Saturday, March 23, 2013

More Monetary Set-backs

I haven't received any credit for the last tenants' deposit so I emailed the accounting department of the property management company.  The reply was both startling and depressing.  They said that the deposit would be applied to November's rent when the check bounced since they paid me but didn't actually get the money.  WHAT?  I looked over all of my old statements and sure enough, in December there appeared a $1,100 negative balance.  I thought that meant the tenants didn't pay December's rent but no.  Evidently, they paid November's rent and then the rental company paid me and then the check bounced and the rental company didn't ask for their money back.  They just quietly put it on the monthly statement as a negative number.

Perhaps someone messed up and paid me before waiting the usual 10 days and was hoping that the tenants would pay it later and no one would notice.  This messes up my savings plan even more because I owe the rental company my portion of November's rent plus $750 for carpet and house cleaning.  The deposit will only cover November's rent...maybe.  I asked when I would get the deposit and she said that they were processing them yesterday but I haven't seen it yet.  I suppose I won't see it until I get my next statement.  Then, the first month's rent from the new tenants will have to go towards the maintenance fees.

This tenant turn-over has cost me thousands of dollars.  5 months lost rent, eviction and maintenance fees, $1,600 for the stolen AC unit, at least $500 for the utilities which are all back in my name, plus misc. items like light bulbs, batteries, weed and bug killer, curtains to replace the laundry doors, 2 vacation days and 4 Saturdays of my own time and labor,

I am really not happy with how the property management handled this tenant turn-over.  I lost just as much money as when I handled it myself.  The only benefit was that it was less stressful because I didn't have to evict them myself.  When the contract runs out I will definitely be switching.  I need to start asking around.  Someone has got to be able to do it better.

11 comments:

Lizzie Dinawi said...

Definitely time to move to a better agent, that is hopeless. Surely if they don't actually notify you then tha cant be legal?

Daizy said...

I suppose it was perfectly clear to the person who does the monthly statements. Not so clear to me. I mean, if they give me the money then the tenant must have paid...or not...evidently they like to give out free money that isn't really free.

The Executioner said...

These are the kind of stories that make me think I never want to be a landlord. Sorry you're having to deal with tenant issues (again).

Dave said...

I echo The Executioner's remark's. Your rental income is becoming more and more unreliable (and is even turning into a liability at times). :(

Daizy said...

I must agree, Executioner. If I read my stories I wouldn't want to be a landlord either.

Daizy said...

Dave, I never would have thought that these tenant issues would be so costly. Before I became a landlord, I thought the worst thing was needing a new roof. I haven't even needed a new roof yet but I think I could have bought 3 new roofs with all the money I have spent on that house.

Anonymous said...

Daizy, have you thought about really simplifying your life so that you CAN focus on your nephew and enjoy these few years? Sell one of your houses, sell the land, temporarily stop fostering dogs -- just work, save up, and be a mom? I don't know what your properties would go for, but if you have any equity, you could be debt free and have a big emergency fund while you got your nephew through school and figured out your next move. It seems you run yourself ragged for no return on these properties and activities, when you clearly want to be there for the sake of your nephew and parents. That takes self-preservation first. I'm afraid you're going to run yourself into the ground and not be able to help the people you love. Just an observation from an outsider... Lee

Daizy said...

Well Lee, I have thought about selling the property because it doesn't bring in any money. Only problem is I still have a ton of stuff out there. I'm working on it little by little. When I get it all taken care of maybe I'll be ready to get rid of it. That would give me at least $60k I think.

Anonymous said...

I hate that this is happening to you, but as a landlord also I can attest that this sh!t happens sometimes and will happen again..hopefully after several good tenets. However, the thing that stood out the most to me in your post was that you still have carpet in a rental unit... GET RID OF IT and replace it with ceramic tile. You will have to replace it with EVERY tenet and it is a money pit.

Anonymous said...

I have to agree with the other anonymous that simplifying would be good for you. Start first with getting rid of "the ton of stuff" that is holding you back and sell that property asap. Put it all on the curb if you have too, just get rid of everything that is costing you money and not making you money.

Daizy said...

Anonymous, I put in tile in most of the house a couple years ago but ran out of time and money and ended up just replacing the carpet in the bedrooms. The idea is to put tile in the bedrooms when the carpet wears out. I'm surprised that the last tenants were so good to the carpet. It still looks new.