Puzzling Eviction -- Does This Make Any Sense - Posted by bokis

Real Estate Investing Real Estate Law
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Posted by dave on June 11, 2011 at 11:33:24:

I have had tenants during eviction process go to jail on warrants and abandon my apt or home or just decide to disappear to avoid a judgement for money owed winding up on there door step in there new place they decide to move to. The key is moving them out as fast as you can to keep your ROI up for that year on your income property. Then any money owed get the judgement and use the various means for collection.
Tenant evictions are easiest when the tenant doesnt show up in court. When they show up its a fight that must be done with records and proof of your case to keep them from taking up time in your rental unit. I never let cash strapped tenants enter my dwelling. By forcing them to cough up the total amount they prove they have the ability to afford unit. If they cant even get you 1st months rent and security it means they have no emergency fund and are highly susceptible to eventually not paying within the 1st 6 months. another thought is tenants that dont put up a full security deposit have no interest in keeping your dwelling in good shape since they have nothing to lose. I want a tenant to have skin in the game just like the banker would want me to have if I borrowed money on the dwelling. Screening tenants can bed done with online services that cost less then $30 per client. I get an application fee and return the fee if they are approved. If potential tenants dont want to pay then I figure they really arent quality clients and arent financially capable of carrying rent monthly since $40 is a big deal to them. I also like to see there income to be at least 3 times that of the rent monthly or I never let them in my units.

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Puzzling Eviction – Does This Make Any Sense - Posted by bokis

Posted by bokis on April 27, 2011 at 16:00:52:

I am not really a real estate investor, but I have had several rental properties through the years. For the first time ever, I may have to evict a tenant. This bothers me for a number of reason, but most of all because the situation is so puzzling to me.

This is in Georgia. I own a vaction home that I fixed up intending to sell it. I was approached by a friend who knew a person that was very interested in renting the house, saying that she was potentially interested in buying it. So, instead of listing the house, we leased it for a year – straight lease, not a lease option. The whole situation got off to a bad start. The tenant could not come up with both the first month’s rent and the security deposit; so, we let her spread the security deposit over four months. She paid the first month’s rent and partial security deposit in cash – probably not a good sign, but I did not recognize it at the time. Second month she was a couple of days late and paid partially in cash and partially with a check that she asked me to hold over the weekend. After the weekend, I went by her bank and there were insufficient funds to cover the check. I got in touch with the tenant and she brought cash and I gave her the uncashed check – second bad sign. Third month, she did not pay rent on schedule. Three days after scheduled date, I sent a very low key e-mail asking for a status. She did not respond. A few days later I sent her a pay-or-be-evicted letter. She still did not respond. Last week, I filed a Petition for Writ of Possession at the magistrate court. The writ was served by sheriff deputy about a week ago, giving her seven days to respond. As of this morning, she had not responded and had not made any effort to get in touch with me. At first I though she was trying to “play me?” But with no contact, I think that she is playing someone or something else. Currently I do not have an attorney involved, but I am following the GA legal processes to the letter. I definitely will not initiate any contact with her unless I have a Writ of Possession and Sheriff Depuity with me. Any speculation on what is going on? Am I being played – beyond the fact of having to go through this process? (I am aware that GA law requires me to accept her payment the first time if she chooses to “defend herself” by paying the rent due to date.)

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Re: Puzzling Eviction – Does This Make Any CENTS? - Posted by Chris in FL

Posted by Chris in FL on July 22, 2011 at 09:15:08:

Forget being puzzled about what the tenant/resident is doing, and worry about getting the best results for you going forward. Rule #1 - never, ever put someone in a property without full deposit and first months rent… If they struggle with that, they WILL struggle with the rent. They can’t afford your place! Rule #2 - always do your due diligence before putting someone in your place; doesn’t matter who refers them. If Mom, Dad, or the president refers them, let them know up front you do an application, and treat them the same as any other applicant.
More tips for getting better residents/tenants: First line on application - Only clean & responsible people who pay rent on time may apply (valid photo ID required). Look 'em in the eye and ask them the tough questions - are you clean, responsible, do you pay rent on time? I often tell applicants over phone before even setting an appointment, if you keep my place nice and pay rent on time, I am a great property manager. I am fair, and I do repairs quickly. However, if you fail to keep place nice and pay rent on time, I will come down on you like thunder and lightning. I will evict, and you will be out so fast your head will spin. Do you still want to come see the house, and pay $20 to do an application? This method will net you fewer applicants, but the ones you get will be of higher average quality. Ask on application how long they intend to stay - forever would be best for me. Screen for stable job and residence history. Double check things - are landlord and previous landlord real, or friends - easy to check ownership of property as a starting point. Income 3X rent is rule of thumb (though I have a few with lower income that are great residents). Almost all references say good things - that is not what I am looking for. In talking to references, do the references sound like people you would want to rent to? Ask references: if so and so struggles with the rent, can I count on you to help them out? Ask open ended questions, and let references (and applicants) talk as long as they want - the more they say, the more you learn - might learn good things, and might give them the rope they need to hang themselves. Best thing you can do: when you have what seems like a good applicant, go by the place they live now, unannounced, and see how they take care of it. Whatever it looks like, that is what your place will look like in one year.

Best wishes,
Chris in FL

P.S. - I quit puzzling over weird things residents do years ago. Especially with the information you gave, they were struggling with finances. People who can’t afford their rent, electric, vehicle, food, etc. - they will do anything and everything just trying to hang on… Some duck their head in the sand, others make up stories seeking sympathy or begging for time to pay… Do your due diligence, get responsible residents that can afford the rent, and leave the ones that struggle for someone else. I have 4 residents that struggle - those 4 are more work for me than the 26 that don’t struggle, combined. Trust me - screening on the front end is much easier than finding out on the back end you got the wrong applicant.

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Puzzling Eviction – Final Resolution - Posted by bokis

Posted by bokis on May 13, 2011 at 16:36:19:

All of the comments were good ones-- thank you. I followed the GA process, and within 3 weeks, I had a signed Writ of Possession. The tennant never communicated or responded during that time. After the writ was signed, I called the tennant and told him that I had the writ and that the only thing now under his control was whether he moved his possessions out or whether I would have his possessions put into the yard with a sheriff deputy in attendance. The tennant chose to move out. Not a pleasant experience, but it is over with.

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You have now been Initiated in to the - Posted by DJ-nyc

Posted by DJ-nyc on May 02, 2011 at 14:48:33:

Landlord business. Oh and if you are a Landlord you would be an Investor. Remove your emotions (I also have to do the same on each eviction) and continue doing your process. When I do an eviction I do not talk to the tenant. Period. (Talk to the Judge, not me) Good thing you are in GA, as from what my friends tell me, they kick your behind out in record speed. You will be fine. Oh, I do not take friend recommendations or family recommendations or no one that I know for my rentals. This way when I evict there is no emotional attachments. Here in nyc, it can take minimum 6 months to evict so count your blessings. :slight_smile:

DJ-nyc

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Re: Puzzling Eviction – Does This Make Any Sense - Posted by Woody

Posted by Woody on April 29, 2011 at 20:30:33:

bokis-

The break in communication is typical. Your tenant doesn’t have the money and you are “The Man” There is nothing the tenant can do. The way the tenant has paid the rent in the first couple months is also a typical sign of trouble ahead.

You goofed on screening the tenant well. But you are correct in going through the eviction process. A bit of a pain; however, look at it as leveraging the legal system to do the dirty work. You just sit back and follow the steps to the ‘T’

What it seems is that this tenant is trying to stay in the property long enough to get enough cash together and get another pace to move.

Stay cool it is not personal. The tenant is trying to survive. That is how many live. Crazy.

You may want to contact your friend to thank him/her for such a great tenant recommendation.

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Eviction – Does This Make Any Sense - Posted by Natalie-VA

Posted by Natalie-VA on April 29, 2011 at 08:55:54:

I know nothing about Georgia law, but it’s obvious to me that either you let your guard down, and/or you’ve been very lucky in never having to evict before.

It’s not puzzling, but very simple. You rented the house to someone who can’t afford it. Her behavior, unfortunately, is typical of people who live beyond their means.

I’m glad you’ve never dealt with this before and hope you get past it quickly and with minimal expense.

–Natalie

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Re: Puzzling Eviction – Final Resolution - Posted by Woody

Posted by Woody on May 17, 2011 at 21:18:33:

Thanks for the follow up. Glad it’s over and 3 weeks aint bad. Nice job using the leverage of the legal system to your benifit.

I’m afraid I have one coming up myself.

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Re: Eviction – Does This Make Any Sense - Posted by bokis

Posted by bokis on April 29, 2011 at 11:28:19:

Yes. Probably I have been lucky. What disturbes me so much is the TOTAL lack of communication from the tenant. There are at least a dozen plausible “excuses” that I might have listened to and attempted to accommodate in some resonable way. But there has been total silence. So, at this point, accommodation is impossible. Is this sort of behavior “typical”? The few people that I have talked with about this say that most tenants will move themselves out when eviction is threatened or inevitable; and that is what I had hoped would happen. But, right now it is not looking that way.

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Re: Eviction – Does This Make Any Sense - Posted by Natalie-VA

Posted by Natalie-VA on May 01, 2011 at 14:31:07:

The tenant is doing you a favor by not communicating. When you listen to excuses and start to accomodate is when you can get into trouble. You want to establish clear policies and enforce them consistently. If you make an exception for one tenant, you’ve got to do it for all tenants. That’s not a good precedent to set.

–Natalie