All Forum Posts by: Daryl Luc

I don't talk to the most recent landlord or PM, I go to one or two that preceded it since my app asks for the past three residences info.  I've also talked to neighbors if the people were in a single family.

So did these folks.    

https://www.biggerpockets.com/forums/83/topics/59915-rent-to-own-success-

I see you added value to the postings with a completely articulate set of topics on how valuable the Rent to Own concept is....or isn't.  Oh wait, my bad.  You really didn't say anything. I happen to believe that if one goes to the interweb for simple answers from complete strangers to complex issues that require vetting and contracts, they're already in trouble....or they can read for themselves and get somewhat of an understanding of what they don't know.

start here:  https://digs.co/rent-to-own/

and here:   https://www.thebalance.com/wha...

Originally posted by @Jennifer T.:

I often fill in the Move-In checklist with them and have them sign it, when I turn over the keys.  I think I also have language in my lease that, if they find any defects upon move-in, they have 5 calendar days to inform me.  In a nutshell, the onus is on them to inform me about any issues.  If a kitchen cabinet is missing a door knob and it's not noted/I'm not told about it at move-in, than it becomes "their" missing door knob.

I supply a Move-Out checklist as a courtesy and reminder of what is expected.  I don't expect or even ask that they turn it back in to me.  I often don't do move-out inspections with the tenant there.  But when I do, I also don't ask them to sign the Move-Out checklist.  I tell them what the defects are.  But I'm careful with my wording that I'm not binding myself to that being all that might be wrong or that the damages found will cost XYZ.  If something is deducted from the security deposit, I provide receipts if that is requested.  I'd respond the first time to a dispute about the charges but, after that, they are what they are.  I don't engage in continued communication where each person ends up just repeating themselves multiple times.  

Practically identical process...more of a suspenders to her belt approach tho.  I have a real estate agent who does the final move out inspection with me.  Tenant can be there if they want, most don't show.  All damages are recorded on the Move In form I use to be a complete 'compared to' document.  If the tenant missed the time frame to return the signed Move In with their annotations, then the condition is noted as 'perfect' for that.  If they return it with notations at the move in, I come back and we decided if and how fixes will happen, and that's noted and initialed.  At move out after keys have been returned, I do a walk through with my agent, who signs it as witness in addition to my signature.  This is for my records in case we end up in court.  It's never failed me.  Additionally, I require via lease language that any photographs or video of the property done by the tenant upon move in must be copied and forwarded to me to be included in their 'file'.  Failure to do that precludes any opportunity for them to show up as evidence.  Judges like that stuff....it protects the position of the one telling the truth as opposed to after the fact 'statements' of condition and so forth.

Just for grins, try out an independent agent and compare.  Most have boutique underwriters in their portfolio that can usually kick the big guys butts in price/performance.  Everyone is super easy to deal with when you are buying, not everyone is super easy to deal with when you need to claim.

The example provided by @Theresa Harris is similar to one that include in my lease as an example of how we prorate damage to property that must be replaced, and can't be repaired and is still within its useful life.  Siding is an example.  We also have a formula for painting, since it has a useful life as well.

Generally, these laws crop up in core cities and even a ring suburb or two.  For that reason, I've never done anything in those areas, I only do single family in second or third ring suburbs based on market research into the demographics.  That said, the article you give shows a fairly weak implementation.  Enforcement is the key, and that costs money.  No mention of the cost to play along, but in my experience it's in the $150 per year range, give or take.  Intrusive, yes.  Will the inspection program really do anything...meh.  The worst thing that can happen, probably not.  Consider a little town up the road, Cleveland....the cost to participate in Section 8 is more, the registration of property, and then add on top of that the cost presented by new legislation to mitigate lead paint (landlord responsibility!) and you now have a financial disaster about to happen.  What is your local Landlord Association doing?...were they even involved in scripting this thing?  The option of not registering is always there, you will lose your ability to evict using the court if you do that.

You are not responsible.  If they have renter's insurance, that's a policy issue as to whether their coverage put's them in temporary housing.  Your responsibility is to suspend rent payments.  If they don't have insurance, then it's all on them. 
Habitability is not related to the demise of a premises.  It relates to a landlord's responsibility in turning over a property that is habitable to a standard... cleanliness, no roof leaks, etc.

Originally posted by @Ginger Williams:

I'm always looking for ways to minimize my risk. I recently discovered that meth lab clean up isn't covered with our insurance. For those who don't know, cleaning up a meth lab can be very costly - and there's a right way to do it. Meth is cooked and used by every socio-economic demographic so screening is helpful, but may not be complete. Right now, I'm self-insuring the possibility of a meth lab clean up. I would rather have that cash invested and working to make more money. 

What do you do to minimize risk for a meth lab clean up or other potential risks to your property?

If you are using a homeowner's policy of any type, stop that immediately and get a landlord policy for your property.  I use an independent agent for my personal and business coverage. I suggest you do the same.  The landlord policy should have clear language that covers damages done by tenants engaged in illegal activity.  You should also get rent payment coverage if you are sincere in you worry since it does take a good while to mitigate the damage.  The only real use for self insurance is for collectables and antiques....unless they are actually appreciating.  Most don't.