All Forum Posts by: Account Closed

@Jay Hinrichs I think this month will be pretty “normal” and the first big wave of non-payments will happen in May. Though it will depend on numerous things of course. 

If the stimulus checks hit around the end of April beginning of May people could kick the can down the road until June 1st if tenants make plans.  

I haven’t even looked at which of my tenants have paid. That’s why I have a PM. He will notify me after the weekend of who has and hasn’t paid and who’s communicated about being late etc etc.  one day at a time and panicking serves no purpose at this juncture in time.  

If two farmers pray for rain and one prepares their field who believes in God?  The one who prepares for the rain.  

Now we will see who prepared for a downturn? Only time will tell.  

 It gets better.  This is a unique situation and not normal at all.  It will take time to sort it out.  Hopefully you have reserves or at least a job that you are still working right now. 

 Welcome to this side of 4 units.  

For financing shop around and find a reputable lender, don’t think best rate equals best deal since a “promise” means nothing until rate lock and closing docs signed. 

For security deposits and last months rent is I use a single account for each LLC. Don't make it complicated. A business doesn't have a checking account for each customer. (Ensure the prorated rents, security deposits, other refundable, last months rents are included in closing documents).

the additional LLC isn’t needed to manage cash flow unless you plan on becoming a property manager for third party people and that would be separate from the apartments LLC.

An LLC doesn't get extra tax benefits due to structuring. However, I recommend speaking to a CPA (like @Natalie K) who does tax strategy for real estate investors.

My new property manager uses appfolio and I’m currently happy with the system so far. Also depends how many properties you have and how many you are wanting to buy as to how i would purchase a management system. 

 I feel you on the deployed overseas trying to deal with these type of issues.  PM sent. 

 I always hate the oh they are in the military call their commander answer.  How would you treat this if they weren’t in the military?  You’d  file the debt with the court and or credit agency (actually your PM would/should) and you move on as a lesson learned.  I’m a veteran and no I’ve never had my commander called. Though I understand the appeal of that as a tool in your toolkit to get money owed.  

 What if they worked for a corporation, would you try and contact their human resource department or supervisor?  How about if they have a job that requires a security clearance?  You going to go to OPM and say they aren’t paying their debts?   

I’d be more concerned with your PM than the tenant at this point.  Why aren’t they handling this better?  Why are they even contacting you about this?  If it is a military town the PM should be a pro at dealing with past due bills and damage deposits with a military member.  

Might be time to find a new PM

 You won’t know until you make the offer to them.  Don’t waste another day.  Further into the pandemic the more scared and panicked people will become.  

 Did the previous landlord forgive the missing rent?  What’s the closing documents say?  Past due rent doesn’t go away because of a new owner however it should have been spelt out in the contract with the seller.  

 I’d recommend try and do a cash for keys.  I can’t speak to the legality of the lease and verbal agreements.  But if the house is to be flipped I’d make any efforts I can to get them out sooner rather than later.  

Good luck 

@Kira Simmons send her a new month to month lease for April going forward.  I have always raised the rents for month to month by 50 dollars a month.  I don’t recommend that but I do think a month to month lease is the way to go for you right now. 

 If the tenant used a credit card all it takes is a single phone call to their credit card company and it’s reversed and it is on the landlord to prove it which can be difficult. 

I have been lucky to not have dealt with it, but read enough about it to know for my tenant base it isn’t worth the risk.