Tenants Completely TRASHED My House, Now I'm $35,000 In Debt!
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- Опубліковано 27 сер 2024
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Sold my rental property a few years back. There’s nothing passive about the income from a rental. An index fund will never call you at 2am with a leaking pipe.
If you gonna do rentals put in the least the tenants must have rental insurance
that's what i figure too! no rentals is a blessing
Nothing builds long term wealth like real estate.
@@jacobhayden1126 You're better off just buying a house and leaving it empty then. A lot of foreign money investors are doing that across north America.
@@Sizukun1 unfortunately, I am not a foreign billionaire.
Renting isn’t worth the risk these days.. good tenants are few and far between. People have no respect
Trashed rental is part of 'passive' rental income. Two sides to every coin.
Yep and eviction moratoriums as well. I will never own a rental. Index stocks take zero effort.
@@stevenporter863 the way the world is going I think the chances to make a profit are slim too many entitled stupid people that harm others to no benefit to themselves
Not true; I am a veteran, a new college graduate, have rented for years and never caused trouble. The only trouble I ever had was from management companies that pocket everything, make no repairs, let the place run down to the point of being close to dangerous, jack up the rent, and pocket everything. My current apartment is a gem; no smoking complex, no pets, no exceptions.
@@chrysiarose and you like all those rules lol
But I thought being a landlord was easy, "passive" income?? 🙄
"Passive" is merely an IRS defintion. Landlording is definitely an active job unless you have a management company do it for you.
Have a property management company do the work for you and make sure you have landlords insurance. Too many people try and save pennies and it ends up costing them thousands instead.
Hahaha! So the saying goes...
When I rented a room or an apartment, I had many complaints about this & that. So as long as you take care of business (keep the place functional and bug free), you won't have a lot of costly complaints from your tenants.
Lol says the people who have never done it😂
Everybody’s your friend until they decide they want their money over you.
He's an accidental landlord. Bought it as a fixer-upper for himself, then suddenly decided to rent it out when he had to move out. If you're going to be a landlord, be an intentional landlord, taking the time to choose your properties and tenants carefully and without duress.
Good idea but sometimes all of these things don't protect you from bad renters.
This is why you check up on tenants and the property just to catch things like this before a year goes by.
@@davidcurtis5398 But it makes bad renters a lot less likely so still a worthwhile step.
All active military guys, like this man, have no time to manage renters. This is what the Ramsey team acknowledged with him. Units can actually reprimand guys for mismanaging finances, as it causes distractions from duty.
He should have used a property management company once he was no longer living in the area.
I wonder what's worse for a landlord: a tenant trashing your property or the CDC telling them that they don't owe you rent?
the CDC telling you they don't owe rent. You can sue the tenant's for property damage, good luck suing the CDC
It's all bad. I have 128 units and it's never easy.
@@victorblock3421 do you have a top 1-3 tips for the new landlords out there?
I just got $17.5K from the gov't for unpaid rent from two tenants. You do know there is a program out their that will pay Landlord's lost rental money.
@@johnSmith-uz8nl Are you the same guy who runs those ads that you can make money from stuffing envelopes at home?
John, it's amazing how fast you zero-in on what's really going on, and great how you communicate it. You (and Dave) really helped this guy, and did it on his level. Excellent!
I agree this made me go “wow”.
I don’t understand why anyone would do this to their landlord or want to destroy the residence that they pay for and enjoy? What is wrong with people :-(
They're deadbeat losers. I can't imagine living this disgusting. My guess is they were doing drugs or something to be acting that way.
I was raised better than to trash someone's property.
@@lynnebucher6537 I was too, but the other side of the coin also should be true, I wish some landlords weren't such jerks
I bet they just don’t know better
I won't destroy property but if it's a shit landlord I might leave a piece of canned tuna inside the curtain rods.
They'll tear down their own property trying to find the smell and remove it. This is only under certain circumstances.
Landlords are going to be a bigger problem in the future because of social media and "passive income"
They're not going to like getting unexpected calls about a heater being down in the winter or the AC being down in the summer.
The roof is leaking, the plumbing is acting bad.
The sooner we realize renting out property isn't passive income the better.
I had a tenant in Los Angeles do $40k damage to a house. I never rented anything out again in Los Angeles. I only do business in Idaho now and have never had a tenant damage anything.
You should not be a landlord without large cash reserves.
A simple background check charge of $45 to $65 paid by the prospective tenant is enough to scare away most deadbeats. Just adding that one line to a rental advertisement is enough to save you thousands in damages and unpaid rent. It’s not full proof but helps a lot.
I need to start doing this. I have one dead beat tenant.
@@johnSmith-uz8nl you need to ask way more questions and more information when you get a tenant you need references from past and current employer bank statement from 18 months currently employed for at least one year income at least double or triple rent cost
Watch out, they will get a B/F or G/F to fill out the background check. They check out OK, however the other party IS the deadbeat.
@@bik3r230 Those people buy homes!
@@alinatamashevich3354 background check for all persons living there
I’ve never had a tenant treat my house well. They don’t care.
“Sell it”. I love it when I said it at the same time 😂. I’m getting the hang of this
Showering without a shower curtain is one of the most destructive things that could ever be done. I would never do that even if I was renting.
You and me both after two or three years I get anew shower curtain. But I also open the windows in the bathroom even with a venting fan overhead and on. Just don’t want any mold or mildew.
I knew of someone that did that because they saw psycho and we're terrified of not being able to see out. They would always make a huge mess and dry it all up with towels after. True story.
@@Ryan_DeWitt be honest and admit that is you, u'r talking about.
@@Ryan_DeWitt they never heard of clear plastic?
@@donaldlyons17 overhead fans are probably mostly too small or underpowered, anyway. I have teenagers and I stuck a regular larger fan in there. I'm sure there's some damage because the house is 17 years old now, but hopefully I can sell it without too much of a loss on that part.
I grew up watching my dad manage a rental house. He had one tenant who trashed the house and burned him out to the point where he put a for sale sign on the rental house! I get the impression that this is a very common tale in the rental house business. The quality of the tenant can make or break owning a rental IMO. When you have a good tenant who takes care of the house and reliably pays rent, Owning a rental can be a good investment. When you have a bad tenant who trashes the house and flakes out on paying rent, it doesn't quite pencil out on paper to continue being a landlord.
Yeah no lie tenants are the source of the wealth so their abilities make all the difference!!!
@@donaldlyons17 I know some landlords who where able to attract a good long term tenant,and therefore owning a rental property wasn't a bad deal for them,
That's why you make it incredibly difficult for unscrupulous people to get in your house you must have references from past employers current employers bank account statements pay statements a large safety deposit
@@TheNova64000 and hopefully the landlord is good, too.
They are renters for a reason!
That's why long distance landlording is a BAD idea.
Not if you have a tenant that has some experience and way more money than they spend!!! My landlord even asked me if anyone lived in my place when I left b/c it had so little damage. Only had to pay 200$ which was nothing b/c at the time I had more than 20k cash. I am very poor but buying a door, or shower curtain was never a problem.
@@donaldlyons17 Maybe so, but is it worth the risk? Not to me.
I know someone who lives in CA but owns five rental houses in Texas because of the rental laws. He uses a property management company. He has done well with them, but I could see how owning a rental property that is far away could have its complications.
I own a two unit and live on the property. I've had to get rid of a few tenants but no one did any damage that cost me thousands so far. I been stuck with a few months of unpaid rent over 10 years. But one thing if I move more than a few blocks from this house it'd be sold.
@@MrMikey1273 is it ever a problem to you seeing the tenants all the time? I have heard it is better to have some space in between you and the tenants.
I don't think any counselor is worth it out there. Councillors are incentivized to keep you coming back. They are not incentivized to fix your life
My father was left a 4 apartment apartment house from his parents. Mom and Dad got so very discusted with renters that they eventually sold the place. Even with a good deposit the renters would leave the apartments in such bad condition that my parents had to put a lot of money in repairs that it was a real problem. Then we had some agreements that the renters had to acknowledge and sign but every time they broke one it seemed that you had to take them to court to get them out. My parents eventually sold the place and got out of the rental completely.
This is what made me sell a 4-plex. The cost to repair after the average renter (and never being able to collect for the damages or unpaid rent from the deadbeats) made the place lose money.
I am shocked by tenants who treat properties horribly. We rented early in our marriage and were so grateful for a nice place to live that we took care of small repairs ourselves. Left all of the properties clean and empty. Met with them to do a walk through to make sure they were happy with the place because we wanted a reference if needed. We even had dogs and never had issues renting.
@@AO-nr7kl I'm also shocked at landlords who are jerks and should never have rented out their home.
Love this advice. Sometimes you just need to slow down. I got involved with selling on Amazon and that business took over my life. It was just too much on top of everything else going on in my life. It wasn't until I quit and slowed down that I realized just how miserable I was when I was doing that. And yes when I quit I felt like a failure but now I realize I'm not a failure at all I just don't like doing that and there is nothing wrong with not doing something you don't like especially when you don't need to do it in the first place.
Amen brother
🙏❤️
Same here, I keep working out of fear of what might happen, not because I really need all that income and definitely do not enjoy the job. I'm almost ready to go part time, feel my way through that then maybe just retire.
You failed but it’s ok
@@marcosgallo803 all the people who have achieved the greatest things throughout history have failed at least once, but more often it’s multiple times…they never gave up and they made history
Landlords absolutely need more rights. If you want to call someone greedy, at least refer those words to large property management companies.
It’s insane that mom n pop landlords are called greedy because they make on average $300 on a property IF nothing breaks. Shows the maturity of Americans I suppose
@@christians131 maybe if some landlords weren't so greedy... I had one that was horrible.
@@kbanghart try being one
@@christians131 nah, I am too suspect of renters. But if I had to, I know for sure I could be better than the one I had. Glad I won my case in small claims court against him.
How about just split a 2Br apt with your friend and tell him you will cover his share of deposit plus moving expenses?
I would never be a landlord to renters unless I'm renting out a room and can keep an eye on how they're treating their space. People are disrespectful and disgusting.
You shouldn't be a landlord and people shouldn't treat others property like shit.
Sell the tenants, beans and rice
Don't get inside of the restaurants. A copy of my book is on the way.
lol 😂 love this
"if his life was all hooked up he wouldn't had come" 😂😂🤣🤣😂😂🤣🤣
Any profit you could possibly make renting a house has to be put in a bank account for when something inevitably breaks in or on the house and even then thats if your tenants aren't tearing up the place too badly. The only money you make from rental properties is the appreciation of price of the house when you sell it. Hard pass owning a property across the street and charging rent.
I had a similar situation several years ago. I submitted a notice to vacate to the tenant and she refused to removed from the property. I handled the situation incorrectly. Got into a verbal argument, but the woman lived in my condo until she knew I was going to lose it to foreclosure.
And this is a big reason why I'll never be a landlord in the traditional sense. If I want to make income from real estate, I'll stick to REITs.
The more stuff we own , the more stuff owns us .
Hands down, all time favorite Ramsey video.
Debating being a landlord currently…. This makes me worry.
I am one, dont be
Only reason I have rentals is because of opportunity to pay cash in upper middle class area.
Also not into the slumlord thing.
Extremely selective about tenants as well.
@@blackworldtraveler3711 it is an optional earning thing at best, not an easy passive income as people are told.
I have heard people say, oh u have so and so property, rent flows in
I am like yeah, be a landlord and see for yourself
I don't have any rental properties right now, but my plan is to buy in a decent neighborhood so the rent will be high enough to keep the low class renters away. But I'm a house painter so I enjoy fixing up homes, you might not.
@@marshall2.015 dude a low class renter may be one of your best/worst renters. I only made 1.600$ each month but my landlord didn’t think poorly of me at all. However on my paperwork when I left they noted they would need to paint and redo the carpet and all in I am sure the 1,200$ total paid out covered the 1k square feet.
He did sound relieved with this conversation.
I’m moving to Florida from The Denver Metro area. I have been very confused, not knowing if renting the house out or selling it would be the best for me. I can’t seem to find the right tenant, who looks like they would be good a good tenant. I prayed and asked God to give me a sign and tell me what to do. He’s given me many signs, but this video is another sign telling me to sell the house and buy one in Florida as soon as I can. Thank you father God for talking to me. Amen!!
Sell the house and buy in Florida.
Just ask around and look around where the flooded areas are and are not.
Research, research, research when buying a home down here. Ask the locals, look at past news.
You don't want to buy a house in a flooded prone area.
Enjoy Florida I love living here but I'm moving to Colorado Springs in a few months and I can't wait.
Is there a way to run a background check on tenants before renting it out?
Yes, and per your application... you can make the tenant pay for it.
I sold mine rental property after 10 years and might have made 3-7% roi over 10 years. I made about 5k after flipping it. If I would have sold in 2010 it would cost me 10-15 k to sell. I did ok however rental property is a big headache. Bad to ok tenants, tenants breaking leases, property management have no clue on cost, hot water heaters and Ac breaking on the weekend. Great life experience. Know what not to do and what to look for . Stacking the cash for a deal in the future.
So what should one not do? And what would one look for? Thinking about getting in the game.
@@mattschmitt9924 I have a property that makes close to 34% ROI. To make money in this game you need to buy low. That is why I don't think today is the time to get into the game.
Dave hasn’t been fishing for bluefin tuna. It’s the greatest 😂😂
Same reason I'm back at my homestead. I really wanted to sell it. Caretakers did $35k in damage, so chose to live here as I fix it up (thank God for unanswered prayers).
With the amount of stress it sounds as he is under, selling it by far would be the best choice plus he would have some cash to put in his pocket. A no brainer IMO. He has to get over the apparent emotional attachment to it and not fall into the sunken cost fallacy.
Spent 39 years stuck with a military move rental. Sold it two years ago, never made money but had to pay capitol gains on it. Painful but I am happy to be done with it
Delony is right. Offer the friend $5000. $1000 won’t even cover moving costs
You could almost hear John sigh when Papa Dave disagreed on giving 5000 $ as a gift but thought 1000 would sound way better
5k is nothing when collecting over 200k in profits. I'm surprise Dave didn't give himself the blessing pep talk on this one. 5k would have helped his friend back on his feet and cover other things in his life as well.
Happened to some family I know with bad tenants had to spend many thousands just to evict them.
What the tenant did not want bro leave once their lease was up? If the landlord does not want me I can take my a*s and money to someone who does!!!
@@donaldlyons17 No they were not paying rent owed. Got way behind on owed rent...eventually they ended up losing the rental and now I'm sure a corporation owns the house now.
Sold my rental property and retired debt free in 2013.
When I lived in England, I had a landlord who was a complete creep but who was very smart with his property. We had a cleaning lady coming to our house every week, and that was included in our rent. This allowed the landlord to keep a very close eye on the state of the house we were renting. He had weekly updates from a third party and knew right away if his renters did anything wrong. I like that method. Too bad he was a terrible human being on a personal note.
The problem is that a lot of people have a few rentals. If you have a rental portfolio of 25 units, one bad tenant and a few repairs won't bankrupt you. Systems need to be in place and you need reserves as you build up the portfolio.
If a kitchen is mess the house does not function well as a home.
Don't be afraid of real estate...I own 7....But I don't consider myself to be a landlord. I'm a property owner. I pay 8-10 percent to property management companies to be the "landlord" of my properties. They have routine inspections, and have good relationships with the tenants. For me, it's on autopilot and very passive. Everything's not going to be perfect because people are people. But the good outweighs the bad. This case is more of the exception than the rule and rarely happens. I've instructed my property manages to be kind and considerate to people. And in return, I've had a wonderful experience.
Had bad renters. Made insurance claim to pay almost all damages to get fixed
Play golf. Don't play golf. Good advice
John: Give your friend $5000. Dave: Give your friend a $1000. What?
I've been in the biz just over 20 years. I know a lot of people that USED to be landlords.
Many people picture a LL just sitting in a rocking chair, counting his money. Taxes, insurance, flood insurance, upkeep costs- and those things are all with a tenant. There are also times between tenants collecting no rent when the unit is empty, problem tenants, damage between tenants, many costs there too.
Selling the house is a no-brainer
Sell it while you can. It will tank soon. Make the dough NOW
That's why the rent is so high(cause of homeless), government promote tenants to abuse house providers.
Sell it and make $135k.
@@saulgoodman2018 yeah but tenants and maintenance are driving him crazy
That'd pay for a lot of hookers to relax with.
I think this guy likes the idea of being a landlord, but the reality is much more harsh. There are so many easier ways to invest your money. Sell the house and put it all in the S&P 500.
Too many people have these fantasies of making easy money but it just doesn't exist.
I agree....taking up golfing is the worst mistake he can make right now
I don't think renting out a house is worth it. There are so many legal problems you can end up in. People are all idiots, and everyone thinks that all landlords are tyrants and deserve to be punished just because they're landlords
Colty called in….wonder if Larissa knows about this..
How was Dave so lost on the storyline? Lol
He's really doddering in his old age!
It's common sense to sell this.. that would wipe away the house debt and the CC debt...
Won't the damage deposit help? Then take them to small claims court for the rest!
Used to be in the business; met one slumlord for every 100 people I wouldn’t let live in my doghouse.
Especially right now with all of the laws in favor to protect the renters - you think they’re not gonna take advantage of that? At this time, there is no “passive”
Dave disagreed on giving the guy a 5000 gift but a 1000 sounded way better...lol
Caller says he’s doing well at the beginning of the call then quickly proceeds to say he is emotional, mentally and physically exhausted. That doesn’t seem like doing well to me 😂
I never bought fixer uppers and solely bought 2/2 or 3/2 move in ready homes with small yards, in neighborhoods that arent necessarily high end but not in the bad side of town, built not before the 2000s and had property management deal with all the screening and headaches 🤷🏻♀️ my husband and I are still working full time and it’s been totally passive in the past 7 years...
I live in Montgomery too and these types of houses cost around 120-130k..
The caller bought it in 2018, and the type of house that we bought were prolly around 80-90k that time! There were houses in nice gated communities for 150k during that time! How in the world did he end up with a 140k loan and 35k credit card debt for a fixer upper in freakin montgomery alabama!?
Poor decision…
I've read a lot of testimonies from millionaires who said they started making money with their rental properties. Well, it seems like a good idea----but they never talk about tenants that stop paying rent or damage the property.
You can see how much Dave is a cheap skate. John said give him 5000 and Dave said nope 1000
Well I woulda given him a case of beers and a couple nights in a motel
Rental or not, a home is not an investment.
It's so hard to be a landlord. I'm the managing partner on 128 units. The great majority of tenants are fine, but that's not good enough. The relative few are animals with no regard for humanity. I am a few weeks shy of 60. Doing this for 37 years. I cannot hand off management to outside party. They're no good. I'll probably sell within 2-3 years.
tbh you were no good at managing that property for 37 years. You were not good at your job if you fear handing off management.
Good luck selling your business to someone when you couldn't handle your own finances
@@zzzarkka I went from a zero net worth to tens of millions and people breaking down my door since the early 1990's to be on our properties.
What a stupid comment for you to make. Tell us all about your success,
Come on now give that man 3 thousand dollars
Nothin like a Mosh-Pit in the family room !
He is an example of someone who shouldn’t be a landlord. As Dave said, he sucks at real estate lol
I have one rental and so far so good, but only in my 6th month
Make sure u put away 30k for when something breaks cause it's coming
@@musicpro7278 🥶
I’ll say this, I may be bald! But I don’t cut people off nor do I fold my arms.
I understand his guilt with the friend and how difficult housing is now, but he will understand if he is a true friend
This is a bit pushy having him move from out of state then evicting him. Maybe he can buy the house
Oh gosh...boring is the best way to live life...trust me...when the tail is wagging the dog with expenses etc...let it go
Take them to court.
This IS the reality of rental property! It IS not all Unicorns farting rainbows.
Ever thought about HUD? Pays every month and inspect your property!!!
THAT PART!!!!
With the eviction moratorium, I really have to question being a landlord nowadays. I know some people who didnt pay rent for 18 months, thats wild.
I did not pay rent for 14 months
@@dac8939 I hope you had a good reason. (health, extreme job loss circumstances, etc.) If you owned a home and did that, the bank would take your home away - regardless of the promises of politicians. Or never ever lend to you again. (Making you a prisoner of your property until you save up enough cash, if you needed to move.) Not paying rent puts a lot of stress on another human being, that is taking on quite a bit of risk to provide housing.
SCREENING PROCESS ? This is why you pick up the rental money order once a month AT THE APT. THAT WAY WHEN THEY MOVE OUT OR EVICTED THERE'S NO HUGE OIL SPOT IN THE MIDDLE OF THE LIVING ROOM CARPET. RIGHT, DAVE LOL
Tenants and roommates SUCK.
Those sounds like easy fixes cheap to fix if u fix it yourself 🤷♀️
This is why I invest most of my money into dividend stocks. No need to worry about tenants trashing the house. Some people are real clowns. Smh
Some people really live like pigs, they never owned a vacuum, cleaned a toilet, they let pets run rampant. You just wonder, "How were you raised"?
Given that this current administration has given a free pass for people to trash other peoples stuff, steal, and be irresponsible with no consequences this is what being a landlord entails.
What's wrong with golf?
That’s what I want to know too. Lol
Buy land, they’re not making it anymore
I wanted to buy land until I found out that we have to pay taxes on it every month
But the UA-camrs told me it was easy.
I love to hear the flip side. My landlord stole my security deposit cause alot of them do that.
Am I the only person who is not worried about my security deposit upon leaving? I was way more worried about any additional charges when I move out!!! I have a new deposit to pay next!!!
In my years of renting I only had one landlord return my deposit. If I broke a lease I knew that it was forfeited, but there were times I didn't, and left the place perfectly clean and they still kept it. I guess they just decided I would have to sue them to get the money back. Florida.
@@lynnebucher6537 Yup that's why I build it in. Also Florida. You can sue than you need to collect. Wonder if you get judgement if you can get a lein.
@@lynnebucher6537 Oh I never have gotten my deposit back either but I didn't think they were supposed to return it if they did not have any repairs and damage? My landlords also asked for additional payments for fixes. So having anyone return you deposit is a shock!!! (I was under the impression it was always kept but maybe not.)
235k for a “livable” house
Real Estate isn’t for everyone. It’s not an arm chair investment, you’re better of throwing your money into an index fund that earns 5% a year.
Love you guys together!
5000 is better than 1000
I can’t even keep up with my own house. Noooooo thx
A simplified life!😁👏👏👏
When I ever get to ambitious, I hope to remember this video!👌
Sunk cost fallacy. Dude felt too invested to step out. He needs to step out yesterday.
The real fallacy is the dream of being a slumlord and late night TV pitches. Carlton Sheets anyone?
Yes! Find some joy in life.
If he had had insurance wouldn't he have not had this problem?