Tuesday, January 29, 2013

Do You Have Tenants? Read on...


I have several houses that I rent.  I've been flipping and renting houses for years now and I have to say I love it!  Yes, it comes with issues and problems from time to time, but what job doesn't have its hazardous parts.

A few years back, I received a phone call from the City's Building Codes office.  I was told that one of my tenants had turned in a complaint about a leaking sink and hole in the tub.  At first I was kind of shocked since I knew nothing about it.  I keep all my properties in top shape and I had received no calls about any leaks.  I hung up the phone and called the tenant immediately.  Since I got no answer, I drove at the property and waited in the car, in 100+ degree temperature for almost 3 hours for the city inspectors.

When we finally went into the house, I was “Oh my God!!!”  It was bad, awful bad!  Yeah, I forgot about being hot and tired when I saw the brown water stain all the way in the hallway.  The floor was completely saturated and swollen.  It had to have been like that for some time now! I walked into the second part of the bathroom to see the tub.  There was a huge crack on the floor of the tub and the tub was wet (they were continuing to use it!) I asked the one present as to what happened, when, where, how, etc.  Everything I asked, she answered with “I don't know!”  Her mother told me later it had happened 2 months ago!  When I asked her why she didn't contact me, she wouldn't answer.  (I guess she was thinking it will go away by itself!!!)

I was quite upset!  If any of you have been thru this before, you know what I'm talking about.  If you have rentals but haven't had any bad experiences YET, I hope you never have one, but it's a really painful feeling.  I treat all my properties with love and respect and when someone mistreats them, I get upset.  I feel like one of my "kids" is hurt.

Now, let me explain a few things: My lease specifically states that the tenants are responsible for the first $100 of any maintenance fee.  I provide them with a list of all contractors that work for me: plumber, electrician, AC, and general repairs and of course they can pick other people if they so choose.  Had she asked for a plumber to fix the problem it would've cost $25 only (the trap in the sink was out of place).  As for the tub, had she told me when it happened and not continue to step on it and tear the entire bottom, it would've cost me $250 + another $250 to put them in a hotel for 2 nights until it was fixed.  A total of $525!  Instead, I'm now looking at $3,500-$4,000 in damages without counting what's not visible to the eye - the decking and floor joyces are drenched, the insulation under the house is soaked, the crawl space is a mud pool, the tub needs to be replaced, the vanity cabinet is so warped from moisture that the base of it is touching the floor, all hardware is missing in action, carpet, padding and decking in the hallway needs to be replaced... and no telling what else we'll find out once we start to work.

Well, one lesson I've learned thru the years in this business is if you give in, you're as good as DEAD! So, count your blessings and keep going! I got to say, it was also a learning experience. It reminded me to go check my properties more often, every month if I can. That way things don't go too long undetected! And always keep very good records of all your conversations and have as much as possible in writing, just in case. Right now I'm looking at the glass half full instead of half empty. I cherish the fact that it happened at the end of her lease so it will be easier to get her out and I can rent that property for a lot more than she was paying. I am an eternal optimist! I believe everything has a positive side. You just have to find it!

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