Commercial tenant crossing personal boundaries
Last night I had a tenant of mine show up to my home unannounced.

The tenant is the owner of a franchised gas station. The lease is NNN and he agreed to have it renewed next year with an increase of 18%. This was 2 months ago. Now he showed up to my home to explain why can't afford an increase and brought a bag of documents with him. He felt like he needed to talk to me in person, especially at 7 PM when I'm off work? He started telling me that the increase would take away from being able to feed his family.

I was being nice to him and talked with him for over an hour on my porch. The whole situation was so bizarre that I'm thinking about buying an office space so this never happens again. Has this happened to anyone else?
[{"id": "g3gu9m3", "text": "How did he know where you lived?\n\nUPS store mailbox. Doesn\u2019t get flagged as a PO Box either 99% of the time", "replies": [{"id": "g3gv0hs", "text": "My address was on the lease. I don't have a PO Box, I do everything from my home office. I'll look into the UPS mailbox, though it may be too late since all my tenants have my address.", "replies": [{"id": "g3h08w5", "text": "You may also want to look into Google Voice if they also have you\u2019re number. It adds a layer of screening.", "replies": [{"id": "g3h2f13", "text": "Can anyone track phone numbers to the exact address these days? Because I have a separate landline for my home office.", "replies": [{"id": "g3h4kzb", "text": "Look up why people do this.\n\nJust one instance, What if this tenant goes off the rails? He knows where you live and he\u2019s got your phone number. Why would you put your information out there like that?", "replies": [], "depth": 5}, {"id": "g3hf2ic", "text": "Have a Google Voice number forward to your home landline.", "replies": [], "depth": 5}, {"id": "g3hqs83", "text": "It\u2019s public information so there are ways you can do it but it usually costs something.", "replies": [], "depth": 5}], "depth": 4}, {"id": "g3hoomu", "text": "ohhhhh, I'm totally doing this. My tenants have my personal cell phone number and its becoming a huge issue.", "replies": [], "depth": 4}], "depth": 3}, {"id": "g3h9axe", "text": "You need to fix all this now. Sketch as hell. I also do a ton from my home office but all my companies are registered elsewhere so no one can find me. Don\u2019t want a random process server or tenant showing up at your house whenever they feel like it.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g3h88hg", "text": "People drive less gas stations are being squeezed. Many commercial tenants are defaulting or months behind with rent. Even dentists are not getting patients like before.", "replies": [{"id": "g3hf442", "text": "OP's issue was about the completely inappropriate way they guy came to his or her house at night to discuss the increase.", "replies": [{"id": "g3i04cu", "text": "This.", "replies": [], "depth": 3}], "depth": 2}, {"id": "g3hlcmw", "text": "You are missing the point here, buddy...", "replies": [{"id": "g3hym4j", "text": "The reality is in each state and municipality that tenants back pay is deferred until 6 month to 12 months away. Can not evict tenants if they are behind during the pandemic.", "replies": [{"id": "g3im9ht", "text": "Commercial too? didn't know that...", "replies": [{"id": "g3jbrax", "text": "In Ca the law makers are debating eviction until Jan 2021. Check your local housing ordinance on eviction etc. They need to pay % of regular rent. Most strip malls I know with barber shop, restaurants both tenants and landlords are having hardship and many good landlord initiate a temporary reduction \n in rent.", "replies": [{"id": "g3ktxb1", "text": "We are talking about a commercial property, not a residence. Are they protected too?", "replies": [{"id": "g3lbwft", "text": "That depends on the states. All tenants are protected from getting booted out under various moratoriums. \nNEW JERSEY:https://www.natlawreview.com/article/covid-19-brings-new-procedural-hurdles-to-evict-commercial-tenants-new-jersey\nCalifornia:\nhttps://www.pillsburylaw.com/en/news-and-insights/ban-evictions-covid-19.html\nOther states:\nhttps://content.next.westlaw.com/Document/I50fd3ae86ac711eaadfea82903531a62/View/FullText.html?transitionType=Default&amp;contextData=(sc.Default)&amp;firstPage=true", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "g3hogz7", "text": "I\u2019m with you. 18% increase now seems absurd. Looks like this guy is getting a new tenant and bankrupting the franchisee.", "replies": [{"id": "g3iouar", "text": "&gt; 18% increase now seems absurd\n\nYou do not have the details of the lease, are not aware of any concessions given in the prior year(s), and do not know the current rate being charged pre-increase, or even market rate for the space.\n\nHow do you know if it is absurd?", "replies": [{"id": "g3is142", "text": "The economy is taking a nose dive. I would think the landowner could hold off on the increase given that destroying this tenants franchise leaves both of them worse off.", "replies": [{"id": "g3isjqh", "text": "This past year's rent was discounted to $300 / month.\n\nDo you still think an increase is unreasonable?\n\nSee? Without data, it's meaningless to call an increase absurd or pass judgment whatsoever.", "replies": [{"id": "g3italm", "text": "Oh, are you redmanspeaks? The OP?", "replies": [{"id": "g3jd3k7", "text": "You're still missing the point.", "replies": [{"id": "g3kcav2", "text": "I\u2019m definitely not. I guarantee a commercial lease for a franchised gas station isn\u2019t $300/month. You\u2019re trivializing the difference between life and death for this - possible immigrant\u2019s - life investment. I\u2019m guessing you\u2019re in a similar situation where you can make decisions like this and are somewhat biased. My input is to help OP look at the bigger picture and save himself a disaster of mutual proportions.", "replies": [{"id": "g3kdog3", "text": "You completely missed the point again.\n\nHe's not saying the lease is $300, he's saying that: the previous year's lease - *whatever it was* - could have been discounted, thus an 18% bringing it par to market value isn't absurd.\n\nWe don't know the full details. \n\nThat's what he's saying.", "replies": [{"id": "g3kfm42", "text": "I guarantee, if the lease was reduced by $300, it\u2019s still astronomical given the current situation. The $300 figure was also hypothetical, so I don\u2019t know why you are both defending  some random number you picked out of the air and assuming there was a reduction in rent at any time. Nowhere in the original post, is that even stated. \n\nTo raise rent at 18% right now, during a pandemic and probable recession, is ridiculous. It\u2019s tone deaf. If the guy came to the landlords house it\u2019s because 1) he\u2019s desperate, and that should be an indicator and, 2) the landlord hasn\u2019t provided an alternative office.\n\nHe\u2019s being paranoid, with good reason, because he knows he\u2019s being greedy and weird and it\u2019s too close for comfort for him to be called out.", "replies": [], "depth": 10}], "depth": 9}, {"id": "g3kszfe", "text": "&gt; lease for a franchised gas station isn\u2019t $300/month\n\nSee, you're still missing it.\n\nThe numbers are placeholders for your lack of domain knowledge of this situation.\n\nit's hyperbolic to demonstrate the very point you missed.", "replies": [{"id": "g3kywa5", "text": "Lol, not once has OP said anything about \u201cprevious concessions or 18% bringing it up to market value\u201d. Does anybody even know what market value is going to be next year? You\u2019re making up some scenario to validate the need to increase the rent by a gigantic percentage. \n\nEvery commercial lease I\u2019ve signed has a 5% increase and most have a 3% one, at the most. And that\u2019s in a normal economy and normal allowances for inflation, not a pandemic and a crashing economy.", "replies": [{"id": "g3l27v7", "text": "Still not willing to get my point.  \n\n18% of what is \u201cgigantic\u201d?\n\nSince you\u2019ve admitted that OP has not provided details of the commercial lease, you should be willing to admit you lack the requisite data for your assumptions.  \n\n*Res Ipsa Loquitur*", "replies": [{"id": "g3m4kur", "text": "18% vs. 3-5% is gigantic. I doubt you have any experience.", "replies": [{"id": "g3m6v0o", "text": "lol\n\n&gt; 18% of what is \u201cgigantic\u201d?\n\nI think you\u2019re not in the commercial sector or RE generally, but you should stay and learn.", "replies": [], "depth": 13}], "depth": 12}], "depth": 11}], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "g3in2zu", "text": "I lend on gas stations and many are having record years due to much higher margins on fuel even with lower gallons sold. Also alcohol and tobacco sales have surged", "replies": [], "depth": 2}], "depth": 1}, {"id": "g3ha4bu", "text": "You should have the property in it's own LLC and have the registered agent be an attorney or a service that provides that, it's cheap. Never have your home address attached to anything on the lease.\n\nNext you need to set boundaries. You should have told the tenant this was inappropriate to show up and you will have to talk to him another time.", "replies": [{"id": "g3lr229", "text": "LLC or PO Box at the end he would reach the owner. He showed up unannounced, that's it. People need to talk, increase or lower payments, rearrange contracts and so on. Had he called and asked for 30 minutes of time at a park or local Starbucks it would been all normal.   \n\n\nHe probably feels that he will be destroyed should this happen so he is probably distraught. Right or wrong, for him might be life-or-death", "replies": [{"id": "g3lx14z", "text": "He may not be able to show up at his house though if you use those methods. \n\nStill better to just set boundaries though.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g3hlqm8", "text": "If you have an office space where to talk, call him and tell him you can meet there. If you don't, he went to the address on the lease. His business depends on your decision, so it becomes personal when your future depends on it. I don't condone, I understand.", "replies": [{"id": "g3i02id", "text": "The tenant should never have shown up unannounced. OP might have preferred to meet at a cafe or other public place or to book a meeting room somewhere else.", "replies": [{"id": "g3impu9", "text": "I know what OP preferred, but the renter is playing a game called psychological influence. Tenant turned the relationship a personal one when he want to the house to ask for \"clemency\". He's not playing by the rules but playing dirty is common now. Again I repeat. I do not condone the tenant move, but I understand.", "replies": [{"id": "g3k1kxq", "text": "Nailed it", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g3i1q1c", "text": "OP, **tenants do not have the right to show up unannounced** unless you run a retail/drop-by sort of office, which is not the case.\n\n  \nIt is very reasonable that the tenant wants a meeting to discuss his situation, but both parties should consent the hour and location.   \n\n\nYou should notify him through a snail mail letter and email that he shall not show up unannounced ever again, especially to your home, or else you will take the appropriate legal measures.  \n\n\nNext step, as people have already said, is transferring your properties to LLCs registered at an attorney or accountant address. And also make sure to have a Google Voice number instead of using your actual landline.", "replies": [], "depth": 1}, {"id": "g3iucjx", "text": "Well, this certainly  is the topic that is top of mind. My two cents is whether he came to your home or place of business does not seem nearly as relevant as can you two come to some kind of an agreement that will enable him to survive what promises to be at least one and possibly several very difficult quarters? I think that we are in uncharted territory here and you should react to his visit as if you were the tenant and he were the landlord. How would you like to be treated? I understand that six months ago  appearing unannounced on your doorstep at your home in the evening would have been inappropriate, but now it's the face of the new normal. My dad would always say, \"Play the hand you are dealt,\" and that advice seems right on target. You both have junk hands but If you want to get all high nosed about protocol then you both will lose.", "replies": [{"id": "g3kfaj9", "text": "Thank you. Exactly", "replies": [], "depth": 2}], "depth": 1}, {"id": "g3j7ern", "text": "I do completely see his urge. I am not in his position but the stress of that could of given him an overwhelming sense of urgency. I do not think that is professional at all, but I respect the quickness and level of communication that comes with that, and the nuts to do it too. Times are tough right now and giving a percentage increase is asking for a lot (unless there\u2019s more to that) but maybe see about meeting in the middle on increase or take percentage of sales over a certain dollar monthly. In regards to getting your own office, I don\u2019t think that\u2019s truly needed. I think a lawyer will do the trick just/if not easier", "replies": [], "depth": 1}, {"id": "g3jawef", "text": "In this day and age where ppl hate landlords hide your information as much as possible. LLCs and registered agents and PO Boxes. And this is cheap.", "replies": [], "depth": 1}, {"id": "g3k3pvd", "text": "This is Why you get an LLC with a registered agent and maybe rent flex office space for meetings when needed", "replies": [], "depth": 1}]