All Forum Posts by: Daryl Luc

I assume from your post the property is vacant and extremely far from any neighbors that might have knowledge.  Don't do anything until you have your insurance company send an adjuster to examine the damages.  With their estimate in your hand, you now know how much money you will have to guide your decisions.  There is a specific amount of time in which this has to happen, or you may have a 'bad faith' situation.  I suggest you do some homework on the State Law.  Easy enough to do online.  If you find this process one where you feel like you're being handled, don't be afraid of contacting the Insurance Commission on line via their form for just such a situation.  I'm in Ohio, just went through a similar situation and my life experience prepared me for this.  A $400 fix turned into a $15K residing claim payout.

Do not provide any estimate to the company or indicate your wants and wishes before hand, or you  will have backed yourself into a corner.  Even tho you pay premiums, they are not your friend.  This has been proven out time and time again.  Two things that will affect the adjuster's number....your deductible, and any depreciation they force into the equation.  

A suggestion, anyone over the age of 18 living in a premises/unit should be required to sign the lease after, for example, 7 days occupancy within any 30 day period.  This will hold them to all the lease contingencies and not make them a squatter.  Furthermore, in your current situation, boyfriend/tenant could just up and disappear leaving you with a tremendously expensive situation that could take a few months to resolve.  And, it's not really his problem to solve, because of your overly considerate lease language.  She doesn't owe you a nickel the way you allowed her in and she doesn't have to leave because you gave her permission to be there as a resident.  Going after her....well good luck explaining to a magistrate that you aren't Snidely Whiplash trying to send her and her kids out into the cold.  Also, your lease should contain a clause that describes the joint and several liability for your lease.

What I would do....get the tenant into your office and have a 'come to J..us' and explain how he needs to pony up money, as in cash for keys, and get her out that way, otherwise, the two of you are behind a very large 8-ball.  Have you even talked to the squatter? Without an explanation of how he got in there in the first place, not much can be said on how to get him out.  On face, you permitted her all the benefits of living there without any restriction.  I say guest stays unless there's another lease clause that can be invoked to remove them. Let him know that if you go after removal, he'll have to hire an attorney.  It's a complicated defense(as in costly) and pro se isn't the way to win on his part.

If your lease expressly forbids pets, Post a three day quit notice, then on day four.... show up with a leash and collar, put the animals into cages, and remove them.  If you don't have a lease clause regarding pets, then you, again don't have much leverage.

Unless.....you qualify as an active participant via IRS rules.  Same numbers, just different acceleration of application of losses.  Talk with your accountant, download the form instruction from the IRS or perhaps Natalie will chime in again.

Originally posted by @Patricia Steiner:

I have a different take on this...in your market, what is the rent on similar properties that provide a washer and dryer?  That's the answer. When a tenant asks for something to be added to the unit, we (my clients and I as investors) always answer with what that increase would be in terms of rent.  And, if it doesn't make sense in the market to add whatever they have requested, we simply tell them no.  

I also recommend requiring the tenants to have renter's insurance with the landlord as additionally insured whenever a washer/dryer is provided.  Should the tenant overload the machines, the damage could be to the machines themselves and/or the property (flooding, fire). Simply not cleaning out the dryer vent properly is a fire hazard.

In my market, washer/dryers are expected amenities. And, you want to quote it as rent so that they don't advise you later that they have stopped using the machines and, as such, will stop paying the add-on for them.  

Spot on!  In addition, if your state allows, you are far better off with a disclaimer that the appliances are not included in the rent, but are personal property of the landlord and left for the personal enjoyment of the tenant.  This, with the appropriate contract language, will sever any responsibility to repair an appliance if not worth the cost, and it puts the onus on the tenant to decide, a. do they take on the responsibility to repair or b. replace, or c. do nothing.  If they choose replace, it's theirs to take with when they leave.

Originally posted by @Mary M.:

I do want to comment on the LL that gets copies of his tenantsbills - i cant imagine thatis legal - seems to me that is a huge breech of privacy 

 Which part would you feel is illegal...the fact that they pay their bills on time and in full, or the fact that they don't?

It's been my practice for years. I only have single family properties.  In addition to the checklist, I require any copies of photo or movies are sent to me at the time of the submission of the Move-in(within 5 days).  Failure to submit, is spelled out in the lease as acceptance of a premises with no issues to report.  Once I have the document, I make an appt. to walk through and inspect any items the tenant doesn't feel are up to expectation.  We agree or we agree to disagree, these are noted, with any corrections to be done, time frame and by whom.  All is initialed, signed and co-signed.  Copy is returned to the tenant.  Corrections done, memo to tenant re: same.  You get the picture.
At move out, that doc becomes the benchmark for what is not normal wear and tear.  Dirt is not normal wear and tear.  I have an attachment to the lease that outlines a couple pages of the items that have been dealt with over the years and estimated costs if they turn up.  Not too many problems with damages these days.

My opinion, you are chasing a $5 with a $20 by trying to split the utilities into individual metered service.

If you start to put electric panels into a property, you have to run service from the street for each new panel.  Gas meters have to be installed by the gas company, and if your service isn't large enough for more than the one meter already installed, then the service pipe would have to be dug up and sized according to their formula, split into feeders, and then the channel filled back in.  Water, the same deal.  Then, how are people to enjoy their unit while this is going on since it doesn't happen on one day.

It's easier to load the rent.  If this is property you haven't any experience with, then.....each utility should be able to give you a 13 month usage if the building only had one meter for each of the services.  Use that as your guide and give each a 10% lift and put it in the rent. Adjust annually as needed.

I only accept checks from the tenant's personal account.  I then have a current bank account in addition to most recent known employment, if the need for a lien on the tenant becomes necessary post eviction or clean out should a judgement be necessary.

Above answers are good ones, but not every LLC is set up to thwart a tenant. By nature, attorneys are like burglars and tend to avoid homes with a lot of security in place. A minor point.

In some cases, a good attorney, on behalf of a landlord, will establish LLC's to eliminate the issues of blended families scavenging assets, or even included within a non revocable trust, they are part and parcel of keeping Medicaid at bay for an elderly parent or wife. 

Many jurisdictions across the country are faced with bogus title transfers being done by walk ups to the county recorder desk and transferring a TOD or survivor title on the spot.  Google that one!  Talk about warts and hair all over your day if that happens to you.  An LLC goes a long way to prevent that!!

Asset protection goes way beyond what your tenant may or may not try to pull.

I suggest you contact the seller and ask for the move in condition report.  Hopefully they have it, had it signed, and are willing to send it to you... and pictures if they have them.  If you ever get into a similar situation down the road, now you know that this is a term and condition to be included in your purchase agreement.  It should require either a condition report as described, or an affidavit of condition on the date the tenant took possession be submitted to you before closing. 

From the Little Rascals School of Business Motto:  No tickey, no washey.