My first eviction....

Rehabbing, Fix and Flip, Rental Properties
1

Yep, so I’ve been a landlord all of 3 months, and I’m evicting my first tenant .

She was already in the rental I purchased back in December, and was in trouble back then, too, so I knew what I was getting into, for the most part. She caught up her rent, (using her security deposit in the process) with the old landlord, whom I know, and was good the first 2 months. (good being she at least paid)

The first 2 months I had gone straight to her bank and cashed her checks, but the 3rd time, I thought I’d be nice, and give her a chance, and just deposit it into my account, but it bounced.

So… I had given her demand for payment, and this morning I went to the courthouse and filed the other paperwork. Cost me $90, so just counting actual expenses so far, I’m down the $960 rent, $10 returned deposit fee from my bank, and the $90 in filing fees. We go to court on April 3rd, so she’s going to be owing at LEAST a pro-rated portion for April as well. I tried to be a nice guy, too, but they wanted to play hardball, and wanted me to take them to court, so… your wish is my command. lol :slight_smile: I’ll GET my money judgment, and eviction notice. (Even if they pay in full, I am evicting b/c their lease is month to month now, so by May 1st-ish, I should be able to get in there, clean it up, paint, etc and find a new tenant by the end of May. crosses fingers May have to end up garnishing her wages, going after her bank account, but I’ll do whatever I can to get my money outta them! :slight_smile:

so far -$1060

I hope to make some better decisions in the future, this deal was not a great deal when I bought it, but there were some positives. It really, would be a NEGATIVE cash flow deal, at present though. (b/c my credit is/was so-so the rent just covers my payment plus water. Its not including taxes, or insurance (although they are paid up until December and July respectively) However, I’m still really glad I went for it, because I’m learning a lot, AND if I am going to be in the landlord game, I might as well do it right, and have more than 1 property, so I’m going to learn a lot from this and make a lot less mistakes in future purchases. After all, you make your money when you BUY, right?

Anyhow… anyone have any fun/not so fun eviction stories you want to share w/ a newbie? :slight_smile:

2

come on 20+ views and nobody has a good horror story to freak me out with a little? I’m disappointed. :stuck_out_tongue:

3

You might want to read propertymanager’s blog

http://rentalpropertyriches.blogspot.com/2007_02_01_archive.html

That’s a nice story in there about the tub.

4

Thanks. I actually just discovered it yesterday, so I’ve only read March, but I had planned to go back into the archives. :slight_smile: Thanks for the link!

EDIT: it appears that I didn’t miss too much! :stuck_out_tongue: Looks like he just started it. Good, not too much to catch up on! :slight_smile:

EDIT 2: wow. I use too many smilies, eh?

5
(Even if they pay in full, I am evicting b/c their lease is month to month now, so by May 1st-ish, I should be able to get in there, clean it up, paint, etc and find a new tenant by the end of May. *crosses fingers* May have to end up garnishing her wages, going after her bank account, but I'll do whatever I can to get my money outta them!

I just had a couple of comments.

First, check with your attorney before you accept ANY RENT. Here in my area of Ohio, if you accept ANY rent in a given month, you can not evict the tenant. Professional tenants know that and will make a partial payment to unsuspecting landlords because that buys them at least another month in your rental. NEVER ACCEPT PARTIAL RENT OR ANY RENT AFTER YOU’VE FILED THE EVICTION WITH THE COURT.

Second – you must buy at price that will generate positive cash flow using real world expense numbers for your next rental if you want to stay in business. It is not OKAY to have rentals that break even or only lose a little money. As your business grows, those negatives add up and you just won’t make it. Moreover, the ONLY reason to be in business is to make money.

Good Luck,

Mike

6

If their lease is up, make sure you give them proper notice that you are terminating their tenancy. If you’re filing for an eviction because of non payment of rent, they do have a right to cure that problem by paying the rent owned plus your fees and they can continue to live there. You will then have to start the whole process again. The judge will only address the complaint brought before them.

Sounds like you should probably ask a lawyer about exactly what you’re doing. In some states, you may also accept partial rent by marking the rent paid with a note that says “For use and occupancy only”.

If you want to be a nice guy and help them out, you can go to the local social services agencies and see what programs are available. I believe there’s one major program called RAFT, Rental assistance for families in transition that various government agencies administer. You can get one to three months worth of rent out there, but I believe there’s some limitation on it’s use, like once every 5 years. Only good for families with kids. Then there’s various charities like churches that will help out with a month’s rent or so. And then there’s section 8 or social security disability. Depends how long you’re willing to wait though.

7
If you're filing for an eviction because of non payment of rent, they do have a right to cure that problem by paying the rent owned plus your fees and they can continue to live there. You will then have to start the whole process again.

What Henry said in this statement is true in MA and probably a lot of other socialist states. Here in what’s left of the capitalist state of Ohio, the tenant’s no not have a right to cure their non-payment of rent once their payment becomes late. Once I file the eviction with the court, I do not accept any rent and they are evicted.

The point is (as Henry and I said), you need to check with a lawyer or experienced landlord in your area to understand YOUR laws. If you don’t follow the eviction process TO THE LETTER, your eviction will be thrown out and you’ll get to start over (and pay court costs and your attorney fees again).

Good Luck,

Mike

8

Thanks guys.

Yeah, I am taking her to court for a money judgment and an eviction. If she brings the money to court, I can still terminate her lease, because she doesn’t have one. She is month to month. She has already (verbally) told me that she is moving out by the end of the month as well, however I am still moving forward with the eviction process. I am using my lawyers office to do all of the paperwork and stuff. They do these often, so I am just going by what they are telling me. :S