All Forum Posts by: Al D.

But your sister may still qualify for a “121 exchange:” https://www.nolo.com/legal-encyclopedia/the-250000500000-home-sale-tax-exclusion.html

The Reform has not been approved yet. There is a Senate vote expected next week. Changes may stay as they were announced after the reconciliation, or not. The vote may be pushed back, etc. The rotund lady has not sung yet.

(Not legal advice) From your post, I understand that this lease is to expire on January 31, 2018. But the tenant wants to move out on December 20, 2017, and is referring to some statute of the Washington State law that supposedly allows him this. As far as the cited law section is concerned, it’s a rather standard “Severability clause” that your lease agreement may or may not have (it should for your benefit. But that does not matter here.) However, this section of the law appears to only apply to the State of Washington Residential Tenant Landlord Act - it, by itself, appears to have no relation to your lease agreement with any tenant. 1. I presume that your lease agreement addresses early move-out. If not, give him his money back and update your lease for the next tenant. (My own opinion that some would disagree with.) 2. You stated that you told this tenant that his rent would be going up. But you did not say here as of when. If starting in February of 2018 (if current lease expires on January 31,) - and you advised him of the increase under whatever method(s) your state says you should follow - you are fine. Short of you being in noncompliance with these two points - and not knowing anything else - I’d say that he is trying to intimidate you to his advantage. At this stage, I’d ask him - in writing - what he meant by citing the specific law - how it relates to your legal contract with him. (Perhaps he accidentally cited a wrong statute - I have no idea if there is a “right” one.) And I would refer to the section of the Lease that addresses an early move-out, advising him that you intend to hold him to it. (Not legal advice.)

@Moncy Samuel, you probably know that there is not much 100% agreement on anything on this site. My thoughts: Disclosure: I have not read/ordered the book. I’ve only listened to the latest podcast with David Greene, but not even to the end yet. Based on the above, however, I can already conclude (for myself) that David has a good system that he follows. It is clearly - albeit allegedly, as I have not seen any proof of David’s success personally - is working for him. And I think that a system like that should work, because, in a nutshell, a system where “you are helping yourself by helping me,” combined with “checks and balances” between supposedly unrelated parties, is simply perfect. I just wouldn’t bet that it will always work, as people’s interests and loyalties sometimes change. Perhaps David also addresses this in the book. It appears to me that David has a leg up on many investors, especially new ones. For one, David has likely dealt with enough liars to see them coming from a mile away. For another - perhaps a more important - point, David appears to represent “future business” to all involved parties whom he needs to protect his interests far away. The problem I see for a beginner here is that you’ll need to first “talk the walk.” David clearly (from the podcast, and typically for a cop) has the gift of gab. I do not know how he started in REI before he could “walk” the “future business” line. Perhaps that history is also in his book. Perhaps you should also read Trump - whom I also have not read - for wisdom on this issue. I am an OOS investor, having also started in the SF Bay Area. I believe that OOS investing can be done successfully (I do not believe that the oversight can be as good as in your own “backyard,” though. Again, I have not read the book.) If I did not already have a full plate - and liked reading - I would certainly be ordering the book now. I think there is enough wisdom for many of us to justify the cost through either Amazon (thank you, @Aristotle Kumpis,) or via BP for the bonus content - if you need that content. @Moncy Samuel, I’d love to have all my properties within two hours driving. And if you have good people in place on top of that, you are in great shape. @Jean Paul, my guess is that the book should be useful for you for the “systems” aspect. I don’t know whether David covers any legal/tax aspects for foreign investors in the US.

I use Cozy. But before I have a prospective tenant provide me their credit and criminal background via Cozy, I (or my local agent) have them fill out a physical application. This can also be done via email with proper UI on both ends. The application has the prospective tenant’s personal information. As an added bonus (which is a must for me,) that application has the words along the lines of “I authorize verification of the information I provided in this application.” I keep the application for years - especially if I turn down the prospective tenant.

It is very nice of you to even consider doing something for your landlord. Not knowing the specifics of your relationship, I’ll speak from my own experience: I had five-six landlords in my life. Some of them I never met, and they only received payments from me in the mail. One, whose converted back-of-the garage (we call these “in-law” units) I lived in for seven years of my early-mid 20s, lived upstairs. She was already in her 80s at that time (passed away at over 100 due to complications from a fall.) She used to give me cookies for Christmas. Every year. When I was moving in, she wanted to clean the place. I told her I’d take care of it - straight-up told her that my own mother would get mad at me if I did not take care of that myself. I then also repainted the bathroom ceiling (and got rid of mildew on it) at my own expense. She also found my on-time payments a huge difference from her previous tenant (my high school buddy, who also owed me money.) When I first became a landlord, my first two tenants wanted to give me cookies for Christmas (I am actually a nice guy.) I accepted it the first year, but also politely asked that we do not make it a tradition between us. My long-distance tenants and I only email/text greetings to each other. But this is just my experience. Having said that, the best thing, I think, any tenant can do for their landlord is take care of the property and pay rent on time. In return, any (reasonable) expectation by the tenant should be quickly addressed by the landlord. It is not a matter of “professional boundaries” to me, but I do like to set major expectations from the beginning now. Chiefly, “please don’t make me become the bad guy and have to evict you and pursue you for my losses.” I am happy to have the vast majority of my current tenants. I am still financially guiding (for free) two of my former tenants, one of whom recently bought a house. The photo is certainly a nice touch, Kathleen. Sounds like your landlord should be happy to have you. Happy holidays.

You say nothing about whether the tenant is on a month-to-month agreement or on an annual lease that does not expire until whenever over 30 days from your intended notice. I don’t know how to go about it without upsetting the tenant - other than to not think of him as your friend to begin with. But the first thing you need to do before even giving him a 30-day notice of the increase in rent (even by $1) or a larger security deposit, is make sure that there is no long-term lease that would still be in force at the time the increase - or any other term(s) you intend to implement - takes effect. If you know that you will still be under comps, let the tenant figure out if he wants to get upset enough to leave. I once inherited a tenant who was described as “exemplary.” I had to start an eviction a few months after the purchase. You are a week from closing. You don’t know this guy. Try to remember that this is a business. (I’ve never been to Buffalo during winter, and am impressed that people there have plug-in hybrids. Maybe he is a nice guy.)

No problem. Happy to help. The questions you listed as them having left blank sound like they are questions from a typical rental application - like you did not make one up yourself, where you ask them for the name of their first lover, or how many push-ups they can do in a minute. So, you are good there. In essence, you must think of yourself as a creditor - the law sees you that way; it is on your side. Just make sure that you do everything the same (legal) way with all applicants. They know the game. I may have had a slightly different response if all they left out was the SSN. But what these applicants left out was too significant, especially in aggregate. You should ask them to complete it to be fair. Personally, I don’t expect them to either answer honestly at that point, or be able to pass credit/background check, which you should perform - but only after you have a complete application.

You absolutely should request them to fill it out completely. Those boxes are not there for decoration - but they know this. There is nothing wrong in telling them that unless they fill it out completely, you will no longer consider them for becoming your tenants. Just make sure to keep the incomplete app for your records - to protect yourself. And make sure that you apply same rules to all applicants.

@Cody Evans, you and I were likely exposed to the same people.  The sign in this pic is from March of 2016.