Do the right thing…even if it costs $5,172
When the hard thing and the right thing are the same, default to a talking candle stick.
It was the eve of Thanksgiving, a day in most years I would have reserved for questionable quantities of libations and gathering with friends. As luck or age would have it this year I spent it getting a jump on sending out Christmas cards and consoling my dog whose persistent whine insisted 3 miles of walks that day was not enough.
Right about 1030pm I see a text appear on my phone from one of my tenants. Though I love my tenants dearly seeing any of their names pop up on my phone, particularly at that hour, automatically triggers a strong sympathetic nervous system response.
Did the basement flood knocking out hot water?
Is the boiler failing?
Is a bat trapped in a window?
Did a contractor (aka me) drill through a drain pipe thats now flooding the apartment?
Did the lawn guy skip mowing the backyard for 2 months and now your teacup yorkie is lost in the tangle of overgrown weeds?
Is a tenant locked out?
While these are all real emergencies I have faced, I knew what lie in wait.
Three strikes and you’re out
There are few things that give people pleasers (🙋♂️) more anxiety than unpleased people. If ever I got a tattoo it very well might be a quote from a talking candle stick that said “life is so unnerving for a servant who's not serving”.
One of the main reasons I got into property investment and management was to create a better more human experience for the guests and tenants I am lucky enough to accommodate.
I am confident that if you have not had a bad landlord experience yourself you know someone who has. Some of it is born from an abundance of legal caution (ie. they know they should do X but don’t want the legal risk), some from ignorance (ie. people who shouldn’t be landlords buying investment properties), and some of it from opportunists (ie. they know we can get away with it).
I knew when I saw this text message it was going to be a noise complaint. I knew that because it was the third one. The hard part of being in the middle of humans at odds is that matters are rarely black and white.
One persons hot is another persons cold.
One persons loud is barely audible to another.
One persons “late hour” is 8pm, while anothers is 2am.
Complicating matters further is that most tenant disputes boil down to he said she said since you as a landlord are rarely a first party witness to the transgression. You gather facts, you consider motives, and ultimately evaluate the broader impact of any action you do or don’t take.
This is where being a compassionate manager pays dividends. The complainee and I had chatted at length after the first two noise violations and because we had a good rapport they voluntarily admitted that they were in violation.
So when strike three came across the plate it was obvious the decision that had to be made, but that did not make it easy.
The Long Game
With my first ever 30 day notice given the day before Thanksgiving suffice to say it was not the start to the holiday season I envisioned. Given the circumstances I volunteered my services in helping the outgoing tenant find new accommodations. Much to my surprise they offered to leave by 12/1 to avoid paying December rent. I was amenable.
I have thought about the decision to enforce the lease often since doing so. This particular unit is a mid term (30 to 90+ day stays) furnished rental. The economics are already incredibly tight. You bear the additional expenses of furnishing the house, paying all utilities, all exterior maintenance, and consumables. If you assume ~1 week vacancy between stays (which typically are 3 months) that starts you out with 8% vacancy.
Add to that the fact Rochester is a highly seasonal market. A last minute hole in the winter calendar is unlikely to get filled (and as of writing this the unit is still vacant) and if it does it will be at significant discount to the standard rent. Even a 2 month vacancy can flip a unit red for multiple years.
So why move ahead knowing this poses significant economic risk? Simply because it was the right thing to do.
When tenants sign on with me I am committing to provide a housing experience as outlined in their lease to the best of my ability. One of the most important provisions of which is quiet enjoyment of their space.
Inside and outside of real estate I see businesses too often prioritize profit over the customer. Not issuing a refund for a faulty product because it is a day outside the return window. Making the cancel button harder to find than the Epstein Island guest list. Burying important terms in legal jargon.
As it turns out the right thing and easy thing are often at odds. The best brands and businesses understand the importance of accepting short term (or mid-term :) pain for long term success.