Owner in CA? Westside Atlanta Tenant
Finds Out & Stops Paying Any Rent
A very nice young couple decide to take a chance on a Real Estate investment. Owner in CA now Westside Atlanta Tenant Finds Out & Stops Paying Any Rent. They bought a modest brick and frame three bedroom with one bath home on a quarter of an acre for less than $20,000. Sounds good - right?
Listing Agent provides Tenant and collects first month's rent. Then - guess what? - decides not to manage home any more. They contact Tenant and arrange for rent to be mailed directly to them in California. Now we have the Owner in CA so Westside Atlanta Tenant Finds Out & Stops Paying Any Rent.
All of a sudden all the financial dreams become nightmares. No rent arrives. Tenant constantly agrees to send and never does. The Owner starts looking around for another real estate agent to manage the property for his family. Not an easy task. His rental income is $600 per month. He has to set aside money for taxes and insurance and perhaps maintenance ahead. AND - now Tenant hasn't paid in three months already. Not a great position ...
He called us and we explained our ACRE® model for giving Client Support. We charge 10% per month (or $100 - whichever is higher) to collect the rents, answer Tenant telephone calls and keep the financial records for the Owner each month to make year-end easier.
In addition, we have a start-up fee of $540.00 for Research and Education for all Clients. In a typical day, we are real estate TEACHERS more than real estate business detail managers.
Here we have an unfortunate situation of the Owner in CA and Westside Atlanta Tenant Finds Out & Stops Paying Any Rent. During our telephone call, I suggested that he try to find another company that might be more in line with the limited income his property brought to him.
I felt sad about his predicament but I still cannot find more than 24 hours for my days. Therefore I have to focus on keeping my business running on a sound financial basis. Therefore - the ACRE® model for giving Client Support is the way I have to go to assist folks.
After a few weeks he called back again. He knew our terms. He would send a check. We formulated a plan. Better to try to clean up the house with it empty and then rent it to someone who would pay the rent honestly each month. Of course, that meant the current Tenant had to leave!
The plan: hire two off-duty police officers to go with me to inform the Tenant that the lease ending in six weeks was the end of the road. Then once every two weeks, I would hand deliver a "reminder" about leaving. Four weeks before end of lease, I would post a FOR SALE sign on Mail Box post - more to make a point to Tenant than actually seeking a Buyer.
Ah-ha - you want to ask, "Why not just get the Sheriff to evict?" Let's see - go to the Sheriff's Department and pay $90 to file the Eviction request. Two weeks to process. Then Tenant receives Notice, has a week to respond. If Tenant responds, case goes to Court. Two to six weeks to get Court Date. I think I will write another post about the procedure. Moving on ...
Lots more drama about the Tenant but suffice to say, gone on the day indicated! Miracle of miracles! In the meantime, Atlanta Homes ODAT Realty received three inquiries from Buyers!
The very nice young couple from California who had decided to take a chance on a Real Estate investment across the country SOLD the home to one of the interested folks for enough money to cover their purchase price and all their expenses. The deal was a total WIN-WIN for everyone.
Writing this up shows me that I could have a four-part story here. This would be Part Two. How we got started would be post one I guess. Lots of details still unreported - Owner Financing deal for one - but that's down the road!
Have a happy day -
Lynn
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