Renting to Repeat Offenders

rmason

This discussion is related to an earlier DO NOT RENT TO discussion:

We have a small and familiar list of tenants who always appear on our collection call list.  They run their past due account almost up to the auction date and then pay, with some of them paying the day of auction.  We’re looking at adding these repeat offenders to our DO NOT RENT TO list even if they don’t go to auction.  There is no ROI for keeping these people as our tenants.  Is this process something that should be spelled out in our lease?  Thanks.

Orkocean

This has been discussed multiple times in various threads but if they're paying before being sold you are making MORE off them than a tenant who pays regularly on time for the same price unit. The only way you wouldn't be is if your site does not charge appropriate late/lien fee's to recoup the cost of sending letters/ads etc.. It sucks for monthly numbers when people go months without paying but anyone who looks at the bigger picture will see in the long run you are making more money for those small headaches.

At least with repeat offenders it makes the processes easy, I have excel spreadsheets I use for my processing and it's a quick copy and paste to get all my letters for the tenant/alternates going. 

rmason

Thanks

ESS

Orkocean said:

This has been discussed multiple times in various threads but if they're paying before being sold you are making MORE off them than a tenant who pays regularly on time for the same price unit. The only way you wouldn't be is if your site does not charge appropriate late/lien fee's to recoup the cost of sending letters/ads etc.. It sucks for monthly numbers when people go months without paying but anyone who looks at the bigger picture will see in the long run you are making more money for those small headaches.

At least with repeat offenders it makes the processes easy, I have excel spreadsheets I use for my processing and it's a quick copy and paste to get all my letters for the tenant/alternates going. 

We have made soo much money on 3 repeat offenders, at least. They end up paying our $50 lock cut fee and $30 certified fee, plus rent & late fees - like clockwork. Wuteva, it's their money, I'm just happy to take it

i43storage

Yep - as long as you are charging appropriately for your troubles and they keep paying, you are making money.

CVSSSTORAGE

we have a lady who for 5 years now has went to every other auction we have had, we always know she will pay the day before auction. The auction guy always says something every time he has to cut her lock, her again as he kicks a pile of cut locks out of the way lol

SimplySpace

We increase a tenants rate by 5% (or bring them up to market rate) every time they go to auction, so most of our repeat offenders are paying much more than current tenants. It's a win-win for us.

JamesStorage

To quote everyone else, keep renting to them. The only exception I would make is if they are abusive to the office staff. It's one thing to be chronically late, it's quite another to be rude about it.