So everyone always hears the bad stories about property management. And quite frankly, they can be more fun to tell. But it’s also good to tell a good story every now and again.
A few months back we moved in a couple that has a young baby and they had good credit, a good rental background and pretty good jobs. But because they were young and the rent was going to be up at our comfort level when considering rent + expenses/income we decided to ask for a co-signer.
Things were fine for a few months but then he left her over another woman and took the baby. Key endless couple drama here. One locked the other out and one left and tried to get back in and possible kidnapping and over-the-state-lines charges and etc. Oh, and of course, they stopped paying rent because neither wanted the other to benefit.
Well, each time they would call to talk we just told them to hold the drama and pay the rent. So we filed eviction and collection on everyone, including the co-signing mom. Poor lady. She had excellent credit and a great job…but a nut for a kid. She ended up stepping up big time.
We negotiated that we would release them from the lease IF all past rent was paid, late fees paid, damages/cleaning were paid and the legal fee our attorney had incurred were paid and a forfeiture of their deposit. Mom stepped up big time.
Now I realize she did this in her best interest. But let’s face it, many a co-signer won’t do so and it has to go through legal channels. She was a woman of her word and in today’s America that still counts for something. Since she was willing to do that we let the lease go because it’s in a part of town where renting shouldn’t be a big hassle.
So in the end the investment property owner had to wait about 48 days for his money but he was made whole plus a tiny bit more. Property management comes with all kinds of wrinkles. Here is a story of people who made right but it’s also a story of why a rental property owner needs to have 3-5 months of house payments in reserve…just in case.