How To Avoid A Tenant Leaving Mid-Term

“Unexpected events can set you back or set you up. It’s all a matter of perspective” Mary Ann Radmacher

One of the things landlords worry about is a tenant moving just before rent is due and with no notice. There is often damage to the unit in such cases and even unpaid utility bills. What can you do to prevent these types of things from happening to you and what to do if you have experienced this in your building?

NOTICE OF ABANDONMENT
Always check with your real estate attorney and your Apartment Association, but if the tenant has not entered the property for 7 days and the rent has not been paid for 10 days. The notice should be posted at all entrances and sent to any address given by the tenant by certified mail. If there is no response within 5 days, you can begin your eviction. Your attorney will let you know if anything else is required. There are legal requirements regarding the minimum days before moving ahead with your eviction. Make sure you follow the law, as it can create problems in case the tenant returns.

AFTER EVICTION
There are also requirements regarding the tenant’s possessions, in case they do not return. Once you get access to the unit, be sure to take a lot of pictures and keep a written account of the condition of the unit. You will also need to change the locks at this point, as with any eviction. If there are items left in the unit, you will be required to store them for a period of time. After that time you may dispose of the belongings. You need to contact any persons you can find on the rental application, who may help you locate the tenant or, after the required holding period, may pick up the belongings, saving you a disposal fee. Be sure to document everything. This is always a good idea, in case you have to go to court but also because photos and notes often work better than our memory. If you do an eviction, you may end up with a judgment against the tenant for all of the costs you incurred, including storage, cleaning the unit, and changing locks. Utilities would usually be the tenant’s account with the utility provider, but if you provided services, you can ask the judge to include costs in your judgment.

AVOID THE SITUATION
The current maximum allowable security deposit in California is two times the rent (three times if furnished) I have found over the years the tenants with larger security deposits tend to be the best, the cleanest, the most punctual with rent payments, and generally the most trouble-free. Having that extra security deposit also protects you in case of damages. I have had good experiences with this practice. One tenant comes to mind, who I was leery of because of less than stellar reviews and poor to mediocre credit. I was going to decline her and she offered two months security deposit. She turned out to be an excellent tenant. Her rent was always on time and she kept her unit immaculate. When she moved, after several years, I refunded her the entire security deposit, with no deductions.

“The most important thing is to try and inspire people so they can be great in whatever they want to do” Kobe Bryant

What we at PRS PROPERTIES CAN DO. We can discuss with you the current rents in your area and supply you with comparable rental prices for similar properties. Before you hire a manager, make sure the compensation is fair to you! We can also look at your building for changes that might allow you to get a higher value in order to create value without huge expenses for your building. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, a moratorium, or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are in 1031 exchanges and need to identify a replacement property before their 45-day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted, and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.

Remember – KNOWLEDGE IS POWER!