The Wonderful Life Of Being A Slumlord
 

hehe so we bought this 4plex apartment building recently and the place was fully rented when we bought it. Bonus right? WRONG!!!!

The rents were due on the 1st of the month and guess what? Only one rent came in on time the other 3 didn't. We got every excuse in the book, oh I didn't get enough overtime pay, I didn't make enough this month, oh my wife forgot to pay. You name it we got the excuse...

So anyways these situations have happened to me before when I used to rent out a building for my dad when I was younger so this is not a big suprise to me.

So we wrote letters to everyone who was late explaining that we understand this month was late but if it happens again according to our lease agreements with them that we COULD evict them. 2 of the late renters understood this and apologized for the inconvenience and promised it would'nt happen again. But one renter actually showed up at my HOME address and started bitching at me. LOL!

He said I was threatening him and he didn't appreciate it. He said he would pay me when he gets a chance and he doesn't appreciate me coming to do fire maintenance in the middle of the day (although I gave him 24 hours written notice and he had the opportunity to change the appointment time). Hehe this guy's rent is only $400 CAD per month (way less than what he should be paying)!!! The whole time I was talking to his guy he was trying to intimidate me! haha! Anyways I wasn't intimidated in the least and I was pretty stern with him, he got pissed and walked off.

Anyways just goes to show you that if you don't hand pick your tenants you could have issues. And on top of all this crap we find out that the previous owners did not even get first and last from these people. LOL!

I'm not trying to put people off buying rental properties but just understand that it's not always a bed of roses. I'm shopping for property management companies first thing monday morning to handle this property from now on. Wish me luck!!! :)
DH

piss on the less fortunate!

the lower the rent, the higher the hassle.

I'd barricade myself inside and wait for the pigs to show up. Then you'd have a bloody mess to clean up.

Hey can I move into one of the spare bedrooms of your new house? Hell I'll even pay you $400 USD and if I'm ever late you can just push me down the stairs or take away my headset.

just have a couple mobbed up guys collect for you, its cheaper then property management companies

Surely the checks are in the mail???!

i'm as understanding as the next guy, shit happens (*cough* paypal gets cancelled*) but payment needs to be taken care of promptly!! ya feel me?? i'm sure you can be understanding to the two that came to you and said sorry... but the all out bitching guy has to go.

bad tenents can be a nightmear.

can't evict them
can't shoot them

LOL, I would prefer to go through a property management company and never see my tenants. They can bitch to someone who gives a shit :)

WG

Not necessarily in my opinion.

If you do your research on your renters and be extremely picky you will usually get great results. There are always 1 or 2 people who fall through the cracks but most times you get quality people.

This is the first time this has happened to me in more than 5 years. Plus I didn't get to choose this guy as renter, he came with the building.

DH

the management company is a great idea...distancing yourself from the tenants in this situation seems to be your best move....i could never be a landlord i would worry to much about them destroying my property

Hehe deal!!

DH

Well we now have 6 buildings so we really should look into getting a property management company. As it is right now we barely have enough time to eat dinner at night.

DH

paying 400 CANADIAN for an apartment would rock

very smart move.

on the business end of a property management company, what exactly do they manage? do they just collect rent? or do they handle tenant issues like maintenance and leases?

:thumbsup

I would think you prepared for this before you started business... I know shit like this happens but ...that's the ugly side of business

Yeah dude tell me about it! LOL!!!

DH

I am prepared for it, and it's happened before. You really can't escape it. It's all part of the business...

You just deal with it and move on.

DH

They can do as little or as much as you want. Collect rent, replace lightbulbs, vacuuming, dealing with contractors. All depends on how much management you want...

WG

here's the thing... for every deadbeat non-paying tenant out there, there are most likely 60 potential tenants with excellent credit who will pay on time. maybe put them all on a 90 probation period to weed out who pays on time and who doesnt. but theres always the factor that you can hit the tenants with late fees which in turn puts more money in your pocket, but whats more valuable to you? a tenant who pays late and adds the late fee that you have to pester to get the payment from, or a good tenant who pays on time, always on time and doesnt come to your house to bitch at you?

i had a nice 2 bedroom in halifax at 450 a month, heat included

Wait until Christmas time and evict them :glugglug

Hehe I should bring in my consultants "The Bobs" :winkwink:

DH

If you don't have any other time what do you do for money? I mean they are probably paying for themselves but they arent putting any money in your pocket are they? Just paying the mortgage?

I'm thinking he was prepared and dealing with these people was worth it to get the building at the price he paid.

$400 month.... x 4 ? So you'll bascially make your profit by reselling that 4plex like 10-15 years later...?

My mortgage on that building is only $1700 a month and the rental income is $3500

You do the math. I think I am covering the expenses :winkwink:

DH

sweet.. and thats on how many years? 15 ?

25 year amortization.

10 year locked in rate of 5.5%

DH

My tenants are all placed by the NYS Department of Social Services. Checks for rent come on time each month...right from the state. I also pay someone to manage my properties for me.

No hassles for this slumlord.

you get $3100 from the other 3 units? Is the $400 one the size of a closet or something?

Someone always gets trained in landlord/tenent relationships.

Either you train them to pay on time or get out or they train you to accept payment when they get around to it.

I know you know this but the previous owner didn't seem to.

yeah, bad tenants sucks. i dunno about canada, but in the us unlawful detainers suck to go though. if you ever want to evick someone, and they wolln't get out, put your cock away and offer them 2k for the keys in a week with them moved out. it might seem like a waste, but after your 10k bill and 6 months of lost revinue, it pays.

English motherfucker....DO YOU SPEAK IT? :1orglaugh

LMAO. I think he doesn't.

wow! that sounds too good to be true Whats the catch? I may be missing something but If that was this easy everyone would be doing it.. Do you need to have a ton of money in the bank to get the loan? Any down payment?

And is there any risks? vacancies maybe but how high of a risk is it really for your 4plex?

Go read "Rich Dad Poor Dad"

:)

DH

Not necessarily. I worked in property management for years and there were LOTS of times I didn't give a shit. :)

We've talked about getting an income property, but I'm not sure I'm ready for that again yet. My last couple properties were a real challenge. I dealt with all kinds, including a guy who tried to break into my apartment (where I lived alone) with a baseball bat because I gave him a late notice on his rent.

I don't know. It's still too easy to do this pornographer thing and not have to deal with those idiots to get my income. :)

B-I-N-G-O!

You can actually download all the books on tape on Kazaa. Save a little for that first down payment :1orglaugh

Management Companies sound like the way to go ! How much do they get paid to do the shit jobs you dont want to do ?

if they pay :winkwink:

I feel your pain, My one of my tendants is complaining that she won't have her money until money. I'm going to start taxing them when they are late for this shit. It's in their contract I just try to be nice and people take advantage of that. It's all good however, I'll raise the rent another 100-200 dollars next year. :321GFY

Thats a really good one. I'll remember that one.

:1orglaugh

For $1000 and two plane tickets I will send you two property managers named Leroy and Melquan. They will quickly collect and or evict for you.

Sorry to hear that DH.....Its a good thing that you served notice on them for late payment. If they are persitent at it you can get them out for that reason under the Landlord and tenants act.Tell then You are NOT a bank , you do not lend money! Having the property managed is the best thing you can do. They earn their keep. I love income properties, but hate the hassle that goes along with it, so I have it managed. Good luck :thumbsup