Tenants

Building Strong Relationships with the Neighbors

I have written about screening your tenants and tenant application red flags.  I have even written about screening your tenants using MySpace.  Generally, if a tenant is going to be a problem, they have some history of being problems.  When I wrote “Once a Bad Tenant, Always a Bad Tenant“, I was mostly talking about [...]

I have written about screening your tenants and tenant application red flags.  I have even written about screening your tenants using MySpace.  Generally, if a tenant is going to be a problem, they have some history of being problems.  When I wrote “Once a Bad Tenant, Always a Bad Tenant“, I was mostly talking about payment history.

I recently had an interesting situation with a tenant in one of my duplexes.  She is a single mom, very well spoken.  Her rental application was pretty clean except for a 5th degree misdemeanor from 4 years ago.  She has lived in the apartment for about 9 months.  Whenever I have stopped over, the place is clean.  Her previous landlords gave her a decent referral.

She did have some problems paying rent about 3 months ago and after I filed the eviction, she promptly found emergency assistance to pay her past due rent.  Despite that, there have been no complaints from the neighbors below her or the homeowners on either side, until now.

This weekend, I received an email from a neighbor with whom I have built a strong relationship.  She is motivated to keep her neighborhood safe, but also understands that it is better to work with me initially, than to just call the police.  She said that recently this tenant  “is showing all the signs of criminal activity”.  The neighbor went on to document multiple visits per day of a few minutes by differing men in fancy tricked out cars.  The neighbor is suspecting drug activity.

By having this good working relationship with this neighbor, it allows me to address the situation immediately.  I can demonstrate that I am good landlord and want to be a good neighbor.  Alternatively, if she had not contacted me, I could have a powder keg on my hands that would blow up with the police getting involved and my rental license in jeopardy.

I will be stopping by this apartment and discussing the situation with the tenant.  I will tell them that I received calls from the police and neighbors (never divulging who told me).  While I am not naive enough to believe that this will instantly cure the problem or that the tenant will openly admit to dealing drugs, I have always found that talking with the tenant will reduce the problem in the immediate future.  When they know they are being watched and the heat is on, the dealers will usually find an easier place to work.

I encourage you to know who the neighbors of your rental properties are.  Give them your phone number.  Ask them to report anything suspicious.  With all of us working together, we can keep the problems out of the neighborhood.

Pet Deposits and Roomates

John Gall shot me a question:
Is the amount paid as a pet deposit the only amount allowed to be used for pet related damage, or is it just a safety measure expecting that damage will occur. So if you have a $1500 deposit + $400 Pet deposit and $500 in damages, can you take [...]

John Gall shot me a question:

Is the amount paid as a pet deposit the only amount allowed to be used for pet related damage, or is it just a safety measure expecting that damage will occur. So if you have a $1500 deposit + $400 Pet deposit and $500 in damages, can you take the overage out of the general damage deposit? Similarly, if one party of say three other adults in the house who are on the lease owns the pet and paid the deposit for the pet and signed the addendum allowing the pet, are they the only one responsible for damages or can all tenants be held responsible for pet damage?

I am not sure there is a correct answer here, but here is how I would handle this:

1. The pet deposit is in addition to the standard deposit.  I look at it that I don’t care where the damages came from.  As in John’s example, I am taking $500 out of their $2000 deposit.  Some subtle differences is that the pet deposit does not accrue interest like the standard deposit.  Also, some of it can be non-refundable for cleaning carpets or such after the pet.
2. I tell roommates (and they must be reminded) that they all rise and fall together.  They can be more difficult to work with.  I am not going to worry or keep track of who paid what and who’s dog it is and such.  They need to work it out amongst themselves.  They are all on the lease and took that risk.  If there is a hole in the wall upon move-out, I don’t care who made the hole.  I am taking it off the deposit.

Now, maybe I am wrong in how I do it (if so, please drop me a comment on this post), but I have never had much complaint.

Correction: Plumbing Clogs are Landlord’s Problem

Like most landlords, I have learned most of what I know about tenants and toilets through my own experience and mistakes.  Occasionally, I do learn a new trick from another landlord.  Sometimes that learning comes because I asked a specific question of them when I was stuck on what to do, other times it comes [...]

Like most landlords, I have learned most of what I know about tenants and toilets through my own experience and mistakes.  Occasionally, I do learn a new trick from another landlord.  Sometimes that learning comes because I asked a specific question of them when I was stuck on what to do, other times it comes when I am helping new investors buy property and the learning simply presents itself.

Previously I published a post regarding “Power Lease Clauses for Your Investment Property“.  I had accumulated many of these clauses over time reviewing leases at Minnesota Investment properties that my customers were buying.  While I am not an attorney, most of these clauses seemed reasonable and if the tenant was given this requirement up front, I assumed it was all legal and within statutes.

I enjoy reading Kelly Klein’s posts on the Star Tribune website.  She is a real estate attorney in Minneapolis and answers questions from the public in her weekly column.  Her November 14, 2008 column made me rethink the #1 clause I had on the above article.  It said:

“All drains, waste pipes, and plumbing are accepted as clear by the tenant at the time of occupancy and any material blocking them after occupancy shall be repaired by the tenant except blockages caused by roots or backups from the street.”

All drains, waste pipes, and plumbing are accepted as clear by the tenant at the time of occupancy and any material blocking them after occupancy shall be repaired by the tenant except blockages caused by roots or backups from the street.

Again, I felt like this was not an unfair clause to put in a lease.  I have experienced tenants pouring pans full of grease down the drain, not because they are trying to be malicious, but simply because they didn’t think it was a problem.  Unfortunately, Kelly makes an argument (albeit brief) that in Minnesota, the landlord has the responsibility to “maintain the premises, which includes keeping the pipes and toilet in good working order”.

I am always willing to accept when I am wrong, but I think the clause is still usable and reasonable.  The clause could be reworked to read:

“All drains, waste pipes, and plumbing are accepted as clear by the tenant at the time of occupancy and any atypical material (such as toys, clothing, diapers, etc) blocking them after occupancy shall be repaired by the landlord with tenant paying all costs of repairs.”

Again, I am not an attorney, but I think a reasonable person (ie:  housing judge), would see the intent of this clause and probably give you the benefit of the doubt.  Tell me what you think!

Do you need a “Cure or Quit” Notice?

I have posted many times about evictions in Minnesota.  A question that comes up occasionally is does the landlord need to issue a “Cure or Quit” notice prior to filing an eviction on the tenant?   I suspect that the people asking the question have attended a seminar or read a book from someone in another [...]

I have posted many times about evictions in Minnesota.  A question that comes up occasionally is does the landlord need to issue a “Cure or Quit” notice prior to filing an eviction on the tenant?   I suspect that the people asking the question have attended a seminar or read a book from someone in another state that has that statute.

Although I am not an attorney, I understand that Minnesota Law does NOT require the landlord to give the tenant any notice prior to filing an eviction.  I can speak from personal experience that I have never given the tenant anything and the judge at the eviction has never asked me if I had.

Tenant Love Notes

Maybe this isn’t the right title for these letters, but if you are a landlord for any length of time, you will get one.  They are similar in concept to the “Dear John” letter that soldiers used to receive.
This tenant love notes is slightly different, it is usually sent with the rent check folded up [...]

Maybe this isn’t the right title for these letters, but if you are a landlord for any length of time, you will get one.  They are similar in concept to the “Dear John” letter that soldiers used to receive.

This tenant love notes is slightly different, it is usually sent with the rent check folded up in it.  Typically it is used to explain why rent is late, but more often it is to explain why they have short paid their rent this month.  Here is an example of one:

If you read the letter it starts off by saying:  “I am sending you five hundred dollars [when the rent due is $800] and I will pay the rest of Oct rent on the 31st of Oct.”

At this point, you need to make a decision whether you are going to wait for the remainder of the rent ($300) or not.  I believe the decision is going to depend upon their previous pay history, the condition of the apartment, time of year, and your motivation.

If I am not willing to wait, I can start the eviction in Minneapolis.  Most likely, they will be out by Mid-November (assuming they don’t pay).  I would then have to clean and prep the apartment for showings for a December 1 move-in.  Although leasing apartments in December is possible (and has actually gotten easier with the low vacancy rate), it is not my favorite.

I have decided that I am going to wait and see if they follow through on their commitment.  If they don’t, the next day, I am at court.

After Hours Calls from Your Investment Property

The majority of my customers are new investors.  The most successful ones want to know everything about not only how to buy an investment property, but how to own one and be a successful landlord.  A frequent question that I get asked is:  “How often do you get calls at night”.  This must be one [...]

The majority of my customers are new investors.  The most successful ones want to know everything about not only how to buy an investment property, but how to own one and be a successful landlord.  A frequent question that I get asked is:  “How often do you get calls at night”.  This must be one of those stereotypical images non-landlords have of owning investment properties.

Truthfully, owning and managing 28 rental units, I get a 2-3 calls after 8:00 pm per year.  They are probably evenly divided between a heat out call and some neighbor calling about a bad tenant doing something they shouldn’t be.

The heat out calls I obviously take seriously and deal with immediately.  Occasionally I am frustrated by those calls as the heat had not been working all day, but the tenant waited until after hours to contact me.

When I get the irate neighbor call, I handle it in several ways depending upon the neighbors posture and request.  If it is something simple, like a stereo playing after hours and the neighbor is reasonable and courteous, I will commit to calling the tenant to talk to them.  I do, however remind the neighbor to call the police so we can get a police call on record against the tenant for possible future eviction.

If the neighbor is irate and has good reason to be, but is being respectful, I may drive down to the property and see what is going on.  I will recommend for them to call the police immediately, though.  Only a couple times have I got an irate neighbor that is insulting or demeaning on the phone.  Then I simply remind them that I am not the tenants parents and they should take it up directly with the tenants or the police (end of call!).

Taking calls after hours will also vary depending upon what type of properties you own.  If you have single family houses in nice areas, I would expect you would never get a call unless the property burned down!  In rougher areas, you will probably take more calls.

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Scott Ficek is a Minnesota Real Estate Agent with RE/MAX Advantage Plus in Minneapolis and helps new and seasoned investors buy and own Investment Property. He owns and manages almost 30 investment property units from single family to multi-family. Find his website at www.minnesotainvestmentrealestate.com or receive his blog via your RSS Feed or in your Email.