All Forum Posts by: Marsha Burks

@Brian Eastman Thank you Brian !

My 2 rental properties are held under my LLC, which is held under a self-directed IRA. The IRA holder needs me to provide a Fair Market Value for the properties, and use the following as a source: An appraisal, broker opinion letter, or tax assessors "estimated market value.

Each of sources will provide different values (ie. tax assessors estimated market value is almost $30,000 less than an appraisers value, as the appraised value is closer to the actual market value). 

Is it in my best interest to hire for an appraisers higher value so that when I eventually sell the capital gains tax should be lower ?

I also wasn't sure if there would be unintended consequences of having them valued higher.  

I plan to seek my tax advisor's input after he returns from travel. Wanted to bounce it here in the meantime.

Thanks !

 Yes, I omitted the association in my information above.  Since the new tenants lease ends Aug 31st, I've notified them that I will not be offering them renewal unless they seize the repair activity. They'll be giving me a written response this Saturday. However I should notify the association. I'm in Illinois. Other than this situation, they've been very good tenants. I suspect they'll comply.  Thank you for the feedback.

So many great points raised by all of you: Thank you. Residential units not designed or zoned for chemical waste disposal, or adequate ventilation garages should be fire caulked, residential areas not zoned for commercial businesses, etc. 

Since the tenant began this work AFTER applying and move-in, I realize my lease application should screen for in-home businesses.

Here are some of the in-home busness guidelines covered by my lease, association rules and city ordinances:

Per the association rules, owners/tenants are allowed to do 'minor' repairs of their own personal vehicles. Repairs conducted by homeowner, tenant and in-home business which causes nuisance, annoyance or safety or health hazards, are prohibited. Hazardous materials that can create harmful offensive fumes or material that create a danger of fire or explosion are prohibited. In-home businesses must be in accordance with city ordinances:

"Prohibited Residential Occupations: No residential occupation shall involve the detailing, servicing, or repairing of motor vehicles".

Certain types of businesses may be conducted in a unit (ie. tax preparing, accounting, typing services, data entry)

The city ordinance also requires that a business license be obtained PRIOR to conducting the in-home business, and that a letter be required from the board of directors stating they are aware of the in-home business.

Thanks for all your feedback !

After move-in, one of my tenants began a business of purchasing used or auctioned cars, doing minor repairs and cleaning in the garage, and transporting to a used car dealership to sell. I was not aware of this activity until they called to notify me of the carbon monoxide detector alarming in the bedroom above the garage.  It's a walkup townhome unit, which is side-by-side adjacent to units on either side. 6 units in all. The fire dept arrived and could not find the source of the CO, and suspected a car had been left running in the garage without adequate ventilation since the CO reading was highest there, in the bedroom above and the adjacent units garage. The tenant denied leaving a car running. I've since installed a fire/CO detector in the garage, and sent an email to the tenant urging and highlighting the association's rules that no in-home  business that causes risk to safety and health, is allowed. Also that no engines may be left running in the garage, no "major" auto repairs which causes a hazard of fire or explosion, hazardous materials that create a danger of fire or explosion are prohibited. 

My concern is a while the used/auctioned car is parked in the garage, the risk of a spontaneous fire igniting in a car engine that may have been poorly maintained (ie. leaks etc.). This would out not only the unit in peril, but the adjacent units and residents.

I'm waiting to hear from the city reagrding any codes prohibiting autorepairs.

These are very nice tenants.  But I am tempted not to renew the lease due in 2 months. Of course I can require them to obtain additional insurance liability,  but still who wants that risk to property and occupants.

Am I overreacting ? Your thoughts.

The lease stipulates 'No pets". However, a very good tenant of 4 years recently asked if she could have a small dog due to feeling lonely from quarantining. I'm ok with granting this. However, I also rent the adjacent attached townhome to a couple for the last 5 months. They pay rent reliably but aren't the best housekeepers, nor ground keepers.  I'm concerned they would ask for the same. 

Am I legally responsible for having the same lease terms for pets for ALL 4 properties in the same community ? These are walkup townhomes. Six townhomes per building. I own and rent out 3 adjacent units.

@Mason Hickman

Thank you. I hadn't considered that providing them an advance copy of the lease before applying could be considered binding until I sign. But I suppose watermarking "For Review Only"  would protect against forgering my signature. Great idea !

Do any of you provide prospective tenants a copy of the lease BEFORE they apply ? 

I've had a prospective tenant apply, approved, supply the deposit, received the lease to review and then encountered a lease term they could not meet. (ie. Plans to start a home business to repair cars in the garage) .... TIME WASTED.

If they had a copy of the lease before applying we would have avoided wasting both of our times.  

Any issue providing a copy of the lease in advance ? 

@Gary Mazzarella

@Gary Mazzarella

@Gary Mazzarella

@Brandon Sturgill @Michael Robbins @Gary Mazzarella @Frank Chin @Collin Bryston Adams - THANK YOU