All Forum Posts by: George Skidis

The State of Illinois requires a daycare license if something like five or more kids attend daily. Local authorities have their licensing requirements.

Is your property zoned commercial? Can it have a day care? How soon will your insurance be cancelled if there is a change in tenancy?

In my former life as an insurance adjuster I investigated the death of a 16 month old who chocked to death on marshmallow bits. The company I worked for denied coverage since they were never informed there was a day care on premises. The tenant had NO INSURANCE for her business and nothing worth taking.

You do not need this. Let your resident out of their lease if they find someone to take them. High probability they will be baby sitting without your knowledge anyway.

If a single member LLC your first tax return would be included in your 2020 personal income tax return form 1040 on Schedule C. If a multimember LLC you first return was due March 15th of 2021. EVEN IF YOU MADE NO MONEY AND HAD NOT A SIINGLE TRANSACTION. You need to elect how you will be taxed (Partnership, S-Corp or C-Corp. If not already filed your business return is now 3 months late and the late filing fees of $195.00 per month per member are accumulating. Three months late 3 members the penalty is already $195.00 per month or $585 x 3 members = $1,755.00 So your first CPA needs to know how to get the late fees waived.

We are in Marion.

Old School. Paper files in folders. Folders in a commercial four drawer lateral filing cabinet.

Top drawer forms, city ordinances, Warranties and miscellaneous  info. 

Second Drawer, Tenant files past and present. going back to 1990.

Third Drawer: Documents in an accordion folder per property in the order they were purchased:  Hud 1s, appraisals, contracts, mortgages, loans and pay off letters..

Bottom Drawer: Stuff I am too lazy to bend over for more than once every other year or so. 

I do not trust internet storage to be hack roof. We as landlords are responsible for the information we collect and can be held accountable. Nothing is stored online and our files don't have any critical information in them in case of a break in. Sensitive information is stored elsewhere.

Always have anything you are about to sign reviewed by an attorney. Don't have an attorney. PM me for a referral.

If outside the city limits, check with the State of Illinois Department of Public Health to see if those RV pads are properly licensed. If inside the city limits check with the local authorities. Also check to see if there are length of stay limits. Saint Clair County Illinois limits RV tenants to 14 days.

Check with the local authorities for violations and legal disputes.

Wholesaling, if done correctly, is legal. In the State of Illinois you are limited to one transaction per year unless you are a licensed realtor.

1-Do I need property management since I am an out-of-state investor? That Depends. Do you live within driving distance? Have you ever been a landlord? Do you like phone calls at 2 in the morning when the remote control on the tv isn't working? My personal favorite 2AM call was for bail money. Do you intend to live on the other side? If you live close enough not a bad idea to try managing it yourself. You can always call in the experts later after everything is toast. IF you try managing it yourself LEARN TO SCREEN LEAGALLY. Join your local REIA and talk to those in the trenches.

2- Should I negotiate the rent with him and let him continue taking care of the lawn and snow removal with no property management involvement? FIRST give him notice that you are the new landlord and that the terms of his current lease will not be renewed. Also that a new lease will be "CONSIDERED" repeat considered, at that time. Second screen this guy and find out what he can afford. NEXT review his current lease with your attorney and see what you can legally do. What does the lease say about annual renewal.  If he can't afford the rent you need a new tenant anyway. We hire LAWNS FOR LESS here in Belleville for both grass cutting and snow removal. They charge $35.00 per cut. Check local ordinances for snow removal requirements. Under Illinois tort/liability law you can be held responsible for snow removal IF you don't deal with it properly. We never do snow removal on a residents property, that is their responsibility per our lease. If this was a single family unit they would also be responsible for the lawn care. Every year the insurance agent for Lawns for Less sends us proof or workers compensation and liability insurance. Never accept proof of insurance directly from the contractor. Those documents have been forged or altered more than once.  What happens if your tenant cuts his foot off. Are you paying for workers comp? Raise the rent to market level and hire professionals. Talk to other landlords in the area and see who they use.

3- Have him sign a new lease and hire someone to take care of the yard and snow? YES NEW LEASE YES! The old lease is between other individuals and you will be unable to enforce it. HIRE AN ATTORNEY or sign up with "Rent Perfect". They have a great lease they include when you sign up.

4- What's your preferred app for lease and rent collection? Rent Perfect. Great service we offer members of our REIA.

In Illinois it is illegal to wholesale more than one property per year unless you are a licensed real estate agent. Chicago is different than the rest of the state. My advice is hire an attorney to do your one deal a year or pass. 

In the past we have always allowed the seller time to move out. Usually at twice the monthly market rent. So if the house could rent for $1,000 a month we ask for $2,000 a month and 20% of the purchase price placed in escrow. The money is disbursed from escrow as follows: Rent until seller surrenders possession plus damages discovered at move out. The balance of escrow after expenses is then paid to seller upon our signing off.