All Forum Posts by: Courtney King

@Account Closed This is a great question! I have quite of few clients that are in the same situation and I'm helping a client purchase a duplex in Dallas that needs work and is fully occupied. Normally, I first look at the lease terms; when is the lease up? If the tenant is month to month then during the option period, get the inspection and then have a contractor bid the full rehab. You would just want to plan the completion of such repairs after the tenant moves. 

In the case where there is a significant time left on the lease, I usually recommend completing exterior items first and any compliance/HVAC service items inside and then wait until the tenant moves to complete the full rehab. It's just too risky to do large repairs while the tenant is in place. I hope this helps!

I get it! They may not have reviewed it. Unfortunately some of these appraisers are led more by ego then anything else. I'm sure it will all work out.

@Carlyle Small I have had this happen before and these appraisers are usually very firm. Nonetheless, ask what the procedure is for contesting it. There is usually a 1-page form that you have to complete and then attach details of the comps and/or reasoning why they should adjust their assessment. 

I usually provide an appraiser with a packet before they go out to the subject property. The packet usually has a complete list of upgrades along with the date that they were performed. The appraisals usually meet value. You may consider attaching such a list to the form that they give you to contest it.

@Dereck Palermo I would chat with a lender to see what the best option would be. Correct me if I'm wrong, you'd use the cash from the refi as a downpayment on the next property right? I believe a lender will be able to guide you as there may be multiple options but I know that the refi may affect you if you are getting a new mortgage for the duplex that you're considering. I hope this is helpful.

• @Jenny Sung My comments are below. I'm a local Broker/PM. I'm not an attorney so you may need to seek legal advice.
• Do I have any leverage in this situation?
  Yes, Texas is very pro-landlord. Normally tenants can't withold rent due to repairs unless they follow a specific protocol. I know you said that they are trying to break their lease. Are they current on their rent right now?
  
• Should I start evictions?
  I'd recommend you drive by the property first and see if they left. If it's obviously vacant (no utilities, nothing inside the house), then you may just want to document that (we usually take photos/video) and move forward with your final accounting and rekey. I'd then send them over to collections for collecting what they owe. 
  
  If they are still there and behind on their rent then I would issue a 3-day notice and then file once the 3-day is up.
  
• What is the best way to insulate myself financially from a broken lease?
  Again, I'd drive by the property and if it still looks like they are there, I'd knock on the door (I don't know where this property is but I wouldn't go alone). This is part of the "game" of being a landlord. I'm hoping you have a decent deposit on file. If not, hopefully you will collect once you send them to collections. On a bright note, this is peak leasing season so if they are out, at least it's during a time of year that you should be able to re-rent quickly.
  
  Last but not least, since they are on Section 8, I don't see why a tenant would risk losing their section 8 by breaking the lease but it does happen. You may want to drop a note to the case worker and see if they know what's going on.

@James Kirby I would recommend you check with a local real estate attorney. At first glance because he didn't disclose it was a service animal so I do think you have grounds for a breach of lease, however, each state varies in the interpretation of that law. Some State associations of realtors have a legal hotline you could ask. It would be worthwhile to consult an attorney due to the nature of fair housing and ADA complaints. 

@Katelyn Smith I don't think there are many advantages of sticking with the same company unless they offer some sort of "perk." I have two mortgages with the same company. That company is not doing any refinances so I talked to the mortgage broker that I used when I first bought the house and they are doing a refinance. My primary is being refinanced at 2.875! I hope this helps.

@Romaldo Cruz How does their rental history look? How about employment? The last thing I look at as a professional property manager and investor with rentals, is credit. If they had good credit they would be buying something. If their rental history and employment (at least 2 years verified) are good and they don't have any evictions or owed landlords then it should be fine. If not, you may either want to decline the application or ask for an additional deposit. I hope this helps!

Hi @Thomas Smith I would consult with attorney just in case. I have had a similar situation here in Texas and I recommended that my client (owner) didn't do that because of the assumed liability (e.g., if something happens to the motorcycle or if the tenant claims that there is a "new" scratch or anything like that, they could put the blame on you for storing it.). I guess one way you could get around it would be to have the tenant sign some sort of indemnity. I usually am pretty cautious because of what I have seen as a property manager over the years. I hope this helps!