All Forum Posts by: Ursula B.

I agree with Michael and Marcia.  We issue the pay or quit notice the day after the grace period ends. It's a courtesy 3-day notice since our lease does not require a notice.  At the end of the 3-day period, the file is turned over to the attorney, and they are charged the applicable fees associated with the eviction process.  We do this every time, for every tenant.  Once you start making exceptions, you'll be expected to keep making exceptions, as you're finding out now.

Hope all is well on BP. I've been super busy, and my life as a real estate investor is about to get a bit...interesting...

I think I need to seek advice from a real estate attorney regarding a recent purchase. Question is should I go back to my closing attorney, or seek counsel elsewhere? My situation involves non-disclosure of a material fact. Is there any benefit or advantage of going back to the closing attorney?

Thanks!

Ursula

@Rhonda Healey There are a couple of threads here on BP with great ideas for tenant gifts/incentives.  The last one I remember was one that was pretty active, and enlightening, around November/December of last year.  I tend to stay clear of anything that will change the rental rate (no deducting repair costs, % off, etc), as I don't want any confusion about what the rent is and when it is due.  There are several landlords, though, that have had great success with similar incentives.   Stick with it, and you'll do well.

@Kathlyn Lewis  I'd say consult with a good eviction attorney.  They can tell you from what point the clock started ticking on your notice since you acknowledge they didn't pick up the certified letter and you had to drop it off.  I'd be willing to bet the drop off date becomes your day one on the notice.

The attorney can also tell you what comes next if they don't vacate.  Not knowing the landlord tenant laws in your state, I'd say you're probably looking at a formal eviction process.  The eviction attorney can help with that process and can usually represent you at the hearing.

We expanded our process to include emailing a copy of the notice to the tenant as well as mailing a copy to the tenant and ourselves to document proof of issuance.

Good luck to you!

@Carrie Hallensleben Do you have any automatic disqualifiers?  Those questions really help us with screening applications.  For example, prior evictions and felony convictions are automatic disqualifiers for us.  So we ask about them on the application.  If they check yes to either question, the screening process stops there.  Another good one to ask about is pets (number, type, size).  If you have a no-pet policy and someone lists 4 cats, you can move on without further screening.

Also good to get an email address for all applicants - that's how we communicate our decisions in addition to snail mail.

@Marlene Michael Good stuff, glad you dodged that bullet! It's amazing what applicants will try to pull.  Here's two more for the newbies...

Had an applicant that called and gave me her whole life history over the phone.  When she submitted an application, I did an online search for her name.  Mugshots galore.  Wanted in connection with a homicide.  She conveniently left that out of her bio. She called back a couple of days later. Told her to Google her name and let me know if she had any questions.  Never heard from her again.

Another applicant seemed promising until her former property management company sent back the rental verification form. She paid late for 12 months and was finally evicted. When I told her what the property management company said, she replied that she wasn't evicted, a padlock was put on the door because the unit was foreclosed.  Told her surely the PM company got her mixed up with someone else, just have them send in a corrected rental verification form.  Never heard from her again.

Can't make this stuff up.

@Robert Carl Thanks! Just a bruise to the ego because one tenant I placed. It was actually more stressful parting ways with the PM than having to go through the eviction process. Thankfully I'm licensed, so although I had never done one, I knew the process and followed the steps to a T.

I count it all as experience.  

@Cole Fisher Assuming you're planning to self-manage, I'd include vacancy and maintenance/repair estimates.  We estimate 10% of monthly rents for each.

You should be able to give your insurance agent the address and get an ballpark estimate on the homeowners insurance.

You may also want to consider personal liability insurance.  Agent should be able to quote that as well.

Good luck to you!

I completely agree with @Steven J., let the terms roll to month-to-month so you can feel them out as tenants before committing to them long-term.  If any of them end up not working out, you can simply give them notice vs. having to jump through hoops to find a legitimate breach of the lease to get them out.

As for the underrented units, once you're comfortable offering a long-term lease to the tenants, try also slightly raising the rental rate.  Not to the full market rate you would get for a renovated unit, but enough to make the tenant decide if it's really worth moving for such a slight increase.  If they move, you can renovate and charge market rate. If they stay, you've put a few extra dollars in your pocket and you can try it again when the next lease expires.  You may eventually get to market rate without having to renovate the unit at all.  Yes it may take some time, but it can be done.

@Rhonda Healey Best advice I can give is to establish your process, set expectations with your tenants, and follow through with actions. Our rent is due on the 1st, payable by the 5th. On the 6th, we assess the late fee and issue the courtesy pay or quit notice (courtesy because it's not required by our lease), on the 12th they get a termination notice and the eviction paperwork is filed. Like clockwork, no questions asked. Unfortunately you have to leave the emotions at the door. This is a business, and if you don't treat it as such you will lose money very quickly.

Interestingly enough, both tenants called me, one before they got the termination notice, and one after they got the termination notice. I actually explained the eviction process to both of them...with a smile on my face. Told them both it was nothing personal...strictly business. Both told me they were planning to pay 'by Friday', of course that Friday has yet to arrive.

When you have great tenants, you treat them as such.  We try to do something at least twice a year for our great tenants, like a gift card around the holidays and cards around their birthdays.  Had a tenant that was planning to move out at the end of this month, she called a few days ago asking to stay another 6 months. I agreed and also agreed to keep her rent at the same price.  They've paid on time for 13 months, and had she moved we would have had 3 non-performing units for June.  Hoping the goodwill gesture of not increasing the rental rate as previously planned convinces them to stay longer than 6 months.

Good luck to you in this business! It can be stressful at times, but I love it nonetheless!