Today I showed a pair of city homes to an investor client. He & I have been in some pretty bad places together. We're both pretty good at looking beyond various damages to see the potential in a home. Today, however, the two homes we looked at were just not worth redeeming.
It bugged me. I really wanted to have my guy buy them - to make them beautiful again. But they are just too far gone and the slumlord owner is asking too much, so that we know he'll never drop the price in a satisfactory manner. Well, I've been there before and we're able to just keep on looking...
...but this time we met some of the tenants. Let me tell you, they were living in conditions that were just above animal. The two "apartments" we visited were cramped, dirty, full of junk, with all manner of broken and worn-out parts. One unit held a little girl, who smiled as us as we toured the place. The mother pointed out the damaged ceiling where water pours in when the rain is heavy. She also claimed that the building was heavily infested with roaches - "more that I've ever seen" she commented. The property management company has not made a serious attempt to fix either issue. The landlord doesn't live here and obviously couldn't care less.
That's what made me want to tell my customer to just buy the homes and fix them up - save these people! I did make mention of my frustration, but some things we just can't fix. We got back in the car.
I'm contacting the property management company today, though, to make a comment about the condition of that building.
Sometimes it's frustrating, this business of ours.
Jeff,
Nice post. Telling the story helps somewhat, doesn't it? I share your frustration at times. Amazing how some let things like this just 'roll off their back'. Thanks, Fran
Hi JJeff,
When I first got into real estate 19 years ago, My broker wanted me to follow a guy that sold anything and everything. I was to learn from him. I saw more squaller and filth, and it almost made me want to quite before I started.
It makes one wonder why there is a large segment of our American population that would choose to live this way.
I heard them say, therelandlords won't fix this or that and that is one issue. But the filth and squaller comes from the people, and it is a choice ( or failure to make one). I can see lazy of not doing the laundry or keeping it up or occasionally not making the kitchen shine, but I swear they choose this lifestyle.
The question I ponder is about their self esteem or lack thereof. It is a sad statement is these times, or at any time to be sure.
Jeff,
There seems to be a pendulum of emotion here. Maybe the landlord should be ignored and the tenants can be helped to find a cleaner place. Thanks, Fran
I don't agree, Katerina. When you pay a cell phone company, you have a right to expect quality and service. The same applies to tenancy. So you sign a lease, then find that problems are not addressed and get worse. You can't just move out - and what's the point for the owner to rent anyway? Doesn't he want his asset to appreciate? Even if the owner is not approving repairs requested by the PM company (assuming they're asking) then why would the PM not say something? Too many people don't care enough - whatever the tenant's disposition. Bugs and water leaks in the house are asset issues, not poor tenant issues.
Jeff, I've seen the same kinds of houses from time to time. I agree that some tenants have no respect for the property and live in filthy conditions, and would destroy the dwelling no matter where they lived. But I believe it is the moral duty of the landlord to keep the property in habitable condition as well. There is no reason for rainwater to pour into their dwelling. There is no reason for roaches to overpopulate the building. I agree all of those things, and more, can be dealt with and not break the landlords bank. Clearly these are tenants who are below the poverty line, it's not so easy for them to just pick up their lives and find housing elsewhere. There is a big economic divide between those landlords, and the tenants they feel deserve to live like this simply because of their economic status.
I hope you get some sort of answer from the management company, although there is not much they can do about it without the landlord's permission. The landlord is their client, not the tenant. You should pick up the phone and call the housing authority. I wouldn't be surprised if those tenants are Section8 tenants, and those dwellings would need to meet a certain criteria to continue accepting Section8.