand new tenant. 

I bought my personal duplex 9 years ago.  I'm always upfront that it is my house and I live on the other side.  For Orleans Parish, not only is it public record, but it's available online also.  It would take someone all of 30 seconds to see I own the property, if they were so inclined.  Someone lying about that, either outright or by omission, would put a really bad taste in my mouth if I was a renter.  So I'm not going to do that to one of my renters.

In fact, when I have a vacancy for the tenant side, I even include in my rental ad that I live on the other side.  I have found this to be a win-win for two reasons.  It can potentially scare away sketchy tenants who might be trying to hide something.  And good tenants like it and think that is a "plus".  They assume (and rightly so) that, if I live there, then I will also take especially good care of the place.

I did have one set of tenants, early on, who were definitely looking for a situation to take advantage of and I was the "mark" they found.  But that was a mistake I made more from my inexperience at the time of being too soft (in general) then being too soft because they lived next door.  This was not their first rodeo and, at the first sign of my hardening with them, they did a midnight move-out just 4-months into their tenancy.  One day after rent was due and still owing me $600 from the month before, of course.

It was a major wake-up call that I learned from and became a much better rental owner, with all my properties!, after that.

In a nutshell.  It's free to be friendly.  It's free to be sympathetic.  But I am running a business with high costs.  I will listen to a tenant's tale of woe and am genuinely sympathetic...while also serving them with a 5 Day Pay or Quit notice.  Usually on the third day someone is late with the rent.  But if late rent has historically been a problem with a tenant, that notice is served the day after they are late.

I bought two duplexes last year where the owner didn't have any of the keys and refused to call a locksmith to get keys.  A family friend of his who was acting as his property manager gave me the keys to the vacant unit a couple days after closing.  It was just unreal.  I had verbiage added to the PA that he was responsible for any fees incurred, if either my inspector or appraiser had to come back for a second visit.  They EACH had to make a second visit and he had to pay for those.

I knew what I was getting into, but was prepared for it.  I wasn't keeping any of the tenants.  They were paying a crazy low rent but, more than that, the duplexes were in deplorable condition and all units needed a major rehab.  I wouldn't have even considered two of the units as being habitable.  I had seen the inside of the units during the inspection.  Everyone got a 30-Day Notice to Vacate.  I didn't even worry about getting copies of keys.  There was no reason I needed to go into the units anymore and changed the locks when they left anyway.

Had I needed to or wanted keys and if the tenants were not being cooperative, I would have posted a 24-hour notice of entry.  Changed the locks.  And left a note to contact me to get a copy of a key for the new locks, if they hadn't been there.

Whenever possible, I try to be accommodating with my tenants.  But the moment they start ignoring me, is the moment I start "speaking" with my notices.  And I'm no longer asking them to cooperate.  I am telling them (with the notice) what is happening.  We are all too busy to be nagging grown adults.
  

While I totally agree with the policy of "friendly, but not friends", to be honest, I have not practiced what I preach on multiple occasions!  I have become friends twice with the people who live(d) on the other side of my personal duplex.  It was never an issue.

We also became friends with some of our tenants at a different unit.  Long story short, one of them was hired p/t by close friends of ours and they all became friends, so we all often hung out.  The other half of that couple ended up doing a lot of work for us on two duplexes we were rehabbing.  He and my husband became close friends because of that.  We kept rent and labor payments totally separate at all times.  Nothing ever went awry with that either.  They have since moved out of state, but were great tenants the whole time.