Ok so I have a situation I`d love to run by the brilliant minds here... As a Landlord, What would you do?
The property is a duplex where the one tenant "DAN" on one half of the building has been living for several years.
There`s both positive & negatives to this tenant named `Dan`:
Positives:
1) Dan pays cash on time every month by walking it to me in person. He`s been short a couple of times by $5-$10 bucks but he has always brought it up to date
2) Dan pays a little over market rent each month
3) Dan is a long time tenant. Certainly is not going anywhere. Dan will be paying down my mortgage for many years
4) Dan helps out around the house once in a while by removing garbage, cutting grass etc...
5) Dan fixes his apartment when anything goes wrong
6) Dan is a friendly, harmless person... more on that in a minute
7) Dan never asks for an upgrade to the apartment... even though it is well overdue for a facelift
Negatives:
1) Dan has an obvious drinking problem which has resulted in numerous failures in regards to employment
2) Lately Dan is always in the home... Constant utility usage on my bill.
3) Dan has significantly run down the unit in his time at the property. It is quite disgusting. Like real disgusting. As in, when he vacates it now needs to be gutted & re-built.... Though that could be an opportunity as there is room to create 2 additional bedrooms & thus charge more rent... hmmm....
4) Last month Dan was short $25 bucks and still has not paid up & next month doesn`t look promising because apparently he is asking everyone in the neighbourhood for money?
5) Dan apparently irritates the neighbours as he often invites himself over to their family functions and joins in on their parties without invite making it uncomfortable for everyone.
6) Somewhat erratic behaviour. Although friendly, he`s considerably "too friendly". I say so because Dan bothers the other new tenants in the other half by consistently smoking & drinking in the backyard when their kids are around, knocking on their door drunk & asking them for money and if they know anyone who can get him a job etc...
7) Dan stresses me out a lot. I know that if he doesn`t come up with rent, I have to evict. Upon eviction, I have to spend a ton of cash to renovate to attract new quality tenant. Did I mention Dan is paying over market rent?
Here`s where it becomes interesting:
I just landed a very nice couple for the other half of the duplex. Both with poor credit history, but decent references from past landlords. Honest people as they told me about their past cedit "challenges" before I pulled the credit report - they`re certainly not the perfect tenants but they`re good. They pay exactly THREE times the amount in rent that Dan the other tenant pays. They`ve only lived in the duplex for one month & thus only have one month worth of timely payment history to me, so they are new in that sense too.
Anyways, the new tenants are freaked out by Dan. Apparently the first day that Dan met the new tenants, he asked them for money. And a job from them. Strange. And he was drunk and sits out in the backyard all day everyday. The backyard was a major selling feature for the new tenants as they have children from a past divorce that come to stay with them every other weekend & the kids like to play in the yard. The new tenants don`t want the guy hanging around drinking & smoking in the backyard with their kids which makes perfect sense. They also have talked to the neighbours, and,well, I`ve just learned that the neighbours think very little of Dan as he has also been asking them for money recently etc...etc..
Dan was drunk and told them lies such as there was once a past death in the house in the unit that the new tenants are living etc..etc.. Suffice it to say, Dan has rubbed the new tenants the wrong way and the new tenants are completely freaked out by him. Also, the new tenants recently had a house warming party with their relatives and Dan decided to sit down and make himself at home with them, completely uninvited & drunk which made things really unfortable.
A Change in Dan
In the few days before the new tenants moved in, I did notice a change for the worse in Dan when I was there fixing up the place for the new tenants. Dan has always been able to find employment and used to carry on a full-time job and he kept to himself for years. When the new tenants filled out the application months ago, they asked me about the other tenant and I explained that I`ve never received a negative word from the previous tenants (100% true), that he keeps to himself and lives alone by himself (100% true - at the time), and that he often helps with the yard etc.. (100% true).
Now the new tenants are saying I misled them and that if they would have known about Dan`s "true character" as they see it, then they would have never taken the place and are very unhappy now. I sense a local housing tribunal scenario coming up as the new tenants might not want to stay there anymore and may try & wiggle out of the lease all because of Dan.
Here`s what I`m Doing about this:
1) I told the new tenants that this seems out of character for Dan as I`ve always perceived him as a harmless, friendly person.
2) I`ve also said that I`ve never received any complaints from previous tenants to indicate that he bothered them, which of course is 100% true.
3) I offered to speak firmly to Dan about everything they`ve talked to me about. And I also said I would folllow up with a letter clearly outlining him to back off the new tenants and not interfere with their "reasonable enjoyment of the property" for them.
4) I also asked them to think of some "ground rules" which they would like such as "when the kids are staying with them then it is understood and accepted that Dan cannot use the backyard etc..etc..." and that I would talk to Dan about it & enforce it. They said they will think it over and will get back to me about it.
My role is to play Landlord and not get personally involved, yet ensure each tenant is not breaching the other`s reasonable enjoyment of the property.
What would YOU Do as Landlord?
1) Keep in mind that as a Landlord Dan has many years of timely payments to you.
2) Keep in mind that the new tenants are new and don`t have the best history in terms of credit behind them
3) Keep in mind that Dan is a paying tenant. He is very much allowed usage of the property just like the main floor tenants
4) Keep in mind that Dan likely will be short on rent again given that he is asking nearly everyone on the planet for money, thus the shortage of rent can be my opportunity for eviction of Dan.
5) Keep in mind I just spend thousands and thousands of dollars on renovating the new tenant`s unit and that funds are scarce right now to completely overhaul Dan`s unit for eviction. Thus, upon Dan`s eviction it will likely be vacant for a long time and cashflow will thus become negative.
6) Am I doing far too little? Is it time for Dan to go? Am I too involved in this & should let this work itself out?
I want the new tenants to be happy longterm tenants. I also want Dan to keep to himself & continue paying rent. Maybe a firm talkin` to from me to Dan would resolve this?
Thanks to everyone in advance. I`m hoping this will lend a little bit of experience for others as well as stimulate some good learning from the responses. Selfishly, I`m also hoping for some advice from those that may be familiar with this experience.
Thanks in advance!
The property is a duplex where the one tenant "DAN" on one half of the building has been living for several years.
There`s both positive & negatives to this tenant named `Dan`:
Positives:
1) Dan pays cash on time every month by walking it to me in person. He`s been short a couple of times by $5-$10 bucks but he has always brought it up to date
2) Dan pays a little over market rent each month
3) Dan is a long time tenant. Certainly is not going anywhere. Dan will be paying down my mortgage for many years
4) Dan helps out around the house once in a while by removing garbage, cutting grass etc...
5) Dan fixes his apartment when anything goes wrong
6) Dan is a friendly, harmless person... more on that in a minute
7) Dan never asks for an upgrade to the apartment... even though it is well overdue for a facelift
Negatives:
1) Dan has an obvious drinking problem which has resulted in numerous failures in regards to employment
2) Lately Dan is always in the home... Constant utility usage on my bill.
3) Dan has significantly run down the unit in his time at the property. It is quite disgusting. Like real disgusting. As in, when he vacates it now needs to be gutted & re-built.... Though that could be an opportunity as there is room to create 2 additional bedrooms & thus charge more rent... hmmm....
4) Last month Dan was short $25 bucks and still has not paid up & next month doesn`t look promising because apparently he is asking everyone in the neighbourhood for money?
5) Dan apparently irritates the neighbours as he often invites himself over to their family functions and joins in on their parties without invite making it uncomfortable for everyone.
6) Somewhat erratic behaviour. Although friendly, he`s considerably "too friendly". I say so because Dan bothers the other new tenants in the other half by consistently smoking & drinking in the backyard when their kids are around, knocking on their door drunk & asking them for money and if they know anyone who can get him a job etc...
7) Dan stresses me out a lot. I know that if he doesn`t come up with rent, I have to evict. Upon eviction, I have to spend a ton of cash to renovate to attract new quality tenant. Did I mention Dan is paying over market rent?
Here`s where it becomes interesting:
I just landed a very nice couple for the other half of the duplex. Both with poor credit history, but decent references from past landlords. Honest people as they told me about their past cedit "challenges" before I pulled the credit report - they`re certainly not the perfect tenants but they`re good. They pay exactly THREE times the amount in rent that Dan the other tenant pays. They`ve only lived in the duplex for one month & thus only have one month worth of timely payment history to me, so they are new in that sense too.
Anyways, the new tenants are freaked out by Dan. Apparently the first day that Dan met the new tenants, he asked them for money. And a job from them. Strange. And he was drunk and sits out in the backyard all day everyday. The backyard was a major selling feature for the new tenants as they have children from a past divorce that come to stay with them every other weekend & the kids like to play in the yard. The new tenants don`t want the guy hanging around drinking & smoking in the backyard with their kids which makes perfect sense. They also have talked to the neighbours, and,well, I`ve just learned that the neighbours think very little of Dan as he has also been asking them for money recently etc...etc..
Dan was drunk and told them lies such as there was once a past death in the house in the unit that the new tenants are living etc..etc.. Suffice it to say, Dan has rubbed the new tenants the wrong way and the new tenants are completely freaked out by him. Also, the new tenants recently had a house warming party with their relatives and Dan decided to sit down and make himself at home with them, completely uninvited & drunk which made things really unfortable.
A Change in Dan
In the few days before the new tenants moved in, I did notice a change for the worse in Dan when I was there fixing up the place for the new tenants. Dan has always been able to find employment and used to carry on a full-time job and he kept to himself for years. When the new tenants filled out the application months ago, they asked me about the other tenant and I explained that I`ve never received a negative word from the previous tenants (100% true), that he keeps to himself and lives alone by himself (100% true - at the time), and that he often helps with the yard etc.. (100% true).
Now the new tenants are saying I misled them and that if they would have known about Dan`s "true character" as they see it, then they would have never taken the place and are very unhappy now. I sense a local housing tribunal scenario coming up as the new tenants might not want to stay there anymore and may try & wiggle out of the lease all because of Dan.
Here`s what I`m Doing about this:
1) I told the new tenants that this seems out of character for Dan as I`ve always perceived him as a harmless, friendly person.
2) I`ve also said that I`ve never received any complaints from previous tenants to indicate that he bothered them, which of course is 100% true.
3) I offered to speak firmly to Dan about everything they`ve talked to me about. And I also said I would folllow up with a letter clearly outlining him to back off the new tenants and not interfere with their "reasonable enjoyment of the property" for them.
4) I also asked them to think of some "ground rules" which they would like such as "when the kids are staying with them then it is understood and accepted that Dan cannot use the backyard etc..etc..." and that I would talk to Dan about it & enforce it. They said they will think it over and will get back to me about it.
My role is to play Landlord and not get personally involved, yet ensure each tenant is not breaching the other`s reasonable enjoyment of the property.
What would YOU Do as Landlord?
1) Keep in mind that as a Landlord Dan has many years of timely payments to you.
2) Keep in mind that the new tenants are new and don`t have the best history in terms of credit behind them
3) Keep in mind that Dan is a paying tenant. He is very much allowed usage of the property just like the main floor tenants
4) Keep in mind that Dan likely will be short on rent again given that he is asking nearly everyone on the planet for money, thus the shortage of rent can be my opportunity for eviction of Dan.
5) Keep in mind I just spend thousands and thousands of dollars on renovating the new tenant`s unit and that funds are scarce right now to completely overhaul Dan`s unit for eviction. Thus, upon Dan`s eviction it will likely be vacant for a long time and cashflow will thus become negative.
6) Am I doing far too little? Is it time for Dan to go? Am I too involved in this & should let this work itself out?
I want the new tenants to be happy longterm tenants. I also want Dan to keep to himself & continue paying rent. Maybe a firm talkin` to from me to Dan would resolve this?
Thanks to everyone in advance. I`m hoping this will lend a little bit of experience for others as well as stimulate some good learning from the responses. Selfishly, I`m also hoping for some advice from those that may be familiar with this experience.
Thanks in advance!