Archive for the ‘managing tenants’ Category

Funniest Tenant Screening Stories

Monday, June 4th, 2012

This guest post is from Endre Rex-Kiss, an online marketing, social media and human resource enthusiast. He currently represents FidelisAM, a US based agency providing employment and resident screening services. Follow his occasional guest blogging activities on Twitter.

Tenant screenings is the way to go if you want quality tenants and most landlords come across potential tenants who are either not what they claim to be or have serious behavioral problems. This article takes a look at the funniest screening stories landlords have had and their aftermaths. So sit down, relax or better still grab a cold bottle of beer to nurse while you go through the experiences below.

The Estranged Wife

A couple with no kids moved into a 4 bedroom duplex in the suburbs, the house and environment provided the perfect scenery for the couple but there was only one problem and it was that of meeting up with their mortgage payments. So they decided to put a room up for rent. The necessary adverts were created and finally a prospective client came knocking, he was the perfect tenant for he claimed to be single, had no pets, did not smoke, drink, do drugs and had a well-paying job. This obviously was too good to be true so the couple decided to hire an agent to conduct a little screening on him. After two days, the agent returned to tell the couple that they had been invited to have dinner with the previous landlord of their prospective tenant. On getting there, they were told that the tenant usually preys on sympathetic landlords and if you fall into his trap by renting a room to him, he would move in, behave for some days but a week later a woman who would claim to be his estranged wife would come visiting for some time and then finally move in with a cat. They would then proceed to co-habit like pigs, steal your property and when rent is due, disappear like thieves in the middle of the night.

Ghost Tenants

A couple responded to a landlord’s accommodation advert, they came to see the Landlord and professed that they loved the apartment and would be willing to rent it for the long term. The landlord was convinced that they were the perfect tenants so when the wife came calling the next day without her husband (due to the supposed fact that he works late) to ask for the keys to the apartment so she could look through it, the landlord duly obliged. A day passed, the lady did not return, two passed and she was still missing. The landlord quickly called his agent who conducted a quick search only to find out that the woman and her husband had already moved into the apartment. The police was called and the couple quickly evicted.

Dead beat Prospective Tenant

An agent once recommended a tenant who had the best recommendations ever; he had a good job, perfect credit and good relationships with his previous landlords. A meeting day was fixed and the prospective client shows up with a dead beat car and the attitude of someone who was one step ahead of the law. The landlord who needed to rent his facility out as soon as possible, overlooked this tell-tale signs and had agreed to lease the apartment to the tenant. The recommended signatures had already been traded and an upfront deposit had been made but as luck would have it, a police officer who was driving randomly through the neighborhood spotted the prospective tenant, felt his face was familiar and got down to trade some questions. Suddenly, the tenant bolted and a foot race began. The tenant was finally apprehended and the landlord discovered that the name, details and personal information given by his perfect tenant had nothing in common with the tenant.

The Thief

A couple came with an agent to view a landlords property, after going through it, they decided it was perfect and would be signing the necessary papers the following day but there was just one issue, they needed the house repainted. The landlord obliged, carried the necessary equipment to the house and started painting. He painted into the night and decided to spend the night there instead of returning home late. In the middle of the night, he began to hear strange noises at the side of the house, quickly he got up to investigate and on getting there, he found his prospective tenant trying to detach an A/C unit.

These stories show that conducting an in-depth screening which should include: former landlord credit checks, recommendations and past criminal activities are highly recommended.

Upcoming Speaking Engagement – Terry Sprouse (author of Fix em Up Rent em Out)

I will be making a presentation to the Arizona Network of Real Estate Investors. Mark your calendars.

Where:
Fidelity National Title, 6760 N. Oracle Road, Suite 100, Tucson, AZ

When:
June 7th, 2012

Time:
Meeting begins at 5:30 pm, presentation at 6:00 pm

Title: The 5 Rules on How to Lose Money & Get Your Rental Property Trashed by Tenants

Background Checks for Tenants

Wednesday, December 28th, 2011

This is your way to verify that the impressions you have of your applicants are true. Everyone who wants to rent my house has to fill out an application form. I will select usually the top one or two candidates, based on the processes mentioned above, and then call all the references and former landlords listed on the application form.

Always try to verify the references by telephone. You wouldn’t be the first landlord to be given a fake reference, and people will often give more candid opinions when you speak to them.

I don’t run credit checks, but I do like to see copies of their paychecks. I do a criminal background check by searching county court house records, and I check the sex offender’s registry list.

A high priority for me is that they make enough money to pay the rent. Don’t go by what they say; go by what their paycheck says.

They may say, “So anyway, my wife/girlfriend is going to get a job in a couple of weeks, and we operate a successful E-bay business, so the rental payments won’t be a problem.” Weeks turn into years and all the while they will have trouble making their monthly payments. Someone who has a stable, good paying job is an ideal tenant.

3 Books that Changed My Life

Are You Big Enough to Pay it Forward?

What to do if your tenant wants a pet?

Sunday, October 2nd, 2011

“In my day, we didn’t have dogs or cats. All I had was Silver Beauty, my beloved paper clip.”

– Jennifer Hart

I received a call last week from a fellow investor/friend. She had a tenant living in a house and the tenant said he would like his girlfriend and her dog to move in with him.

My friend knew that her tenant was on the verge of having some trouble making the monthly payments and it seemed like a good idea financially to have the girlfriend there too, two incomes being better than one. Of course, the girlfriend would sign the rental contract too, in case one of them moves out.

What stuck in the craw of my friend is that she recently put new carpet in the house, and did not want pets in there who might destroy the carpet. Her question to me was, should she allow the dog?

My answer was, let the dog stay too, but charge a fee of $20 per pet per month, and here’s why:

1. Not all rental properties allow pets, so the more accomodating you are in the area of pets, the more tenants that you can attract. And, many people experience a more rewarding life when they have a pet. So, the happier the tenant, the longer he stays.

2. The tenant is receiving a benefit from having their pet with them, and as mentioned, not all rentals allow pets. So, from that perspective, the tenant has not reason to be upset with a small monthly fee for the pet.

3. If the pet does a number 1 or number 2 on the carpet, the landlord still has the security deposit of one month’s rent, to repair the carpet. When the tenants move out the landlord is still covered.

Under my scenario, the tenants receive the benefit of the girlfriend moving in and the psychological benefit of having a pet. The landlord receives a slight benefit of a small additional amount coming in. Everyone is happy.

The only other consideration is to make sure the dog is not Cujo. I would’t allow a dog breed that is known to be aggressive. Otherwise the landlord is setting herself up to be bit with liability issues, if the dog gets out of the yard.

For another excellent article about pets, check out the article Allowing Pets in Your Rental Property by Sharon Vornholtt at http://LouisvilleGalsRealEstateBlog.com.

Read the new review of “Carve Out Your Niche” by Sharon Vornholt at Louville Gals Real Estate Blog

Hit a Holiday Home Run for Your Tenants

Wednesday, December 15th, 2010

Remember your tenants during the holidays with a gift card. This shows them that you are in it for more than the money.

When I was a Peace Corps Volunteer in Honduras, the people I worked with went out of their way to make me feel I welcome and cared for. I try to do the same with my tenants.

Be kind to your tenants and treat them the way you would like to be treated and they will return the favor by taking care of your property, and by providing you with financial security for years to come.

How to Prepare a New Rental House for Tenants (video)

Sunday, December 12th, 2010

Get your rental house ready for tenants by following my 5 steps.

I also recommend four of my favorite repair books for your real estate library to guide you through the process of repairing appliances, sinks, electrical outlets, and almost any other repair issue that you may encounter.

 

Related Posts

Remove that Garbarge Disposal Now!

Creepy tenants and landlord/tenant rights

Tuesday, August 24th, 2010

Gary Sutton of Newsradio 910 WSBA, York, PA asked me, “What if you have a creepy tenant like the one in the movie Pacific Heights?  What are the rights of tenants?

Michael Keaton in Pacific Heights represented a new landlord’s worst nightmare. He was a master at manipulation of landlords, and pushed the boundaries of the law without actually breaking them.

Laws Favor Tenants

Of course, there is a lot of gratuitous Tinseltown nail-bitting tension in the film, but it does faithfully present one fact that all landlords must face. The laws generally favor the tenant.

Laws may vary from state to state, but in general tenants are required to:

– maintain dewlling units
-dispose of trash
-use in a reasonable manner the electrical , plumbing, heating, AC,
etc., and all appliances
– not destroy, deface, or damage the premises
– not disturb the beighbor
– allow landlord access to the property

Landlords are required to:

-supply a written copy of the lease to the tenants
– comply with all building codes
– make requied repairs so that the property is clean and safe
– maintain in safe working order all electrical plumbing, AC, etc.
– provide recepticles for waste removal

“Practical” vs “Legal” Remedies

As Carlton Casler points out in his book “Arizona Landlord’s Deskbook,” the best remedy to problems with tenants is often by utilizing the “practical” approach rather than the “legal” approach.

For example, instead of incurring all the costs of time and money to legally remove a deadbeat tenant, by telling the tenant that if he is out at the end of the month and the property is reasonably clean that you will refund allow his deposits. Or, if he has no deposits, you give him $100.

Would that solution work for a tenant like Michael Keaton?

He’d probably prefer a fist fight with the landlord or a shootout with the cops.

However, outside of Hollywood the practical solution works pretty well.

Upcoming radio interviews

August 25 at 8:08 am, I will be on Jeff Anderson’s show, KSDR 1480 am, Watertown, South Dakota.

August 26 at 11:05 am, the Ron Ross Show, WJBC 1230 am, Bloomington, Illinois.

September 15 at 8:05 am, the Dan Ramey show, WBEX 1490 AM, Chillicothe, Ohio.

Dealing with Problem Tenants

Wednesday, August 11th, 2010

Malcom's Dad

In today’s interview with Mark Wayne of WICH Radio in Norwich, CT, the question came up “What if you want to start a rental house business buy you are leery about dealing with tenants?”‘

My response is that some tenants are real pleasures to work with and you rarely even see them. They go the extra mile to maintain your property and get along beautifully with the neighbors.

On the other hand, other tenants require constant attention and supervision, not unlike my own teenagers who like to push me to the frazzled limits of my sanity .

As the dad observed on Malcom in the Middle, “Let’s face it, teenagers are thoughtless, inconsiderate eatingmachines dedicated to putting us through hell and sending us to an early grave.”

Okay, tenants probably aren’t that bad, but that’s a good starting point for discussion purposes.

Some of the common problems that landlords face are:

1. Tenants that pay late or don’t pay

2. Noisy tenants

3. Messy or destructive tenants

Handling difficult situations

If you are using a month-to-month lease, as I strongly suggest, either the tenant or the landlord can cancel the contract by giving the other party one month’s notice. This way, if you need to evict a tenant, you just give them a one month written notice, and they are out the next month.

You don’t even need to have a good reason to remove them.

You are just exercising your right to cancel their monthly contract. It removes the possibility of having to go to court to remove a tenant. Easy as pie.

Here are the steps that I take to remove a bad tenant:

1. Tenant engages in some action that violates the contract, for example, they pay the rent late.

2. Call the tenants to inform them they are in violation of the contract.

3. Follow up immediately with a memo that again tells them of their contract violation, and tell them exactly what I expect them to do. For example, pay the rent at an agreed upon date. Tell them the consequences of not immediately remedying the situation. For example if they don’t pay the rent, I will not renew the month-to-month contract.

4. If they don’t take the appropriate action, of if another violation occurs, send them a form or a memo saying you are cancelling the contract. They must be out in 30 days.

5. If they are not out in 30 days, I can pay to have a deputy sheriff evict them. If they are still behind on their rent when they leave, I keep their security deposit to cover the unpaid rent.

Don’t get the wrong impression, most of my tenants have been good tenants. I have only had one eviction in years that I have operated my business. And the eviction was a fairly easy process because of the month-to month lease.

Upcoming radio interviews

August 17, 7:50 am, Jason Mansmith show, WRPN 1600 am, Ripon, Wisconsin.

August 19, 7:40 am, Gary Sutton, WSBA 910 AM, York, PA.

August 20, 8:30 am, I will be on David Sutton’s show, KSRN 1490 am, Los Alamos, New Mexico.

August 23 at 8:05 am, the Cliff  “On-Air”  Turner show, KLBN 1450 AM, La Grande, Oregon.

August 25 at 8:08 am,  I will be on Jeff Anderson’s show, KSDR 1480 am, Watertown, South Dakota.

August 26 at 11:05 am, the Ron Ross Show, WJBC 1230 am, Bloomington, Illinois.

September 15 at 8:05 am, the Dan Ramey show, WBEX 1490 AM, Chillicothe, Ohio.

How to Find Tenants

Thursday, April 8th, 2010


Here is a recent email that I received from someone who is taking my 7-Week email course, and my response:

Dear Terry,

We bought one fixer upper but are having trouble renting it — any ideas of good places to advertise for a tenant?

Thanks in advance,

Jean xxxx

Hi Jean,

Let me suggest a few techniques that that have worked for me:

1. Place several small For Rent signs on all nearby streets, especially the major intersections. If you get a sign with an arrow on it, you can point the arrow in the direction of your house. I buy the signs at Home Depot or Lowe’s.
2. Hold an “open house” on Saturday and Sunday. People driving by can come in and look around.
3. Contact companies that help people find rental properties. Some will list your property for free. These companies usually contact me.
4. Run an ad on craigslist.org. You can upload photos and describe the qualities of your rental property. The ads are free & I usually get a great response.

I hope you find a tenant soon.

Let me know if you come up with a good technique that I haven’t thought of.

Good luck!

Best regards,

Terry Sprouse

Location, Location, …

One thing I didn’t mention in the letter, but which is perhaps the most important consideration of all in attracting good tenants, is the location of your property. Properties located where people really like to rent are called “opportunity zones” (or “transition zones”).  Just as Baskin-Robbins must offer the flavors of ice cream that the public likes, so you must offer rental properties in the areas of town where people want to live.

If your property is located in an area where people don’t like to rent, you will always have trouble finding tenants. For more information about my philosophy on where to invest, check out my EzineArticles.com article The Secret to Increasing Cash Flow – Invest in Opportunity Zones .

NEWS FLASH — dealing with tenants a big issue for my class

Tuesday, February 2nd, 2010

Avoid this guy as a tenant

(more…)

Trouble with Bad Tenants? Use a month-to-month contract

Friday, October 16th, 2009


One of the best ways that I have found to protect yourself from bad tenants, and we all know that a few will always slip though our “infallible” screening process, is to use the month-to-month contract.

If you have a tenant that you need to get rid of, for whatever reason (and I can think of a lot of them, such as painting a picture of a human face on the side of an outside wall, but that’s a story for another whole post), take the easy road.

If they have signed a month-to-month contract, you just need to send them a form saying that you are canceling the contract and they must be out by end of the next month. You have to give them a full 30 days to move, maybe more if they pay on the first and you are in mid-month when you notify them. In that case you would give them 45 days to move, at the end of the following month.

But, no matter how you slice it, it sure beats going through an eviction process, particularly if they are inclined to fight it. And, why wouldn’t they fight it since they at this point they have probably developed aggravating us into a science.

So, if there is any doubt in you mind about whether your tenant will go to the tenant dark side at some point, play it safe and have them sign the month-to-month lease.

New Product Announcement

I am in the process of developing a audio Course entitled “Fixer Upper and Rental Business Starter Kit.”

The course will include 3 audio recordings, electronic copies of forms, a Workbook, and a copy of my book Fix em Up Rent em Out.

I will be providing extensive information to guide you through the process of starting your own business. I will show you the quickest way to reach your goals, and protect you from the pitfalls.

Want to claim a sense of security when the walls of financial security seem to be crumbling all around?

Then this course may be for you!

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