Our Rental House Got TRASHED!

Elaine is in Harrisburg Pennsylvania welcome to the Dave Ramsey show Elaine I thank you for taking my call sure what's up we have a rental property and our last tenants trashed it so with legal fees and everything that we had to get them evict it it put and the unpaid rent put us down about ten thousand dollars to get it ready for another tenant to move in is going to cost about nine to ten thousand dollars on top of that that we've lost now what we'd like to do down the road that we've talked about for years is VRBO it would take instead of the nine to ten thousand to fix it up for an for a new tenant it would take about twelve to fifteen thousand and either way anything that we do we're going to have to dip into our emergency fund because all of the illegal fees and everything were taken the money that we had in the rental account we're used up with those items so I wanted your advice do you think we should go with the lower amount and have someone move in and use the money from the rent to save up to get it ready for VRBO or now should we take our time getting it ready and and take the extra money out of our emergency fund and do that now okay so to get it ready for the market at ten thousand dollars you have the ten thousand dollars without touching your emergency fund no no that would still be out of the emergency fund how much is in your emergency fund about thirty and what's your household income about eighty five gross okay so the difference in ten thousand our merchants are under twelve thousand I'm your emergency fund doesn't really matter does it mm I mean you're gonna do one of the other right right it's just a matter which way you want to run this property so have you figured out how you screwed up as a landlord yes you know what it was we were desperate we wanted to get somebody in and had a bad feeling but thought I was helping someone out and I should have gone with the bad feeling but yeah right after I get desperate I usually get stupid and right yeah right after I get stupid I usually get broke and yeah every time I'd me is just this pattern in my life I've had to stop doing it so when I start feeling myself desperate I just tap the brakes and take a chill pill and go waiting that gods in charge I'm not doing this because yeah you knew this was bad folk and then you didn't follow up and you didn't lean on them I mean you let them stay in there you never know everything back to the property you never followed up you didn't push you let him stay in there like two three months too long well I was in the property regularly yeah how about a dogs well I mean if you're in the property and it's going down buying you a victim and I started that process and it they had to be like I think it was a full month behind in rent before my attorney said that I would have any also you need your leash and you need a new lease that says if they're not taking care of the property they can be evicted regardless of the rent okay yeah so this is what I mean this is landlord experience you're having here so every time I do something like this and I lose money because somebody takes my freaking head off which is what happened here I want to know where that shot came from and I want to duck it next time I want to learn what happened so like you know you change your lease you change your process on how you handle people and by the way VRBO is no magic pill there's crazy there's crazy people around VRBO houses all the time so it's not like it's got an exclusive to non crazy tenants or something they'll trash you know you'll get some you know Bachelorette weekend in there they'll rip the paint off the walls man I mean it's you have to watch what you're doing whatever whoever you're letting in your property and so you need a very strict Villar br br bo rules are you in a resort setting Wow er bo why would anybody bother it's in the country it's for people who want to get away you think there's a market I did check on on VRBO and there are other properties in the area I'm going to say within a 20-mile radius that are doing it contact those owners as if they ever in them there are reviews on and I've read the reviews but yeah that I can do that I've used to other reviews two years old and they ran it once every two hours I mean you know here's the thing if you don't rent VRBO at least fifty percent of time you're not even breaking even on a traditional rental right it's double but you know so you gotta you got to keep it full 50 percent they break even on a traditional rental and it's a lot more hassle a lot more trouble on your part I mean you can do it I don't care but make sure that there's enough market to keep it full fifty percent and then you've got a ride herd on this all the time and I don't care which one you do ten thousand twelve thousand dozen army you got to put your emergency fund back as soon as you get this thing fixed back up but what whichever one you do go back and say yeah these people were scum yes they were you know they let their dogs do stuff to houses people shouldn't because they were trashy people and so on they've got a lot of blame on their side of this but that their side of the equation I can't control my side of the equation I can control so it never happens again I'll put in my lease conditions have to be met and you have to and I'm gonna do you know once at least once a quarter walkthrough and no pets that's why I have no pets aya pets at my house but not any of my properties you don't like dogs no I love dogs I hate dogs as a landlord I really hate cats as a landlord you can't get cat smell on another no way I mean you have to burn the freaking house down to get cat smell out of it so you know no no kitties period no monkeys no Petro ch's nothing you know so whatever you know and so in your you know and if I we walked through really fine an animal you leave her the animal leaves because your lease said that you know so you learn your lesson and you know you become a little bit you know you start realized you know owning property and being a landlord is not it's not a charitable donation and so it doesn't work through charity that way you have to do your ministry work otherwise now if you want to have a house that's ministry and you just let people live there that's wonderful that's a whole different scenario though but when your landlord in you have to have set of guidelines you go last time I did this it hurt I'm not doing this again last time I let somebody stay in there three months not paying no no thinking they were gonna be okay they're not gonna be okay you know you're ten seconds late we're all over you period and you know we're gonna inspect the property and we're not mean we're the best landlord you'll ever have oh yeah there's just not tear my freaking house down and pay your rent why is that hard for some people well it is because some people's parents didn't raise them well and so you just got to put your plot blocks in place regardless of which of these directions you go because you can control a lot of these variables and not allow this to happen to you again or you need to sell the piece of real estate and if you're not going to be an active hands on up in the grill landlord that's what you're going to face thanks for the call

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Views: 261,035

Rating: 4.8649454 out of 5

Keywords: Our Rental House Got TRASHED!, our rental got damaged, real estate investing, tenant destroyed apartment, bad tenants, section 8, rental property, bad renters, real estate investing strategies, the dave ramsey show

Id: m6ETbjLqIps

Length: 8min 1sec (481 seconds)

Published: Wed Oct 03 2018