All Forum Posts by: Lynn McGeein

First I'd research any Kentucky required disclosures plus special issues for the area to know what things you may not be aware of, like in MD we discovered they have a lot of underground springs that could require expense to pump and the state is nuts about lead requirements so I definitely had an XRF test there to make sure lead-free so I could avoid required testing between tenants, etc.  Many sellers are hesitant to accept an offer with a lead inspection required as they'd have to disclose if problems found and you back out, so could hurt your offer.  Flood zones are also a major concern until they sort out the flood insurance, unless it's good enough deal to pay cash and self-insure, but you can look those up easily and avoid them.  Unfortunately, in today's competitive environment, too many are waiving inspections, which I cannot advise for anyone unless you have a connection who goes with you to analyze before the offer.  Also, there are many inspectors these days offering warranties, including roof and structural, for x days after inspection with ability to purchase longer terms, so research those as well to give yourself some extra protection.  

I think it would depend on the terms of the contract you signed, especially if you agreed in writing to cancellation fees.  My brother once had to pay $3000 to a subcontractor he did not personally hire because the contractor he did hire and payed in full did not pay his subcontractor.  While my brother never signed a contract with the sub and actually had proof he paid the contractor in full, they still somehow got a lien filed against his house that for some reason he didn't know about until he went to sell a few years later.  He had to pay it in full to close on the sale. The original contractor had passed away so he couldn't recover any of it.

It took much research reading through many strange management contracts but good PMs without ridiculous fees do exist - you just have to find them.  My PM charges me $150/yr annual admin fee inclusive of up to 10 properties, no renewal fees, no charge for placing tenants when vacant, and they fill vacancies as quickly as possible.  Their goals are aligned with mine -- finding and keeping long-term, well-qualified tenants with few problems so they collect their 8% of rents received.  I've read some insane management contracts that have tucked into their management agreement requirements that you use their affiliated blind-cleaning company, lawn service, pressure washer, etc., and none would agree to eliminate those clauses.  Take the time to research and find a good management company, and read every line of the management agreement.  I've been with mine for over a decade now so well worth the initial time and effort to find them.  

I, personally, much prefer the postcards and letters to the many phone calls I get each day telling me they'll pay cash for x address.  If I ever was to consider selling, unlikely as I'm leaving them to my children, hopefully many years from now, I might reach out to one of the letters as I feel it's a respectful way of contact.  I would never consider the cold calls.  

You could agree to not increase the rent on those 3 existing tenants more than $50/mo for the next year, understanding that you won't be improving those units until they move and explain that hopefully that will give them ample time to request assistance from a Section 8 or other assistance group to help them pay closer to market rents after that year is up.  Knowing that you're willing to try to help them stay, if possible, may ease her mind.  

I'm not a lawyer, no legal advice, but I believe the fact that you signed the lease, the landlord gave you access and you used that access means you've both accepted the agreement even if one of you forgot to sign it.  The lease should state who is responsible for pests -- mine says something about it currently is free from pests, and if it's brought to my attention within the first x days, like 14 days, I'll pay for treatment, but not after that as it could have come in from the tenant belongings or tenant created an environment attracting them.  It should also state the terms under which you can exit the contract.  So you may want to take it to an attorney and ask what your best plan is moving forward.  I had a landlord forget to sign my lease and actually wanted me to sign a different, more restrictive one with extra non-refundable fees mid-way through, and I refused, still got to stay through the end of my lease with the terms I agreed to. 

For the future, you don't have to send it certified mail, there is a Certificate of Mailing that's less than $2 that certifies you mailed something on the date you said you did and to what name and address it was mailed - you do usually have to wait in line and ask the clerk for the form as they don't put them out like Priority or certified forms, but I do it for security deposit returns and other important documents.  If they say they didn't get it, you have proof of mailing and let them know you'll re-issue it if they'll pay the stop-check fee on the first one, or they can choose to wait to see if it's forwarded or returned to you as they didn't get you the address in time so it was sent to the last known address, the unit address.  Plus if they try to cause problems, you have proof you sent it timely.

It's always best to read and know your local landlord/tenant laws as they may have a longer required notice, limits on rent increases, etc.  Also, I've had several sellers tell me there's no lease, it's month-to-month, just to find out from tenants that there is, in fact, a written lease signed years before that states lease will automatically renew on 1-year terms unless x-days notice is given before end of term.  I'd make sure tenant confirms there is no current lease or existing security deposit.  Also, before allowing them to sign a new lease, make sure they're actually qualified for the new terms.  Otherwise, it may be best just to give notice, rehab that unit, and rent it out for market rates to people of your own choosing.  

Don't forget photos of under sinks, closet spaces, open dishwasher, oven, fridge, etc.  I just had a friend who had a tenant say fridge didn't work, repairman said parts no longer available, then she realized the new fridge she put in a few years ago had been replaced with an old used one.  She didn't take photos in between tenants so couldn't say which one did it.  Just had a client with oven glass broken inside and we had a picture from a recent inspection showing it was fine then.  

If you're planning to rent it out while you're gone and need to switch to landlord insurance vs homeowner, then that may trigger something.  I would imagine school would meet a special circumstance, especially if you're maintaining the property as your primary residence and not renting it out.