All Forum Posts by: Daryl Luc

Also, if he's grossing close to $100K per year he may be a registered corp or llc with the state. If that $6K income is a monthly net, he's smart if he's working under a structured corp or llc. That is easily checked on line via your Secretary of State website.  This will also tell you how many years in business.  Searching his name will tell you if he's opened and closed several companies (bad contractors who get into trouble are notorious for this) which should pop up all the registrations he's made in your state.  Don't forget to check the BBB also for complaints and reliability.  Your county court system (actually every one where he's been a resident or done work) will have an online search that would give you hits on his name and company if he's been sued for non performance, evictions etc.

If you must go forward, my 60 year old wife put down vinyl plank from Home Depot by herself.  It's really simple and cheap.  Carpet in an attic...how often would you have it vacuumed to get the dust and spider droppings out?  Now that said, you do realize that any improvements to any investment property have to be capitalized and depreciated, they can't be expensed.  The IRS is funny about that.

I'm pretty sure that if you were behind in your mortgage payment, the bank wouldn't hesitate to wack you.  I'm pretty sure that if you missed a couple of car payments, it would get towed away sooner, not later.  Credit card payments...same.  When people stop meeting their obligations to you, if you don't act, you've allowed yourself to become their guarantor of payment....ie it's coming from your pocket.

Just to add....the security deposit isn't identified as his or hers, so for you to split in any fashion, even if you wanted to, is a recipe for you to be taken into court by one, the other or both.  It is attached to the tenancy, not the individuals. She has to wait until you have a vacant property, inspected it, and measured how much will be returned.  How it's split after that is between those two, or their lawyers.

One other thing to consider: An expense such as you are considering can't be written off in the year you pay it.  It falls under property improvement, not maintenance or repair.  This makes it a capital expense and has to be depreciated.  I might make a case against your insurer for their imposing an unreasonable burden on you.  How long have they been underwriting you?

Get another company to cover you.  There are more insurance companies than there are bus stops. The one you have has found a reason to not do business with you. I'm not sure how an insurance company can hold your feet to the fire to change something that is legal, into what they want it to be, unless you decide to agree.

If your building dept hasn't flagged the property, it's been grandfathered. Grandfathered means it's legal. How would they flag it? Three ways come to mind immediately: A forced inspection at property transfer (HUD, etc.). Your request due to another building modification. A forced inspection due to rental property registration ordinance.

For the future:
Always use a blue pen for signatures.  It differentiates the original from any copies.  Also have at least one section on each page of your lease/contract that has to be initialed by the tenant as an indication that the section was discussed in detail to their complete understanding. 

Never hand an original anything to a tenant...only copies, and not color copies. In court, the original matters, not copies.

Do not scan an original into a pdf for anyone but your lawyer.  Way too many programs exist to edit pdf files.  Transferring a legit signature from one document to another is a simple click, click, print.  If no original or color version is held by anyone but you, the risk is mitigated.

Only accept payment from tenants using a check from their personal bank account.  Two reasons for this, they can insist in court, under oath that the signature you are presenting, isn't theirs!  A series of checks with their signature (I always scan copies into a digital file) mitigates that.  The other reason, a check gives you a bank account to attach in the event you get a judgement in your favor.

Experience is what you get when you don't get what you want. You don't indicate whether she has a lawyer, but lawyers will generally request a jury if the client is lying and seek a judge when it's easy to meet the standard of proof.

Seek out an Independent Public Adjuster.  They work for you, not the insurance company.  I've engaged them more than once and while an attorney can help in some cases, these adjusters almost always hit a home run faster, better, cheaper.  Don't even think for one minute that just because you pay premiums, your insurer will treat you fairly without a fight.  

I know a guy who has five.  No complaints different from the rest of us who have non-trailer property.  He changes up the advertising tho:  "Custom pre-fab in park like setting"........  ;)

Originally posted by @Michael Badin:

@John Mocker   I am sorry to tell you but you are incorrect.  Additional insured's have nothing to do with liability. Additional insureds are in fact insureds on the insurance policy. By law all insureds must be included on all first-party claims. I issue these claim payments every single day at work. I am not confusing loss payee with additional insured. All additional insureds are in fact loss payees on first-party claims.  Liability claims are third party claims and do not deal with payments to the insured but rather a third party claimant. You are correct that a mortgagee is an additional insured. And as an additional insured a mortgagee is included on all claim checks for the property they are considered an additional insured. On a homeowner's policy a mortgage company is considered an additional insured for the dwelling but not an additional insured for the personal property.

There are many things on this forum that I am not well educated on yet. I am working on educating myself in many areas of Real Estate. However I have over 14 years experience with this and I am not confused on it. I deal with it every day.

@Frank Chin  I agree with you that there should be a way to track for landlords. Unfortunately as of right now I know of no way to do that. (At least not legally.)  I also agree with you about tenant fraud, claiming damages that never existed. It is a big problem. My suggestion would be to include the insurance clause of recommending or requiring renters insurance.  Have them sign an attestation that they understand that all personal property is not covered by the landlord policy. You then include another clause (worded better by your attorney) stating that if the tenant sues you and is found to be in the wrong then any and all costs associated with your defense is paid by the tenant. This could include attorney fees, court costs, lost wages for time lost at your day job, etc. If your tenant tries to sue you for a personal property insurance claim then you can show them where they signed acknowledging that they knew they were responsible to get their own insurance and that your insurance does not cover them. Then show them the legal clause and perhaps they will come to their senses and drop their suit.

Sorry for the long post everyone.

 I showed both of Michael's posts to my agent of 30 years who carries both business and personal policies for me.....

I require renter's insurance evidence before keys, and require 'named insured' status in the lease language, I should ever entertain allowing a dog, then there has to be a rider for that animal.....

His take: the way I do it means I'm covered for damages to my properties beyond structural and basic 'landlord' coverages including loss of rent in the event some yokel has a kitchen fire, I'm not liable for personal property of a tenant or guests,nor am I liable for any liability situation they should cause.  In the event of a dispute over 1st or third party status, all I need to do is file a claim through my master policy and they will subrogate for damages while I fix whatever needs fixing.  I have been in battle with tenant insurance companies and their contractor adjusters more than once as a third party...and got my money each time.  Fact, no tenant insurer is your friend, and most of the time yours can be adversaries too.  Each state has laws regarding how an insurance company must deal ethically with a claimant.  Failure to do so is defined as bad faith and has courtroom consequences...ie: punitive damages.  I suggest that you visit a local landlord association and find out when they will have their next meeting covering insurance woes and gotchas since your state isn't my state.  Be informed.

Oh, and he was wondering why an adjuster had any input beyond assessment of damage.  So was I.