Tenant Interview

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.

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

And on and on.......

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

1. From Police Department:  I found a couple of teen-agers making out in your vacant house.  What do you want to do about it?
2. From Police Department:  Do you own 204 Pine St.?
3. From Tenant:  I locked myself out.
4. From Tenant:  My water pipes are frozen.
5. From Tenant:  The roof  is leaking.
6. From Tenant:  I don't have any hot water.
7. From Tenant:  The toilet is clogged.
8. From Tenant:  Are there ghosts in this  house?
9. From Neighbors:  I think that they are selling drugs next door?
10. 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

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.:   

1. Everybody lies.
2. Set deadlines for how long you will wait for their payment.  Don't let tenants keep stringing you along.
3. Hold the phone away from your ear while tenant  is calling you names.
4. Don't call tenant names.
5. Don't take name calling personally.  Distance  yourself from your business.
6. 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.
7. 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.
8. Keep your cool.
9. 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.
10. 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.

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

Property Tax Loop Hole

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

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

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!