Tag: attorney

If you are a landlord, you must be on guard for the “tenants from hell.”  A “tenant from hell” is someone who will make your life a living hell by: 1) not paying the rent; 2) destroying your property; 3) being judgment proof when the Sheriff tosses them out; and 4) costing you a fortune in repair and renovation costs.  For those unacquainted with the an example of a tenant from hell, watch the classic movie, Pacific Heights, with Matt Modine and Melanie Griffith (as inexperienced landlords) getting rolled over by Michael Keaton, a tenant from hell.  Keaton drives a Porsche 911, issues bad rent checks, breeds rats and mice to drive out the other tenants, stages a fake fight with Modine to get him arrested and then kept away with a restraining order so that Keaton can try and kill Griffith while taking the building through legal action against the landlord.

I’ve evicted numerous tenants from hell.  Nearly all of them destroyed the home/apartment before they were evicted.   I recently evicted assholes renting beautiful homes in Turtle Ridge.  They drilled holes in the walls and filled the wall space with water as to claim “mold” injuries. Another just tore everything out of the house, after filing fake bankruptcies, etc.  I crushed them. But, the damage they did was real.

Poor Melanie Griffith.  She is an inexperienced and nice landlord about to be schooled by a professional tenant from hell, and risk losing her building to a Porsche driving “Carter Hayes,” who moved in with a bad check.  And that was just the beginning.

Tenants From Hell Warning Sign – They Are In A Hurry And Put Pressure Upon You To Move In

They are in a HURRY to move in.  There is some “emergency.”  They want you to bypass normal protocols – like waiting to see if the check actually clears.  They may even hand you a forged or fake money order or cashier’s check.  Once in – they are TENANTS.

More Tenants From Hell Warning Signs And Red Flags

1. They fill out a rental application, but provide fake information and then “blind” you with a large deposit (that usually is backed by a worthless check).
2. They will give you fake references and a fake landlord to “verify” their previous tenancy.
3. They will show up nicely dressed and act like they have the pick of any apartment they want.
4. THEY HAVE BAD CREDIT OR NO CREDIT HISTORY.  If a tenant has “bad” credit (e.g., below 700), then reject them, regardless of their story.  If they have no credit history, then, unless they are young adults, they are likely giving you a fake name.  Reject them too.
5. They just opened a new bank account.  You can tell by looking at the check number.  Is it a low three digit (like “109”) or worse, a  two digit number?  This is not a full proof test, because they can request the bank to make the starting number a high one, just to lull you into sleep that they’ve had the account a long time.
6. They ask for you to send them a lease to review – before you’ve approved them and checked out their financial history and references.  This scam entails you giving them a lease.  What they then do is sign it, forge your signature, break into the house after you have left, and then lie to the police and say that you signed a lease with them.  Most police will be wary about ejecting them as squatters with a copy of a “signed” lease.  This is the so-called “Gypsy” scam rampant on the east coast.
7. Their previous “landlord” is really a family member.  They may say they’ve been living with in-laws, which is why they can’t list a “real” apartment building.
8. They have no credit cards, and pay only in cash or money orders.
9. They only lease their vehicles, are currently unemployed, or have almost no verifiable employment history at all.
10. They must move in right away because they claim their kids are now in the wrong schools.
11. They claim they don’t have a bank account.  People without bank accounts are weird.  How do you pay normal bills without a bank account?  Even the gas bill needs a check, right?  Those without bank accounts normally are barred from having them – due to bank fraud.

Tenants From Hell Screening Procedures – It Starts With Verifying Their Income, Credit, Savings And Eviction History.

Make them fill out a written application.

1. Obtain a credit report – and charge them for it.  Tell them (in an application), that the $50 fee is non-refundable, and make them pay you with a separate check.  This will immediately alert you if they have a “new” checking account (or any bank account).  If they have no bank accounts, then it’s possible they cannot get one because of bank fraud from passing bad checks.  Tenants without bank accounts are highly suspicious – legitimate people need bank accounts.  I’d eliminate them from consideration.
2. Make sure the application states that their filling out the application is NOT an approval of their tenancy, but a preliminary review of their qualifications.  Otherwise, they will lie and said you charged the $50 because you “approved” them.  They will then lie and say that they are moving in now because they already gave notice at their other place, and have nowhere to go.  Stand firm.  Keep it in writing.
3. Require pay stubs and tax returns.  This will give you great information – and help you verify their previous addresses, their social security number, income, etc.  Tenants without pay stubs are eliminated.  Unemployed tenants are eliminated.  Write down all this information – it will come in handy when you obtain a judgment against them.
4. Verify their job references.  Call the “boss,” and ask questions that only a boss would know.  Don’t just ask: “Does deadbeat work there at $35,000 per year?”  Instead, ask: “What is his pay?”  “Who is your supervisor?”  “What does he do?”  “How many employees at the company? “Who is the president?”  “What does your company do?”  Ask a bunch of questions.  The more information, the better.  A fake reference will only know the bare minimum – pay, job title, supervisor name.  A real boss will know a lot about the tenant.  Ask them to call you back and see if the caller ID shows it to be a business.
5. Verify bank accounts.  Ask for bank statements. Don’t have any?  Eliminate them.
6. Verify retirement accounts.  Don’t have any?  Why?  Nearly everyone has some form of retirement plan.  Unless a young adult, not having any form of retirement account makes me suspicious.
7. Verify cars.  Leased?  Junk cars?  Most people with money do not drive junk cars.  People without money are high risk tenants.  Remember, you are running a business, not a charity.
8. Verify previous addresses.  Call the landlords.  Ask specific questions.  This is not a formality.  You could be talking to the tenant from hell’s best friend, and not a real property manager.  Ask for their address.  Ask for their fax number (a good way to catch a fake reference).  Ask them to describe who lived there, the name of the complex, what is across the street from the complex, the amount of the rent, etc.  Fake references will get caught in not knowing small details.
9. Verify income.  A good rule of thumb – rent shouldn’t be more than 33% of their gross pay.  So, make them prove up their income, and then see if the property is affordable.  Tenants from hell will move into very nice homes, because they have no intention of paying for the rent anyway.  If the rent is $1,500 per month, they better be making $4,500 per month or more.
10. Check court records.  In Orange County, for example, you can run their names on Case searches, to see if they’ve been sued.   http://www.occourts.org/online-services/case-access/
11. Run a full background check, which includes court filings against them.  You never know what could turn up.
12. Check criminal records.  Do you want to rent to a sex offender?  A full criminal records search will be necessary.  Unfortunately, criminal records after seven years do not show up on credit reports.  Go to the FBI sex offender registry, and enter the names of the applicants.  http://www.fbi.gov/scams-safety/registry
13. Still with me?  If you feel they have passed the screening, California allows you to charge up to 2X the rent as a deposit.  Do not let the deposit be used as last months rent.
14. If they are late, hit them with a 3-day eviction notice.  Set the rules.  Tell them you evict late paying tenants.  If your lease gives them a grace period (and California law doesn’t require it), make it short, like two days.  Remember, that you cannot evict during the grace period.  And, if the last day of the grace period ends on a weekend or national holiday, it is advanced to the next day.  So, keep the grace period really short.
15. Do not charge more than 5% as a late fee.  Going beyond that could be construed as an unenforceable penalty.
16. Do not include late fees in your 3-day notices.  Instead, issue a 3-day notice just for the rent. Issue a separate 3-day notice for the late fees.
17. Make them do a walk-thru before moving in and before handing them the keys.  Get a written description of the property, and a check list showing how everything is in working order.  Take pictures.  Make them sign a “Mold Addendum” to protect you if they make the house moldy, and then try to sue you for fake mold injuries.  Courts like signed walk-thru forms.  Damage that the tenants caused is their fault, not yours.
18. Do periodic inspections.  Take a check sheet with you.  If you find damage, make them fix it immediately, or send them a 3-day notice.

Finally, the above is not a guarantee, but it is a great way to protect yourself.  The following is not legal advice but given for informational purposes.  The reader of this information assumes all risk.