Late last year,
partnership company acquired a multi family property that help I manage.
Rents were ok but all utilities
were included per the lease. Net income is low because of this reason. As soon
as each lease is 45-60 days from expiration, we are sending rent increase
notices to all tenants.
Every inherited tenant is reasonable but
we have 1 (One) Non cooperative tenant. I want you to weigh in on how should
I approach their particular situation considering the current climate. (Property Management is not my Full Time job.)
Another
issue the same tenants caused is posted here and you might find it interesting https://www.biggerpockets.com/forums/52-general-landlording-rental-properties/topics/900145-rent-collection-in-person?page=1
Some history about this problem tenant (read a few and skip rest, if necessary):
1. Always paid late but payments made within 5 days grace period. No past dues.
2. Denies to pay rent via acceptable methods (Online and Teller deposit). Stating that the lease says the rent can be mailed to PM/LL
3. Tells me that I'm harassing them when I suggest them ways to save money by not using overnight option and insuring rent check envelope. Is this really harassment?
4. Tells me that they have rights. (I have violated none)
5. Do not want to e-mail maintenance requests or put thru our rental management system. Many of our tenant's are minorities, their English isn't good, they e-mail). These educated folks find e-mailing burdensome. (every other tenants does comply, these folks really have rights. Sure, they have internet as well)
6. Never filled and returned any of the information forms sent to them
7. Don't let monthly pest control guy enter their apartment, missed last few appointments. (They were the one who complained and requested pest control) We are spending money for no reason.
8. Asked for refrigerator replacement "new" but does not let us touch the refrigerator to diagnose the issue.
9. Had a main door latch issue, it wasn't latching on. I sent our contractor within 2 hours and accompanied him. After fixing I was called again within 10 mins the issue still remain. We immediately returns to correct it. This is time I wanted to check the contractor's work and realized I don't have their keys (never got from previous landlord). I requested the their keys to test asked if I can make copies. They plainly refused to give me their copy of keys. I was furious and walked away from the situation.
10. Watching, stalking and Interfering with other tenant's quite enjoyment rights. This other tenant has a toddler and leaves the common door open temporarily to get the groceries in, while managing the toddler. Our problem tenant shuts the door on this nice tenant lady and their toddler. This has happened few times. This problem tenant also messed/oiled the door latch so it can stay open. Victim tenant (who pays rent 2-3 early and complies to our rules) has complained to me about the issue and said that they are planning to leave because of this problem tenant. (It's in writing). I'm appalled that this problem tenant still haven't cut their non-sense after being diagnosed with life threatening illness. (I called the police about any complaints at the address, they had zero.)
11. Doesn't get along with neighbors either, who hate them because they called cops on them, multiple times, for temporality parking in non designated areas.
12. Since the utilities are included in rent, the problem tenant turns up the heat and leave the windows open. Why would they care because they aren't paying the bill.
This problem tenant is nothing but a problem for us and the people living in our building. They always complain, complain and complain. Or do you guys think that I'm not being fair?
These problem tenant(s) are older and on a fixed SSA income. One of them have critical health issue. Qualified disability. I have always maintained a professional relationship with them and fixed many of their maintenance requests within 2-5 hours. (We give them better service than others regardless of their non compliance). Sorry to say (not to offend anyone), If we let them stay longer they will slowly kill us all along with our business.
We are in PA, currently under COVID-19 Federal Moratorium. PA has none. Lease renews m2m after one year. 30 day notice is required per the lease. PA laws says 15 Days notice is sufficient to the tenant. My goal is to have them out peacefully, without eviction, if possible. I also want to protect ourselves from false discriminations, harassment, mental or physical injury claims.
If we end up in landlord tenant court so be it, judge may grant them more time to move is the risk I want to mitigate. (We're in PA, not in Philly.)
Here
are the options that I have (feel free to add or suggest more):-
a. Send a non-renewal notice via
certified mail and sliding under their door 50 days before lease expires,
right after rent is collected.
b. Send a non-renewal notice
along with rent increase notice which is 25% premium to continue a month
to month lease. (That will be 40% more in rent increase from what they
currently pay). Everyone's rent is going up 12-15% in this building. (This
option because they may get more time to move and we don't want to lose
out on additional rent)
c. Send a 1 year lease which is
38-60% more rent they currently pay (Companies are charging that for 2 Br
in my area). Their rent increase will be higher because they are high
maintenance. Is that legal or violation of housing guidelines, when one
tenant is paying 30-40% more rent than other tenants for same size but
better condition apartment? (I plan to take their money and compensate
other tenants to put up with these folks, as necessary).
Most
likely they will not sign the new lease and probably even stop paying the rent
after the notice. We have security deposit to pay last months rent. Can we
use/keep it as last month's without tenants permission, even if it's not stated
in the lease?
We are still few months away from lease expiration and I'm collecting evidence to build a strong eviction case.
What
would you do if you were in this scenario? I
appreciate your comments and suggestions. (If you rather suggest or need to ask something offline, sent a connection request and PM)
Steve
P.S:- Today, I got pulled over by a cop and I expected multiple tickets. I was nice and I apologized to him. I genuinely felt ashamed of my actions. One needs to understand that the cop was doing his job and was nice enough to let walk away with no fines and points. I felt special (without flexing my political and LE connection muscle). I didn't ask why you pulled me over. I didn't refuse to cooperate and had my DL ready. I didn't say I have rights.
Someone tell my tenants that being nice could go a long way.