YAY!! I'm facing my first eviction!.....maybe! (LONG!) - Posted by Jim IL

Posted by Jim IL on October 23, 1999 at 13:54:35:

Thanks for the input. you are right, we are living close to the edge right now, this month, sort of.
You see, what funds we had we have “rolled” into another investment, which in 3 weeks will DOUBLE my money.
But, we are not totally broke. I just do not like to touch my savings account. That is my fail safe.
so, for now,the checking acct looks a little barren.
The good news is that I just talked to another seller, and it looks like we will be signing another deal up tomorrow.
Thanks again for reading and responding.
Jim IL

YAY!! I’m facing my first eviction!..maybe! (LONG!) - Posted by Jim IL

Posted by Jim IL on October 23, 1999 at 24:38:25:

Hello all,
Today was a VERY trying day for me. I have a tenant that has NOT paid rent for the month “Yet”. Normally we serve the 5 day “pay or move” notice on the 4th of the month, after the rent is due on or before the 3rd.
This tenant paid us then, but his check bounced. We did not notice it until our bank sent us a letter telling us the rent check we deposited had notcleared. That was on the 15th. (I know, DO NOT take checks…I new that, but let it slide…BIG mistake!)
We talked to our T/B’er that day, and also there bank. Apparently they had started direct deposit for there paychecks with this new checking account, and there employer did not route it correctly.
So, here is number one BIG mistake.
We just tacked on late fees, and said, pay it now.
2 days went by, and STILL no money from them.
We called them, and they ran over and dropped of another check. (late fees
plus rent).
The next day, I called there bank to see if there were funds to cover it, and the bank said, “NO!”
Apparently, per there bank, since this is a new account, the bank would not release any funds, until the payroll check clears. (ever hear of that one…I thought "payroll checks were better than personal checks???)
The bank said that would take 5-10 days.
We called the T/B’er again, and told them.
They came by immediately and dropped off $500 only. (the rent is $1000, and
the late fees at that point were an extra $180…they owed me $1180).
My T/B’er told me the same thing there bank told me, there account would not release the funds to pay me the total, and the $500 was from there savings account.(should have said, “too bad soo sad…heres your 5 day notice!”)

So, here was my 2nd mistake.
We should have served the 5 day notice THEN and THERE!
But, we were nice, (never again), and took my T/B’ers word that on Friday (today), when they got paid they’d drop off the rest of the rent and applicable late fees.
So, tonight we waited for them to arrive.
At 7 p.m. they still had not shown up, so we called them.
No answer.(go figure Õ¿Õ)
I then drafted the 5 day notice and went to the home to serve them.
All the lights were on, but no one would answer the door.
I think no-one was home, because there were no cars present.

So, at 10 p.m. tonight, I went back to serve them.
I figured they would either take the 5 day notice to “PAY or MOVE” and then say, “sorry, we were late, and here is your money”. (always trying to remain optimistic.)
Still NO RENT!
So, they have 5 days from today to pay me an additional $725. (they already
paid the $500, leaving the $725 due NOW)
I included on the 5 day notice that the amount due was the $725, and that the amount would keep increasing EVERY day it was not paid.
I also informed them that if we did not get the money in the 5 days required, that we would FORCEABLY EVICT them.

The T/B’er lied to me again!
He said that he had left work early, with an injury, and had been home since 2 p.m., without his paycheck!!
He was obviously lying, because I had been there earlier and he was NOT home!!

So, we may be facing our first eviction. (I hate dead beats!)
The kicker is that this was there first rent payment.
I am set on getting rid of them.
The bad news is that none of my other homes are moving. Cannot seem to find a buyer fast enough.
In two weeks or so, these T/B’ers have another rent payment due, and if they cannot come up with this late rent now, I do not see them paying next month either.
That will hurt us, because we have what little funds we do have all tied up.
We need all our rents paid to be able to pay our bills.

The good news is, IF we can float by this, and get this BAD T/B’er OUT, then we can re-L/O the home and get more CASH. My profit just went up.(still trying to remain optimistic!)

Now I just wish I would have kept there $4k in the bank, to cover this mess.
Two of the homes we are now trying to sell, we took “subject to”, and have payments due on them at the beginning of November. Paying on vacant homes is not fun!
At least we bought them right…with GOOD EQUITY!

So, from this experience I have learned to screen my T/B’ers a little more thoroughly. (thought we did that already, apparently not!)
With this one, there previous landlord moved out of state as they were leaving the place, so we could not contact him.
There credit and Jobs checked out well, but for all we know, they had been a problem for the previous landlord as well.
Next time, we either talk to the previous landlord, or the T/B’er does not
move in!

Man, this will be an expensive seminar.

Tomorrow, I am on a mission to find another deal or two. I need to do something positive!
I realized today, that my BAD mood this week was from my homes not selling quickly, and these LOSER T/B’ers not paying.
My wife noticed it to, and said, “Jim, do NOT allow a little speed bump and some bad times side track you. Go find another deal! You are good at it, and can do it. Maybe another deal signing up will bring us through this
financially, and YOU emotionally.”

Now I see why so many people do NOT want to be landlords!
I cannot wait until I can have enough money to simply invest in paper!

Anyway, sorry to ramble, I just needed to vent! (just got back a little
while ago from serving these losers!!)

The other optimistic outlook is that we no longer take checks for rent. I just typed up a form letter to send ALL my Tenants informing them of the change to certified funds only.
Also, IF this LOSER T/B’er does pay before 5 days is up, we will make TWICE our expected cash flow for this home this month.

Maybe he’ll pay late EVERY other month, just not as late, and increase my cash flow. And, the at the end of the lease, we can get rid of them, and L/O this thing out all over again, for MORE profit!!(still trying to be optimistic here!)

Thanks for allowing me to vent. I just started typing and could not seem to stop!
I NEED a BEER…or two!

Jim IL

P.S. WHY do people LIE???!?!?
you know, as an ex cop, you’d think I’d already know that and not be suprised by the things people do and say.
I guess two years away from “The J.O.B.” really HAS changed my perspective a bit. Maybe when we get new tenants, I need to strap on that old “cop attitude”?
Suspect EVERYONE, run them all thru N.C.I.C. (thats a criminal and records check, for those who never wore a badge.)
Then again, I guess ONE eviction in all the deals we have done ain’t too bad…is it? (still TRYING to be optimistic.)

Re: YAY!! I’m facing my first eviction!..maybe! (LONG!) - Posted by phil fernandez

Posted by phil fernandez on October 23, 1999 at 14:13:30:

Hi Jim,

I might be known as the toughest of the tough landlord’s in my area. But you know what. I have never lost one days rent in my twenty years as a landlord.

I’m firm and expect to get paid on the 1st. I make sure the tenants know this. The tenants have signed a contract with me in the form of a lease. I have obligations to the tenants and they in turn have obligations to me, their landlord. It doesn’t get personal its just a business relationship.

Do not tolerate late rent or bounced checks. For those of you that want to play it a little soft, good luck with your bank account.

This is not meant to be harsh, however it is reality in the rental world.

Re: YAY!! I’m facing my first eviction!..maybe! (LONG!) - Posted by Jim

Posted by Jim on October 23, 1999 at 12:33:22:

Jim everybody here has offered good advice. Non paying T/B’s is a risk all investors assume. You might try something creative next time…like offering a slightly below market rent for a direct deposit from their bank/employer. Just a thought. Above all don"t abuse the rights of these people or a lawyer will be up you ##s in no time. Good luck.

Re: YAY!! I’m facing my first eviction!..maybe! (LONG!) - Posted by Rob FL

Posted by Rob FL on October 23, 1999 at 10:00:06:

I am a landlord and can sympathize with your woes. I don’t think it is a wise idea to require certified funds for all your future payments. Remember this is a people business and these people don’t want to pay extra money to purchase cashier’s checks or money orders if they don’t have to.

I require the initial deposit/upfront money and the first month’s rent to be paid in certified funds before they get the keys to the place. After that they can use personal checks. For their first personal check, I always call the bank and verify funds before depositing it. After that I figure the odds are slim they will bounce one on me.

Best wishes.

P.S. As Joe said, don’t let it get to you. This is just part of doing business. But hey it is the weekend. Save a beer for me.

Re: YAY!! I’m facing my first eviction!..maybe! (LONG!) - Posted by BRnBA

Posted by BRnBA on October 23, 1999 at 09:53:44:

Stuff like this happens Jim. You just have to learn to deal with it patiently. What I see is that you may be living a little close to the edge ie. needing all your rents to pay your bills. You should allow for this because it is going to happen. It is a long hard road with many speed bumps. Relax and try to work through this one. Like Joe said, don’t worry about the late fees, just try get these people back on track without pushing them over the edge. You might find that you DID do a good job checking them out.

Phil, we were firm but we also had a humanitarian side as well… - Posted by SusanL.–FL

Posted by SusanL.–FL on October 24, 1999 at 15:36:37:

Our tenants knew ‘the score’ b/4 they moved in.

We, in turn, made sure repairs were always done pronto.

When the holidays rolled around, I always made sure all the tenants were taken care of: Easter lillies at Easter, hams or turkeys at Thanksgiving, and a nice assortment of cookies/candies in a fancy tin with a grocery store gift cert. taped to the top for each family at Christmas.

If someone couldn’t to decorate around the holidays, Kenny bought the stuff for them.

But ya know something? A large percentage of the tenants would STILL try to ‘bite the hand that fed them’ every chance they got…regardless of what we tried to do for them.

Human nature? Or maybe just the element of people…

Re: YAY!! I’m facing my first eviction!..maybe! (LONG!) - Posted by Boligee

Posted by Boligee on October 23, 1999 at 21:14:36:

Isn’t it easier to rent month to month without a lease in terms of evictions rather than having to go through the extra steps involved in a contract/lease?