All Forum Posts by: Lynn McGeein

I would suggest talking to your insurance agent about costs for different levels of protection, then decide what amount gives you the protection you feel you need for a reasonable cost.  Possibly just raising existing coverage amounts on the ones you feel are higher risk right now would be more cost-effective for you at this stage.  

If you and your family are truly miserable there, request however required that they eliminate your penalty.  If they don't grant it, then sell it by owner for minimum $10,000 higher than you paid, pay the penalty even if it means you lose some money in transaction costs, and consider it a valuable lesson learned for the future.  In today's market, it might not be difficult to sell high enough to cover your penalty.  

I think this is the latest guide, very informative, and no, it does not matter if the dog was there before she asked permission...

https://www.hud.gov/sites/dfil...

It's in my lease that tenant does it, but I normally provide a years' worth at move-in, then check on them if I'm there for any other reason. 

For pest complaints, if it's within 30 days of move in and the pest spray we usually leave there isn't working, the PM will send a pest company for a one-time treatment, even though tenant is responsible to keep pest-free. For what we call "stupid trips" we have our PM note them in the file but not send anyone out until there is an actual problem, like a leak or a broken appliance, then take care of all of them on one trip. Before setting this up with PM, we were getting charged constantly for "stupid trips."  If PM told tenant it had a disposal, they should have a plumber go out on their dime and clean out the drain if tenant was actually clogging it with food scraps. 

We found it depends on area/neighborhood.  We found 2-year leases actually helped us in a desirable first-time-buyer neighborhood as it weeded out the many renters looking to be homebuyers there; kept turning over early with 1-yr leases the minute they found a house to buy.  With 2-yr minimum, most stayed the full 2 years or longer. For other areas, 1-year seems to work best, and I renew for a full year as well, not MTM as I do not want vacancies in winter.  As a renter, I personally would never have signed an initial month-to-month, I wanted set terms for at least a year, not worry about notice of rent increase, moving etc., so I don't offer any MTM option, even for renewal.  If you do lease for 2 years, make sure your state/locality allows an early release termination fee.  Mine is approx 2 months' rent.  I've never collected it, but it has deterred some from leaving early when I remind them of it.   

Possibly talk to some lenders first and find out what programs they have available.  You'll likely get a better deal on purchase if you're paying cash, in any event, but it can be difficult to find a lender willing to cash-out refinance on an investment property -- at least that's what we've found.  The ones that did offer it were more local banks, but we found they had higher rates and fees involved, so I think it's worth researching the lenders first to know where to go and understand the costs involved, and they can tell you for sure how long you'd need to own it first -- I think it's different depending on how many mortgages you already have.

@Jonathan R McLaughlin thanks for clarification.  Not familiar with MA, but my unit in MD was required to either have a lead-free certificate or be tested in between each tenant, inspected, etc., so a real PITA, but explained to me before I put in the offer. Luckily, I got the lead-free certificate. The post said the seller didn't have the proper tenant lead disclosure that covered the infant and that no child under six is allowed to live in an apartment without the deleading certificate.  If this is accurate, then you'd assume the seller would have to be in compliance or at least disclose upfront that the unit is not in compliance before selling with tenant in place. If not accurate, her agent and lawyer should be explaining to her what the actual requirements are, but if she'd have to mitigate within 90 days after closing or be liable as explained earlier and the people representing her did not make her aware of that potential huge expense before she made the offer, it appears there's something wrong there.  

I'm not a lawyer, no legal advice, but I'd ask my lawyer why you can't demand the required de-leading certificate before closing if it's required under your local law and ask your agent or his broker why he didn't tell you up front about this requirement before you wrote the offer.  Perhaps he did disclose it in a document, so read through your package to see if you've signed something to that point. Ultimately, you expect the transaction to be legal, and if you are accepting the unit with the tenants in place, then you expected a legal transfer with the proper required certificate unless it was disclosed that it was needed and they didn't have it.  If seller cannot provide it, won't negotiate to provide it, and is threatening to take your deposit and sue, I'd call the department responsible for issuing them and ask if they'd contact him to require it be done asap. At minimum, I'd at least get an opinion from another lawyer.    

I've sold a few homes recently with tenant in residence.  If you're trying to sell to investor with them still in place, make sure they know that as it can make it easier.  Even then, they may try to sabotage showings because they think the next owner will make them leave or raise their rent.  If you are giving notice, likely better to wait for them to vacate, especially if they don't want to go.  If they will be living there during sale, either way, make sure they meet the listing agent, personally, before listing, and get the chance to discuss specific showing preferences with agent.  For instance, some preferred showings only while at work; others, only evenings or certain days of the week. Some refuse to leave during showings, which is their right unless their lease states otherwise, but best to let showing agents know they'll be there.  

The one thing I stress to my sellers now as a listing agent working with tenants in the home is that I require my secure lockbox with a key; otherwise, it gives tenant too much power, denying access (different versions of, Sorry, had to run out, I'll be home to unlock door in 30 minutes, etc.)  I let one seller talk me into listing one of their units without a lockbox, saying tenant definitely agreed to provide access, and that tenant ruined showings trying to say I didn't notify her, even with proof that I did, and ruined an actual sale by not allowing access for inspector.  After that, my lockbox went on and it sold shortly thereafter.