The daily life of a landlord

90 days

2011-10-27T19:27:00.000-07:00

At my eviction proceedings today, the judge asked Betty how many days she would need to find a place for her family. I need at least 90 days, replied Betty. I nearly popped up out of my chair; I said to myself hold back Ruth, don't make a fool out of yourself. The judge said that is not going to happen when could you be out? Then she said 60 days. Judge asked me, and I said 2 weeks. Ok, Ms Loveless we will go with 2 weeks.

I have learned to say as little as possible and that usually works out pretty good.

So in 2 weeks, I will have another destroyed house and someone that owes me $1,000. which I will never see. I am way too nice. Will I ever learn?

Negotiations

2011-09-18T17:02:00.000-07:00

The art of landlording requires a negotiation skill. I have learned to follow up said negotiations with a letter stating the agreement. So that there are no surprises.
So when they call up and tell you that they have money for you....take it one step further and find out when the next payment is coming and what you will do when the 2nd payment does not come. In this case, I have insurance ie. Officer Dixon and a set out date postponed one week. Don't cancel or you will have to start all over.

More expense and more delays.

New Law

2011-09-11T18:37:00.000-07:00

On August 2 Governor Quinn signed Senate Bill 1766. This new law is effective immediately and requires all residential leases to state existing law and include the following language.

"if any lessee or occupant, on one or more occasions, uses or permits the use of the leased premises for the commission of a felony or Class A misdemeanor under the laws of this State, the lessor shall have the right to void the lease and recover the leased premises"

Julie Julia

2011-09-09T18:42:00.000-07:00

I loved the movie "Julie, Julia" (I might have the title slightly wrong). Anyway, the movie was my first exposure to blogging. I just loved the way Julie blogged every day about Julia Child's recipies that she was making. I know that you are suppose to write about what you know. Well, what did I really know about anything. I finally decided that I could write about landlording.

And so I started in 2009. I was off to a great start. I wanted my blogs to be upbeat and entertaining. After awhile, I realized that many times landlording is not upbeat, nor entertaining, nor nice.

If you can't say something nice than you should not say anything at all.

Mum's the word!

Surprise Property tax!

2011-08-19T19:25:00.000-07:00

Property tax surprise is not really a surprise. You've known for one year that the property taxes are due the same time every year. Sure would have been easier to pay had I set aside payments monthly. I am on tract to have that set-up for 2011.

Next year no surprises!

SB1766-Crime Free Clause

2011-08-04T19:28:00.000-07:00

Yesterday the Governor of Illinois passed SB1766 into law. Requiring all landlords to have a crime free clause in all rental contracts. Actually, I do have something like that in my contracts. SB1766 does not provide any protection or access to information to landlords during the screening process to determine whether or not landlords will be renting to a potential criminal. Many people lie on their applications. I catch them sometimes and sometimes I don't. If a crime is committed on our property, our job will be to get them out and fast.

Lord help us!

Move'em Out, Move'em In

2011-07-25T11:54:00.000-07:00

Old tenants moved out, left some furniture, dirty carpets, ugly paint on the walls. New tenants love the house, like to clean, and could use some of the furniture. And have money.

Now that's what I am talking about!

Who cares?

2011-06-20T21:45:00.000-07:00

Be careful in your selection of tenants. By the time, renters get finished with their, "I don't care it is just rented attitude" they have destroyed your property. Try to avoid these types of renters.

I don't care and I don't pay list.
I don't care but I do pay list.
I don't care, I don't pay, and it's your fault list.
I don't care, I don't pay, it's your fault and if you kick me out, I will get even list.
I don't have any money, but I really need a place to live.
Oh that felony on my record is a mistake.

If this doesn't bother you , "You might be a landlord". But then Who Cares?

Destruction in under 3 months!

2011-05-19T10:29:00.000-07:00

It only took Cheri 3 months to destroy my property. The family moved in with financial help from a local agency. Never paid another dime. Tore up the house. I had to take her to court to get her out. Then they moved on to the next unsuspecting landlord and I am sure doing the same thing to them.
So you want to be a landlord?

Had a waterleak and ruined the floor! Couldn't tighten the bolt.

New carpet.

Living room, the spaghetti was sitting on the tv.

Dear God,

2011-05-17T16:58:00.000-07:00

Dear God, Please send me a family that loves their children, values family, is clean, petless, appreciates a clean home, doesn't smoke, drink, or do drugs, realizes that there is a difference between wants and needs, and lives within their income.

I have a perfect home for this family.

Amen

Getting Started

2011-05-15T20:33:00.000-07:00

I met a nice young couple today. They expressed an interest in getting started in the rental business. It was very hard for me to come up with some positive encouragement. I have had so much trouble this month with tenants. Troubles ranging from drug busts, non-payment, getting ticketed for burning, property trashed, and then throw in a murder, that covers it, I guess. The month is not over yet!

However, I did manage to give them some advice.

Start slow , get one property working for you before starting on another.
Don't fix it up like you are going to live in it yourself. Everything should work and be durable.

Now that I am back home, I think of several other things that I should have mentioned like:

Don't acept payments on the move in amounts; get all the money up front.
Screen, screen, screen your tenants.
Get a list of everyones name and age that will be living there. Full application on anyone over 18.
Be firm not nice right from the get-go.
Assume everything that they tell you is a lie.
They will sneak in the animals that they tell you can live somewhere else.

On second thought, maybe these aren't positives just self-preservation.

What the heck is going on?

2011-04-17T11:02:00.000-07:00

I finished off last week with sending out 5 "Five Day Notices'. If that does not bring in some money Monday or Tuesday, I will have to go to the court house and file on them. Between filing and having the summons served it will cost me another $150. on top of what they owe me. Expensive clean-outs and clean ups and time wasted to find new tenants.

Oh boy!

Called in the County

2011-04-07T19:33:00.000-07:00

I had to call in the county police to get these tenants out. On set out day, the county police, my maintenance man, and my self showed up at the house. Tenants were nearly out. The officer couldn't believe how this family had destroyed the house in only 3 months time. My guy changed the locks on the house and all done except for cleaning up the mess.

Anybody want to trade jobs?

Go Sleep in the Van

2011-03-25T19:57:00.000-07:00

Got the judgement against Cheri Bagwell for $1900. Cheri got the money to move in from Illinois Valley because she was homeless So they were in my lovely home before Christmas. Cheri never paid a dime after that. They trashed the yard. Moved the cutest little puppy in on my new carpet and have been tearing up the house ever since. The judge gave her until March 28th at 10 a.m. to be out. Cheri called me today and said that she couldn't be out until April 10th. Now think about it: she hasn't paid any rent, is tearing up my house, has a puppy, 4 kids and wants another half month of free rent. I called the Sheriff and he will set her out on the 30th (because that is his next work day). I called Cheri and told her that she would be out on the 30th as planned AND perhaps she and the kids could sleep in that new van that they bought instead of paying the rent. The sad part is that she will do the next landlord just like she did me and not think a thing about it.

I hate this job!

Court House News

2011-03-16T20:29:00.000-07:00

Tomorrow morning, I meet 2 separate households of tenants for their eviction. This is never a pleasant experience. Something I pay for by not doing a good job of screening before they moved in. I tend to believe their stories, look at their pleasant faces, and go with my gut. I can't tell you how many times this particular way of screening has not worked out. They each owe me over $1,500. This is definitely not fun. The worse part is they will move on to the next kind-of-heart-landlord and do them the same way.

C'est la vie!

The Help

2011-01-26T18:32:00.000-08:00

I thought that I would help out a couple of tenants by giving them a little work. I gave them all the cleaning products and gas money to get o the job site. They worked 5 hours did not complete the job, tracked me down in a store and demanded to be paid. I didn't have my check book with me. I told them I do not pay until the job is completed and that they would have to wait until tomorrow and come to the ofice. They owe me money and keep putting me off.

It felt good!

It Happens!

2010-11-26T11:09:00.000-08:00

Got a call the Wednesday before Thanksgiving at 4:30 p.m. that her furnace does not work. When did you notice it had stopped working? She responded oh about 2 or 3 days ago? "What, and you are calling me now before a 4 day holiday to get it fixed." Can you believe it? It happens every time. Yes it does!

Grease Clog

2010-11-23T19:27:00.001-08:00

The caller said that her sink was clogged. I replied that I would send someone over by 5 p.m. Then I got busy and forgot all about the call until I was getting ready to leave. Great, I can't find anyone at this time of day to fix it.....I guess I will have to fix it myself. And I did. I even amazed myself. I took pipes apart removed the gross clog, sprayed smelly water all over myself....and then put the pipes all back together and it didn't even leak. I guess I am wonder woman of the day with smelly clothes!

The Lightbulb Came On

2010-10-25T17:10:00.000-07:00

Many of my tenants get a government check monthly. The government direct deposits the funds into their checking or saving account. I now have the tenants sign up for the bill pay feature with their bank. Bank automatically sends me a check on the due date. If they don't want to sign up for the proggram; they can go rent from someone else.

I am smiling again!

The Card

2010-09-22T21:41:00.000-07:00

I got a card in the mail today. A lovely card. One of those you never expect; but gives you chills when you read it. I had to share it.

"Dear Ruth,
I just want to thank you so very much for letting us have this apt. You really helped me so much, we had no where to go. I truly love it here. I promise to keep it spotless and take good care of it.
Thank you Ruth, God Bless you.
Debbie & her son Rick"

YES!

Start the Day

2010-09-21T20:14:00.000-07:00

There is nothing like starting the day off with a big old load of old, damp, smelly furniture, loaded by moi. IN fact, I started every day out last week loading old, damp, smelly furniture.

Notice the car that doesn't run parked next to my truck! Now, to get rid of that.

Fun at Wal-Mart

2010-09-21T20:07:00.000-07:00

Yep, that's me having fun at Wal-Mart pushing my cart full of furnace filters, curtain rods, and mini blinds. Oh, I almost forgot my cleaning supplies and paint. The cart is so heavy now, I can't push it to the cash register. You know this almost feels like Work! I think that it is work. UGH!

Dumpsters cost $300.

2010-08-24T19:39:00.000-07:00

Yep they have moved out. House is flea and roach infested. We burned everything that we could AND filled a 20 yard dumpster. Carpets are ruined, the whole house needs painted and fumigated. City said we could burn anything we wanted; they were so glad that the tenants left. The best part about this whole scene is that tenant left me with an $850. water bill that the city says I have to pay.

It's not my fault the water bill is that high. I told the city the last time that this happened to shut the water off when the bill was larger than the deposit. I feel that the city should pay the bill. Of course city does not agree. Tenants moved out of state. I may have to get an attorney on this one. I want to get along but .......

I figure it will cost me close to $5,000. to get this property back in condition.

Rent

2010-08-24T19:30:00.000-07:00

Called a slow tenant for rent today. They assured me that they would drop it off at the office tomorrow. Went in on a Saturday to make sure they did what they said they would do. Nope! So, I drive to their home and they have a trailer backed up to the f ront door. Guess what? No Rent. And they are moving. Gee this has never happened before. NOT!

Why oh why didn't I continue teaching? I could be retired by now.

Sunday Call

2010-04-18T16:41:00.000-07:00

I got my usual call on Sunday. Of course, it is always an emergency. I went to check on the 'water is coming out of the ceiling in 3 places and I've got water every where' call. After checking it out, there was a little drip, handily dripping into the bathroom sink. We replaced the hot water heater last week which probably caused a fitting to come loose when the water was hooked back up. The repair will require the opening of a wall to locate the problem. So I calmed down the tenant, calmed down myself, and alerted the maintenance man to take care of it on Monday. Back home to my hammock. Happy Sunday!

It Works

2010-04-08T18:52:00.000-07:00

I did one of those things that you only read about in those real estate how-to guru books. In my 15 years of acquiring real estate this is the first house purchase that I have done in this manner.

The sellers did not need the cash. They accepted my offer to buy on contract for deed with $2,000. down. I will be purchasing the house with low interest and pay for it over 10 years with the right to pay off at anytime.

They are getting a better interest rate than in a CD. I am paying a lower interest rate than at a bank. And my out of pocket was only $2,000. It is a win-win for both of us

Same-Same

2010-03-27T18:30:00.000-07:00

A regular month of regular activities. Every day is different but all in all month after month is the same. The same problems with different names to them. This month with lots of rain and the normal amount of leaky roofs with water in basements. Same people to slow pay. Same people that pay in advance paid in advance. Doesn't sound too exciting. I never get too comfortable, because as soon as I do something happens.

Girl in a Towel

2010-03-01T14:46:00.000-08:00

Sunday evening at 5 p.m. I am heading out the door to go to a wake. The visitation is from 4 to 8 p.m. and I am already late. My phone rings a new tenant does not have any hot water. I asked her to check the fuse box. That seemed to be ok. I was heading in that general direction, so I told her that I would be by in a little bit. I picked up my son on the way in case the heater needed to be lit. So far, I have avoided learning how to do that. After checking the hot water heater and discovered that it was electric and did not have a pilot light to be lit. We decided that we should check the fuse box ourselves. Met at the door by a young co-ed wrapped in only a towel (she decided to give herself a bath by heating up hot water on the stove) she showed us to the fuse box. Everything looked fine there so back to the basement. As we were leaving the apartment, I glanced over at my son and just the ever so slight smile was on his face, thinking about the girl in the towel I imagine.... I did not say a word. Anyway we took the covers off the heater and found a red button to push, which we did, heard a little hum and decided it was working. Put the covers back on and told her to call me tomorrow if was not working. So far no calls, so I am assuming that it is working.

Son did stop by the office today and offered to do any maintenance required at that apartment if I needed him too. It was cute.

Evil or Not

2010-02-28T10:28:00.000-08:00

About 3 weeks ago, I heard from an anonymous scource that I was "evil" and "preyed on poor people". I felt like I had been punched in the stomach. I was numb of all feeling and my fragile self-esteem took a really big hit. How could that be? I take great pride in providing the cleanest most efficient properties in town. I answer service calls immediately. I I feel like a mother to all of them, reminding them to cut their grass, pick up their trash, and if they cann't get to it, I do it for them. I encourage them to be good neighbors. I brag on their children. I know stuff happens and people get behind for one reason or another. If they are sincere; I will work with them, when they get behind, There is a limit to how much I can do before it starts effecting my ability to pay my bills. If I can not pay my bills, then I will not have a place for them to live. Then who gets hurt? We are all dependent on each other. Kind of like the "circle of life". What goes around comes around.

Having said all this, I realize that I am not "evil". I help poor people by providing good clean housing. And that I will NEVER be able to please everyone.!

On The Move

2010-02-24T11:46:00.000-08:00

Taxes have been filed. Refunds are here. This is always a typical time of year for people to move into their first apartment/house or maybe to improve their living conditions. I have given a couple of kids their first chance at living out of their parents home. We talk about expected utility bills, I caution them to not be late on their first rent payment. I look at their employment pay stubs. I much prefer to suggest that they find something a little more in their price range than ask them to leave later. I hope it works for them. I hope it works for me. That's all I can do!

Move-out Day

2010-02-12T21:37:00.000-08:00

Move-out Day, I love these days when we finish a rehab and load up all the supplies and take them to the warehouse. The windows are clean, the floors are polished and the smell of the new carpet and new kitchen cabinets permeate through out the house. Let's see now, how many times have I done a complete rehab on this particular house. I can think of at least 3, well maybe that's not to bad for 9 years. We're ready to start again looking for that perfect tenant!

What's next?

2010-02-04T19:22:00.000-08:00

It's been over a month since I last wrote in my blog and to be honest with you I still do not have a positive thought to write about. This is what's going on..

Tenants have lost their jobs.
Tenants can not find new jobs.
Tenants unemployment has not kicked in yet.
Tenants are waiting for financial help from government agencies.
Tenants are waiting for tax refunds.
Tenants are now behind 2 months on their rent.

Where does that leave a barely gettin by landlord.......in a panic. Anxious to find new ways to cut expenses and ways to increase income. I haven't figured out how to increase income but to cut expenses I have:

Traded a truck for labor.
Got my family to volunteer labor.
Traded a rental debt for labor.
Learned to paint myself.
Worked late to keep up with the bookkeeping.
Prayed.

I am fortunate in that I am able to think outside of the box. But what about the tenants! What's next?

The Talking House

2009-12-30T17:27:00.000-08:00

I've been working on a house this week while I had some free help. As my sister in law and I were painting, she says, "it's amazing what you can learn about people just by painting their house." "What do you mean," I asked. She replied, "well look at this door jamb. This door has obviously been kicked in. The people living here had violent tendencies". I hadn't told her anything about the past tenants, but she was right.! If these walls could talk? I think they just did.

Miracle of the Season

2009-12-25T18:53:00.000-08:00

A tenant called today and offered me the last $15.00 of her food stamp money to buy a turkey for my family for Christmas. Just one of the Miracles of the season! I didn't take it of course. But its the thought that counts!

Better Times Tomorrow

2009-12-19T13:43:00.000-08:00

Many people are having trouble paying their bills. Heck, I have trouble with my bills now and then. I ask myself, What is going to happen to all of us? I prefer to think about solutions to problems; than the less productive poor-me scenero.......so I've decided it's a time to evaluate what is really important. Ask ourselves the question, "Is this a want or need?" and be truthful in the answer. We very possibly can get by on less.
Currently in my business, I have seen several generations in one family move in with each other to share expense. Locally the government has come up with a couple of new programs to help people pay there housing, electric bills, and to find a job. I have been recommending tenants to contact the Illinois Valley Office in our area. People are getting help with rent, electric, help with finding a job, AND a promise to continue helping as long as they stay in the program. There is hope/light at the end of the tunnel as long as the funds hold out. I chose not to borrow worry from tomorrow......but to look at one day at a time with the expectation of better times tomorrow.

Gettin' By

2009-12-10T19:57:00.000-08:00

This economy is affecting everyone. Just how are people going to 'get by'? What can be done to make the money go further. I have a few suggestions and some of them I am doing myself.

E-mail Christmas Greetings instead of mailing them.
Cash in all of the change you have laying around the house.
Sell your broken gold earrings and other gold jewelry that you no longer wear or is broken.
Eat at home more. Brown bag your lunch.
Make family gatherings potluck to spread out the expense.
Rent movies instead of going to theatres.
Color your own hair instead of going to the beauty shop.
Turn your thermostat down in the house.
Plan trips to town for when you have several things to do.
Pay cash for everything so....no credit card surprises.

My mother always enjoyed "gettin' by" and accepted it as a personal challenge to stretch the dollar and feed the family at the same time. The time of instant gratification may be over for some of us and the time for self-discipline is here and now. Accept the challenge and you will 'get by'.

On the Soap Box

2009-12-01T22:20:00.000-08:00

I can't help it today I am on the Soap Box. What's wrong you might ask? Well I will just tell you. I want tougher consequences for the tenants that do not pay their rent, destroy the house, and then leave.

This is what I think should happen to them:

Automatically be thrown in jail at the time of the hearing if they don't pay up.
Forced to sell their personal possessions ((their big screen tv - (I do not have one)) to pay the rent.
Cut their fingers off so that they will not get into someone else's pocket.
Sell the kids.

Seriously, tenants barely get a slap on the hand. When they are taking money out of my pocket by not paying and by destroying my property. How can rents possibly be kept low when the overhead in this business is unnecessarily increased?

As soon as I figure out how to compose a letter, I am going to write my congressman and suggest a new law!!!

Please, Ruth do not kick me and my Kids out.

2009-11-18T18:05:00.000-08:00

Opened my mail this morning. The letter started with, Please Ruth do not kick me and my kids out. The letter goes on to state what the problem is and how they plan to rectify it. Now how do you respond to a letter like that one week before Thanksgiving? I have feelings! I'm not an ogre! I'll call the bank and tell them the reason I am not paying them this month. Wait! Bank does not care. All they care about is that they get their payment on time. They don't care about me let alone a tenant that has fallen on bad times. What to do? I do feel sorry for them. But, what about my problems caused by their problems? I have bills to pay. I have a business to run. I know, I'll refer them to a couple of agencies that help out in situations like this. I'll pray for them. I'll encourage them. I'll work with them, but at the end of the day; I may still have to evict them. I can not allow their situation to take me down with them.

Sometimes landlording is just darn hard!

Stuff Happens!

2009-11-11T10:49:00.000-08:00

I have been thinking about some of the situations that happened in my world just because I have property. Let see there was:

The fifteen year old that gave birth in the toilet. Dad learned she was pregnant when he heard her screaming from the bathroom.
Entered a house and found a couple on the pull out couch. With wife of the man sitting in a chair across from the couch.....watching I guess.
The X-boyfriend of the granddaughter of my tenant came onto my property uninvited and picked a fight with current boyfriend. X-boyfriend got pretty well beat up and then sued me.
Tenant came in to pay the rent and when she got to the office told me the payment had blown out the window on the way over.
Noticed that my employee had a brand new shed that he had built himself. The siding looked exactly like the siding I had used on the last remodel job.

I could go on and on!

Do You Have a Plan?

2009-11-06T20:56:00.000-08:00

I sold a house Contract for Deed to a young couple early in my career of acquiring properties. They watched me a buy one house after another. To them it looked like I was getting rich and it looked so easy from the outside looking in. After about a year or so, I sold them 5 houses CFD that were ready to be occupied. They immediately rented them to their friends and family members. They were raking in the money. So they bought a new truck and a larger house. They talked some other people into selling them their properties CFD. They both quit their jobs. Then the rent stopped coming in. They had a couple of tenants trash their house. The long and short of it; they were in foreclosure in less than 5 years after they started. Unfortunately this happens frequently. What went wrong?

Spent the money before they had it.
Did not set money aside for emergency situations.
Moved to fast.
Improper screening of tenants.
Shouldn't have both quit their jobs
Borrowed too much money.
Poor management.

It could have been a thousand little things that all came to a head at once. I think Grandpa used to say something like this, "he who fails to plan.......plans to fail".

They should have listened to Grandpa!

Typical Day

2009-11-04T17:11:00.000-08:00

Today was a typical day for me probably not much different than your typical day. But since I am telling the story this is my day.

Took in some rent money.
Took a few calls of people looking for a rental.
Took a few calls regarding maintenance issues.
Took a call on one of the properties I manage.
Checked on the maintenance men projects.
Entered some data in the computer.
Paid some bills.
Made a drop at the bank.
Walked to the post office.
Took a moment to enjoy the sunshine
Stepped inside a new business in town; to wish them well.
Interviewed a potential Contract for Deed buyer.

That's about it.

Pay Day

2009-10-30T17:04:00.000-07:00

Today was one of those days, we landlords love. Just sit at the desk and write out receipts for rent payments all day long.... Ask about the family, shove them out the door, and cheerfully say , "see you next month". Run by the bank and head for home.

Yep, I like landlording!!

Pride and Prejudice.

2009-10-29T12:12:00.000-07:00

I would like to think that the property that I rent out is above the average rental property in the area. I take great pride in having the cleanest rental units available. I try not to fall into the trap of fixing it up as if I were going to live there. But I do have standards. During the final walk through; I like to be able to say that I could live in this unit. Some of the things that I strive for in my rental units are:

Good water pressure in kitchen and bath.
Handrails where needed.
Woodwork and trim all in place and nailed down securely.
Safe.
Curb appeal. (Oh right, I got to get that TV off the table in the front yard.)
Windows washed.
Carpets clean.
Cabinets wiped out.
No leaky ceilings.
Furnace checked out.

I could say a lot more about this.....

Returned Check

2009-10-27T16:26:00.000-07:00

I received notice from my bank today of a returned check from one of the tenants. The bank charged me a $5. fee for their hassle. I should have done a better job of screening my tenants. A returned check can happen to anybody once or twice. However, I have been conditioned to equate bad check to bad person. Now I have to deal with it; just as it is about time for them to pay next month's rent. This is my policy on returned checks:

I will no longer accept checks from said bad person.
I will charge said bad person a $20. fee for the returned check.
I will not give said bad person their check back until they reinburse me in full for the check amount plus my $20. fee for dealing with it.

And that's all I've got to say about that......

I like being a landlord! Umh yeah I really do. I mean... I think I do.

2009-10-23T12:33:00.000-07:00

I think that I like being a landlord. That is what I keep telling myself as I write all of these stories. Actually, I lied, I really bought my first property in 1977. After tenants moved out leaving there every possession and a load of dog doo in the basement, I vowed never again would I be a landlord. I still try not to scowl everytime I see the mother of the kids that left my property like they did and its been thirty years ago. But I am getting off track, I am telling you the advantages of being a landlord. Let's see there's:

Building equity.
Good Investment
Lots of tax deductions.
I am the boss of ME.
Set my own hours.
Something different every day.
Can stop in the middle of the day and do some shopping.
Landlording can be done any where.
No education required.
Can work full time or part time.

I do like landlording!

Tenant Training

2009-10-22T17:05:00.000-07:00

One day I had a prospective tenant tell me that she had heard, "that I write out the eviction notice the day that the lease is signed." Gee, to be that organized! I don't bother to defend myself; afterall they know what they heard. Over the years, I have been called everything but a 'white woman'. And I don't care, in fact I like it. I want to have a no nonsense reputation. Don't waste the opportunity to instruct the tenants on what you expect of them. Do it the day the lease is signed.

Schedule a housekeeping and maintenance inspection within the first month of tenancy.
Inform the tenant that you will be doing a drive-by to check on the property a couple of times during the first month of tenancy.
State what you expect of them clearly and firmly.
Don't let tenants get by with late payments.
Take care of your business or it will take care of you.

Just sayin'

Tenant Screening

2009-10-17T14:40:00.000-07:00

The single most important job of a landlord is tenant screening. So many problems can be avoided by putting the right tenant in a property. Where do you start checking out the tenants? The first thing is have a good application and then question every answer on it.

I rely heavily on past landlords. They can answer questions about payment history, houskeeping, and problems. A good question to always ask is: Would you rent to them again? I always get at least 2 landlords or the last 5 years of landlord history. If they can not provide anyone but family, that's a red flag.
I call the water department to see if they are current and how many times the water has been turned off or late paid in the last 12 months.
I call the car insurance company. It's the law you have to have insurancea on your vehicle. If they do not have insurance there is another red flag.
NEVER EVER work with them on the damage deposit.
Pro- rate partial month's rent but do not prorate the first month. Give them the credit on the 2nd month.
If they can not produce any one nor any business for a credit reference, you guessed it- red flag.
Verify income by looking at a current pay check stub.
Verify all government payments thru bank statements, government letters, or by phone.
A quick phone call to the police department sometimes will give you a heads up on their life style.
Call other landlords to see if they recognize the name.

Even after doing all of this, you may still get tricked. But you also may get a good one!

Happy Landlording!

Today's Surprise

2009-10-15T19:20:00.000-07:00

Got a call last night. The sewer clean-out pipe outside the bathroom window of one of the rent houses has sewage flowing out of it and piling up on the yard. I had the maintenance man call the eel service that I used last time. His wife told him that her husband had died in April. Not so good. So, I had the guys rent an eel to attempt a clean out themselves. Ran 100 foot of eel into the pipe and still didn't get the pipe flowing. Called JULIE to get any lines located in the yard and have a back hoe scheduled for tomorrow morning to dig out the 80 feet of clay pipe to be replaced with plastic pipe. Probably will take all day tomorrow and $3000. to fix that little problem. I don't like surprises anymore.

Dumpster Abuse

2009-10-12T19:30:00.000-07:00

Clean-out required a 20 yd dumpster. So, I had one brought in and placed in the front yard. Let the clean-out begin. We get busy and after a few days we get the bottom covered then its the week-end. The garbage magically multiplies over the week-end. Garbage bags with diapers, food, mail etc. Why do people feel like they can put their garbage in my dumpster. It's STEALING! They are not paying for it and yet they think that they can fill my dumpster. I wouldn't mind a bag or two. But 16 bags is a little excessive don't ya think? So, what do you do? It's fairly easy to figure out whose garbage it is. Just rip open a bag or two and their name will be on several pieces of mail.

You can take the garbage back to them.
You can also involve the police. However, unless you/someone actually saw them put the garbage in your dumpster you won't have much of a case.
Just plan on other people using your dumpster when you rent one.
Wait until you are sure that you will fill the dumpster before getting one. This may involve handling the garbage more than once. Not good.

Just one more thing.

How Big Do You Want to Get?

2009-10-10T15:41:00.000-07:00

How many houses are enough? How big do you want to get? Everyone must answer this question at some point in their careers. I have had a secretary and a work crew of 4 or 5 guys. And I have managed the whole thing myself with no maintenance or secretarial help at all. I have done both. So where am I today; somewhere in the middle. 1 or 2 maintenance guys with no secretarial help at the present time. I like knowing everything that is going on. I know every maintenance call, every phone call, every tenant call, I know every check that is written and every bill that is paid. I am in control of the deposits. I just like knowing what is going on. So how big do you want to get? Think about the quality of life that you want, the stress level you can handle. look at the pros and cons and decide for yourself. Just a thought.

Good Business or Getting Even

2009-10-07T08:36:00.000-07:00

Human nature has a great desire to get even. When tenants leave owing money, leave the house destroyed, leave fleas, leave garbage.   Is there any recourse? So far, you've taken them to court and received a judgement for the money they owe.   It's been a couple of years and you haven't seen any money. You are beginning to expect that you will never get paid. What can you do? You just want them to feel some pain. You are sure that it would make you feel beter.

OK here is what you do. Contact the tenant by mail. In your letter; tell them that you will be sending the tenant a 1099 miscellaneous income form and that you will be reporting the amount to the IRS. This will result in additional income to them.   In your notice to them be sure to let them know that this reported income may trigger the loss of any government benefits that they now receive.    The notice may get their attention enough that they make a payment to you. Great! But if it doesn't, go ahead and send out the 1099.

Keep a detailed list of how you came up with the figure reported on the 1099. Be sure to include the amount that they owe, plus interest, plus damages, plus court costs, plus clean out fee, plus, plus....   Once you have reported your loss as income to the tenant, you have given up your right to receive any monies from the tenant. But you have received some justice. Is this revenge, getting even? Naw, it's just good business.

Happy Landlording!

Friends

2009-10-04T15:45:00.000-07:00

As a result of landlording and the dilemnas associated with said occupation; I have made so many new friends over the last few years. I know the County judge and his secretary by first name. The Chief of Police in 4 towns, all the mayors and city secretarys in each town I do business in. I've met the Summons Server Officer, the dog catcher, and members of the fire department. The tax accessor and county treasurer. Met several attorneys in and out of court. I know building inspectors for the occupancy permits. I know other landlords and their maintenance crews. The guys that work for the electric companies, the people that turn the water on and off. the neighbors to each one of my properties. My kids accuse me of knowing everyone and refuse to go to Wal-Mart with me because it takes so long to get out of the store. The more people you know the easier to screen your tenants. Many of these people will gladly give me a reference on prospective tenants. At times that even prevents a problem for me. Just think, if I hadn't had properties, I would have never met these fine people!

"It's not what you know but who you know". I think that there is some merit to that phrase.

Hats

2009-10-02T17:45:00.000-07:00

A landlord wears all kinds of hats. Today I wore the interior decorator hat, the project manager hat, the secretary hat, and the accountant hat. The day started off with a trip to Wal-Mart. Picking out some curtains for a living room and kitchen. If you don't supply curtains oftimes the tenant will hang a sheet over the window. I can't stand that; it looks tacky. I swung by the apartment and put the curtains on the rods and hung them. Switched to the project manager hat and conferrred with the guys as to what they would work on for the rest of the day and early next week. Made sure that they were mounting smoke and carbon monoxide detecters as they finish up. Planned out a kitchen for the next project. Then went to the office to receive rent payments. Made a few non-threatening phone calls to late payers. Encouraged them to tell me when to expect their payment and told them I would work with them and that their payment would need to include the late charge. Received a few inquiries as to rentals available. Responded to a maintenance call or two. Entered the deposits into the computer and balanced the bank account. Hence the secretary and accountant hats. I took all those hats off and headed for home. On the way home, I put the property manager hat on and showed an apartment. Now, I am waiting up for past tenant to stop by to pick up her deposit refund. Then the hats are off and I am off to bed. Tomorrow it starts all over.

I like hats . I wear a different one every day. Lucky me!

Buying that First House

2009-10-01T17:20:00.000-07:00

So you really want to be a landlord?

If you really, really like the property get an appraisal, and make your offer based on the appraisal. The offer should be at least 20%, (30% is better..with today's market you may even be able to get it for 50% all they can do is say no) less than the appraisal. Many banks only want to lend 70% of appraised value on an investment property.
To get the best deal, you have to be willing to lose it. Sometimes sellers call you back and accept your offer.
Start slow. One house at a time. Get that one up and working as quickly as you can and then think about your next one.
Look at empty houses if possible. You never know what is being covered up by a well placed piece of furniture.
Make sure that you have cash available to cover the bank payment when your tenant does not make their payment to you.
Don't quit your real job yet.
Put together a team of people to help you. Young attorney, insurance agent, appraiser, home inspector, banker.
Fix the important stuff in the house first i.e. electrical, plumbing, bathroom, kitchen.
You are not going to live there. Fix the property for durability.
Keep the color scheme neutral.

Tenant Interview

2009-09-30T19:59:00.001-07:00

For every four people that I interview, there will be only one that will meet all of my criteria.. It is always good to review the application in person with said tenant in front of you. You can ask additional questions to get more information. You might be surprised at what you might find out. Stuff like this will usually come out of your interview.

Can I use my deposit for the last months rent?
No, I don't have a dog. I sometimes keep my brother's dog for a few days.
Can I borrow $20.00?
Do you do credit checks?
Will you work with me on the deposit?
Can I have a dish mounted on top of the house?
When can I move in? Oh by the way, do you have any odd jobs I can do?
No, I am not working. No my husband is not working either. But my mother can cosign. No she lost her job last month.
Is the basement finished?
I don't have any appliances.

And on and on.......

Who sleeps? 10 phone calls to expect in the middle of the night.

2009-09-30T19:41:00.000-07:00

From Police Department: I found a couple of teen-agers making out in your vacant house. What do you want to do about it?
From Police Department: Do you own 204 Pine St.?
From Tenant: I locked myself out.
From Tenant: My water pipes are frozen.
From Tenant: The roof is leaking.
From Tenant: I don't have any hot water.
From Tenant: The toilet is clogged.
From Tenant: Are there ghosts in this house?
From Neighbors: I think that they are selling drugs next door?
This is the fire department. Do you own 204 Pine St?

Wait! Do I really want to be a landlord?

Collect the Rent and Off to Cancun in 7 days

2009-09-29T17:00:00.000-07:00

The daily life of a landlord should include only about 5 work days a month. That's what I think anyway. You get to the office early on the first of each month. Greet your tenants with a cup of coffee, ask about the family, and write out a recipt for their full rent payment. Wish them well and out they go. You spend the entire day doing this for the first 5 days of each month. By day 5 you have collected every bodys full rent payment, paid your bills, deposited all the money and you are ready for vacation. On day 6 you pack your bags and on day 7 you are on your way to Cancun. That's how it should be! Wouldn't that be great! Many of your tenants probably think that that is what you actually do. They know you have plenty of money, all of your properties are paid for and all you do is sit around and count your money. HELLO!

The daily life of this landlord runs in one month cycles. On the first day of the month there are always just a few that come in to pay the rent whether I am there are not. Bless them, you can turn the page on the calendar by their visits. By the fifth of the month I will probably have about one third of the tenants paid in full. By the 15th, I have collected the ones that always pay late with their payment including the late charge. The rest of the collection is not fun. Stories, lies, unanswered phone calls. I don't believe a thing anybody tells me anymore. Isn't that a great way to live? I use to be this naive farm girl that believed anything any one told me. I slowly learned a few lessons.:

Everybody lies.
Set deadlines for how long you will wait for their payment. Don't let tenants keep stringing you along.
Hold the phone away from your ear while tenant is calling you names.
Don't call tenant names.
Don't take name calling personally. Distance yourself from your business.
Never give possession to property until you have the full down payment and first months rent. Tell them to come back when they have the full amount.
Posting your card to there front door works wonders.One better, is to put a for rent sign in there front yard; that always gets there attention.
Keep your cool.
Send 5 day notices out immediately along with a letter explaining what they can expect to happen within the next few days; police delivering summons, court dates, and they and their family will be homeless in 21 days.
The best fix is to screen your prospective tenants.

Wait do I really want to be a landlord?

10 reasons the rent is not paid.

2009-09-28T15:57:00.001-07:00

The wife has the money, She's out of town for a few days.
My boss didn't pay me and he is out of town.
I had to buy the kids school supplies.
I had the money on the dash of the car and it blew out the window on the way over here.
I have to go to Missouri to pick up the check, I'll be back Thursday.
I lost my job.
The bank made a mistake on my checking account. I thought that I had enough to pay you.
I was waiting until I got all of the money gathered up before I paid you.
My boss cheated me on my hours.
Somebody took the money out of my purse.

Property Tax Loop Hole

2009-09-27T15:37:00.000-07:00

In the state of Illinois: landlords of single family homes, and landlords of a duplex are allowed the homeowners exemption on their property tax bill. Sorry guys, Cook County has their own rule- you will have to check that out yourself.

The law has 2 qualifications that muct be met to qualify for the deduction. The first is that said tenant must have occupied said property for one year. The second is a clause or signed addendum in the lease agreement that reads something like this; the tenant realizes that a portion of their rent will be used to pay the property taxes on said property.

I check my taxes every year to see that I have the homeowners exemption included on the bill. If I don't have a number in the owner occupied box I prepare the paperwork to take to the tax assessors office. Sometime between receiving the bill and before the first installment is due I go in. The necessary paperwork includes: the original tax bill and a copy of the lease agreement with the approiate clause in the lease. If the clause is not currently in your lease you must prepare an addendum for the tenant to sign and attach this to the lease agreement.. Make sure that you keep copies of everything and that all paperwork is signed.

My county will send me out a new tax bill and does not charge late fees while a change is being made. Note also that counties do not make the deduction retroactive just because you did not have your paperwork in order for the years past. Do not assume that once you get the homeowners exemption on your tax bill that you will automatically get the credit the following year. You must check it every year. And the best way to make sure your paperwork is always in line is to put the clause in your lease agreement. This avoids the hassle of tracking down a tenant for a signature.

The propery tax loop hole, I call it that because theTax Assessors Office does not advertise how you might save money on Property taxes. There job is to make as much money as they can. You must know your rights. I learned this at a Illinois Real Estate Owners (IREO)seminat that I attended a number of years ago. I think that it pays to belong to organizations in your area. And if you have time get involved. There are numerous landlords associations throughout your state. There should be one fairly close to you just google it to find out.

Squatters Move

2009-09-25T14:05:00.000-07:00

Thankfully, I did not have to ask the police to remove the squatters from the property. PD could not do it anyway. The states attorney's office told the local PD that they would not allow it. Can you believe it? People are illegally standing around on my property (because they are not living there---yeah right whatever.) and there is nothing I can do about it.  Fortunately, I did not find this out until 1:30 this afternoon.

Well, this is what I did. I located the real tenants of the apartment in another town 10 miles away and told the tenant of that property= real tenants girlfriend (because my tenant would not come to the door; I heard him tell his girlfriend to say that he was not here). So I just unloaded on said girlfriend.  "AT 2:30 p.m. today I will be at the apartment with the police to set squatters off the property, change the locks on the door, and that they would be arrested for trespassing if they returned." I was sure that she would get the message to her boyfriend who in turn would inform the squatters. It worked. They are packing as I write and the keys are going to be delivered to me in 20 minutes. I expect there to be some damage, dirt,and trash left behind.

Is it a happy ending? Yes, I got rid of the squatters with loud noise and rowdy/druggie activities. Neighbors are happy! I'll have to do some rehab work on the apartment..but that's to be expected after each move. The big unhappy ending is to the tenants in the front apartment. Damages to the truck of front apartment: 2 flat tires, stolen keys= no transportation so wife dropped out of college, husband can't get to work = no income to pay rent so they will be homeless next month. (That's how long it will take to kick them out for non-payment.) And I will have no rent money until the units are ready to rent again.

Why can't people just get along? This whole mess was caused by people not being considerate to one another. This one got mad, did something stupid, and the other reacted by doing something worse. Now we have 2 displaced families.   People be good to each other!

It's a day!

Squatters Threaten Landlord

2009-09-23T18:23:00.000-07:00

I learn what's going on in my houses from every direction but the tenants. Got word that tenants in Apt B had moved out and were moving in some other people to take over their lease. I send the maintenance man to check out story and wouldn't you know....no-one's moving out. They were just changing out some furmiture. But the past tenants are only seen around town and not at the "only moving some furniture around apartment". And the vine says that new tenants aka "squatters" have traffic in and out all night driving in the neighbors yard and blaring music.     This does not make tenants in Apt A of duplex happy.

Move forward one week and tenants in paper-thin-walls of Apt A have had enough of B's loud music. So A calls police on B. The police arrive on the scene to find that tenants in Apt B have a scanner and are aware that police are on their way and scatter so that no one is around when the police arrive.

Next morning tenants of Apt A are at my door when I get to the office. "They were not happy with last nights activities. kids too tired to go to school, the neighbors kids are tired for school too, something has to be done."   Apt A is really getting angry.

By this time, I realize that I need to take some action, at least check out the stories. I call the PD and get an officer to go to the duplex with me. When we get there, the squatters are nowhere to be seen.  But while we are there they drive up in front of building (we were in the back) saw the police car and took off. This made squatters mad that the police were checking on them . So after I left.apt B picked a fight with those in A. Police were called again and hauled off Tenant in A uptown. While A was gone, his truck keys were taken from his truck, his stero ripped out and the satelitte dish tore off the house.      What to do? What to do? I send a 5 day eviction notice canceling rental agreement with tenants in B because police were called. Now squatter in B is calling me screaming into the phone demanding to know why invisible tenant( Shane) is being evicted and not the people in Apt A. As calming as I could, I told her that I would not discuss my business with her and that Shane would have to call me. Here is where the threat comes in. She the squatter has plenty of money and she is gong to sue me for not evicting tenants in A. Chief of police says that I can have them hauled off of my property for trespassing. All I have to do is give him the word.    Why didn't I think of that? So that is the plan in the next couple of days. I'll let you know how that goes.

All in a days work!