All Forum Posts by: Bienes Raices

Thanks. We have no requirment to pay interest on the deposit here. I found out that most people in this state don't even bother to keep the separate account at all, but I plan to do it anyway. But not a separate account for each property.

The law in my state is vague. It says you must create a separate account for the security deposit, and you can't mingle it with your own money.

I was thinking of creating one bank account for the security accounts of all properties, rather than try to create a separate account for each deposit. Does anyone do this?

Good news I heard on the radio this morning. Barbara Boxer is conceding that bill will have to be watered down to pass the Senate. Let's hope they get rid of the REEP program.

Yes, it will pay for itself if you can hold the property for 80 years

This is the part of the bill that worries me the most--the utilities increase is peanuts compared to this. If this bill passes, before you're allowed to sell your house, it will have to be approved by a Green Inspector (this the "jobs jobs jobs" part of the bill Pelosi was gushing about--they will be training thousands of people to be inspectors). All of the windows have to be a certain type, all appliances must be energy star rated (so much for used appliances) and the AC unit must be of a certain type. Also I think there are rules about insulation. Since it's one sized fits all rules, it doesn't matter if if your in Alaska or the Florida Keys, you still have to comply with the same rules. Thousands of dollars of improvements just to sell your house.

This is why we have to get this thing stopped, or at least modified to remove the insanity about residential property. I go to a weekly discussion group (not real estate, but some of the people there are homeowners). I'm bringing handouts about this thing to try make people aware of it. Tell everyone you know.

Like most of us, I'm praying this thing doesn't get passed by the senate, and I'll be contacting my representatives.
I've been trying to find a synopsis of the bill but I can't seem to. Do you only have to make the improvements when you sell? Because then in theory you could just hold the house long term with tenants and never make the improvements.

Thanks, and I agree completely. On another thread there was someone claiming that 2 million wasn't enough and they were going to get 5 million liability. To me that seems unnecessary, but I don't know their situation, or what they own.

Drew, honestly I have no idea. many people are suing these days based on environmental hazards (mold grew in the house after you bought it, and then caused tenant health problems) that you as a landlord may have no idea are even present until its too late and your served with a lawsuit. All I know is that everyone says you should never own rental properties in your own name.

I've found one of few insurance company in my area writes liability coverage in the name of an LLC. They are rated A by something called Demotech and have good consumer reviews by an insurance consumer advocacy that collects that data for our area. But they are unrated by AMBest. Is that an automatic "do not use"?

But did your attorney say whether this works if you own in your own name too? For example, if you own the property in your own name, have a contractor do some improper work that causes an injury to the tenant later on--will only the contractor and his company get sued or will you (property owner) automatically get added to the suit, since you own in your own name?