Bad tenant? (Houston, Katy, Vega: sales, real estate, renters)

[Old Guard]

Hello,

My Fiance has a nice house in the Houston area. She tried to sell it last year and was unable to do so, I think she had a bad real estate agent but they are also building a new development close by with similar houses that may impact the sales of those in the slightly older community.

But the problem she has now is that started renting the house to someone that may not be the best tenet. The person is late with her payments and now short on the rent. We also believe the tenant may be breaking things. They moved in and now want carpet changed, there have been some other problems with appliances that were not there before either.

We would like to sell the house but are not sure if it would be difficult with a tenant.

Does anyone have any advice? My thought it to find a no-nonsense real estate agent that may be able to deal with the tenant and sell the house? My belief is that Texas in general is landlord friendly? Is that the case?

Any ideas?

[hendersj31]

Texas is more landlord friendly than other places for sure. Selling a house with a tenant doesn't have to be a problem but you will need cooperation from them so it can be challenging.

The lease should have a section for things like this to include how much notice is required and that the home needs to be presentable etc...

[Old Guard]

Thank you, the lease does have a section for this. I appreciate the response.

The home is in a good area in Katy with a good high school.

Is there anything I should look for in a real estate agent?

[hendersj31]

Look for honesty. Even if you don't like what you hear. The agent should know the market where your house is located and know what buyers are looking for. Avoid agents who suggest you do a bunch of expensive upgrades to get the house to sell faster. You are hiring them to sell your house, not to flip it.

[Ghost Town]

Originally Posted by Old Guard

Thank you, the lease does have a section for this. I appreciate the response.

The home is in a good area in Katy with a good high school.

Is there anything I should look for in a real estate agent?

I don't know what issues you had with your previous agent. But I would definitely recommend to go with Redfin. I think this is a no brainer. They have great teams of highly motivated agents and provide discounts

[oceangaia]

If you had no experience as a landlord you made a big mistake renting directly and not using a property management service that knows how to screen applicants, secure deposits, handle service calls, collect the rent, and get evictions. It hurts to give up 10% of the rent especially if you are barely breaking even but it might hurt a lot more to pump $$$ into repairs/upgrades to bring the home back up to marketable standards.

[hendersj31]

While this is true all the bad stuff happens even with the most screened tenants sometimes. In 20 years I have had great tenants on paper do all those things. It just happens sometimes. Circumstances change for the renters sometimes and a property management company won't be any more effective collecting rent from someone who just lost everything in Vegas or a mother who's husband recently passed and didn't have much savings.

I am not trying to discredit your post because I do agree. Just saying SH)*)() happens

Originally Posted by oceangaia

If you had no experience as a landlord you made a big mistake renting directly and not using a property management service that knows how to screen applicants, secure deposits, handle service calls, collect the rent, and get evictions. It hurts to give up 10% of the rent especially if you are barely breaking even but it might hurt a lot more to pump $$$ into repairs/upgrades to bring the home back up to marketable standards.

[Old Guard]

Originally Posted by oceangaia

If you had no experience as a landlord you made a big mistake renting directly and not using a property management service that knows how to screen applicants, secure deposits, handle service calls, collect the rent, and get evictions. It hurts to give up 10% of the rent especially if you are barely breaking even but it might hurt a lot more to pump $$$ into repairs/upgrades to bring the home back up to marketable standards.

Thank you everyone! She has a contract and 2 months worth of rent but now it is coming back to haunt her.

[Culembourg]

Im sorry you are having difficulty with your tenants. It sounds like there is a possibility that your tenants were not properly screened. When they submitted an application, there should have been a few other forms that accompanied it. One is a letter that would need to be signed by their previous landlord or property manager that would specify if they have ever been late on payments before. Proof of income (paycheck stubs) as well as a letter of employment should have also been reviewed.
[Mod cut]

Now, what to do...
Send a demand letter for rent as well as late fees. If you let it slide, it will become a regular occurrence. Send a copy of the lease with this highlighted.

If the lease is NOT expiring in the near future (more than 3 months)
Look into buying a home warranty. I recommend First American Home Warranty. You can purchase a plan for $400-$500 a year. This will cover appliances (Fridge and washer dryer are optional and bring it to the $500 range) It will cover AC, Plumbing etc. If things begin to break, you can tell the tenant to call in each claim. They can schedule directly with the warranty company.
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If the lease is expiring soon (within the next 60-90 days) make sure to visit the home to see its condition. You have a right to inspect. You also have the responsibility to as a landlord...check smoke detectors etc.
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During the last 30 days of the lease, you should have it on the market to find a new tenant or buyer. This is in a standard lease agreement. Make sure that it is in show ready condition prior.

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