“If money can’t buy happiness, I guess I’ll have to rent it.” Al Yankovic

At some point in time, as housing providers, there will be tenants who just aren’t happy. Sometimes it is an issue that they have with the building, which you may or may not be able to remedy. Other times, it will be a problem with your other tenants, such as noise or nuisance issues. We all run into this issue eventually, and having a plan on how you deal with it is a good thing.

WHEN THEY MOVE IN It is a good thing to have a “House Rules” page signed by lessor and tenant along with your rental agreement. This will clarify what is expected from your tenant. It will also be helpful if you need to take legal action. Most apartment associations have a good selection of forms for move- in’s, specifying the tenants responsibilities as well as those of the owner. Be sure that your tenant reads all of the documents at signing. Introduce your new tenant to some neighbors if possible and show them around the property, making them aware of things like laundry room hours and trash collection times.

BE ACCESSIBLE. Whether you manage your property yourself or use a management company, it is important that tenants know who and where to call when they have a problem. When tenants call me, I make every effort to deal with their issue the same day. Whether I need to call a vendor, or speak to a next door neighbor regarding a noise complaint, sooner is always better. I have found that when you or your manager are on top of any issues, tenants tend to be more understanding.

IF ALL THE ABOVE DOESN’T WORK Sometimes people who were great go bad. They could lose a job, have family issues or develop an addiction. It happens. If this is the case for you, talk to your tenant to see if you can remedy the situation, or get them to move. If not and you have to resort to legal avenues, be sure to document everything. That includes conversations, pictures if available, and anything you have that will demonstrate the existing problem and your efforts to resolve it. It is often a good idea to let some of the nearby tenants know there is an issue. You want your tenants to call you or your manager to report problems at your building. If there is an eviction being started, it is much better for the tenant to call you or your manager than to go directly to code enforcement. Most people will understand that you are doing everything you can to alleviate the problem.

WORK WITH YOUR EVICTION ATTORNEY. With all the new legislation, the days of doing it yourself are long gone. Take the advice of your trusted professional and do things by the book. It is an unfortunate part of being a housing provider, but if handled immediately and professionally, it can mitigate the discomfort.

“Everybody makes mistakes. That’s why they put erasers on pencils.” Tommy Lasorda

What we at PRS PROPERTIES CAN DO. We can give you a good idea of the current value of your building. We can suggest changes you might want to make before sale to give you an idea what type of building you would be able to exchange into. You may decide to stay in the rental business or you may want to move into a more passive real estate investment, such as a triple net or a DSL.. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparable in the area of your properties, so that you know what rental values are in your area. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. 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 are currently looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We can offer a 7 day escrow and all cash at closing. Give us a call. We have also put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently 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.