All Forum Posts by: Jeff Gates

Jeff Gates has started 23 posts and replied 479 times.

Originally posted by @Joe Splitrock:

@Jeff Gates can you clarify what your post is trying to say? Are you saying not to rent to roommates or not to accept rent from just one roommate? This may vary by state, but my lease is with multiple individuals, not to each separate roommate. If one roommate doesn't have their money, I would expect the others to be responsible. If I rent to three people, I can go after all three for missing money.

I think you can decide for yourself. If there was no rent paid, and you started eviction, then one roommate moved out, but the other roommate did not. If the one roommate that pays you their portion, and you cash the check you have a problem. In most cases, roommates do not take the responsibility of the contract. They act as a individual (in their mind), no matter what you write in your contract. After all, a contract is only as good as the other parties willingness to abide by it.

0 Votes

What is an Adverse Action?

An adverse action is any action by a landlord that is unfavorable to the interests of a rental applicant. Common adverse actions by landlords include:

Denying the application;

The Adverse Action Notice

When an adverse action is taken that is based solely or partly on information in a consumer credit reports, the FCRA requires you to provide a notice of the adverse action to the consumer. The notice must include:

the name, address and telephone number of the CRA that supplied the consumer report, including a toll-free telephone number for CRAs that maintain files nationwide;
a statement that the CRA that supplied the report did not make the decision to take the adverse action and cannot give the specific reasons for it; and
a notice of the individual's right to dispute the accuracy or completeness of any information the CRA furnished, and the consumer's right to a free report from the CRA upon request within 60 days.

Disclosure of this information is important because some consumer reports contain errors.

The adverse action notice must name the CRA that provided the report to the landlord, even if the information came from another CRA. For example, a report from XYZ TenantScreen includes a credit report from ABC Credit Bureau. The credit report includes negative information that prompts the landlord to turn down the rental application. The adverse action notice should name XYZ TenantScreen as the CRA because XYZ TenantScreen actually provided the credit report to the landlord. The notice also can explain that XYZ TenantScreen got the credit information from ABC Credit Bureau, but that is not required under the FCRA.

Written notices provide proof of FCRA compliance.

0 Votes

Accept rent payment from one person only!

The most common reason landlords terminate a tenancy is for nonpayment of rent. If a tenant does not pay the rent before the end of the day it’s due, a landlord can immediately send a termination notice (unless the lease or rental agreement provides for a grace period). The termination notice, called a Three-Day Notice to Pay Rent or Quit, gives the tenant three days to pay rent or move out.

If you haven’t followed the rules, and the tenant doesn’t pay or move within the specified three days, you’ll have to file an eviction lawsuit (also called an unlawful detainer). But the tenant may have a valid reason to contest or at least delay court proceedings based on your mistakes. If you lose the eviction lawsuit because you made a mistake in preparing or serving a three-day notice, you may even end up paying the tenant’s court costs and attorney fees (in addition to your own), and you will need to start all over again with a correct three-day notice.

If you rent to roommates and no rent is paid. One roommate can move out of the home. While the other roommate can pay what they believe is their portion of the rent payment.

If you do accept partial payment, you need to file a new three-day notice. See EDC Associates, Ltd. v. Gutierrez (1984) 153 Cal.App.3d 167, 200 Cal. Rptr. 333.

This action will reset the time period and you will need to start all over again with a correct three-day notice. Many months without rent payment can be the results of this mistake!

0 Votes

I have a termination clause in my lease that allows either party to terminate with a 30 day notice for a addition termination fee of $2000.

0 Votes

Originally posted by @Jeff B.:

Originally posted by @Dutch Marc:

Originally posted by @Jeff B.:

Hi J,

I am using Quickbooks pro as well for my business on the Mac. I am wondering if it would be easier to start using quicken Rental Property Manager instead of quickbooks pro. Seems like it's already setup mostly..

Would you be willing to share some of your setup? Account lists etc?

Thanks in Advance Marc

Any real accounting system can support ANY business, - - including Rentals. Having worked in software for so long, I can tell you, there's NOTHING special about software regardless of the title, "X Y Z pro", "Rental Manager", etc etc etc.

Let's see if I can paste a meaningful list: - - it shows up well when posting

Account	Type	Description	Accnt. #
J Beard	Bank	new primary
11000 Accounts Receivable	Accounts Receivable	Unpaid or unapplied customer invoices and credits	11000
11000 Accounts Receivable:11100 Bad Debt Allowance	Accounts Receivable	Bad Debt	11100
12000 Undeposited Funds	Other Current Asset	Funds received, but not yet deposited to a bank account	12000
12100 Inventory Asset	Other Current Asset	Costs of inventory purchased for resale	12100
13000 Insurance Lost Rents	Other Current Asset	13000
15000 Furniture and Equipment	Fixed Asset	Furniture and equipment with useful life exceeding one year	15000
17000 Accumulated Depreciation	Fixed Asset	Accumulated depreciation on equipment, buildings and improvements	17000
12800 Tenant Deposits Paid	Other Asset	Deposit paid	12800
20000 Accounts Payable	Accounts Payable	Unpaid or unapplied vendor bills or credits	20000
24800 Tenant Security Deposits Held	Other Current Liability	Security deposits held for tenants	24800
30000 Opening Balance Equity	Equity	Opening balances during setup post to this account. The balance of this account should be zero a...	30000
30100 Capital Stock	Equity	Value of corporate stock	30100
30200 Owner Contribution	Equity	30200
31400 Shareholder Distributions	Equity	Distributions paid to shareholders	31400
32000 Retained Earnings	Equity	Undistributed earnings of the business	32000
33000 Owner Distributions	Equity	33000
34000 Sinking fund (adj)	Equity	34000
35000 Payments from Insurance	Equity	35000
47400 Rental Income	Income	Rents received	47400
47410 tentant expense	Income	47410
47500 Late Fees	Income	47500
50000 Cost of Goods Sold	Cost of Goods Sold	Costs of items purchased and then sold to customers	50000
State/Fed Taxes	Expense	Estimated Tax Payments
60000 Advertising and Promotion	Expense	Advertising, marketing, graphic design, and other promotional expenses	60000
60200 Automobile Expense	Expense	Fuel, oil, repairs, and other automobile maintenance for business autos	60200
60400 Bank Service Charges	Expense	Bank account service fees, bad check charges and other bank fees	60400
60500 Bad Debt	Expense	Rents lost	60500
60600 Tenant Refunds	Expense	60600
61000 Business Licenses and Permits	Expense	Business licenses, permits, and other business-related fees	61000
61700 Computer and Internet Expenses	Expense	Computer supplies, off-the-shelf software, online fees, and other computer or internet related e...	61700
62400 Depreciation Expense	Expense	Depreciation on equipment, buildings and improvements	62400
62500 Dues and Subscriptions	Expense	Subscriptions and membership dues for civic, service, professional, trade organizations	62500
63300 Insurance Expense	Expense	Insurance expenses	63300
63400 Interest Expense	Expense	Interest payments on business loans, credit card balances, or other business debt	63400
64000 Credit-screening tenants	Expense	RHOL	64000
64100 Management Fees	Expense	Fees paid to outside company for property management	64100
64300 Meals and Entertainment	Expense	Business meals and entertainment expenses, including travel-related meals (may have limited dedu...	64300
64300 Meals and Entertainment:64310 mileage	Expense	Mileage	64310
64700 Miscellaneous Expense	Expense	Miscellaneous expenses not categorized elsewhere. Use memo field to describe business purpose	64700
64900 Office Supplies	Expense	Office supplies expense	64900
66500 Postage and Delivery	Expense	Postage, courier, and pickup and delivery services	66500
66700 Professional Fees	Expense	Payments to accounting professionals and attorneys for accounting or legal services	66700
67200 Repairs and Maintenance	Expense	Incidental repairs and maintenance of business assets that do not add to the value or appreciabl...	67200
67200 Repairs and Maintenance:67210 Yard Maint	Expense	Yard Main	67210
67200 Repairs and Maintenance:67250 1099 Maint Contractors	Expense	1099 Contractor work	67250
67300 Damage Fees on move-out	Expense	67300
67800 Small Tools and Equipment	Expense	Purchases of small tools or equipment not classified as fixed assets	67800
68000 Taxes - Property	Expense	Taxes paid on property owned by the business, franchise taxes, excise taxes, etc.	68000
68100 Telephone Expense	Expense	Telephone and long distance charges, faxing, and other fees Not equipment purchases	68100
68600 Utilities	Expense	Water, electricity, garbage, and other basic utilities expenses	68600
70300 Late Fees Income	Other Income	Income from finance charges and late fees charged	70300
73000 reimbursed tenant expenses	Other Income	from Tenant damages	73000
80000 Ask My Accountant	Other Expense	Transactions to be discussed with accountant, consultant, or tax preparer	80000
81000 mortgage+interest	Other Expense	81000
83000 Tenant Damages	Other Expense	billable expenses, non-income	83000
90000 Estimates	Non-Posting	Estimates for jobs or projects. Customer proposals for work to be done, or items to be sold upon...	90000
90100 Purchase Orders	Non-Posting	Purchase orders specifying items ordered from vendors	90100

Seems like over kill to me. Unless you are a business owner why touch most of those accounts. They are not necessary. Most Landlords own a average of three rentals. They will never use this complexity.

1 Vote

Chase quickpay can afford to push money faster when the landlord becomes the backstop for unrecoverable monies. Read the fine print of the terms and conditions.

0 Votes

How about, replace the tenants?

4 Votes

Originally posted by @Alan L. Weeks:

I'm renting my first property for $1,500/month in the greater Boston area. Anyone have any thoughts on what security deposits usually run? I've seen from $500 to 1 month's rent. Seems if you ask for first, last and security up front it can add up and potentially reduce the pool of good tenants depending on how much the security deposit is.

One months rent. If they balk at that, find another one.

0 Votes

Originally posted by @Don Griffith:

erentpayment will allow the payments to be recorded and reported if the tenant chooses to do so. Some of mine want to buy a house in a few years so that's the way I went. They pay online and it gets reported. Win win!

It is questionable how much rent payments will increase credit scores. There is no more FICO, rather 49 versions of the algorithm, Each institution customizes what they need and the scores vary so much that we have no idea what a FICO is anymore. It is easy to customize a scoring algorithm that excludes rent payment data.

++++++++++++++++++

As previously noted, there are 49 versions of FICO scores ...

Here they are….

Experian, FICO Risk Model V2 – Personal Finance
Experian FICO Risk Model V2 – Installment Loan
Experian, FICO Risk Model V2 – Bankcard
Experian, FICO Risk Model V2 – Auto
Experian, FICO Risk Model V2
Experian, FICO Risk Model V3
Experian, FICO Risk Model V3 – Auto
Experian, FICO Risk Model V3 – Personal Finance
Experian, FICO Risk Model V3 – Installment Loan
Experian, FICO Risk Model V3 – Bankcard
Experian, FICO Risk Model 08 – Mortgage
Experian, FICO Risk Model 08 – Auto
Experian, FICO Risk Model 08 – Bankcard
Experian, FICO Risk Model 08
Experian/FICO Advanced Risk Score 1.0
Experian/FICO Advanced Risk Score 2.0
FICO Risk Score, Classic 98
FICO Risk Score, Classic 98 Auto
FICO Risk Score, Classic 98 Personal Finance
FICO Risk Score, Classic 98 Installment Loan
FICO Risk Score, Classic 98 Bankcard
FICO Risk Score NextGen
FICO Risk Score NextGen 03
FICO Risk Score, Classic 08
FICO Risk Score, Classic 08 Auto
FICO Risk Score, Classic 08 Bankcard
FICO Risk Score, Classic 08 Mortgage
FICO Risk Score, Classic 04
FICO Risk Score, Classic 04 – Auto
FICO Risk Score, Classic 04 – Bankcard
FICO Risk Score, Classic 04 – Installment
FICO Risk Score, Classic 04 – Personal Finance
BEACON 09
BEACON 09 Mortgage
BEACON 09 Bankcard
BEACON 09 Auto
BEACON 5.0 – Mortgage
BEACON 5.0 – Auto
BEACON 5.0 – Bankcard
BEACON 5.0 – Installment
BEACON 5.0 – Personal Finance
BEACON 5.0
BEACON 96
BEACON 96 – Auto
BEACON 96 – Bankcard
BEACON 96 – Personal Finance
BEACON 96 – Installment
Pinnacle 1.0

Pinnacle 2.0

0 Votes

Schedule e is not the whole tax picture. However it is a fairly straight forward step. Once this data must be analyzed in context with all other individual tax data, then the tax return becomes individual. However the schedule e , by itself just communicates the rental property data factually as it occurred during the year. And .... I believe it can be auto generated and in complete form without a human hand.

0 Votes

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All Forum Posts by: Jeff Gates

Jeff Gates has started 23 posts and replied 479 times.

Post: The danger of roommates

Post: Correctly rejecting a tenant for a previous eviction

Post: The danger of roommates

Accept rent payment from one person only!

Post: Penalties if 1 year lease broken?

Post: Quicken Rental Management VS. Quickbooks

Post: Cozy Processing time update?

Post: What are the best interior doors for rowdy tenants?

Post: Security Deposits

Post: Reporting Rent Payment to Credit Bureau

Post: Schedule e