All Forum Posts by: Mary Joe

Hi All, am trying to set up auto rent deposit with my tenant. What service providers do most people use? Or do you set this up directly with your bank?

I used to use the auto rent deposit service from NAIL, (some independent landlord association), but it gets expensive and there are quite a bit of paperwork.

Wonder if there are newer service providers out there that are more efficient and less costly.

Or do people set this up directly with their bank?

Thanks
MJ

How do most people here handle situations where your tenant starts letting his/her family members live in the property ? or even the girlfriend/boyfriend?

I don't know if this only applies to New York or not, but I heard here in NY if the landlord does not put an end to the situation immediately, then the family members of your tenant will somehow inherit the RIGHT to live in your place even though their names are not on the lease. And even if the tenant dies, his family members can continue to live in your property. That sounds scary !

Is this true? How do landlord prevent these things from happening? Do home inspection regularly and start eviction process if the tenant does not put that to an end immediately??

Thanks
MJ

THANK YOU ALL for the feedback.

I am in the process of negotiating a new lease. Do I insist that the applicant gets renter's insurance and put my name as additional insured BEFORE I give him the key to move in? Or better yet can I insist that the applicant shows proof that he has purchased renter's insurance even BEFORE we sign the new lease?

Reason I ask is what if he signs the lease and agrees to purchasing renter's insurance but in the end he never bothers to get one? Then I am stuck with him living in my place without renter's insurance?

BTW, there were some really excellent suggestions and comments from the posters in this thread, just want to say thank you !

Does anyone have the language you use in the lease for Renter's Insurance?

I am about to renew the lease with my tenant but it gets very costly having to spend another $250 for my attorney just to add a simple paragraph.

I have drafted something here, not sure if I have missed anything. I would greatly appreciate it if someone can provide a standard or more professional language that is commonly used to address renter's insurance in the lease.

My DRAFT:

"The Tenant agrees to obtain renter's insurance at his own expense and with adequate coverage for the duration of the lease agreement. The Tenant acknowledges and agrees that in the event that he does not have renter's insurance or if his policy provides insufficient coverage, then the Tenant shall be personally liable to all damages and losses that would normally be covered under a renter's insurance policy."

Any advice would be appreciated!

Thanks
MJ

Hi All,

Does anyone know if it is illegal to have a NO PETS and NO SMOKERS policy in the rental application form and the lease agreement for Florida?

Not sure if this is considered discriminatory for Florida or in the country in general.

I am looking up Florida landlord-tenant laws as well just as we speak, but thought I would ask the board as well

Many Thanks
MJ

Thanks everyone for the feedback.

I do believe that NNN is no hassle (for as long as you have the tenant in place) but it is by no means LOW risk compared to residential properties.

The biggest risk comes with finding a commercial tenant when the lease is over or when the tenant defaults, with residential properties you are almost always guaranteed a tenant whereas with commercial it can really take years before a commercial space is filled.

Even if one purchases a NNN outright with cash, I would assume the maintenance and property tax will be a very substantial burden on the owner while the space is vacant.

MJ

Joel Owens has been very helpful, if not for him we wouldn't have known about triple net leases.

My brother is considering putting some money in triplet net leases.

Has anyone done triplet net before? Any stories (good or bad) to share?

What do most people do when the lease expires or when the tenant moves out? Do you try to sell the property at a discount or find another commercial tenant?

Many thanks in advance.
MJ

Thanks Chris ,

-I am flexible on price point from $20K to $400K or may be higher depending on how attractive the investment is,

-I am conservative, long term buy and hold type of investor, want STABLE tenants,

-flexible on financing, may do all cash for out of state properties depending on the numbers etc,

-am hoping for about 10% or more return on my cash investment,

-prefer multi family in order to take advantage of economies of scale,

-I understand the appeal of these low cost ($20-$30K) homes, but if it means having to purchase 10 of these homes and deal with 10 different tenants in order to generate say $30K cash flow per year (hypothetical number), then I think it may not be appropriate for me.

- The maximum number of tenants I would like to deal with is probably 4 at most, are there any 3 or 4-family homes that can generate $30K-$40K or more a year in cash?

-Nothing in my area CF, so I am open to out of state properties.....

Thanks all for the feedback.

With these low cost ($20K-$30K range) properties that CF, it seems that most landlords are not concerned whether the tenant has any savings in the bank as long as they have income verification and pass the credit and background check, am I correct?

I am very new to this type of investment, the ones I currently rent out I always require that besides the typical income/background/credit check, the applicant must also provide bank statement for the past 3 months showing a savings of at least 9 times the monthly rent. Based on me and my brother's research, it seems that most landlords for these type of ppty are not concerned that the tenant is living from paycheck to paycheck, am I correct?

Do you guys see very high turnover with tenants who live paycheck to paycheck?

I am taking notes of all the different areas you guys suggested, will get myself organized and get in touch with you all for further details shortly.

Thanks
MJ

Thanks Dean, what neighborhood in Memphis should I look at?