Saturday, November 15, 2008

The Four Corners Rule

While at a restaurant in Alabama, our server was taking our drink order. "We have tea and Coke," she said. I promptly ordered tea.

My dining companion understood more than I did, politely inquiring, "What kind of Coke do y'all have?" The server then listed off Pepsi, Sierra Mist, Diet Pepsi, etc.

What I got to drink wasn't anything I call tea. Instead, it was something more syrupy than an '80s ballad: sweet tea.

The language barriers I have encountered working with people in the South have often been an interesting challenge. There are phrases, such as "tea" that have a very specific meaning to me. Just like Coke means any carbonated drink.

Language barriers aside, it is more the cultural barriers that I find to be just as challenging and usually more tricky. In most cases, just keeping my word will go farther than a written document. But, not always. Even the South, a culture that prides itself on tradition still has pockets of areas where written contracts are the better course of action.

For example, when the Waterfords moved in, I didn't have a garage door opener for the tenant. When I say opener, I am referring to the $20 hand-held piece of plastic kept in one's car and used for the purpose of opening a garage door. There was indeed a contraption--also called a garage door opener--installed and fully operational at this house.

When Mrs. Waterford asked about the missing remotes, I told her to buy them. I may have even told her they cost about $20 at the local big box hardware store. And, I know I told her to send me the receipt if she buys them so I could reimburse her. And, for all you legal-types out there, you can wince now: I did not put this in writing.

Imagine my shock when a receipt was faxed to me for the installation of the new contraption which opens the garage door along with two new hand-held remotes to operate the said contraption. This tenant efficiently followed up with an e-mail, explaining she needs to be reimbursed right away because she needs the money to pay rent.

After the smelling salts and EKG paddles were administered, Marty Sunshine and I discussed this. Do we pay for the language barrier, cultural barrier and my stupid not-in-writing mistake? Or, do we go back and fight with the tenant? If we fight back, what is the likely outcome? Any reputable attorney will tell you never to fight on principle.

The most likely outcome will not be a note from them saying, "oops, my bad." Instead, I can expect either a response e-mail note, sucking up their mistake, but causing ill feelings based on a complete misunderstanding or they might withhold the cost this installation from the rent and say "you said garage door opener." (and, I may have specified remotes, but I don't remember any more).

If the tenant chooses to withhold the cost of the installation from the rent, of course, I start the entire eviction process. If they fight me on the eviction process, it could take several months (for example, Mr. Smith, had he shown up for his court date he probably would have stayed in the home at least until Christmas). All this fuss for less than almost one third of their rent, and more importantly, content and compliant tenants.

In either of those situations, it will cost me a lot more than the replacement of one garage door contraption. Sometimes money isn't the only cost. Bad tenant relations can be more costly than an eviction. And, an eviction isn't cheap either. Just ask Legal Eagle's Harvard-bound Eaglet.

Early on in my real estate career, I was told the four corners rule: "If it isn't printed between the four corners of this piece of paper, it doesn't count." In this case, I don't have an e-mail or anything in writing to counter this innocent mistake. Yes, I suspect it was a naive mistake on the part of the tenant--who had never owned a home before. But, it was a very foolish and costly mistake on my part. Language and cultural barrier aside, I know better.

No comments: