So, I get off work a little after 5pm last night and was just getting ready to call the tenant to tell him I'm on my way over, wen suddenly my cell phone rings. It's the tenant. After formal introductions, he tells me that he can't get me the check that evening as he promised. His excuse this time was he just now got to the bank and the lobby was closed. I asked if the drive-thru was open and he said he went through it, but the teller said she couldn't process the transaction to get him the cashier's check. I let out a frustrated laugh and told him he was already on thin ice being late one day, but now two? I also told him that this should have been his first priority of the day, and not something that he put off until the end of the day. He asked if he could bring the check by my workplace first thing in the morning. I work about 13 miles from where I live and it's probably a good 18-20 miles from House #1. I told him that he was quickly running out of favors, but I'd let him give me the check in the morning. However, if he had another excuse - even if it WAS valid - I would have no other choice but to take the next step (I didn't mention "eviction", but I think he got the message).
When I got home and told my wife, she was livid. Her patience fuse is about 1/100th the length of mine, so she basically hit the ceiling when I told her. Immediately, she said to start the eviction. After talking with her more, she settled down somewhat, but I became angrier about the whole situation. So, I called tenant to give him another blunt warning. Of course, I got his VM. I left him a stern message stating about the situation and told him that when he gets the check tomorrow to be sure to add TWO days of late fees to it (he was legally two days late at 7:00pm last night and I called shortly after that).
Well, the next morning I hadn't heard from him, so I wasn't sure if he got my message. I figure if he didn't (or did and said he didn't), I would tell him he would need to get the check in the CORRECT amount or I wouldn't accept it. In our conversation after work yesterday, I told him to meet me at a convenience store near where I work between 10-11am and no later, and to call me when he gets there. About 9:45am, I get a call from him. He's all apologetic, and says he has the check with the full amount. I tell him to meet me at the place we agreed to at 10am. I jump into my car shortly after, and sure enough, he's there. We make small talk, he hands me the cashier's check for the full amount, and we part ways. I told him this was the last time he was to be late , as I was finished with favors and excuses. Based on his demeanor, I have a feeling he either understands the consequences now, or is so used to screwing people over like this that he know how to act like it. Time will tell. At least I got a valid check for the full amount (plus late fees). Right after our meeting, I deposited the check and headed back to work.
We'll see what happens on the 19th and the beginning of each month. I'm not holding my breath, tho.
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5 comments:
Great blog. I would love to trade links since We're into REI. thanks
www.landlordhustlers.com
Steve,
This happened to me as well this month. The tenant's wife was pissed because I told her that she will need to pay a late fee. See used a bank check which takes 5-6 business days to send. She ordered it on the last day of the month.. The husband called me up saying that I was on the verge of " harrassing them". Jeez, I drop by last month because they were late for the first time , I drop off a christmas present to them, and than stopped by one more time since they were late again. Go figure!
Its tough to tell if they are going to screw you over or not, but always stay calm.
They will now post-date the check and to get it to me on time. That is the current solution. They didn't like the $40 dollar late fee.
The tenant's real bank was closed....friends, family, employer. He got caught "short" and had to put you off while he tapped out his LOC.
Is he a true bum scammer tenant; probably not....but he is a train wreck waiting to happen....
You knew his financial situation; at best, when you rented to him. What you do not know is how bad his financial situation really is.
The only two issues you have to address are:
1) When is he going to cost you money?
2) How much will it cost?
A word of caution....a p.o'ed tenant can be VERY expensive. You don't have a statement of condition to prove the house was in X condition on date of occupancy and he knows that. Why do you think he's put you off this long? A legit tenant would have taken care of this first thing to protect HIMSELF. Now, the move in condition of the house will be what it is when he leaves......think about it.
Late fees can be THE most expensive cost you can accrue...for YOU. A $40 fee might make you feel better but it's peanuts compared to drywall, paint, carpet...replacement.
Start working your "next tenant" plan to cut your losses and put systems in place.
Oh, one more comment...listen to the wife....they have a wonderful ability to tune into stuff that flies right through our ears.....LOL
Hey, Steve,
You should probably look into getting rent loss insurance and make sure your current liability insurance is up to par, just in case the guy trashes the place on his way out or decides to sue you for any reason. Now is the time!
Come to think of it, I probably need to make sure of all that, too.
Best of luck!
Trisha
Brian - I have lunch with a fellow local RE investor from time to time. I told him about my fiasco and he said he has a tenant that is ALWAYS late by a few days on her rent, but she always pays the late fees, too. He says you get all kinds, but if they continue to pay - even if late - you are still making money.
Stanley - I'm really having a hard time guaging this guy. You may very well be correct in your assumptions, so I'm not disagreeig at all. Matter of fact I'm even more suspect. I called his employer again the other day just to verify he is still working, etc., and the supervisor there said he is working - a LOT. He mentioned he routinely works 12-, 15-, even 19-hour shifts, and she pretty much verified it. I may give him a call soon and ask if he wants to buy the place before the end of the lease (which is something he inquired about when we first met).
Trisha - Interesting. I've heard of that before, but totally forgot about it until you mentioned it. Definately something I'll check out. Thanks!
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