For Rent By Owner Pitfalls and Perils
by Martin Evans, President/CEO of Homeplace Property Management, Inc.

    Recently a property owner contacted us with a perplexing situation. Their tenant had led them to believe that although difficult times were upon them, they would pay their past due rent and catch up once they got their tax return money. The owner of the property who lived in another state wanted to be a good person, and gave them the benefit of the doubt. Needless to say this was one of many excuses for late or non-payment of rent. Months went by and the unpaid balance reached into the $5000 range. The out of state landlord contacted us.

    Upon inspection of the property it was apparent that the tenant had long ago left the home. There were papers stuffed into the door and the mailbox was bulging with bills. There was garbage strewn all around and obvious damage to the exterior, and most likely the interior. The long and short of it was that the lease was still in force and the tenant had RIGHTS! In order for us to get the property back so that it could be rented, eviction had to be filed, and the statutory waiting period had to be adhered to. No monetary judgement could be filed because the tenants had disappeared. It took several weeks before we were able to remove several dumpsters of rotting garbage and begin to repair the $15,000 of damage done by this tenant.

Damages done by tenant.

    It is much harder to say “NO” to a tenant when you are dealing with them one to one. Most owners want to believe the stories of ‘payment on the way’ and by the time the real truth is uncovered it is often too late. A Property Management company is not biased. We only have the interests of our client at hand, and can quickly play the role of the bad guy if the tenant acts up. Most tenants are more likely to comply to a ‘company directive’ than an interpersonal relationship gone bad. Once in the eviction process, a property management company is more likely to be able to produce the type of documentation that a Magistrate might be looking for like photos, invoices, late fees and correspondence. Also the property management company, much like the owner, is not profiting from a non paying tenant. We want them to either pay or move on so that a new good tenant will quickly replace them. Consequently we will be more likely to place a tenant based on factual, discoverable information, rather than a face to face gut feeling.

    If you are a landlord thinking about doing the management yourself, talk to a professional first. You may find that simply receiving your payment each month and standing next to your tenant at the grocery store not even knowing that they are your tenant may be a good thing!

by Martin Evans, President/CEO of Homeplace Property Management, Inc.
You can reach Martin at 910 319-0900 (office) or 910 262-999 (cell) or e-mail him Martin@homeplace4rent.com with any questions.