The truth about being a landlord

In 2016 when my company took on our first property and rehab to lease as an "option to buy" the challenge to work with moderate income tenants began.  At the start of the second year of their lease they began to be late with their rent payment.  They would pay the late fee and didn't seem to care. When the end of their lease was brought to their attention and a new "lease with option to buy"' was put in front of them, they tried to ignore the  notices even when they were sent by registered mail.  When I asked to go into the property to take measurements so that a new bedroom with a new bathroom could be added, I was stonewalled.  The next thing I know I am getting a call from Roto-rooter that the property had level 3 contamination.  Seems as though the tenants neglected the fact that water was leaking from the toilet in to the floor down to the basement.  They covered up the smell by burning incenses and using air fresheners.  When we, the owners, arrived to learn of this issue the father of this family occupying the property was driving away in the new Cadillac SUV to go to his mother's 70th birthday party instead of staying to find out how the problem would be resolved.  It ended with them agreeing to move out.  What remained was very disappointing.  Mold in the refrigerator, rotten food in the stove, left behind furniture, broken light fixtures, a hot iron burn mark left on a maple-wood floor, walls painted red and deep blue, burn marks the kitchen counter and this was just the beginning.  Several months later and much rehabbing the property was ready again to sale or rent.  It was rented to a military veteran family.  It is still occupied with a timely paying tenant as the tenant has a payee.  The sad part is the tenants have no concept of cleanliness.

NOW FOR PROPERTY #2
In 2017 the company purchased a townhome, just in time to rent to another military veteran who decided after all the arrangements were made for their occupancy, decided to renege on the contract and walked out on his family leaving them in the property.  The adult in the home was no longer able to meet the rent obligation and fled in the middle of the night leaving 4 months of unpaid rent.  At least there was no damage as the remaining adult had planned to buy the property before she fled.  Once the property was cleared of all their possessions another military veteran who was in need of a place to live due to the misbehavior of a member of their family moved in.  This veteran was out to use the system.  The first month's rent, security deposit and a non-refundable pet deposit (for 2 Great Dane service dogs) was paid by MAC-V.  The second month was paid by the HUD-VASH program.  The tenant did decide to pay the third month of rent, then the problems began. This tenant kept saying they would get caught up on their non-payment of rent for the next 3 months that followed.  Once we decided to sell the property and do open houses so that prospective buyers could see it, the tenants decided they would go to a lawyer and try to claim that we, the owners, had no right to show the property as it was their home and this was disturbing their quality of life.  We had to go to a lawyer to have eviction papers filed with the courts as we are a LLC.  The cost $6,600.00 went for court fees. The tenants next steps were to have an inspection done without our knowledge and claiming that they were made sick by mold in the basement.  This smoke scene was ended when the courts confirmed the case was about non-payment of rent not the issues the tenant never complained about during the 4 months that they thought they would get away with of not paying them rent. The courts supported a decision of eviction.  The tenants were to be off the property by noon on December 31, 2019.
These tenants took an additional 4 days to leave the property.This group not only left  what they did not want, but let their so-called service dogs scratch holes in the bedroom doors and the trim of the doors.  Another $4,000.00 to rehab the property since the majority of the carpeting due to the long dog hairs in the carpet.  Come to find out the tenants had brought in a sheep dog without the approval of us, the owners, or the HOA. 

This passive income can be great if you have the right tenants - tenants that respect the fact that renting is a privilege.  Other landlords have not been so privileged with good tenants that   respect this opportunity.

Yes, property owners who rent out property receive tax breaks for taking on this task of housing our fellow human being, but we take on a lot of responsibility.

If you do not have the stomach of constant tension of wonder if you have the right tenants, this is not the business to be in.  It can take years to find the right tenants and make a profit in your business.  Yes, a business.