Monday, June 1, 2009

Expert Tenant Cons - How Do They Operate?


Author: Lambert Munz

Eviction is a slow process that gives tenants anywhere from thirty days to four months of free living while the courts walk through the legal steps. Most of the time, the tenant leaves in the middle of the night, right before the final hearing. Even though the landlord gets a judgment, it becomes a useless piece of paper. In order to collect the landlord must track the suddenly invisible tenant, find any assets or locate the place of employment.

New right to privacy laws make tracking difficult. After all, where does the tenant go, now that they no longer live under the evicting landlord's roof free, like an adopted wayward adult child?
There are two types of evicted tenants. The first is seriously down on their luck, maybe the tenant lost a job, had a family crisis or severe illness. Regardless of the reason, they have no experience living life without an income. This type of person pays as much as they can, but it never is enough to make a full month's rent. When eviction time comes, they move in with a friend or family, live in their car or find a location in a vagrant village or homeless shelter.

The second class of evicted tenants is the professional deadbeat. They not only know the system, they perfect their use of it like a fine art form. This group has a job when they move into the rental, they have plenty of cash in their hand and they pay on the spot. Their last landlord sounded sincere when you called, gave them rave reviews and had a sound reason that the two parted ways. They had adequate experience on the job, working for a small company for several years. Sometimes this might not be the real income source. These may not be legitimate people or real jobs. They are friends and family that pose and give false information.

The second class of evicted tenants never leave the previous landlord on the application, because they were evicted for past due payments. They make it their profession to move every seven months. The pattern is clear, two months payment in advance as a deposit and the first month's payment. The second month comes a little slow and into the third month a partial payment is made. Eventually the well dries up and the landlord dips into the deposit. The tenant lived at the rental long enough to use the deposit and remain four months in arrears. They move right before the enforced eviction. In the mean time, they saved enough cash to move to the next unsuspecting landlord that doesn't have access to their history and begin the scenario again.

How does this happen? Most landlords are individuals, not companies or corporations with access to all the background information and credit reporting. These are "mom and pop landlords" that want to believe the person that so convincingly tells the tale. They have no weaponry against the professional deadbeat that hones the story to perfection.

The wayward tenants usually find that the individual managing their own property is an easy mark and they know what to say to make the situation appealing.
Without a thorough background check by a professional, the landlord loses valuable time and money with these professional cons. They have the cash and the hungry landlord can't resist the temptation to move them in now. Especially, if they have been suffering a long term vacancy.
These pros don't call property manager ads, but purposely look for ads without agent identification. The law requires that an agent Identify themselves in an ad If not by a company logo than with the word - Agent.
My eviction attorney informs me that he evicts the majority of the people are the same ones over and over again
Be careful out there.

My name is Lambert Munz and I have been licensed as a Real Estate Broker for 44 years with the CA Department of Real Estate. I currently am President of Arbour Real Estate Management,Inc. Background was as a commercial broker. Currently a property manager and have been for 27 years. We offer residential and commercial management services.I hold two designations - RMP Residential Management Professional and MPM Master Property Manager. Awarded by NARPM National Association of Residential Managers.Past President of NARPM Sacramento chapter.My services are available in Sacramento, California.
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