Landlord Ideas
Allowing Tenants to Paint
I see this happen to new landlords often. A tenant moves in and asks if they can paint a room or wall. Unfortunately, the new landlord agrees and 90% of the time, the tenant does a terrible job or choses a bad color. Now you are in a tough spot. Legally, because the landlord agreed [...]
I see this happen to new landlords often. A tenant moves in and asks if they can paint a room or wall. Unfortunately, the new landlord agrees and 90% of the time, the tenant does a terrible job or choses a bad color.
Now you are in a tough spot. Legally, because the landlord agreed and probably nothing was in writing regarding colors or workmanship, the landlord can NOT take any money from the damage deposit.
I rarely get this request from my tenants because I maintain my investment properties well and most are repainted prior to the new tenant moving in. When I do get the request, I turn the tenant down, unless they have professional painting experience (which is almost never).
Reduce Your Past Due Rent
Every December, I see the past due rent amounts on my investment properties increase. Tenants will call and say that they are going to be short for some reason or another. The honest ones tell me they are going to be paying only part of the rent as they need the rest for Christmas presents. [...]
Every December, I see the past due rent amounts on my investment properties increase. Tenants will call and say that they are going to be short for some reason or another. The honest ones tell me they are going to be paying only part of the rent as they need the rest for Christmas presents. If they are a long time tenant and pay rent on-time (and in full) typically I will give them some latitude.
Now that we are in the new year and April 15 (tax time) is nearing, here is your chance to reduced or eliminate your past due rent balances. Many of your tenants will be getting tax refunds. In fact, some of my tenants filed their taxes in January and have already received their refunds.
Here is my suggestion: Start pressing your tenants more often to pay off any past due amounts in full (figuring that they are getting a refund). I actually started pressing my tenants at the beginning of the year. It was one of my investment property new year’s resolutions. You can suggest (strongly) that they use their refund to pay off their balance. You will be surprised how many times the tenant already has that refund spent on some new toy instead of on the rent they owe you!
Need help figuring out where to start? Don’t Wait! Get Started now.
Minneapolis Investment Property Slumlord
When I get asked what I do for a living I tell people that I am a real estate agent and I own Investment Property. Probably 50% of the time the listener (trying to be funny), makes some joke about me being a “slumlord”. Truthfully, I can’t stand that term. I believe I am a [...]
When I get asked what I do for a living I tell people that I am a real estate agent and I own Investment Property. Probably 50% of the time the listener (trying to be funny), makes some joke about me being a “slumlord”. Truthfully, I can’t stand that term. I believe I am a responsible and conscientious landlord and rental property owner. I also never use that term to refer to my peers (no matter how bad they are).
Well, I have to say that after reading the article in City Pages about this Minneapolis Investment Property owner, I am making an exception. In my opinion, this guy is a slumlord. It is amazing that he can continue to fill his apartments and has not lost all his rental licenses. I suppose, in a way, he actually makes the rest of us hard working, normal landlords look fantastic to tenants. Read the full article about The Slumlord of South Minneapolis.
Are you an accidental Landlord and want to expand your portfolio? Don’t Wait! Get Started now.
Landlord Max Rental Property Software Eval
You may have read the Carnival of Real Estate where Trevor Mauch reviewed Quicken Rental Property software. Well, Trevor has done it again. Where the Quicken product is for users with smaller real estate investment, Landlord Max is designed for users with more than 20 investment property units.
The cost of this product is $60 more [...]
You may have read the Carnival of Real Estate where Trevor Mauch reviewed Quicken Rental Property software. Well, Trevor has done it again. Where the Quicken product is for users with smaller real estate investment, Landlord Max is designed for users with more than 20 investment property units.
The cost of this product is $60 more than the Quicken software, but Trevor believes “this software is a good hybrid between a commercial rental property management software“. See his full review at the REIBrain.com.
Do you wonder what it would be like to own 20 investment property units? Don’t Wait! Get Started now.
My $2000 Tenant Screening Mistake-A Happy Ending
At the end of October, I wrote a post about how I cut a corner in my tenant screening process and that mistake was probably going to cost me $2000 in lost rent and/or advertising/placement fees. You can read the full article here, but in summary I failed to connect with the prospective tenant’s Section [...]
At the end of October, I wrote a post about how I cut a corner in my tenant screening process and that mistake was probably going to cost me $2000 in lost rent and/or advertising/placement fees. You can read the full article here, but in summary I failed to connect with the prospective tenant’s Section 8 coordinator on the phone. If I had, I would have learned that the prospective tenant’s voucher had been changed from three bedrooms to two bedrooms. Consequently, she could now not afford the apartment and had to move out 3 weeks after she moved in. I was left with 1 week to rent a 3 bedroom apartment for $1000 per month at one of the tougher times of the year (November).
Quickly I put my standard advertising plan into action including posting the apartment on Craig’s List, taking out an ad in the Star Tribune, putting a sign in the yard, and even reverse prospecting on Craig’s List. I then took extra steps including: calling my current tenants and offering them an incentive to refer a new tenant, agreeing to pay a leasing company the first month’s rent to find a tenant, and posting signs at some of my other buildings that are on busy roads.
All this activity did produce some showings and some no shows. I quickly had two roommates ready to sign a lease, but because I had learned my lesson, I quizzed them hard only to find out that they did not have the security deposit and were hoping to get the first month’s rent from emergency assistance. I explained that having both the security deposit and first month’s rent was a requirement to signing the lease and that I would rent the apartment to the first party that had those and an approved application.
A friend of mine (who owns about 60 rental units) called and said he had an extra tenant that he did not have an apartment for. We set up a time to show her the apartment the next day. The prospective tenant arrive early, she walked through the apartment and liked the updates that we recently did. I quizzed her looking for any red flags and she filled out an application on the spot.
I processed her application and signed a lease with her 2 days later, on October 30. She went to emergency assistance with the new lease the next day, the coordinator called when while the tenant was in her office and confirmed they would pay her security deposit and first month’s rent. I met the tenant and gave her the keys on the November 1.
Despite costing me some money to run the ad in the Star Tribune and beating myself up for my mistake, the situation worked out. In fact, I leased the apartment for $50 more per month to this new tenant than the 3 week tenant. It is a happy ending!
Tenants Witholding Rent until Repairs are Completed
This is a strategy that some tenants will use to forgo or delay paying rent. Although this is a legal maneuver in the state of Minnesota, the tenant must follow strict guidelines or be subject to eviction. As a landlord, it is good to understand what items the court will be looking for so you [...]
This is a strategy that some tenants will use to forgo or delay paying rent. Although this is a legal maneuver in the state of Minnesota, the tenant must follow strict guidelines or be subject to eviction. As a landlord, it is good to understand what items the court will be looking for so you can decide whether to proceed with eviction or to meet the tenant’s demands.
If you go to court, here are some items the judge will be looking for:
- Did the tenants have a copy of a written notice they gave you that outlines what repairs they believe are needed?
- Have the tenants given you enough time to complete your repairs?
- Does the tenant actually have all the rent money? If so,the judge may require them to prove the funds availability.
What you should bring to eviction proceedings:
- Pictures of the areas/items that the tenants claim need to be repaired.
- If the work has been completed, receipts from the contractors or suppliers to repair items (and pictures).
- If the repairs are needed because of damage caused by tenants, pictures previously taken of area may help.
- If the repairs are scheduled, but not completed, bring a time line with you to court to show the judge you are working on the problem(s).
The judge can make several rulings:
- S/He can order the landlord to make the repairs immediately and have the tenant hold the money until completed.
- Order the tenant to pay the court or landlord until the facts are proven against the landlord.
- Require the landlord to accept less for the apartment as a remedy to the tenant.
- Pay the outstanding rent to the court for safekeeping until the landlord makes the needed repairs.
- Rule that the tenants request(s) or reasoning for withholding the rent is baseless and order the tenants to pay immediately (including eviction filing fees), or be removed from the premises.
Exception: If the property has been condemned by a government agency or department, the tenant typically can not be required to pay rent and typically the damage deposit must be returned.
Written documentation is your best defense against a tenant that is trying to avoid paying rent. If you are maintaining your properties and feel that your tenant is trying to take advantage of you, I recommend that you process an eviction against them and let the court decide who is right.
