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With that litany of complaints (most of which are really very minor) you might be better off with new tenants. Do they have a license to operate a business in the home; is the property zoned for business? He's likely laying all these minor things on you in anticipation of an annual rent increase so he can try and counter it with these silly complaints.
You have a PMC - let them deal with it. If he doesn't like it where he is he can obey his spirits and find somewhere more suitable to live.
With that litany of complaints (most of which are really very minor) you might be better off with new tenants. Do they have a license to operate a business in the home; is the property zoned for business? He's likely laying all these minor things on you in anticipation of an annual rent increase so he can try and counter it with these silly complaints.
You have a PMC - let them deal with it. If he doesn't like it where he is he can obey his spirits and find somewhere more suitable to live.
Thanks!! I'm sure he has all the necessary permitting if required, I'm not concerned about that at all.
You're right, I need to just let the PMC deal with it... that's what they're there for. I keep letting my emotions get involved and this is purely a business transaction. I will talk to them in December regarding the increase when their lease is up at the end of Feb
Thanks!! I'm sure he has all the necessary permitting if required, I'm not concerned about that at all.
That's something you can NEVER be sure of and you really need to check. Many residential leases specifically address the issue. If the property isn't zoned for business you could be in trouble there; if the tenant doesn't have a license for the business (and anything to do with food preparation requires health inspections too) your insurance company might also have an interest. Have your PMC check - it's important.
First off, giving the tenants your contact information was your first mistake. If you are going to have a PM, stay detached from the tenants. They shouldn't be contacting you at all. Next time they do, let them know they need to go through the PM for all issues, that is what you have them for. Be polite, but firm.
Secondly, while $20 is nothing for an increase, you need to keep in mind that your expenses are really irrelevant. The rent should be whatever the market can bear. That could be $500/month more than your monthly expenses and you make a profit, or it could be $500/month lower than your monthly expenses and you have to make up the difference. How much the rent should be is independent of how much your expenses are. Your PM should be helping you determine how much the rent should be. You'd hate to chase this tenant away, only to find that rents have gone down in your area, and now you can only rent it out for $100/month less than you are getting now.
Third, I wouldn't be paying for pest control (unless your area requires it) for a tenant who has dogs (plural) and bakes as a profession from home. They have so many attractants that pests come with the territory. Unless they use all plastic bins for the cooking supplies and pet food, and clean up several times a day, they are going to attract pests.
Finally, I agree with STT. Most people who run a small business from a rental property don't even know what the required permits are. I have one tenant who has a small day care who has all the permits and licenses and has her required insurance and regular inspections. She is the only one who has ever jumped through the correct hoops. All the other tenants we've had who wanted to have a home based business have had no clue and we've turned them down. Just playing the odds, I would guess your people don't have insurance/permit/licenses/inspections as required.
Thanks!! I'm sure he has all the necessary permitting if required, I'm not concerned about that at all.
You're right, I need to just let the PMC deal with it... that's what they're there for. I keep letting my emotions get involved and this is purely a business transaction. I will talk to them in December regarding the increase when their lease is up at the end of Feb
You're sure as in wave of the hand I'm sure OR you were shown proof of the licenses and whatever city/state requirements to run a business that makes food products out of a residence? There should be inspections, city business license and certificate of occupancy at the minimum. A bakery would fall under food prep/restaurant guidelines. I'm willing to bet it's not licensed.
None of my leases allow any home run business. if someone has a home office not a big deal. But food prep, material storage sales customers coming and picking up stuff, packaging/shipping etc absolutely not. I actually have it written in the lease no business run out of premises so there is no I didn't know excuse.
As Lacerta stated about your rent price. So is your rent that on the edge highest you can go or can it be higher? If your market supports higher rent there is no reason not to raise it close to what it will bear. Like them you're also running a business. If you can charge more there is no reason not to. And if you're topped outand still need to raise the rent by $20 raise it. I would do 3%.
As for the rodents and the other issues the cooking, foods and materials used for that trade will bring in animals of that type.
Lots of little complaints might mean that the tenant just loves to whine. It also might mean that the tenant is planning to move when the lease ends. For some inexplicable reason, some tenants need to find an excuse that makes it the landlord's fault that they are moving.
Instead of just saying, "we are moving to a different place" they must have an excuse. "We had to move because there were mice" or "we had to move because there were dead animals everywhere".
That's just been my experience. Anytime a good tenant started whining and complaining about piddly little things, I would get their notice about a month later. If I had a tenant who whined about nothing from day one, they were just a complainer. If they whined too much, I'd give them notice to move.
Mid winter is a bad time to have a vacancy. If you think they are planning to move, offer them to go to month to month and hope they will stay at least until April. If they are makng moving noises, get them out by June so you have a better chance of a replacement tenant. From October and through the winter, fewer people are moving and it is more difficult to find a good tenant. Leases should be written so they expire end of May or early summer.
Thank you everyone for the continued advice, I really appreciate it!
I have had several issues with my PMC from the get-go and was thinking of switching to a new company, but honestly it's a pain in the arse. How the next few months go will absolutely make my decision for me. Regarding the baking, I do not know for sure if he has the required permitting - I wasn't concerned with that because he's been doing this for years, sells to many local businesses, etc. I asked the PMC for a copy of their lease when it was originally signed and they never sent it to me. I just sent them an email asking for it again, so will see all the provisions to businesses etc.
The last thing I want to do is lose these tenants in the middle of winter in Upstate NY. It took 2 months to even secure them when I listed it last winter. I feel the rent could be higher than it is, I just dropped it initially because I was having a hard time finding tenants, again due to it being the dead of winter when it was listed.
Thank you everyone for the continued advice, I really appreciate it!
I have had several issues with my PMC from the get-go and was thinking of switching to a new company, but honestly it's a pain in the arse. How the next few months go will absolutely make my decision for me. Regarding the baking, I do not know for sure if he has the required permitting - I wasn't concerned with that because he's been doing this for years, sells to many local businesses, etc. I asked the PMC for a copy of their lease when it was originally signed and they never sent it to me. I just sent them an email asking for it again, so will see all the provisions to businesses etc.
The last thing I want to do is lose these tenants in the middle of winter in Upstate NY. It took 2 months to even secure them when I listed it last winter. I feel the rent could be higher than it is, I just dropped it initially because I was having a hard time finding tenants, again due to it being the dead of winter when it was listed.
I wonder what the place looks like after being used to what amounts as a commercial space. Not to mention its probably not zoned and most likely unlicensed. Go find another PMC and raise the rent to going rate. Especially if you're very far below parity
I wonder what the place looks like after being used to what amounts as a commercial space. Not to mention its probably not zoned and most likely unlicensed. Go find another PMC and raise the rent to going rate. Especially if you're very far below parity
The house is fine, I saw it this summer on a "baking day."
Ok, just got the lease and the ONLY reference even mildly related is here:
Clause 3. Limits on Use and Occupancy
The Premises are to be used for living purposes only for Tenant(s) listed in Clause 1 of this Agreement, by the immediate family members of the Tenant(s), and by additional occupants as defined in and only in accordance with RPL Sec. 235-f. [It then goes further into who is allowed to reside at the house, etc]
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