Thursday, April 28, 2016

So, last post I said things were turning around and that the people in 720 were moving out.  Well, it hasn't quite worked out that way.  In fact it has done the complete opposite.  It has turned into the worst tenant nightmare I was always fearing since the very first place I rented.
I will start from where the last post ended.

I had a tenant, we will call him dorkface.  Dorkface lived there for 9 years.  He moved in with his then girlfriend, Savana, and then they broke up and Savana moved on, I signed a new lease for the SAME PRICE with him.  He lived there for 6 more years.  in his 5th year I requested the first increase on that property in 9 years!    I figure they would have appreciated the fact that I didn't raise the rent every year.  But, remember, tenants don't appreciate a fuckin thing.  Is that clear? Did you get that?  They want the whole fuckin mile, and if you start to give a little and don't give the whole mile, then they are fuckin mad at you and you are an asshole, never mind that you actually did something nice for them, tenants don't see things that are done nice for them as something done nice for them, they see it as something they deserved and that you finally came around and gave them a piece of what they were owed!  That's a little lesson for ya.

back to the fuckin nightmare!

So dorkface and I get into a thing about what the actually legal increase would be according to the dreaded rent board fuckers!!  yeah rent control destroys neighborhoods, don't believe me look around.

I read the website and learned that I could "bank" increases.  This is great news for me!  I learned that I could use the rent board's banking calculator and go back to 10 years! So I punched in my numbers for the calculator and it spat out $250 increase wa allowed.  So I told him about it and sent the calculator's results and said I was going to increase the rent to $200/mo.   A nice gesture as I could ask for all $250.  He sends an email back and says, "I'll think about whether I can accept this or not"  I thought "WHAT?" it is not a negotiation, it is what the rent board allows and I can ask for it, there is no choice.

WELL, he goes to the rent board and it turns out, a month before, they changed the rules on the "banking".  It was ruled too steep for the precious fucking protected class.  So the new rule was that a landlord with banked increases can do 3 X the current year's CPI.  Which is Consumer Index Price.  that comes out to be 3x1.9% or as it turned out $80 more a month!!!  So I had no choice I had to go with that, so we made a new lease and moved on.  He paid the new increase, no problems.  I was not happy as I had not given an increase in 9 years!  I deserved to get more.  So the lesson here future landlord's of America, make sure you get your increases every year, no matter what or who is in there.

So fast forward to Aug 2015. Which is where the last post was posted.  Mr Dorkface gives his 30 days notice to vacate.  I am overjoyed!  I can now rent it for $2000 and make more money and still be a good deal for someone good and appreciative and respectful, yeah right, ha ha, I make myself laugh.  Anyways, Dorkface is the only name on the lease.  Now listen carefully here kids, the ONLY name on the lease.   So we discuss the move-out date etc, he moves out like on the 4th day of the 30 days.  He has two roommates and a, and here's where things start to go off kilter, GIRLFRIEND.  My nightmare actually began when this piece of work started dating Dorkface, but it was unbeknownst to me.  Hell was lurking right under my fuckin nose and I had no idea!

I went to the apartment to look at the place, it was deplorable, broken holes in the walls, they had lots of bikes so all the walls are dented and scuffed with black tire marks and handlebar gouges everywhere, the carpet is black, all my nice blinds are fucked up there is mildew all over the shower doors etc.  I was not shocked because I have owned in Oakland for 20 years and I see this as typical of assfuck renters.   So I only have $1000 deposit from them, I told him he is not getting it back.
He says ok.

Then the bane in my existence, Dorkface's now ex-girlfriend, comes to me and asks if she could re-lease the apartment.  I think, hmmm, actually this would save me from having to do alot of work since she already lives in this squalor and she is part of the mess, I could just make a new lease with her at a higher amount and my job is done.   so I told her, "well, that would be ok, but since the old lease has terminated the lease contract, I can sign a new lease with anyone I want at market rates.(turns out that is true everywhere 100% of the time with the exception of some sketchy subjective unclear situations in, you guessed it, OAKLAND), and if she can pay market rates then I will let her stay.  There is a distinction that is very important but very subtle here.  If she is a "new" tenant with a "new" lease then it would be my responsibility to make the place nice again using the last tenant's deposit.  But I am not going in there with her and other's living in there and fixing all the damage.  So I told her that if she wants to she can clean the place up a bit up to $1000, as that was the amount of the deposit.  She said ok,  I expected she would clean the carpet, and clean the bathroom and kitchen and maybe fix blinds and that would be all.  I am very very busy with so many other issues that I just let her do her thing.  Well, my first mistake in all this was not to write down exactly the things I understand the word "clean" means.  the word "clean" means different things to different people.  So, we sign a new lease at a discount rate of $1850 instead of $2000 because of the situation.  THAT is a GOOD deal!  She spends a little time doing cleanup for a reduced rent for the entire year!  But as I learn this is not seen as a nice gesture by her.  I should have read my earlier declaration that tenants do not see anything as a nice gesture. I also did not ask for a deposit, I said I would credit her the deposit from Dorkface.

So I tell her, and please listen because it seems people aren't very clear on this type of stuff, take pictures or a movie of all the damage in the place, this way when she moves out she can show the pictures as the basis of the condition at the time of her move-in.  Then if it is the same or better, she would get the deposit.  Is that clear? This means she is guaranteed to get her deposit unless she just goes total entitled rockstar on the place.  But she doesn't do that, even though I tried to explain it several times and asked for photos.  Everyone has a cell phone, it would literally take seconds to take and send.  She doesn't do it.   She goes along doing stuff in the apartment, I don't know what, then she asks if I have paint.  I was like, ok but that is your own thing.  She just said thanks and went about her business.  She had rented to new girls and had them painting their rooms and other things.

So the month goes by and she doesn't pay rent.  I send her an email saying where is the rent.  She says ok she will send it.  She sends $1850.  I think great things are going to be good.  HA!

The next month, again no rent.  She instead tells me she is going to send me the pictures now.  Now? I explained again, you needed to send the pictures that first few days of how the apartment looked so you could have documentation as to how bad it was.  She says no, I have it all fixed now and I am going to send it so you can see what shape it's in now. (that totally defeats the whole purpose of capturing the move-in condition) She didn't understand what the fuck I meant!  She then sends me a list of pictures, a huge list of pictures of mostly things fixed up, but she also sends things like a bit of caulking missing in the counter, or a piece of gum on a random wall, or the dirt in the sill.  And then I get an itemized list of all the things she fixed and described them and noted a dollar value on it. Like a piece of gum had to be removed from the wall above the third bedrooms far wall $7.  a nail had to be removed from the molding above the 2nd bedrooms door $2, and on and on.  She doesn't have any experience with fixing a place up, all that stuff is part of the "paint job"  It does not need to be itemized.  She also complained about the appliances, I ended up buying a fridge, stove and stack washer/dryer to replace the old ones as she said they didn't work, but they all worked a month ago when Dorkface was in there!  So then along with the itemized list she sends me a bill for $3600.

I said, woah, this is not what we talked about, I said to clean it up within the $1000 and to take pictures of the damaged walls etc.  AND you haven't paid rent!  She wrote back explaining that it was my responsibility to fix up the apartment into a habitable state and that is what she did for me, I said WHAT? Habitable state!?!?! You were already living there for years in that STATE!!!  It was already habitable, you guys broke it all up and trashed it, you needed to fix it up as the responsible tenants.  She said, "I didn't do it, I am not like that. you don't know me!"  I said it doesn't matter who did it or not, you all were living there, therefore it's EVERYONE'S responsibility equally.  I told her it was Dorkface's job to fix it, go get the money from him.

Well, this is where the total tenant from hell was birthed.  I don't hear from her, then one day I get an email, it has a list of violations I have done, such as my illegally raising the rent the year before, raising the rent again on her in September, and illegally raising the rent two times within a 12 month period.  And that I had failed to provide her with a Rent Adjustment Program sheet back in August of 2014!!!!!!  And because of this she was going to credit this year's rent using  the  increased rent from the previous year, as it was illegal.

I said, "you were not a tenant, you were not on the lease, I do not have to provide you with anything at all, only my tenant, Dorkface!"

I get another email siting sections and articles and laws from the rent board that due to the fact that she lived there and I had spoken to her in a tenant like manner, that made her a tenant and therefore the $1850 increase was illegal AND the $80 increase a year ago to my tenant was also illegal.

I was fucking shocked and pissed that someone would try and do this shit.  Shocked.  Who does this?  So now I know I am in a bit of a bullshit tenant situation.  so I called a lawyer.  The first lawyer says, "well, it could be true that you treated her like a tenant, and though it might not be construed as treating her like a tenant, we would have to make a case and go to trial to prove she was not a tenant.
TRIAL!?!?!  Why the fuck do I have to go to trial, isn't there a clear distinction as to whether she is a tenant or she is NOT a tenant.  He says no it is a grey area and it would really depend on which judge was on the bench the day of judgement.  WTF!?!?!?!

So I call another lawyer, and another and another, and now $1500 later they all say pretty much the same thing.  WTF?!!? what kind of system is this shit???  So I settle on a lawyer Steve.  he seemed knowledgeable and clear on the laws and sympathetic to my situation.  So we start talking scenerios he says it could cost me $20,000 to prove she is not a tenant in trial, and we could lose, and I would have to pay all her court costs.   WTF?!?!?   So tenants really do get to control landlord's, they may be wrong but it will cost a fortune to prove you're right!!!

So scenario 1 is eliminated, I am not going to go to court to prove she was not a tenant, too costly.  We do alot of researching and come up with some other plans. Which means I cannot use the $1850 lease that she SIGNED!!!  So in this case this agreement is literally not worth the paper it IS written and SIGNED on!!  Unbelievable! Well it might be but it will cost me $20,000 to prove it.

Scenario 2, this would be to accept the original rent of $1400 and assume the lease of dorkface BEFORE the increase.  I even credited her last years increase, which technically should go to Dorkface as he was the tenant not her, she is stealing from him.  But whatever, the plan is to get her out, so it doesn't matter what or how.  She happens to be bad at math, so even crediting her the $3600 work, the $1700 from last year's increase and the $1850 she did pay, she is still short on her rent.  But this is just not right, if I serve a 3-days notice it would only be a small amount to pay back and she might just pay it and then I am stuck with the old old lease amount and I lose all the money I rightfully deserve.

So I read up on the rent control rules and I see that it says something to the effect, "... the disputing tenant is responsible to pay the new increased rent UNTIL they get their R.A.P. sheet and can contest it in the following 60 days ..."  So what it means is she has to pay the increase until she gets the RAP sheet and THEN she has 60 days to contest its legality.  Well, I was within the legal amount 3x1.9% so it won't be illegal. so scenerio 3, is to evict her on non-payment of rent based on the $1480 rent.  Which is more money and will be harder for her to pay.

All the leases do not allow pets and she has cats!!!   See she wants the landlord to follow the rules to the T, but they don't apply to her.

So we go with scenario 3 and throw in the cat situation.

We serve her the 3-day notice and the cat thing.  She replies on the 4th day that she is not going to pay because the amount owed is wrong, and therefore invalid. She is not going to remove the cats because I knew about the cats all along, (I did not know).  So then we discuss a plan and we file an Unlawful Detainer to gain back the property.  She fires back and called the City inspector and has claimed unsafe and uninhabitable conditions.  

1) no permit for a water heater that blew a year before and she stood there and watched the water go all over and refused to turn the water off because it "was not her job"  I had to drop everything and drive an hour up to turn off the fuckin water!!  I replaced the water heater that day and all was fine. So she told the inspector I didn't get a permit.

2) a dryer vent came undone under the house, and was hanging, that is another code violation. It would take all of 5 minutes to put it back and tape it.

3) IVY growing up the side of the house, this is a code violation, who would ever think that was an issue? yet a code violation???  I see ivy on houses all over the place, even at Harvard's buildings, it's part of the decor. WTF and how is it bothering her?!?!

4)some dry rot on the rails of the stairs and deck.  This too is a code violation, even though every house on earth has some dry rot.  Just go look around.  So this is the biggest problem, because apparently this is considered structural, and therefore it needs plans!! Plans are expensive, deck plans and site plans and property plans, all need to be done!!!!!!!!

so so very displeased with all this.  So I had to get another tenant to act as my representative at the building dept and  to do this I have to fill out a form and get it notarized!!  So I do all that and  send her over there.  I have to get permits! I have to get three permits, one for the water heater, one for the dryer vent hanging down?!?!? and one for a replacement permit for the stairs and rails on the decking!

Costs $700!!!   When there is no work to be done.  Water heater is done! the dryer vent will take 5 minutes, and the deck is 1/2 a day of replacing rails and treads.  $700 for no reason.
Unfuckinbelievable!

So the lawyer sent a bill (retainer) for $3000, and to continue the retainer needs to be up another $3000, so I have to send another check for $3000!!   Then he wanted me to get landlord's insurance and Unlawful Detainer protection, that was $5000.  So right there alone I have spent $11,000 and $1500 on the other lawyers AND $700 for permits, AND I am out $5600 in rent, that is a total of $18,800 and she is still in there not paying rent and we haven't even gone to trial yet!!!!!!!

Tell me how the laws are helping fuckin landlord's!!!???  I am not rich, I owe $800,000 on the property and I made $2000 total all year last year!! now I am $18,800 into this year and I can't afford to spend all this.  But she is wrong, she needs to fuckin go! it is not right that a tenant can use the system to fuck landlords so easily and there are no repercussions to the tenants.  I think tenants who steal money should go to jail.  She should go to jail after not paying rent for $15 years!!!  Same as if she had stolen $18,000 from a store or embezzling, how is this not criminal??? how??? She is stealing money from my kids food and school and activities, she is stealing money I desperately need for my daughter who is starting college at an out of state University, CH-CHING!! it is not ok that a tenant can't pay or won't pay and fucks a landlord and forces the daughter to NOT be able to go to the University and changes the course of her life forever!!!!! How is this ok?????

The systems is so fuckin rigged, there has to be a change, there has to be power but back in the hands of the owners.  I wish the owners could boycott somehow.

Anyways, I am so devastated by this it is horrifying that I am losing so much money to get someone out that knows she is wrong, my lawyer knows she is wrong, her lawyer knows she is wrong, and the judge will know she is wrong, and yet I have to spend a fortune to get a judgement to get my property back.

I am ready to stop being a landlord and sell everything.   The properties have all come back to a good value, I could make over $2 million and walk away from all the properties.

such a sad state of justice

so the lessons are:

1) do not let anyone live there that is not on the lease.  If someone moves in right away make the main tenant write a sublease with your approval of the new sublessee!!  Then NEVEr ever talk to the sublessee! ever.  they can then never claim to be a tenant.

2) Make sure all the tenants understand the rules.

3) as costly as it may be, always force the tenants to follow the lease rules, no pets means no pets!!!

4) most important use a management service on all properties, this wouldn't have happened if I had management.

5) my suggestion would be to become a lawyer .....