The Ugly Side of Real Estate: Dealing with Professional Tenants
Let me tell you about the ugly side of real estate. I’m talking about professional tenants with unlimited free legal services. You know the type—they know the system inside and out, and they’re not afraid to use it to their advantage.
So, here’s what happened. I bought this building on March 8, 2020, and I knew right off the bat that these tenants were going to be a problem. I wanted them out before closing, but sometimes things don’t go the way you want.
The court ordered them to leave, but they had access to free legal services that allowed them to appeal. And then COVID hit, and the whole thing got lost in the shutdowns. Despite all this, I crunched the numbers and decided the potential losses were worth it—the deal was still too good to pass up. So, I went ahead and bought the building.
Fast forward, and they’re finally on the way out. They’ve run out of appeals, but it wasn’t without a lot of headaches along the way.
What They Put Me Through
Terrorizing Other Tenants: These folks were making life miserable for the other tenants in the building. They weren’t just bad neighbors; they were downright nasty.
Damage to Their Unit: The amount of damage they did to their unit was unbelievable. It’s one thing to live in a place, but they were outright destructive.
Vandalism: They didn’t stop at their unit; they vandalized the building itself. I’ve got it all on video, but the police wouldn’t press charges.
False Claims: Whenever the legal system started closing in on them, they’d start making up stories—like claiming things weren’t working in their unit. All lies, all documented.
Health Department Complaints: They even filed a complaint with the health department because they didn’t have hot water. What they failed to mention was that the gas company had shut off their gas for non-payment. Case dismissed.
Refused Cash for Keys: I offered them cash to leave—multiple times. I even gave them a blank check, telling them to name their price. But no, they refused.
This last round of legal battles took nearly seven months with no rent coming in. But finally, it’s coming to an end.
Was It Worth It?
Despite all the frustration, I have to say, I’d still buy this building again in a heartbeat. The deal was just that good. In fact, I felt like I stole it from the seller, even though I paid the full asking price. The day after closing, the seller called me to thank me, telling me he slept so well the night before. That right there tells you what kind of stress these tenants were causing.
Here’s the Crazy Part
You won’t believe this, but these tenants found another place to rent. I talked with the mother, and she admitted it’s tough finding a place when you don’t have money—neither of them work. Yet somehow, they managed to find a new spot. I’m guessing another landlord didn’t bother verifying income or running a background check. And you know what? I’ve got a hunch that building will be on the market at a deep discount soon.
This is the reality of real estate investing. It’s not all sunshine and rainbows, but with the right mindset and due diligence, you can still come out ahead. Just make sure you know what you’re getting into and always have a plan for dealing with the unexpected.