All Forum Posts by: Bienes Raices

Personally, I were buying multi-family properties, I would go with the LLC. I would feel uneasy owning a lot of units in my own name. As for tax benefits, an LLC doesn't really provide that--if it's a single member LLC it's treated as a pass-through entity and just treated as ordinary income (minus the improvement/repair deductions and additions to basis you can take for rental property). I'm not sure if there's a tax benefit for a multi-member LLC.

Yes, I second that idea....

Thanks. When you say "two counterparts" are you referring to witnesses?

Chris Martin

Thanks--so the binder is essentially the same as my current holding deposit arrangement, except that it's treated as rent (instead of a holding deposit that converts to a security dep. on the first day of lease)?

This flooring is ceramic tile (on the first floor, with a slab foundation). Do I still need to bother with caulk in this scenario?

Rob K

Thanks. I was thinking it would be better to have a signed lease (even if they are moving in a month later) in case the insurance company inquires whether the house is still vacant. I've been told they don't like it when the house is vacant for more than 30 days.

Merry Xmas (Happy Hannukah, etc.) to all

Is it necessary to grout the base of the toilet where it meets the floor, or would it be better to use caulk (or nothing)? Someone told me grout is necessary to stabilize the toilet on the floor but I thought that's what the bolts were for? My concern about grout is that it may make it harder to remove the toilet in the future if there is a problem. Thanks.

[moderators: sorry I posted this by mistake on the Commercial Real Estate forum and then reposted here. Could you please delete the one on the Commercial forum]

So far, I have been having the tenants pay the holding deposit and then only sign the lease the day before move in. However I'm thinking it may be better to have them sign the lease immediately when they provide the holding deposit. My questions are:

1) Should I demand the pet deposit up front with the holding deposit or wait until they move in?

2) If tenant pays holding deposit, signs lease well in advance of move in date, and then never moves in/pays rent, can language be put in the lease that voids the lease in this scenario or would I still need to go through the formalities of eviction/declaring the property abandoned?

Here is the clause I've come up with:

Tenant agrees to pay holding fee of ________ to reserve property until start of lease on __________. At that time holding deposit will convert to security deposit. Tenant will also have to provide additional pet deposit (if applicable) at the beginning of the lease for the lease to take effect. Tenant understands that holding deposit is non-refundable in the event that tenant does not sign lease and take occupancy of the unit.

Doesn't sound like a very good business model.

What I don't get is that a lot of these apartments only charge a $300 security deposit (from what I've heard). That doesn't seem like enough for all the damage these people could do. Perhaps they make up for it by providing a shoddy product and not doing improvements. I know they have more cash/leverage to pursue these tenants in court if they cause major damage, but then there's also the issue of getting blood out of a stone when it comes to actually collecting.

Another one:

A husband and wife and their two kids came to see the place. The man was acting a little edgy and kept telling me "I was a soldier in the US Army" (currently he was on disability). I told them I would need to do a credit check and the wife told me I could just do one on him, I didn't need to do one on her. The man also wanted to do an arrangement where I would meet him at random places around Orlando each month to pick up the rent (instead of them mailing it). They also wanted me not to take a holding deposit because they didn't have enough money at that time.

I could barely hear them while we were trying to have a conversation because their two kids were running around the house screaming the entire time. When they left I found that the kids had damaged the miniblinds in one room.

The man called back the next day and I told him I didn't think it was going to work out...