This last week I just about fell out of my chair.  As part of the court process, the judge reads the eviction complaint:  ”According to the complaint the tenant resides at XXXxx.  The lease is from xxxx to xxxx and the rent is $800 per month.  Currently they owe rent for August through March.”  Wow.  This landlord let that tenant live in the property for almost 9 months!  This tenant owes the landlord about $7k.

This landlord probably blew all of his cash flow for 2-3 years by not evicting this tenant quicker.  Let’s talk plain here, this is a business, not a charity.  That tenant that is not paying their rent is taking money out of your pocket, food off your family’s plate.

Most landlords (me included), don’t pull the trigger quick enough to evict a tenant.  I have found that virtually no tenants can recover from being more than 1 month behind in rent.  If they can’t pay rent by the 15th of the month, it is highly unlikely (unless they are getting government assistance) to get caught up and then also make the rent for the next month.

I have said this before, but I will say it again, you need to pick a deadline in your mind for filing the eviction and sticking to it.  It may be the 6th of the month, it may be the 15th.  Just pick a date and stick to it.  Evictions are a stressful, but necessary part of being a landlord.

Get that eviction started today.

I have a renter who’s lease expired in September so she is on a month-to-month lease currently. She has not paid November and Decembers rent. I spoke with her in November [2 weeks after she was late on her rent] and she told me she would pay and I said apparently you cannot afford to live there and maybe you should move out. Then I gave her [on November 27] an ‘unofficial” eviction letter telling her she needed to be out by today Dec 28th. Do I have the right to lock the doors tomorrow if she has all or her stuff or most of her stuff moved out??? I was in the property yesterday and there is damage to the property so I really don’t want anymore damage at this point. Just want to know what my options are.

This is a very common scenario.  Here are some thoughts about what she did right and wrong:

• This landlord did a good job of proactively getting in to speak to the tenant and assessing the situation.  Many times landlords want to quarterback from their cell phone and just leave messages.  She also succeeded by not waiting another 30 days to ask the tenant to move out.  She dealt with it in the same month.
• Despite that, I would have recommended that she proceed with an eviction instead of a letter to move out.  This landlord runs the risk of that tenant not being out by December 28.  Ultimately the tenant did move by December 28, but if she did not, the landlord would have then been forced to start the eviction process, which would have taken until mid-January before this tenant was out.  Starting the eviction on November 27, would have had this tenant gone by December 15th or so.
• In response to her question “Do I have the right to lock the doors tomorrow if she has all or her stuff or most of her stuff moved out??” That is a judgement call.  If you truly believe that the tenant has vacated the property by either giving you verbal confirmation or by removing all their stuff and leaving the keys, then yes, change the locks.  Alternatively, if there is a lot of stuff in the apartment, you may want to change the locks, post a notice on the door, and wait a week to see if the tenant returns looking for their stuff, just to be safe.

There is no right answer when dealing with evictions and non-paying tenants.  My best recommendation is to move quickly and decisively as every day they stay  is one more day without income.

****Disclaimer:  I am not an attorney and this is not legal advice, just my opinion*******

Yes and No.

• I have recently had a couple people send me emails (and I had one guy send me something on FaceBook) asking for a referral on a tenant.  I won’t answer those questions in any written format.  I will only discuss tenants verbally.  One less risk point that an email or fax could fall into the wrong hands and it could be used as proof at a trial.
• No, I don’t expect a tenant to sue me for liable.  I am mostly just stating the facts when asked questions.  Facts are facts.  If I evicted them, then that is public info.  No hiding that fact.  If the paid late, they paid late, while not public info, it is a fact.
• I can’t imagine any tenant having the energy, money, or guts to sue.  And for what?  Are they going to sue for $1 million cause I said they always paid late?  If yes, then get in line.
• While I do recommend you give factual information, I would refrain from hearsay and your opinion as much as possible.  I would expect that those opinions are what get you in trouble.
• There was a website going around that was asking for landlords to rate tenants to help each other.  While it sounds like an awesome idea, it will be plagued with issues if it gets widely used.

Using some common sense and taking the conservative road should keep you out of the courtroom.

I had a new tenant in one of my townhouses.  This empty nester couple were a relocation from Memphis and had lots of cash in the bank from selling their home.  She liked the unit, but she said she smelled cigarette smoke.  I am pretty sure the current tenants did not smoke in the house, but out on the back patio.  No doubt that some of that smoke came in the house and I am sure it was on their clothes and other belongings.    They were going to be great tenants, but she insisted that I not only shampoo the carpet, but I have the ducts cleaned.  This unit was only 2 years old, but I agreed.  I paid the $250 to have the duct cleaned.  She was satisfied.  I go over there a month after they move in only to find out that she is a smoker.  Huh?

So what do you do if you have a tenant that seems to call you over every little repair and/or every little neighbor problem?  Are you spending 80% of your management/maintenance time on this one tenant?  Unfortunately, because their requests are often reasonable and legitimate, it may take you a while to identify that this is a high maintenance tenant.  So what do you do once you identify this?

• Start pushing back on their requests.  Question if it really needs to be done.  At first this may be difficult to do, because you know the work may need to be done or the place is not perfect.  Most rental units are not perfect and were probably never represented as perfect.  They have to live with some defects.
• Ask the tenant to put together a punch list and then agree that you are going to go in and do all the work one time and you are not coming back except for an emergency for 6 months.  While this may be difficult, it could get them to see that the property is just fine.
• Harder still, but I know many landlords do this, is to simply tell them that  you are not fixing it.  Period.
• Lastly, move them out.  If they continue to be a thorn in your side, tell them:  “Look, it sounds like you are just not satisfied with this property.  I don’t believe I will ever be able to get it to the level of maintenance/repair/beauty you want.  Maybe we should just break the lease at the end of next month and you should find another place that you are more satisfied with”.  This statement right there may be enough to shut them down.  Many people when presented with an ultimatum or take away will back down.

Having a high maintenance building is tough enough to deal with if you are a part-time landlord.  I would say that high maintenance tenants are probably worse as the building is not calling you on the phone at 7pm saying the door handle is loose!

Previously, a landlord would have to store the tenant’s “Abandoned Personal Property” for 60 days.  This should be inventoried and stored somewhere secure. I often will leave it in a bedroom in the unit if possible or at least in the basement.  Still, I have to move it and ultimately I have to dispose of it (as tenants never come back for it).

A new law that went into affect on August 1, 2010 reduces the retention period to only 28 days.  Much easier and nicer.  While I don’t like to store their stuff ever, at least this way I can get rid of it a month earlier.

I’d be interested to hear your thoughts on painting walls between tenants.  Seems like the bedroom walls always get scuffed up, dirty etc.  I could almost paint between tenants each time.  I stopped and just allow them to paint if they want, some do and some don’t. 

1:  Do you paint between tenants?

2:  If you’ve painted between tenants and after they ones move out the paint is scuffed, dirty and generally worn do you charge them for the repaint from the deposit?

3:  Why do tenants always seem to dirty the paint?  I’ve been in my house 10 years and nothing needs painting.  I don’t get what goes on.  I’m not even talking about trashing the place, the paint just seems to be “wearing” in the bedrooms.

Great questions.  Here are my answers:

1. Do you paint between tenants? Yes, typically.  I rarely just do touch up, I will repaint the walls.  The ceilings get done every 4-5 years depending if I have smokers.  As your follow on questions show, I rarely have a unit that is perfect enough to be rented as is.  Plus, I want to put my best foot forward with the new tenant. 
   • Because I use the same paint color on all my units (a darker beige color) it is pretty easy to roll the walls and not have to cut in.
   • The amount of time I have during my turnover may also determine how well I paint or if I do.  If my handyman has time, I will often have him roll the walls as necessary.  If there are other rehab or maintenance to do, again, it may change the amount of paint we are doing at the turn.
   • I do have some friends that paint their walls dark tan and the woodwork (when painted) very dark brown to hide dirt.  They will often not have to repaint, but maybe wash the walls in places or touch up such as where the couch was.
2. If you’ve painted between tenants and after they ones move out the paint is scuffed, dirty and generally worn do you charge them for the repaint from the deposit? That depends.  Your lease does state, normal wear and tear.  I know that even in my own house, I personally dinged the wall when I was moving something, plus the wall behind my computer desk gets marked occasionally by me sliding something around on my desk.
   • If the apartment is otherwise perfectly clean when they move out and it appears they were trying to be careful and do the best they could, then NO, I don’t charge them.  Alternatively, I know other landlords that want the unit in the same perfect condition as when the tenant moved in and will charge the tenant for any marks.  You need to find your happy medium.  Remember you should document your charges with pictures in case the tenant takes you to court claiming foul.
3. Why do tenants always seem to dirty the paint?  I’ve been in my house 10 years and nothing needs painting.  I don’t get what goes on.  I’m not even talking about trashing the place, the pant just seems to be “wearing” in the bedrooms. Wow!  I knew the answer to that, I would screen for the people that were not going to wear everything out!  I think everyone just has a different standard of living. 
   • My kids rooms are occasionally messy and they always have a toy or two in the family room at my house.  I can’t stand it and it drives me crazy.  When I complain about it, my wife has said that our house is perfect compared to some friends of hers that have toys and stuff ankle deep on their entire main floor.
   • It is no surprise that each community or neighborhood draws a different tenant profile.  This is driven by nearby jobs, schools, bus lines, rent amounts, and many other socioeconomic facts.  Your rental properties will attract the typically resident for that neighborhood.  Your experiences as a landlord for cleanliness, upkeep, paying rent, politeness, etc of your tenants is simply a byproduct of where your property is located.

It is not impossible to have a tenant that treats your rental like you treat your own home, but you need to search.  One option you do have when screening tenants, is to require an on-site inspection of their existing apartment.  Write up a 100 point scoring system to keep it completely legit and legal.  When you walk through, give them points for how clean the stove is (is it full of grease or is clean), how clean in the bathroom, are there clothes everywhere, what do the walls look like?  Using this scoring system and more importantly, getting into their current rental will tell you loads about how they will maintain your place.

You will be surprised at what a tenant calls “I just cleaned my apartment” and what you may call it.  Hopefully you are pleasantly surprised like my friend who’s tenant tells him to take off his shoes if he is coming in the door!

• Tenants living in homes in foreclosure will have the right to stay in the property until the end of the term of their lease or 90 days, which ever is longer.  This brings state law inline with current federal laws.
• Property left behind by a tenant had to be stored by the landlord for 60 days.  This has been changed to 28 days, but now a landlord can be held liable for disposing of the property early in the amount of triple the damages or $1000, which ever is greater.
• Not returning the proper amount of security deposit at the end of the lease has a penalty that is not at $500, up from $200 previously.
• Division of Utility Costs is not very common from what I have seen, but now if the tenant can prove that the landlord has improperly divided the utility costs, the landlord is liable to the tenant for triple the damages or $500, whichever is greater.
• If tenants can be forced to pay Attorney’s Fees if they lose a court case and your lease contains that language; now, if the tenant wins, they can force the landlord to pay the attorney’s fees also.
• Tenant Screening Fees and Criteria have changed. While I thought most of this was already law, it appears they have clarified it further:
  • The landlord must use a clear and consistent screening process for all applicants.
  • Landlords much provide the criteria in written form upon which they will screen applications, prior to accepting and screening fee.   It is thought that if they read the criteria and see something that will disqualify them, they may not then chose to pay the fee and apply.  [In my experience, they will apply anyway!]
  • You must process applicants in sequential order as you cash their check or take their money.  You may NOT take all the applicants money, process all of them and then compare the applicants choosing the best one (and keeping all the money).
  • If the tenant is reject for any reason other than what was specified on the written screening criteria form, the landlord must return the application fee.
• Tenants that knowingly provides materially false information on the application or omits information can be held liable to the landlord for damages plus a civil penalty of up to $500, court filing fees, and attorney fees.  Not sure how you prove this or get the civil penalty charged against them.
• Tenants must be given a receipt if they pay with cash.
• Late fees will now be capped at 8% of the rental amount. This provision begins on January 1, 2011.  You can not charge daily late fees either.

Make sure to start integrating these new changes into your leases and tenant screenings.  You do not want to be the first test case for this new law!

A Notice to Quit would be required in a “tenancy-at-will” situation, which means there is no fixed ending date, or the lease has expired and is now month-to month.  Minn. Stat. 504B.001 defines tenancy at will: “Tenancy at will means a tenancy in which the tenant holds possession by permission of the landlord but without a fixed ending date.”

In such cases, this is what Minnesota law says about terminating tenancy at will:

504B.135 TERMINATING TENANCY AT WILL.

(a) A tenancy at will may be terminated by either party by giving notice in writing. The time of the notice must be at least as long as the interval between the time rent is due or three months, whichever is less.

(b) If a tenant neglects or refuses to pay rent due on a tenancy at will, the landlord may terminate the tenancy by giving the tenant 14 days notice to quit in writing.

Notice must be given in writing that the tenancy will be terminated on a certain date, and should state that if the tenant does not vacate by that date, an eviction action will be pursued. The notice should be drafted with a termination date pursuant to the applicable time period from section (a) or (b) of Minn. Stat. 504B.135 – the interval between time rent is due (typically 1 month or up to three months), or if termination is for non payment of rent, 14 days.

Here is some sample language for written notice terminating tenancy at will:

• The purpose of this written notice is to terminate your tenancy at will.  Please be advised that your tenancy will be terminated on ___________  ____, 2010, [14] [30] [60] [90] days from the date of this notice, pursuant to Minn. Stat. 504B.135.  If you do not vacate by this date, an eviction action will be pursued in ___________ County Housing Court to have you removed from the property.

I suggest the written notice be sent to the tenant via certified mail, return receipt requested, as well as a second copy by regular mail, mailed at the same time.  In case the certified mail is returned for refusal to sign or failure to pick-up, you’ve also sent the written notice via regular mail to the tenant’s address – save the return receipt, if returned, or the refused certified letter, which will be returned to you – for the court hearing.

After the notice to quit time period has expired, and if the tenant still does not vacate, then an eviction action would be required to remove the tenant.  Eviction action hearings are typically set 14 days from date of filing the Eviction Action Complaint.  The Eviction Action Complaint must be served on the tenant at least seven (7) days prior to the hearing via personal service with affidavit under the Minnesota Rules of Civil Procedure (by a third party not a party to the action), and if personal service cannot be made, the process server can complete service by posting on the property after two failed attempts, and then completing an Affidavit of Not Found and Posting.  See Minn. Stat. 504B.331.

Matt Engel

The Engel Firm, PLLC

Union Plaza

333 Washington Avenue North

Suite 300

Minneapolis, MN 55401

W: 612-373-7060

F: 612-465-6211

C: 612-385-0554

I guess it is just another example of how the government thinks that all of us “rich” landlords have money to burn.  My recommendation is that if you have any tenants on the fence, get your evictions in during June to save the cash.  I am going to check in Ramsey County also to see if this is a state change or just Hennepin County.

They are not maintaining the apartment – it is filthy. Although lease states they must maintain, isn’t this subjective and how can I hold them accountable? They are also in default with our no pet clause, and having furniture in front of an egress door; do I have to give them a notice of violations with time to correct, or can I do an immediate evict? They are very scary – threats to fall down stairs as “they know the system” and have thrown a ton of bogus allegations of needed repairs as a way of delaying rent, using rent escrow threats. They are a handful – we feel like we are out of our league with these winners! They seem to know the rental law and how to work around it better than anyone! We believe they are using drugs, but have no way to prove, as their behavior is very volatile, erratic, moody, threatening and paranoid. I, too, would appreciate any guidance on resources; I have read MN code and the Attorney General handbook, and continue to research online. I just feel very inept and want to be sure I am doing this correct and legal as they throw threats at us each and every day and I know that they will show up in court and fight anything that we do! I, too, would love to know contact information regarding the service that you mention. I have contacted our lawyer for guidance, but he does not seem too versed in this area of law. Please help.

Diane called me and we talked through her issues.  Essentially she has a bully tenant.  Someone that is going to try and push you around whenever they get the chance.  These tenants are very difficult to deal with.  It is unnerving to be threatened and you lose sleep at night thinking about what they are doing to your investment.

Many landlords just hide and hope this will get better and that if they meet all the demands of this abusive relationship, everything will be fine.  I am here to tell you; this situation is not going to get any better.  I have seen landlords wait 6+ months to do anything.  I was in court Tuesday and one landlord said the tenant had not paid anything in 6 months!  What?  Are you kidding?

This tenant currently owes Diane the May’s rent only.  Although I am not an attorney, I told Diane that she needs to file an eviction immediately for non-payment of rent and for the lease violations (pets and operating a business out of the house).  Unfortunately, I expect this bully is going to be a bigger problem before they get him out.  I hated to say it, but I told her she may have to expect that he is going to destroy the house.   That is just who these people are.

Most importantly, though, the problem will be done.  Diane can repair the house and move on to find a better tenant.   Thankfully we don’t see many of these types, but an eviction on his record may help the next landlord steer clear of him.