New Tenants and Another Year of Being a Landlord
The stress is over…or starting again, depends on how you look at it. LOL
After showing my townhome at least two dozen times, dealing with no shows, laughing at people who wanted me to ‘work with them’ on the security deposit and rent amount, giving the *side eye* to the young engineer who wanted five roommates, expressing concern to the disabled man who insisted that living in a 3 story townhome with 2 flights of stairs wouldn’t bother him, gasping in shock at the single mom who wanted me to falsify Section 8 documents, rolling my eyes at people who demanded that I ‘lower the asking price for rent’ as if they were doing me a favor, and completely ignoring countless other nutcases - it’s ALL over now. Thanks to the best real estate agent/friend in the whole wide world, I selected a new tenant and they signed a one year lease, effective today.
A married couple, relocated from another state, new jobs, and two young children with pets. Nice lady (didn’t meet husband, he’s not moving until Oct), well mannered children, good vibe. The only thing that concerns me is the pet situation, but I collected a separate non-refundable pet deposit, so it’s enought to calm my fears. Besides, I tried to learn from my mistakes of last year, so I did quite a few things differently.
- Other than the standard background, credit, and employment check - I also checked their rental history and chatted with their previous landlord. Of the two listed, I was only able to get a hold of one. He was the most recent so that was ok with me. They were his tenants for four years, paid late two times, and left the property in decent condition. He expressed concern about one of the children (autistic), but reported that they were good people.
- I provided a copy of the 500+ page HOA handbook and addressed major nuances based on experience with previous tenants. I walked the neighborhood with the new tenant to identify extra parking spaces, the community center, and explained what NOT to do.
- We also discussed responsible pet ownership, yard appearance, maintenance calls, etc.
- Rent is to be paid via direct deposit only. No cash, checks, OR money orders.
- I will schedule and commit to quarterly inspections with 48 hours notice. Even if I can’t personally attend, my maintenance guy (along with my RE agent or next door neighbor, if necessary) will conduct the inspections on my behalf.
With all of these corrections, I don’t expect a repeat of last year’s issues. However, it is very possible that I will experience new issues (and possibly, a few repeats of old issues), but at least I’m prepared this time and know how to manage my expectations.
Slowly but surely, I’m losing my personal connection to this home and it’s all starting to feel like a business transaction, which is a good thing. As of today, my bank account is $3,000+ heavier and I have monthly cash flow again. Yay!
*Lord, please help me through another year - Amen*
~*~*~*~*~*~Work to achieve, not to acquire.
And always, BE FABULOUS!
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Just curious, I never did get a straight answer from anyone on this one, maybe you know since you are a landlord:
Are landlords supposed to keep the security deposit in an escrow account and give back the full amount PLUS the interest if the rental is left in satisfactory condition?
I don’t recall you ever asking the question, but I imagine it varies by state. For the state of MD, yes you are correct on both points. [-SM]
I remember reading about this somewhere (renter’s handbook, maybe?) but I’ve NEVER had a landlord give me more than the initial security deposit amount in full. And I leave my apartments in PRISTINE condition. This may just be a California-specific rule, I don’t know. (?)
Good luck with the new tenants - it certainly sounds like you’ve covered all the bases to protect yourself/your property from them. My mother had similar renters to your last ones, and her response was to let someone else deal with all that - to the tune of 20% of her potential rental income! For her, it was worth the $ to avoid the hassle. Good luck!
Good luck with the new tenants–they sound like they’ll work out pretty well.
I’m curious though, about your quarterly inspections. I’ve been a renter for almost seven years now, and I’ve never heard of such a thing. Granted, I have mostly lived in larger apartment buildings where the landlord owns many properties, but even when I lived in a private house, this was not stipulated in my lease.
What are you looking for? How thorough are you?
I (well my maintenance guy) do a walk through of the entire home. He checks around the toilets and under the sink for leaks. He checks the windows, W&D, and make sure all major appliances are working properly. He also checks for safety hazards and I glance around to make sure they are keeping up the place. During one of my visits, I had to ask them to remove boxes in the garage because they were blocking the closet that housed the air filter and emergency water shut off valve. The second time, we noticed some type of a creature problem that was digging holes in the back yard that. They didn’t report it, but when my maintenance guy saw it, I was able to address it immediately without any expensive damage. During a third visit, I noticed something in the front yard that was an HOA violation. It could have cost me a fine, but I was able to give them a friendly reminder and avoid the hassle of who did what/when/why and who was responsible for paying the fine. Basically, anything can happen. It’s a scheduled form of communication between myself and the tenant. It is a home that I own, care about, and would like to maintain. It isn’t just a dwelling to make a buck. [-SM]
I’m curious because, if I was every required to agree to this as a stipulation of the lease, I would probably refuse to sign it and take my money elsewhere. You would just go elsewhere then. I wouldn’t change the terms of my lease just because you didn’t like them. What you won’t do, 10 other tenants will. [-SM] I’m an excellent tenant and have left every place I’ve lived in better shape than it was before I moved in, and I’d be offended and uncomfortable by my landlord checking in on me four times a year. It’s good that you keep up the places you rent. If that makes you uncomfortable, we couldn’t do business. [-SM] I’m just curious as to whether this is common and how you deal with it. I know many RE investors that do frequent drive bys of their property and many don’t give 48 hr notices. IMO, 4x per year is reasonable. [-SM]
I hope that all goes well with this new lease. I don’t blame you for wanting to check in on the house. Question: how can the renters pay you via direct deposit? Paypal?
I have a bank account specifically created to accept rent payments. They’ve set up a payroll allotment. [-SM]
If the “pet deposit” is non-refundable, how is that a deposit? Seems like it is a cleaning/repair charge in advance of knowing if anything will even be wrong when they move. Not legal here in CA, but I’m sure you know your state’s laws.
Feel free to call it a pet fee if that’s what you prefer. [-SM]
Good luck with the new tenants! Sounds like everything should go smoothly hopefully!
Congratulations! Having a good (and honest!) review from their last landlord sounds like it’s a very good thing, and I think that the quarterly visits will work well. Hey, it’s also a chance for them to make sure you know about any maintenance that needs to happen, like drippy faucets, etc., so it’s a good thing for them too! I also had a question, though - why do you charge a pet fee? (since it’s non-refundable, I don’t agree with calling it a deposit). Feel free to call it what you want. [-SM] As a pet owner, I’ve always been fine with steep pet deposits because I know that I’m going to be getting them back, but I’ve always shied away from anyplace charging pet rent or pet fees, because it didn’t make sense to me. I’d love to hear your reasoning for it!
As a pet owner, and a RESPONSIBLE pet owner mind you, pets (particularly cats and dogs) cause damage. Period. [-SM]