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.)
I WAS WRONG!!
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!)
Anyway,
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.)