All Forum Posts by: John Clark

I am far more concerned with rent control and ridiculous pro-tenant rights laws (I believe in a slight tilt towards tenants) than in investors overpaying. What return you are happy with is up to you, so why should I "worry" about it? If you get crushed, more opportunities for me and others. If you don't, then I probably will benefit from that same appreciation as well.

Rent control, eliminating no-cause evictions, inconvenience payments, those crush values much more readily and to a greater extent (usually) than a bubble burst -- there's no way to work around them and there's no opportunity to take advantage of.

Corporate liability only is bad, since the owners can move money around and make the company  judgment proof. If you lease to a corporation for its employees to use, then you need a personal guarantee from each owner. You also need the company (and owners) to agree to limit the boarders to active employees, and make them responsible (complete with indemnification of you) for evicting former (for whatever reason) employees within X days of loss/ change of employment status.

And that's just a few of the considerations you'll have. Your lawyer can give you more.

If a big corporation wants to rent and use it for employees, sure. You know Microsoft and BNSF Railroad are good for it. Your lease needs to be more extensive and you need to check with city hall about such arrangements, but you'll get paid and your apartment repaired. Joe Schmuckatelli and his local "company" looking for a flophouse for seasonal/low-paid employees? Hard pass.

"I mean - you really would evict a good tenant that is pregnant if she had to take time off to give birth and it may make her short on rent???"

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You can be a good tenant or you can be short on rent. You cannot be both.

I would not mention the pregnancy at all. That's asking for trouble. IF AND WHEN the tenant needs rental assistance resources, give her information then.

In Chicago, the police won't authorize a tow (as others have said, YOU cannot touch it) unless the license plates are missing.

Jus' sayin'

I don't mind short term rentals being regulated due to neighborhood externalities -- traffic, noise, parties, too many people, that sort of thing. I mind regulations meant to interfere with the market.My feeling is simple: if the service workers can't afford to live there, the local economy will collapse and the tourists will move away and the rich remainder will be willing to pay prices that allow the companies to pay higher wages -- Equilibrium.

What I don't like is businesses using government action in throttling short term rentals. That's getting a subsidy via wage suppression -- force down rents in order to be able to keep wages down.

So, no, I cannot abide by "keeping housing affordable" as an excuse to ban/regulate short term rentals. Let the affected businesses build dorms (suggested above) or the like.

Shut them down immediately, AND report them to the appropriate state and local authorities for an unlicensed day care.

Look at your lease. Does it say that unlawful activities are forbidden and grounds for eviction? Activities that increase risk to the landlord are forbidden and grounds for eviction? I bet it does.

States and localities do not take kindly to children being put at risk, especially by landlords who tolerate tenants doing improper activities risking children, as that just shows the landlord wanted to make sure he was paid, even if that meant risking the health, safety, and welfare, of children.

Shut them down immediately if not sooner, and report to the appropriate authorities.

Not sure about the police report, because you'll never "prove" that "she" did it. But a general vandalism police report with a potential suspect could not hurt.

Get pictures of everything. Even if you cannot prove that "she" did the damage, your argument to the court in small claims is that she was responsible for all damages up until the second she turned over the keys to you, regardless of who actually did the damage.

Your net profit should be about the same either way. The transaction costs will be cheaper because the portfolio buyer can have one inspector, one surveyor, and title company bulk discount. You can also do one deed for all of the properties at the end. So the portfolio buyer's costs are lower, his buying price is (a little higher). You also save on carrying costs by selling all at once. Carrying costs include taxes, maintenance, vacancies, etc. Add all that up and it's probably a wash either way. Sounds like your convenience factor is higher than most, so a decent portfolio sale is probably the way to go.

"I know in TX I won't use heating as much as in PA. So is it really a money saving option monthly?"
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What you save in heating bills in the winter you will spend on electric bills for air conditioning Spring/Summer/Fall. Important thing is to have a heat shield/reflector in the attic of your house to help prevent heat build up in the attic. Yes, it kills your cellphone service, but saves you beaucoup money every air conditioning season.

Also, make sure the house is well insulated. Yes, insulated. Insulation not only keeps heat in in the Winter, but it also keeps cool air in during the Summer. Your AC is on less because it's not fighting the outside heat as much, what with your attic heat shield and insulation.

As for gas heat when the electricity goes out -- maybe. If your furnace uses a pilot light, that might be true, but I doubt it. If your furnace uses an igniter plate, then no electric, no heat. Why? Electricity heats the igniter plate. then there's the small matter of electricity to signal the furnace from the thermostat. No electric kills your thermostat. There's also the small matter of the blower unit fan (the "force" in "forced hot air") needing electricity.

So if you have hot water radiators (water convection will move water) running from a pilot-light using gas furnace AND you can force the furnace on without a thermostat, then yes, you probably can have heat when the electric is out.

Have her sign an indemnity of you if he comes after you at any time, including after the lease ultimately ends?