Sat 9 Dec 2006
The day of the inevitable has come. I have a very long term tenant that I inherited when I bought this particular building and she is finally moving out. This Section 8 tenant has been great in one regard - the rent came on the 4th every month without question. This ends the greatness.
This tenant has completely trashed the place. Her apartment has probably never been cleaned during her tenancy, which I’m guessing has been about eight years. For the several years we’ve owned the building, she’s had a permanent laundry pile in the bath tub. Guess what that means?
Take a look at her bathroom. How is it possible that it looks like this? I honestly cannot think of a sane scenario that makes sense. Oh I know why, it’s because I’m limiting my thoughts to “sane” scenarios. I need to think outside of the box and maybe it will come to me LOL. An incident from a couple of months ago provides some clue.
The fire department has been there because her smoke alarm goes off sometimes when she cooks since there is so much food baked onto the burners and inside the oven. The city inspectors have been there and gave her a talking-to about the health and safety hazard she’s created. We’ve talked with her social worker about getting her to clean or hiring a service to come in and do it for her. Nothing has worked.
At one point we converted the building to a smoke free environment and since she’s the only remaining smoker, she’s been required to smoke outside. This happens most of the time, but needless to say the inside of the place is coated with a yellow haze never to be removed.
With her exodus comes a major remodeling job. We’ll need to replace drywall, appliances, bathroom sink/vanity/toilet, and all the flooring. Lucky for us it’s a studio apartment and the costs will not be as high as they could be.
We knew this day would come eventually. She’s a month to month tenant so we only had 30 days notice of her moving out. As soon as we found out, my manager contacted her social worker to make it very clear that we expect the place to be cleaned as good as it possibly can be cleaned. Her measely security deposit isn’t going to make a dent in the repairs we’ll need to make.
We also contacted the Bureau of Consumer Protection to see what recourse we may have for lost rent due to us needing to take time to remodel. They said that we cannot pursue lost rent due to forced vacancy during the remodel. They advised that our only course of action would have been to issue her a comply or quit notice as soon as we saw that the condition of the unit was deteriorating.
It was bad when we bought the building so the only thing we would have gained from that is she would have been gone years sooner. In retrospect I’m glad she stayed so we didn’t have to spend the money until now. Plus we collected rent on that unit 100% of the months for all of the years we’ve owned it. Not all bad.
As it turns out, the tenant is moving out the week before Christmas so at least we should have 7-10 days for turnover. We are feverishly coordinating all the help that will be needed to get the work done during this tight timeframe. We already have a referral from one of our other tenants so it’s looking like we may have it rented for Jan. 1. Great! No vacancy! In the middle of winter it can be iffy to get the place re-rented immediately. Pressure’s on to get the work done because I could not expect anyone to move in to a place anywhere near this condition.
12 Responses to “Keeping A Bad Tenant Can Delay An Expense”
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December 10th, 2006 at 2:04 pm
Having never had a section 8 tenant I’m not completely sure how the situation works. Does a whole building have to be section 8 or can any number of the apartments be section 8. Also, your experience with 7 years of rent on time seems good, but how can you be sure that a section 8 doesnt trash the place in a few months and then leave?
December 10th, 2006 at 2:17 pm
Section 8 rules vary locally, but in my experience you can choose to participate in the program or not, and you can hand pick units that you want to include/exclude.
I always thought it was crazy that the emphasis is for the county to inspect the unit and get after the landlord if it’s not up to their standards. When the tenant trashes the place, us landlords take it in the shorts. How ’bout some assurance that the county is going to come to the table when I have to pay thousands to rehab? But I digress…
You cannot ever be sure that your tenant doesn’t trash the place - section 8 or not. I’ve had great luck picking my own tenants because of my strict screening and have never had a trashing except from this tenant that we inherited. I think screening is your best safeguard, and second, inspect regularly and kick them out early if things are going down hill.
December 11th, 2006 at 12:10 pm
[…] In Keeping A Bad Tenant Can Delay An Expense, Anesia Springborn talks about a section 8 horror story where a tenant just trashed one of her units. The post is a great one, however I would like to pass on some advice to help avoid this situation. Always inspect your units when purchasing a property, especially when the tenants are section 8. In addition, I recommend holding periodic inspections for these tenants as well. If they aren’t living up to their end of the deal - taking care of your apartment - let them go! I feel your pain Anesia - been there - done that! Good luck! […]
December 11th, 2006 at 3:05 pm
Wow, what a mess. You’re extremely lucky to have found a new tenant so quickly, because trying to rent in the winter almost never goes well.
So how are you going about the re-model job? Are you going to do some of the work yourself or contract out everything? How will you go about selecting contractors? And how much do you think the re-model will cost? (twice as much as the unit pulls in rent? 10 times as much?)
Should prove to be an interesting story, looking forward to hearing more about this. (though I truly am sorry for the condition of the unit, your pain is your reader’s gain!)
December 11th, 2006 at 6:17 pm
This property is out of state so my property manager and some contractors will do the work. It’s going to cost some bucks but I knew it was an eventuality when I bought the building. We’re looking at carpet, linoleum, some drywall replacement, paint all ceilings, walls, doors, trim, new fridge and stove (mini versions), and new bathroom toilet and vanity. I’m sure more will be uncovered as the crew digs in. Ho hum… so goes the business.
December 12th, 2006 at 10:44 pm
Hi, Anesia,
Did you at least get some sort of deduction for repairs when you bought this property? Or, did you not view each unit at that time? I’ve heard that the new trend in my state is for multi-family owners to prevent buyers from seeing every unit. The buyers would only be able to see what the sellers wanted them to–unless it’s specifically stated in the offer and agreed that the buyer will see each unit. Can you believe that???
December 12th, 2006 at 10:58 pm
Trisha, I have heard that sellers are discouraging buyers from looking at all units. Something we need to remember to put in our offers.
I experienced this recently myself - all the units were supposedly identical in layout and condition and I traveled for some preliminary due diligence and I got the excuse that all the tenants did not give their permission to let us in. If I would have proceeded to make an offer, I would have put in writing that I needed to inspect all units before close.
On the building with the trashed unit I have right now, I did see all units, and the terms of sale were “as-is.” It was a great deal and I was fine with that.
December 19th, 2006 at 3:53 pm
Long Term Tenants Are Usually Considered A Blessing
Anesia Springborn over at The Landlord Blog has a great write-up on the loss of a long term Tenant (8 years!) who pretty much destroyed the place. It will need an ENTIRE remodel as soon as this Tenant vacates the premises. And of course, they were a mon
December 20th, 2006 at 6:49 pm
In our state (California) security deposits can be thousands of dollars and a long term tenant will not let you keep the deposit without a fight. The law allows you to keep a minimal amount for cleaning. Carpets, paint, appliances are all items that suffer normal wear and tear and unless you can prove the tenant had new items when she moved in, you wouldn’t be able to charge her much for those (particularly paint - after two years it’s your problem). Drywall and actual damage to physical structures can be deducted from the security deposit but the damages have to be beyond normal wear and tear. If the building is 40 years old and the toilet is too, the landlord would be the one paying to replace it. On top of all of this, you bought the apartment building during her tenancy so I don’t know how you would prove the condition it was in when she moved in. At most, you would only be able to charge for deterioration that happened since you bought the building.
I am not familiar with the laws in Arizona but I would suggest all landlords familiarize themselves with the laws in their states.
January 14th, 2007 at 6:34 am
Hi all…as a landlord of 20 years here in Massachusetts I can tell you without hesitation that the one and only thing that has worked for me over and over again is the rent co-signer. Get mom or dad to co-sign for their lovely child. What? They won’t gurantee their child’s debts? Then why should you? Pass. Next applicant please. Once the co-signer is on board, the funs starts. New tenant eventually flops..they all do…and ZING…co-signer gets the dreaded email. “Hi…please send a check for junior right away”. “Hi..junior destroyed the fridge…please send a check”. After several of these episodes, the co-signer understandably wants out but guess what? They’re stuvk and you’re in the catbird seat, holding two credit reports hostage. Works like the dickens and I always get paid. Folks, in casde you don’t know, tenants don’t want to pay you anything, and they want to sue you, as well for your money.
January 28th, 2007 at 6:41 pm
[…] Then we have the rest of the bathroom that has been “cleaned.” You must understand this really is clean compared to how it looked before. She gets an E for effort but $0 in credits toward getting her security deposit back. […]
February 22nd, 2007 at 1:01 pm
Phentermine.
Phentermine.