All Forum Posts by: Sean N.

I set up an account that is used just for rent deposits.  After it's cleared I transfer over to my checking account. Been doing it that way for the past 7 years and haven't had a problem or negative feedback. I do have a couple tenants that use zelle and that works pretty well.  I heard too many horror stories about venmo.

Years ago, I bought a rental with a verbal agreement that was in place.  The day after closing I had the tenant sign my lease so at least we were both on the same page.  Terms and conditions for rent amount and dates stayed the same.

I bought a duplex about 4 years ago. I inherited one tenant that has been there for 28 years but they started smoking marijuana last year. I have a strict no smoking policy. Michigan allows us to say no to the usage even if it’s medical. I’m really concerned since the tenants next door has 3 children under 12 years of age.

Even though they are month to month I always review in March. I gave them a 30 day notice. They are crying and screaming that I can’t evict them or refuse to renew their lease using the “I’m disabled card”.

I feel I have the right due to the lease violation and their term is up.

Does anyone know a good attorney in the Grand Rapids, MI area?  I know they will put up a fight.

Quote from @Drew Sygit:

@Sean N. did you invest to make money or for a hobbby?

Raise the rent! 

Tell the tenant in writing NOW that you'll be raising the rent to 90% of the market - so you still seem like a "nice" guy.

Guarantee you will be told she can't afford it and how can you put her out on the street as she has nowhere else to go, etc. If you can't handle that, hire a PMC!

A softer approach, that probably won't make any difference, is to send her the zillow rental amount and ask her how close she can get to market rent, because you are losing money every month. Maybe she responds with a number that makes sense.

I'll agree with you.  How can I run a business and grow if I'm running a charity.  I'll work something out with the tenants, firm but fair. 

Quote from @Nathan Gesner:

Quote from @Sean N.:

Know your laws, then act accordingly.

I would offer to let her stay if she could pay up to 90% of market rent. If that's not affordable, give her a notice of termination and get her out.

My wife said the same thing.  Last year when I increased her rent and she complained so I printed out 6 samples of other homes in the area, same size and number of bedrooms.  It was about 75% less than what her new rent was going to be.  Didn't hear a peep from her after that.

Quote from @Kevin Sobilo:

@Sean N., you said a duplex. Are both units occupied by SUPER long term tenants?

If I was getting a good return from a hassle free older tenant on a stable fixed income who would likely stay until they were no longer able to live on their own or pass away, I would probably ride that horse into the ground!

No matter how much you vet applicants, new tenants are an unknown. You have a 30+ year track record to know if this a good tenant.

If there are 2 units, why not convert the other unit when it turns over. Or even raise the rent each year a bit more aggressively until it turns over.

Also consider the lost income if the tenant does drag out an eviction and in the end you are unable to collect.

For me it would have to be very lucrative for me to do something as you suggest or the tenant would have to be one that I wanted to get rid of anyways. 

They're really not 100% hassle free and the return isn't what it could be.  Bought the duplex 4 years ago and their rent wasn't increased from 1990.  I've increased each year by 5% and I'm still way under market.  From my research a MTR would get more than double.  Guess the old question goes "is the juice worth the squeeze"?  Since Michigan isn't controlled I could do 7 or 8%.  She'll grumble but she won't move.  I think I'll just do the 8%, poke at the bees nest a little and test the waters on what they say or do and go from there.  Thanks.  This business isn't just about money, but about people.  After all, I would hate it if I got a notice after 30+ years that I have to uproot.

Quote from @Jill F.:

Even in landlord friendly states the courts may give older, long term tenats extra time (up to 6 months here in OH) for hardship to find a new place.

That's a really good point that I didn't think about and it does make sense. 

Quote from @Conner Olsen:

 This depends on your Michigan tenant laws. In Texas, if your lease is up no one has to renew, it doesn't matter how long someone has lived there.

I think Michigan is the same way, don't have to give a reason to not renew.  About 3 months ago I told them they were in a lease violation since someone was smoking medical marijuana.  I was very concerned because the tenant next door has 3 young children.  Tenant said they will stop or go in the backyard, away from open windows and doors.  I haven't heard a peep since then.  I think they want to lay low and not say anything in fear I'll not renew their lease.

Been thinking about this scenario for more than a year but after listening to podcast #679 my 2/1 duplex is smack in the middle between 2 major hospitals and would be a perfect candidate for a MTR.  Tenant's month-to-month lease is due for review in February.  I don't want to renew but I know she's going to put up a huge fight and ask why after 30+ years am I making her move out.  I fear she's going to play the "I'm disabled, you can't get rid of me" card.  I really don't have a reason for not renewing other than I want to upgrade, update and do the medium term rental.  Do you think she will take me to court since I really don't have a reason for not renewing?

I collect rent and accept rent collection in only 2 ways and it is stated in my lease agreement.  I have a bank account just for deposit only and give the tenant the account number.  Tenant can go to the bank or drive thru for deposit.  Once it clears I transfer it over to a different account.  The other is Zelle.  Here's a tip.  If you have more than 1 unit, make the rent a little different for each. This way when you get notification of a deposit you'll know which tenant it was.