Tuesday, June 24, 2008

Tenants are such liars

Some properties just seem to have a dark cloud over them. We purchased and renovated a nice home in Cheektowaga last year. We were unable to flip it and so after dropping $16k in holding costs we rented it out. Meanwhile the loan interest rate ran up from 7.9% to 11.1% and makes the property a money loser every month.

We thought we found some great tenants for the property, but 3 months ago they started paying late. Last month I payed a visit to them on the 10th and the husband said that his wife had the check and they would drop it off as soon as she got home from work. Well, I didn't get the check until the 20th.

Now in June it's the 24th and still no check. I went over to the property last night since both their phone numbers are all out of service. The lawn hasn't been mowed for a month and the inside looks like a disaster. There was a notice on the door from a Rent to Own company. I called the number and the store manager told me that they wanted to pick up some appliances since the tenants told them they were moving to Illinois!

I talked to the lady next door and she told me she had seen the tenants within the past 2 days. I tracked down another phone number for the husband through his employer. As soon as he answered and I told him who I was he hung up. Minutes later his wife called to tell me she was in a hospital in Illinois due to a heart attack (she's in her thirties) and couldn't talk because she had a tube in her mouth! This is too rich. Her husband makes his sick wife who has tubes down her throat call me rather than telling me she is sick??? (and she wanted to know how the #?!% I had gotten her brothers phone number?)

Of course, the wife told me they will pay the rent - the check is in the mail


Anonymous said...

I was afraid you were going to have problems. Haven't you been a landlord previously and had similar experiences? I also have had rental property and I will never do it again.
On another note, what's going on with all the Amway/Quixtar ads, TV and magazine full-page ads? Figured you might know. I'll bet you're not signing up for that again either.I drove thru Michigan a few years back and realized that Amway owned literally this whole burg with its own fire dept. and police dept, and the entire town smelled of chemicals.I don't care for their business model or products, but it was impressive to see.My eyes burned for weeks.

Paul said...

I had problems in the 80's when I owned "scum lord" type property and rented to the dregs of the world. This house is at the high end of rental income and the tenants looked like upscale clients. Plus, I was using a lease purchase agreement so they have a lot more money to lose.

But in the end they are just tenants. On the other hand, the guy that is lease-purchasing my trash property in a lousy neighborhood has put $10k into it and it looks great.

As far as Amway - I think they make first class products. I still buy their Nutrilite vitamins which are as close to real vegees as can be. But my personality would never entice me to get back into their business. I really admire the founders Horatio Algier story.