Property Management Maven

I had my first eviction of 2009 - tenants in a $1800 per month house on 12 month lease….2 checks bounced so they were put on bank/certified funds and then they were late in Dec and I waived late/notices fees ($300) if they paid as agreed AND were not late for the remainder of their lease…they paid/I waived. THEN, they did not pay Jan rent and I filed for eviction/UD = unlawful detainer (Jan rent & late/notice fees) AND a week later, when I did not hear from them, I filed a Small Claims court suit for $5,000 * max in VA.

They tried to claim no mold disclosure (it’s in the lease); I did not tell them where their deposit was held (not required in VA); I allowed people in the property without them agreeing (again, they don’t have to agree and HVAC firm advised them via phone and e-mail) and I allowed gutters to be cleaned when their windows were open (it was Dec and their windows SHOULD have been closed at it was 30degrees outside)….all non-issues.

They did not appear at the return date for trail and I got immediate possession. I e-mailed them that I would not ask for the writ of possession (request sheriff to put them out) for a week which would give them a weekend of 60degree weather to move and they should return the keys to my office by noon on the 10th….she e-mails that they are gone and keys are on the counter. I advised her that was not my stipulation for not serving the writ of possession….she calls the police and reports I am threatening her via e-mail.

It gets better….the rented property is in a 4500 home GATED community with own police who are “sworn” and who can arrest/issue citations, etc. A sgt from the police called me and was obviously having a bad “bald man” day….he started screaming at me that I could not threaten her via e-mail. He did not want to listen that it was an eviction situation and that I was providing information mandated by the county courts….no matter to him.

After a day thinking about the situation, I elected to write to the chief of police with a copy to the general manager of the development (I am also a homeowner as I own rental property there) and while pointing out the unfortunate situation with their “sgt”, I related a similar situation a few years earlier when a tenant actually returned house keys to a police officer and when I was notified, I had the locks changed at the tenant’s expense.

In my letter, I offered to be part of the solution and to come give a presentation to the police department on the mechanics of the eviction process and how they can assist their homeowners (who pay their salary) by knowing the law and being able to field eviction questions more appropriately. I enclosed my 10 line “speaker intro” with my letter in the hopes that they take me up on my offer.

In our lives as property managers, we will encounter police and other government “authorities” in our duties. Rarely, do these people know or understand the laws governing the landlord-tenant relationship…they are not attorneys and if they are, they probably do not have the specific knowledge of the situation in question. Realizing that this type of situation may offer an OPPORTUNITY to actually enlighten them as to our profession, duties and responsibilities should NOT be missed….I encourage property managers and landlord to not be afraid to offer your knowledge and experience to better the public perception of our profession and landlording….

 

A recent posting on the real estate web site, ActiveRain, invites comments on the “Today Show” real estate guru Barbara Corcoran discussing the real estate woes of the country with specific emphasis on renting.  The AR post brought out some heavy comments from landlords and property managers.

The AR discussion dovetails beaufitully with a recent e-mail discussion I had with a prospect that wanted me to come down $200 (20%) on rental price of a home from the rent that had been charged for the last 2 years….I am not going UP at this time of the year; however, my e-mail correspondant insists that rents in Charlottesville are too high and they AND real estate prices have come down….tell that to the City Tax Assessor who when UP on recent assessments - just not as much as the last few years.

As I explained in my e-mail, our area rental home (SFR = single family home) market is extremely tight.  More families moving into the area for grad school, JAG, law and med school are electing to rent rather than buy as they have in the past.  Likewise, the influx of 800+ new-hires at NGIC are also predicted to be renters as they currently own homes that they can not sell and access equity to purchase in our area.

In her Today Show appearance, Barbara Cororan’s discussion emphasised asking for concessions, reduced rent and then going on to the next ad (or Craigslist listing) may well work for listings in Orange County (OC), CA where there are estimated 2200 to 2800 rental listings DAILY on Craigslist…..her suggested process will not work for prospects for local homesin our area as we have no where near that number of rental homes AND our number of rental homes is actually lower than in years past as our “shadow rental market” (unsold homes rented for a short term) have actually been absorbed and are rented.

Knowing how to deal with these prospects is a challenge since many are over-reaching their income capability to move from an apartment to a SFR just as first-time home owners over reached their ability to buy when interest rates were down and they were ignorant that their interest rates would adjust UP in a few years. 

I’ll make rent concessions after I have run a credit report, checked the applicant’s FICO score and have a deal making offer * lump sum rent up front; long term lease; assuming landscape/yard maintenance duties….to reduce stated rent just because the Today Show guru says so is WAY DOWN on my LIST of reasons to reduce the rental rate.