My Cleveland Rental Property Tenant Owes me $14k and I Still Can't Evict! 

This is my first time watching your videos. Im a long term renter on the west side of Cleveland Ohio. This is how I see where your major mistake was made. Your property borders E. Cleveland. East Cleveland is pretty close to being one of the most dangerous and worst city in the country. About hslf of the police force is under indictment. It has horrible poverty and the good people that live in that area are under huge stress from the bad people that live there.

I think the tenant knows the laws better than everyone else :-)

I remember reading Cleveland's landlord/tenant laws and they do have a law requiring a lawyer to file for eviction for any property that doesn't have the owner's name on the deed struck. Couple that with buying RE with an IRA and you basically handcuffed yourself from being able to control your property.

Ive got a feeling this property management company is taking cash payments from the tenant for under market rent and postponing the eviction. They seem incredibly incompetent.

This is ridiculous. It shouldn't matter what state you're in, if you are the landlord and legally own the house, and the tenant isn't paying rent, then you should be able to evict!

I live in the Cleveland area and have read a couple of your books. Thanks for this video. Have to watch the water in Cleveland too. They get you coming and going. Leaky toilet cost me 5k over 3 months. Good luck.

Here is a previous video on this property! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-NfQWYDYOjeA.html

I know a landlord that takes all the doors off the house (or window sashes) and tells the non-paying tenants that he has some work to do on them and he’ll bring them back when he gets them fixed someday. Or pull a fuse and tell the tenant the power isn’t working. When it’s the middle of winter, the folks have no choice but to find somewhere else that’s warm to stay. This has always worked for him. Sometimes it’s worth rolling the dice on creative solutions and hoping you win more times than you lose.

Something new? What a tease. Can't wait.

For an eviction in Illinois, when we get possession, we ask for a judgment. That way, I’m 30 days we can get wage garnishment. Don’t let her get away with it.

Classic example of why Dave Ramsey says to never own rentals you don’t live near.

disgusting how entitled people have become all entitlement programs need to end

i know one guy that owns 10 apartments 3 of which are in arrears. He finally got rid of one fellow that stopped paying in 2019. Took him 4 years to finally evict , judge ordered owner to compensate deadbeat by paying him $7,000 to rent new apartment....first months rent, deposit and moving expense.

Damn, what a pain. Good luck this time.

Wish you all the best in this situation. I wanted to invest out of state too…for me it’s because I live in CA. I decide to invest out of state and decide to go big and start with an apartment building in FL. After doing this for a little bit I think going all in is the way to go for out of state investing. It allows one to have an onsite manager/handyman, generally get better customer service from contractors/legal/etc. as your bigger customer, and if it’s in a tourist/beach type destination an ability to go there every couple months without it feeling like exclusively a work trip.

Cleveland specifically had huge problems with out of state owners in the last housing crash. That is probably why they have such strict rules.

you bought a house in east Cleveland as someone that lives near there but wont go into east cleveland after dark i got to tell you you must know the community's your investing into and if your not connected and no the game expect to lose money investing into cleveland

There’s something charming about this area even if it’s a bit old and run down.

Here's a little bit of history for you Mark... Your house stands on the lot where the 1968 "Glenville Shootout" took place. Maybe its cursed?

They’d be getting a special visit from an unfriendly people if this was me 😂😂

Can't you just register an LLC in Ohio with your IRA having 100% ownership of the LLC, and title the house in the name of the LLC?

Sorry to hear this is still dragging on.

Hopefully, your house won’t be destroyed in the process.

Because of the moratorium and passage of so many tenant laws landlords are flocking to property management companies. Unfortunately companies like Monument may have grown too fast and losing track.

Tenants like these know how to work the system and Cleveland should be grateful you’re providing housing in that dump! This is insanity!

Many driveways without a house. At least they are torn down and gone to clean up the neighborhood.

You're in Colorado and you have a rental property in East Cleveland. Interesting... In the title, you should change "Cleveland" to "East Cleveland." They're two completely different cities. Lol. In all honesty, I'm sorry you have to go through this. May I ask what property management company you are/were working with? My mother is currently paying off a home from Cleveland Housing Network. It was built the same year as your property. In the past three years, we've had to make so many repairs, had so many things to replace, had to do a sewer excavation literally 3 weeks ago which was $12k+ (tree roots and dirt in the pipes), and a HUGE dead tree cut down. It's ridiculous. I'm guessing the property you own is the same type of property. That means, A LOT OF WORK NEEDS TO BE DONE. People complain about the same things when it comes to buying these types of homes. These homes and everything in them are meant to last for 15 years. After 15 years, everything goes downhill. When you get that tenant out of there, sell it immediately and don't look back. Haha. Don't buy a property without it seeing it in person. Let 2-3 professionals inspect the property before buying. Buy in areas where you know the laws. Lol. That's the least you can do.

this must be the reasoning for the influx of deals in and throughout the cleveland area. we have to be living thru the oddest of times.

I guess this is what you get buying houses in an area you don’t live.

You can complain all you want that the city makes it hard to evict, but the reality is you would not have had the opportunity to buy this property through a turn-key for 45k if there wasn't significant risk of squatters. You would be competing with large institutions that can tolerate much slimmer margins. Just because this worked out for you in the past does not mean your success will continue. Housing costs are up and many renters view investors like you as the perpetrator. I wouldn't be surprised if nonpayment becomes more common in the next couple years.

Contact Vargas Law, they are a law firm out of Cleveland that can help you.

What about a checkbook IRA - you have the LLC, and the IRA is the 100% owner of the LLC - then you can register the LLC with OH. I wonder if that would work?

Once you get it fixed keep it, and if you purchase anymore properties there, list them under the Cleveland LLC, because you're cleared for evictions now.

Interesting neighborhood for sure, your house is literally next door to where the 1968 ambush of Cleveland police officers occurred & precipitated the Glenville riot.

Some property managers are shady. I used to live in a complex of 40 townhouses. It had gotten new Chinese property managers. Within 3 months they were telling all tenants that the owners were raising all rent. Up to $200 a week. 12 long term tenant's of 12 years plus left. The owner to a property across the road came to inspect his property . As he hadnt physically seen it since purchase. The tenant begged him to not raise the rent that much. The owner had no idea what she was talking about. He promised that he wasnt raising the rent. Plus it turned out the owner was paying lawn mowing fees. When the property had no lawn at all. Shady managers had to refund them 2 yrs of fees. Probaably to other owners as well. I wouldn't be surprised if those who did pay higher rent, that it wasnt passed on to the owners. They kept it for themselves. Quite a few owners took their properties out of the hands of that manager. Handed it to a reputable local realtor.

I had to pay for my moms funeral and I can’t even find a home because I have filings that were dismissed just at a residence I still live at any advice I’m in Cleveland Ohio

Local cleveland guy over 20 years flipping and renting here. From singles to 200 unit buildings. You are getting awful advice and help. Lead disclosure means nothing on evictions. Plus takes 2 minutes to show construction date if tenant vlaims lead poisoning. Plus of claim made inspector comes out. If you want better names including attorneys i use for evictions glad to help. Btw real problem is getting a judge not a magistrate for the evictions. Most of the magistrates have zero legal experience.

This is one very annoying and expensive life lesson.

Hey are you looking to sell this one? Im here in Cleveland

First this is not Cleveland this is East Cleveland, and there is a huge difference. Two completely different cities. I've been a Realtor for 20 years here and would never have my client invest in that area.

So dorry, Mark. Hope you get tidof the freeloaders and can sell this property.

Your tenant in Cleveland might be my ex husband or some of his family 😂 FR 😂

i actually know that property... they also dont know how to pay for auto loans. the guy that was/is there is a real piece of work. wish you luck on solving this

Why can't you evict when Ohio is a landlord state🤷🏿‍♂️

Why didn't you fire the property manager and lawyer up?

Fair warning this is voice to text I am on a job as I was speaking so please excuse any misunderstandings

My suspicion is the city would rather you suffer than to have another homeless person show up in their counts. Just sayin.....

Moral of the story: Never buy a house in your IRA.

Another great video Mark. I would definitely take the $75K or $100K offers you have and get out of Cleveland as soon as possible. You have already invested way too much time and effort in this losing real estate market that will NEVER improve.

They sold you a house in the ghetto smh

Maybe if you make the repairs, you might get your rent.

You want them out? I'm an eviction specialist on the east side.

Why wouldn't you be able to evict if you live out of state that's still your house and they are not paying rent

So you bought a rental in another state without knowing you wouldn't be able to evict, am I getting this right?

I saw that in Georgia, and Florida ( Article 6, Chapter 82 ,section035 on episode of Lehtos Law) they have intruder warrants that the owner signs a sworn affidavit that they never rented a person their property and the police forcefully get them out with their stuff after a couple of days instead of the eviction process. If the police did their damn job, and just investigated a bit, and saw it was a fake lease, problem solved, instead of claiming it a "civil matter".

Mark, what are your thoughts on Roofstock?

I used to live in that zip code, but on the other side of the zip code......... 10:58 I miss Hough Bakery. They were good. They had about two locations. They closed down about 25 to 30 years ago. All of what's happening sounds about as anti-landlord as the bill Colorado wants to pass into law, that you mentioned a few videos ago. The one where I was like "Note to self." I'm sorry this has been a pain for you. Good luck with this property. I bet after this, you're like "note to other landlords, don't buy in Cleveland." The whole thing is because, like when you've been mentioning how some people (individuals) hate landlords, the city of Cleveland hates out of state landlords. They think just because the landlord is out of state, that said landlord is a scam, bad for tenants, and so forth, and I've been seeing stories, in the local news in Cleveland, where it's been portrayed in that way. What I'm thinking, when it comes to YOUR situation, is, if they refund you this time, maybe you could have Blue Steel Real Estate register an office in Ohio (with the office you're in, being listed as the corporate headquarters), just long enough to get through this situation, and once the eviction is done, you could close said Ohio office. Just hire one lone person, and claim they run said office. Even if you list Nikki as the office manager of said location, despite her being in Colorado, with you. Maybe by having a Blue Steel Real Estate location in Ohio, that might get Cleveland to let up, and allow you to do what you're trying to do.

*** It's very simple, I can't believe no one told you. Sell the house to a LLC you start. Hire a lawyer that specializes in real estate. Don't ask for free consultation.. Yes will cost couple thousand. But you would have solved this months ago.. and made it back in rent. I was of the same thoughts as you now years ago.... Also,, sell sell sell the house.... Better yet, sell the house right now to a whole seller. Out of state single family rental is loco🎉 !!!!!! Wish you all the best, very stressful, I know mark.

Watch for UBTI from recapturing the depreciation that the property was eligible for, even though you didn't take it because it was owned by a tax-sheltered account. Even with a property that was only $45k to begin with, once you've owned it for several years, you will have built up more than $1000 in depreciation that will need to be recaptured. That means that your IRA will have to file it's own tax return and pay taxes at the trust rate - which is likely to be higher than your personal rate.

So you bought is a horrible location and had the wrong people in place.

For non-USA watchers, what is an IRA?

I had major issues with tenants in ohio as well. The city is tenant friendly and delay the eviction process at all cost.

"This property". You mean her property...

If I have a tenant that gets more than 14 days behind all I do is give them a 5 day eviction notice, and if they don't move, then I call my attorney and ask them to handle it, and that I don't want to even be involved. I have only had to do it twice in about 15 years, and it is worth it to eliminate my stress. Only cost me maybe $1,500. But my biggest thing is to screen screen screen. Then I don't get those problems.

Horse shit. You can evict them.

U still own this ? Wow. I remember at that time you were considering Florida instead of Cleveland. I’m in Orlando it’s much better. Owning Out of state sucks in my experience

Commune ist take over

You need to get a affrivicr thru the police department then a court order without an affivid they won’t go anywhere Never ever rent out homes to people who are not family

You cant evict her because she evicted you already. Not paying rent means you gotta go buddy. Not another dime😂

Could you open a new company with a partner in Ohio, then sale the property to that company and have the new company evict the tenant

Your tenant is avoiding you on purpose for free rent. Doesn't matter when the house was built about lead this person likes free rent

From Cleveland good luck this new mayor is way worse than the old one you need to cut your losses it won’t get better.

Wow, here i was thinking if you own a rental property you can evict for non payment. Seems nuts to say you the owner have to live in Ohio to get your own property back from non paying residents. I don't see any logic, you bought and paid for it, you invested in their city, it's yours!!

Nope...If they owed me that much I would drag them out by there ears....they would be gone no way I would have rental property due to ridiculous laws.

Sell your house to cash offer and buy another house you may take a cut. Or a loss but at least the headache will be gone and you can pick up the prices and move on and do not take anyone in your home these people are going to put you in the steeets with the water bill light bill taxes seriously Sell the house before you lose it and did they steal your personal information did you ever think there might be a government official behind it Seriously becareful who you let in your life and do business with you might have an enemy behind your situation sell your house to cash offers and shut the lights the electricity off seriously and DO NOT TELL PEOPLE YOU aARE DOING THIs AND adONT TELL ANYONE YOUR NEXT MOVE

Greedy and And now you're needy you want to bend or break the law To fit your need or you want them to change the law to meet your Need. I would suggest if this last attempt doesn't work either move to Cleveland or sell it.

Pray for an act of God.

I live around Cleveland… why would anyone ever invest in the city is beyond me. Pretty sure they just passed a law about paint now too. Many people selling their Cleveland property now

Wassup

Most citys dont want out of state investors because they are the reason proprties are trashed and falling apart. One of the problems in Buffalo and Niagara Falls. To many put of state owners who dont do anything ever.

Lmao repair my butt. Pay rent up to date and then we'll talk about repairs.

How is it your house if you dont personally live there?

Sir God I feel for you, I'm in Cleveland Ohio I am a contractor and you can get them out they just need to be served starting with the first three day notice and then the 10-day you can have them out quicker than you realize I know I grew up in Cleveland but I've lived my whole life between California and Ohio I am a contractor I do a lot of work for Howard Hanna's fixing point-of-sales I work with investors usually they're from Florida they give them to me or California this is through Howard Hanna you just need somebody who will walk the properties and shoot it to you straight, I do have hundreds of videos to prove this Cleveland is a good investment as long as someone who knows what they're looking for I've never lost money but this is here nor there this is about you needing to get them out sure if you wish reach out I can do a drive-by run live video I run live video on everything so everyone knows exactly what's going on and personally I hate squatters, don't give up on Cleveland I know many investors have done very very well on my guidance, like I said I have hundreds of videos walking properties and I know code very well, if nothing else due beware and be careful, take care and I wish you the best of luck sir

I hope you don’t get sued for putting them out there like that. Idk what the tenant rights are in Ohio .. probably trash because Ohio is trash but be careful bro!

Why do you even buy rental property? The laws are for the renters NOT the OWNER! Just buy and flip houses. So much drama with your rental properties. Miss the videos on how you fixed up the houses you bought like in the past.🥲