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All Forum Posts by: Henry T.

Henry T. has started 20 posts and replied 1476 times.

Quote from @JD Martin:

Aside from those already mentioned, just being tired of running an STR could trigger it. I have both and LTRs are infinitely less work and less headache. With experience in both, there's only 3 good reasons I can think of to do an STR instead of an LTR:

1. Make more money.

2. Potential for using the property yourself at times.

3. Ability to purchase and hold in a high appreciation market where LTR rates may force you to come out of pocket.


 #4.   anti-landlord legislation. (for those who are in Seattle or the west coast)

Only you know how much teeth you have based on legality of your lease vs CA law. You should always be pro active and professional. Mom/pop days are over. Unfortunately Calif is a horrible place to be a landlord.  I don't know the law specifically in your area but the ability to control your property is over (at least on the west coast). If you decide to allow this person you need to screen like you did the current tenant and add to the lease.  I highly respect what Kevin is saying but in this case would lean towards Nathans response(that's just me).  Both their responses are spot on and better than I could articulate. A simple business decision that's up to you.

Post: When is a property not worth buying?

Henry T.Posted
  • Posts 1,489
  • Votes 1,008
Great! If I was starting out, and lived in the area, I'd be hammering tomorrow..
If you're hiring contractors forget it.

Post: Is the 1% rule dead?

Henry T.Posted
  • Posts 1,489
  • Votes 1,008

Of all the sfr's that I've bought, everyone of them (except one) made 1% or better from the get go.  I have not bought any for a while and my asset appreciation has been enormous. Now I use the 1% rule as a measurement to guage how out of whack things are.  However, I believe it's still possible in many other areas of the country.

Quote from @Henry T.:

You should send the IRS their money (or best esitmate) right after you closed. Hopefully it's not in the MM with your cash.


 what's wrong with that is the minute you got your money, 15 or 20 percent of it belongs to the IRS. If you don't give it to them you will have to pay (8 percent?) penalty interest to them for the amount you have sitting in the MM. You should talk to a tax specialist.

You should send the IRS their money (or best esitmate) right after you closed. Hopefully it's not in the MM with your cash.

Nathan, if I've drifted to far from "just cause" topic feel free to delete. But all of the above that I've posted, is what has grown out of "just cause" legislation.  Thanks.

The Seattle Times editorial board

Seattle’s Office of Housing last month released an unprecedented $14 million to stabilize the balance sheets of affordable housing providers in financial trouble.

Turned over to The Times editorial board after a public disclosure request, the 24 applications for emergency funding read like a collective cry for help.

Landlords report that some tenants are not paying rent, a trend that worsened during the pandemic. At the same time, housing operators are having to repair damaged units while insurance costs spiral ever higher.

The bottom line: Revenues are falling while expenses are rising.

There are no quick remedies. But the Seattle City Council should implement some simple reforms before spending more public money just to keep the system afloat.

In its application for city funds, the Low Income Housing Institute noted that it “faces serious issues regarding rent collection.”

Tenants who pay their rent typically pay on time. “However, the vast majority of those who don’t pay rent have sufficient income to pay but choose not to. Although we offer payment plans, those who accept them do not follow through with them,” wrote LIHI, which develops, owns and operates housing for low-income, homeless and formerly homeless people.

It received $750,000 of city aid.

Eviction is often an empty threat, noted LIHI’s application. “Even if served with an eviction notice they know that the courts are horribly backed up and the chance of their eviction moving forward is remote.”

On July 24, King County Superior Court, which handles eviction cases, announced that it was focusing more resources to get through cases faster.

The backlog has been staggering. There was a monthly average of 2,163 pending tenant-landlord cases in King County Superior Court this year as of May, up from 481 pre-COVID-19 in 2019.

Presiding Judge Ketu Shah says the court currently hears about 20-25 cases per day. Court officials hope to increase that to 50 by streamlining the process and tasking more judges to help. But it will take time.

“Delays have led to a lot of frustration. I’m sympathetic to that,” said Shah.

Tenants’ behavioral health challenges can result in costly property destruction.

“We are dealing with increasing costs of cleaning up after drug contamination from smoking methamphetamine and fentanyl in units,” wrote the Archdiocesan Housing Authority. “The Labor and Industries Dept. requires action including decontamination, when staff may be exposed to contamination above the state threshold. Professional unit cleaning is $5,000 — $12,000 depending on size.”

Wrote Chief Seattle Club: “ … Mr. X has been homeless for decades and stole battery packs from Lime scooters and electric bikes. While soddering (sic) them together in his unit, he started a fire from the lithium battery packs. The fire sprinklers were triggered and flooded his unit, 4 units below him, and damaged the elevator’s electrical system. The repair costs were $220,000; not including the expense to relocate the 5 tenants to motels while their units were being repaired.”

These are not uncommon stories and it’s taken a toll. The Capitol Hill Seattle Blog recently reported that Community Roots Housing, an affordable housing developer, is in the process of selling six apartment complexes. The reason: “extraordinary and persistent operational challenges chiefly resulting from the ongoing impacts of the COVID-19 Pandemic.”

So what can be done?

Sharon Lee, LIHI’s executive director, wants the Seattle City Council to tweak tenant protection laws passed in recent years. The moratorium on evictions during the winter should be amended so that only tenants who face job losses or other hardships are protected. Same with the eviction moratorium during the school year for households with students, educators or school employees.

Also, the city law that limits late rent fees to $10 ought to be revisited.

“The tenant advocates, their whole thing is that no one should ever be evicted, right? If that’s the case, how are we supposed to pay for utilities, pay for staffing? It doesn’t make sense,” said Lee. “There are other parts of the country where nonprofits are facing similar nonpayment issues. But we’re hit particularly hard here.”

The city’s own policies contributed to the current financial crisis in the affordable housing system. These must be fixed to help reset the landlord-tenant relationship and end the dysfunction.

The Seattle Times editorial board members are editorial page editor Kate Riley, Frank A. Blethen, Melissa Davis, Josh Farley, Alex Fryer, Claudia Rowe, Carlton Winfrey and William K. Blethen (emeritus).

some comments.......

Please change Seattle’s Rental Housing Policies in 2024

If the City of Seattle wants to preserve single-family and small multi-family property affordable rental housing, it should consider enacting policies that support the continued presence of this type of property in Seattle’s rental market. When considering such policies, the City should involve stakeholders most impacted by the rental housing policies. There needs to be an equilibrium between tenant and housing provider balance with the departure of anti-rental housing providers Kashama Sawant and Lisa Herbold. While we wish them well in the future endeavors.

Some of the poorly written rental regulations that need to be revised and changed include the following:

  • Eliminate No Criminal Background Checks. City of Seattle is one of only two cities in the US that doesn’t allow Criminal Background checks.
  • Eliminate the $10 late fee cap on rent. Normal late fees for late rent need to be revised to $50 or $60 late fee cap.
  • Eliminate the winter eviction ban.
  • Eliminate the school year eviction ban.
  • Eliminate the crazy First In Time policy of having to accept the first tenantwho qualifies – very unusual and not seen anywhere other than Seattle.
  • Eliminate the "roommate" ordinance that basically allows tenant to move in ANYBODY by having a cup of coffee with them and calling it a "date" then moving them in as "family" with no recourse for the housing provider. A fair version of the roommate ordinance could be designed that protected the housing provider as well as giving flexibility to the tenant to bring in legitimate and responsible roommates.

The eviction protections that Sawant pushed forward when on the council are insane. The protections which I would assume were made with a compassionate eye toward venerable renters backfired and brought out the worst behavior from many tenants and have caused smaller landlords to pull their properties from the market . They should pull these protections off the books or vastly rewrite as these have failed us all.

Respect37Reply

other comments....

In reply to NP Warrior

Add: Eliminate publicly funded lawyers whose sole mission is to tie up valid evictions with obfuscation and delay.

"Good  cause" or "Just Cause" are neither.  These laws have been in place in Seattle for at least 25 years. When I became aware I had to severely change my rental criteria from "dude, you seem ok to me" to Show me your references, job pay stubs, credit history with no R2's, ete, etc, etc,. I could no longer take a chance on someone because it was getting harder to get rid of them if they didn't tow the line. I've gone from talking to most applicants to pre screening and talking to 5 percent. But seriously, it's gotten so bad, Seattle is over for me. The city council has chased many landlords out.

I'd like to share with you a SeattleTimes article that just appeared today. It's an Oped piece requesting the city council roll back some laws. 10 years too late.  it's the first suggestion ever from our major newspaper after being solely on the council side for 30 years. It barely scratches the surface. This is severe left, progressive territory. Some of the comments are more informative than the article itself. See: NP Warrior for example.

Here is a link to the article if you're interested. You'll have to disable any ad blockers to read it.  I'll post it too, not sure if thats allowed here.

https://www.seattletimes.com/opinion/editorials/how-to-end-the-dysfunction-in-seattles-affordable-housing-system/

How to end the dysfunction in Seattle’s affordable housing system | The Seattle Times



No. Follow the law.  "Sorry, I appreciate your wish to change our contract, but if you are not paid up you will be served with a notice on the 21st."  Have an eviction attorney mail her notice/summons, and that she's going to court. (cost $250?)  She's stalling, you need to play hard ball.