Flakes, Phonies, and Frauds: Landlord Edition
We always hear stories about the nightmare tenant who doesn’t pay her rent on time, leaves the premises damaged, perpetually complains about non-issues, and pisses off all the neighbors with hosting loud parties. I empathize with any landlord who has found herself in this situation. Nightmare tenants can be awful.
But what about the nightmare landlord who views her tenant as a cash-cow, refuses to honor her responsibilities to maintain a safe, properly maintained dwelling, and makes the tenant chase her for the rightful return of the security deposit or other agreed upon reimbursements? In effect, this type of landlord weaponizes the landlord/tenant relationship by dangling retaliation or holding hostage a tenant’s security deposit in order to force a tenant into unreasonable compliance. Yea, that person. Do your homework and never rent from a landlord like that. No desperate situation is worth the headache and emotional distress. If you are a responsible tenant, you are probably a thoughtful person too. The problem is that at the hands of a selfish landlord, you may deal with an unthoughtful person.
But how do you know what this bad landlord looks like? Does she have “slumlord” prominently displayed as a lawn sign outside her home? Is there an “avoid like the plague” air quote in flashing lights pointing directly above her head? No, unfortunately not.
No one has a crystal ball but we do know is that the best predictor of future behavior is past relevant behavior. Proper screening of a private landlord is an absolute must unless you are into playing Russian Roulette. In a private landlord/tenant transaction, niceties and blind trust are the equivalent of a pile of bullshit painted in 24-karat fake gold. It’s really as simple and basic as that. Because if there is one irrefutable fact I know, it is that flakes, phonies, and frauds come in all shapes and sizes, all religions, all races, and all backgrounds. There’s really no profile for a liar or a cheat. So in the absence of a warning label, follow the other golden rule and never judge a book by its cover.
It is accepted practice for a landlord to require credit information, employment information, and references in order to determine the suitability of a tenant, correct? This process of checking on a renter’s background is an obvious advantage for the landlord. It helps the landlord gain some insight into the tenant’s personal circumstances, possible motives, and financial fitness to follow through with the terms of the rental agreement. Most importantly, it provides a sense of security for the landlord before handing over her home, condo, or investment property over to strangers. No landlord wants to get screwed. Well, guess what? No renter wants to get screwed either.
So what about the landlord’s past relevant behavior and business practices? How is a prospective tenant to know if she is getting a Class-A landlord (example: someone who is responsive, honest, and accountable) versus a Class-F landlord (example: cheap, self-absorbed, and insists you call unlicensed “cuzin Ronnie” for all emergency repairs). Why does our current system not require a consumer database that rates and qualifies landlord worthiness? For example, how many tenants have complained about a particular landlord or successfully sued a landlord for security deposit problems in the past? Does the landlord have past tenant complaints? I would go as far as to say that a landlord’s credit rating and evidence of financial solvency should be required disclosure to the tenant, much like the opposite. Why should a responsible tenant be put in a position to constantly battle with a landlord who doesn’t want to repair a broken door because the landlord is, for example, at a rears on her own car payment or has a history of using security deposits as vacation money? A landlord’s personal financial problems are simply not the tenant’s issue. No one is forcing anyone to become a landlord. It is a business choice, and like any business, either do it right, and with a sense of ethics, or get out of the marketplace. When the landlord starts making the tenant feel responsible for managing the landlord’s personal circumstances or misfortunes, it’s time to run away! Oh, but wait…that damn lease agreement and security deposit that holds the responsible tenant hostage!
I would argue that a responsible tenant should not rent from any private landlord who does not utilize services of a reputable property management company. A responsible tenant can legally break a lease without sacrificing her credit when the landlord refuses to provide a habitable, hazard-free home, as required by law or outlined in the lease. Furthermore, the deposit is held in a trust account, earning interest, not co-mingled with the landlord’s Christmas gift money. Private landlords who forgo property managers usually suffer from a combination of disorganization and misplaced frugality. They also tend to have a distorted sense of accountability (as in, it’s a one-way street). Do not rent from this type of landlord. You will regret it.
Landlords: Before you think I am a landlord hater, think again. My husband and I were landlords for over fifteen years. Often times, we lost money on our rental properties due to the cost of maintaining them and addressing tenant issues. This was not the tenant’s problem- the issues were almost always legitimate. The property management company was the intermediary, but the financial burden was ours. Our tenants really appreciated us and some stayed for years. That said, we were never friends with our tenants. Trust me…your tenants would much rather feel confident that maintenance issues and repairs will be addressed promptly; that their time and privacy will be respected; and that they won’t face retaliation for bringing concerns to your attention instead of being your friend. Using friendship to screw a tenant is exploitive.
The purpose of this post is not to suggest that being a landlord is by nature exploitive and unethical, but being a bad one most definitely is. Therefore, “PSA” to every private landlord reading this: If you are not available to respond to a tenant’s issues within a reasonable amount of time, or immediately in the case of emergency repairs, or think a security deposit is a self-assigned tip, you have no business renting any dwelling to other people without the services of a property manager. PERIOD. END OF STORY ON THAT.
If you are renting out a furnished home with old and used furniture, you better be very clear about your definition of “wear and tear” and reasonable in your expectations from your tenants. Remember, “beauty is in the eye of the beholder” and sentimental items are only sentimental to the actual owner. If the coils in your sofa can be felt as a result of deteriorated old cushions, or appliances are on the verge of breakdown, they are useless to a tenant who wants to live in a…wait for it…livable furnished home. Replace your throw-away furniture and broken appliances or stop advertising your home as “fully furnished” so you can make an extra buck. You can’t resuscitate the unsalvageable. This is false advertising and illegal. Your tenants are not paying premium to sit or sleep on rocks. Come on, be the Class-A landlord!
True Story #1:
In my late 20’s, when I first moved to Los Angeles, I rented an unfurnished, very basic, no-frills, townhome from a private landlord. She charged me twice the rent for deposit even though I was a single occupant and had no pets. When repairs were needed the landlord insisted that her cousin drive up from San Diego and address them. Sometimes that meant waiting for weeks, but I never argued with her. As a contractor’s daughter, I often opted to ask my own dad to handle repairs when my parents visited. I paid my rent on time every month for three years, often times early, and the neighbors loved me. When I got engaged and needed to move, I provided my 30-day notice as well as my last month’s rent in the same envelope, like any responsible tenant. The landlord even came to my rental to pick it up and complimented me on how clean and orderly I had kept her property. We had a great conversation and she congratulated me on my engagement. I came home from work a few days later to find a document affixed on the front door…an official eviction notice from the sheriff. Apparently, the landlord was in foreclosure and had completely stopped paying the mortgage for several months. Wow! Nice to know. In the end, the landlord refused to return my rental deposit and also filed for bankruptcy, effectively shutting off all legal recourse on my part. I lost my deposit, she lost her property, I gained some perspective on flakes, phonies, and frauds. Why should this individual be allowed to ever rent to another person without full disclosure of her past experience with a tenant? How will the next victim of her potential exploitation know what she is getting herself into?
True story #2:
Early in our marriage, my husband and I rented an old but comfortable home in a great neighborhood. The home was definitely rental income for the landlord and his philosophy was the less he spends and the more we pay, the more he makes. He was responsive, but his answer to everything was white paint. If any repair or problem required anything other than white paint, it would not get addressed. There was a tall, dilapidated storage unit in the backyard that was not only a useless, rotting eyesore, but also a hazard for a variety of reasons. The landlord refused to remove it because, well, there was work and expense involved. Unbeknownst to us or the landlord, when my husband and I would leave for work, the next-door neighbor’s young child was sneaking into the backyard, climbing on top of the storage unit, and using the elevated structure to jump into his own pool across the fence. How did we find out? I drove home in the middle of a workday and found the street cornered off with police tape and flooded with emergency response personnel. Unfortunately, that situation ended very tragically for all parties involved.
Final thoughts: Yes, real estate is a great way to make money. But like any business, you are providing a service (think “excellent customer service”) in exchange for someone’s cash. If your idea of being a landlord is simply making money off of others who need a place to live, then don’t do it. And for those who need a place to live, always go through a property manager. Do it by the book. It’s safer. Maybe one day there will be a landlord “credit rating” much like a tenant credit score and I’ll change my mind. Until then, “trust but verify” should work both ways.
