A Tale of Two Landlords

I've been doing this for a few years. Up until three years ago, the whole landlord-thingy went smoothly. I thought at the time it was because of my awesome management skills. It turns out the economy was better and--at least at that time--most of my super-bad decisions hadn't come back to bite me.

Then one day I went to dinner at Mr. and Mrs. Partner's home. We were discussing all things Alabama and I lamented at how I had a tenant or two who just drove me nuts. I shouldn't have rented to them in the first place. Mr. Partner slowly turned his head and said, "Get rid of them. You don't need the headache." Little did he know what kind of headache would ensure.

Of course, "getting rid of them" led to a lot of great blog fodder. After all, bad decisions are good stories. I also found out that my "tenant or two" was really more like six or seven. And, because I was already on a roll, why not just weed out all the crummy ones?

It took two years to kiss goodbye my deadbeats and my stomach lining. And, for those of you who were paying attention, it wasn't an easy process. Deadbeats don't go quietly. Actually, deadbeats don't really just go. They need prodding from the court system.

What I found was I had different echelons of deadbeats. I had the ones like Wayward and Mr. Smith who needed to go a long time before I removed them. I had others like Mr. Richards who were limping along because they paid but stayed under the radar because their shenanigans weren't as offensive as others. Eventually they all left me but their own variety of drama remained. Mr. Richards for example left me with a freezer full of meat in a home with no electricity.

When I say that Ms. Kathy or Ms. Shirley are issues, they are nothing compared to the years prior. In both of their cases, they just needed to change creditors. I am not going to carry them a bit longer so they can pay their other bills or head to the bingo parlor on a Saturday night.

Which brings me to today. I have two tenants who, through experience, tell me I shouldn't be letting limp along. Both I believe will move if I ask. But, I am not sure I want to ask. The experienced landlord says this doesn't bode well. But they aren't the Wayward/Mr. Smith/Mr. Richards/Ms. Betty types. They are decent, hard working, communicative folks who have always paid on time (more or less) and have gotten themselves in a situation. I am cautious to say, "this is different" than before because the words are the same, but they are coming from different types of people.

Tenant A: Before her life changed, she paid on time and left me alone. About a year ago, all heck broke loose and she has had the darnest time keeping up with the bills. I get her rent check broken into two chucks throughout the month. He lease is up soon. I suspect she will look into moving. I know she isn't going to find cheaper for the amount of home she has if she leaves. She will soon find out too. But more to the point, she has never, ever been an issue.

At the moment, I can go on indefinitely with this arrangement if she will. However, I know if she moves I can ask much more for the home. But I am taking my chances on another tenant who might have baggage.

I hate tenant baggage.

At least with Tenant A I know where she stands. She communicates on a regular basis and hasn't caused me a lick of grief in three years.

Tenant B: She has rented from me for four years. Lik e Tenant A, she doesn't make her problems mine. A few months ago, her husband lost his job, but all she did was let me know. She continued to pay and then she got laid off too. Now, rent is super-late. She is communicating with me about what is going on, but only after I pointed out communicating with me is in her best interest. She is embarrassed. I know she is working on rent.Her husband was supposed to get a job offer the day the tornadoes hit Birmingham. Now his job is up in the air. I suspect if I allow her to go on limping, she will eventually straighten out.

I am expecting (minus Tenant A) at least two, maybe three vacancies this summer. One of them is one of the homes Kirby manages. Given the now shortage of rental homes in Birmingham, it might keep my tenants with me longer. And, if they do go vacant, I suspect I will have my choice of new tenants.

But vacancies cost money. So, Tenant A and B not stepping up make me more vulnerable. The experienced landlord in me says not to make bargains with folks who struggle. Giving a teensy bit gives the wrong impression that I am weak. But the other experienced landlord in me says to work with tenants who deserve a chance. They don't have baggage and (so far) they have honor.

Hopefully I am listening to the right experienced landlord.