All Forum Posts by: Melissa Faraias
Melissa Faraias has started 21 posts and replied 65 times.
Post: Buying a house with an unpermitted converted garage
- Posts 65
- Votes 28
Quote from @Sultan Ali:
Hey Melissa, I've run into this before. Most appraisers and lenders won't count the unpermitted square footage, so I'd run your numbers as if the garage is still a garage. Buyers might see it as a bonus room, but you can't rely on it for ARV or loan purposes. If the deal still works without that space, great, if not, you may want to renegotiate or even consider converting it back.
Yes, makes sense. Thank you so much.
Post: Buying a house with an unpermitted converted garage
- Posts 65
- Votes 28
Thank you all for your replies. I also just discovered that the HOA does not permit garage conversions in the neighborhood so taking all of this into account, I have decided to renegotiate the purchase price or terminate the contract.
Post: Buying a house with an unpermitted converted garage
- Posts 65
- Votes 28
Hello BP community,
I am currently in the process of buying a house where the seller has converted the garage to a bedroom but without a permit. I contacted the permit office to get a retroactive permit but they said that they do not issue permits after the fact. I plan to rehab the house and flip it, but I am concerned that the square footage of the unpermitted garage will not be included in the appraised value and hence my sale price will be lower affecting my flip profit significantly. Even if I keep it as a rental, my DSCR lender may not take into account the unpermitted square footage as well. As per my contractors, the garage conversion seems to have been done well but I plan to have my structural engineer and subcontractors check the work thoroughly. The garage bedroom has a large windows, a closet, AC and electrical. I have not closed on the house yet and I am wondering what to do at this point. Any advice would be greatly appreciated. Thank you in advance.
Dear BP community,
I am an out of state landlord with a rental property in Bluffton SC. I had tenants move into the townhouse earlier this year. My contractor rehabbed the townhouse and the unit was given to the tenants in pristine condition.. I visited Bluffton last month and walked through the unit, which was in great condition. However the tenant mentioned that she was getting bitten on her bed but her partner was not. We walked through the unit and there were no signs of bed bugs, and my contractor assured me that there was no infestation. I continued to follow up with the tenant asking her if the issue persisted and she emailed me to let me know that there were no more issues at the property. Fast forward to yesterday, I scheduled my regular quarterly inspection of the home with my contractor. The downstairs was very clean but when he went upstairs, he noticed black stuff all over the walls and in the outlets. It was pretty bad. The tenants have their 24 year old nephew living in the upstairs bedroom. He was obviously aware of the infestation since he had a can of insecticide that he was spraying. The tenants claimed that they were not aware of the infestation since they do not go upstairs and the nephew did not mention anything to them. Could you please let me know if the tenants are liable for the damages? Do I need to seek legal counsel if they refuse to pay? They have a guarantor on the lease as well. I do not mind covering some of the costs but as I understand, this is going to be expensive. I have a Bed Bug Addendum in my lease which states that they need to inform me immediately when there is an infestation of any kind or it is a breach of the lease. Thank you in advance for any guidance that you can provide.
Post: Who pays for deep cleaning appliances - landlord or tenant?
- Posts 65
- Votes 28
Thank you all for your responses. Lesson learned and I have updated my lease.
Post: Who pays for deep cleaning appliances - landlord or tenant?
- Posts 65
- Votes 28
Quote from @Mohammed Rahman:
Hey, thanks for sharing this.
Honestly, this is one of those gray areas that a lot of landlords run into. Since your lease says they’re responsible for keeping appliances in good working order, you could argue that regular cleaning falls under that, especially if the neglect caused mold and odor. But if it's not clearly spelled out, it's tough to enforce or charge them without risking pushback or damaging the relationship.
Moving forward, the best thing is to update your lease or create a basic appliance maintenance guide/checklist to give new tenants. Just something simple like “clean washer gasket/filter monthly” kind of thing. That way there’s no confusion.
As for this case, I’d probably eat the cost this time (maybe gently let them know this isn't typical maintenance), but use it as a learning moment. You could say something like: “We took care of it this time, but regular cleaning is part of keeping the appliance working properly, and we’d appreciate your help with that going forward.”
Keeps it friendly but sets a boundary.
Thank you for this good advice. I appreciate it.
Post: Who pays for deep cleaning appliances - landlord or tenant?
- Posts 65
- Votes 28
Hello BP community,
I have a rental property with tenants who are an older couple. They called because of a bad odor coming from their washing machine. On evaluation, the unit was extremely dirty, moldy, and it took my handyman over 3 hours to deep clean it. I was assuming that the tenants would deep clean the appliances on a regular basis, but they said that they were unaware that it had to be done. How do you ensure that appliances are been cleaned regularly? My lease does not explicitly state that the tenant should do this although it does state that the tenants are responsible for keep the appliances in good working order. Should i charge the tenants for this cleaning?
Any advice would be appreciated. Thank you.
Post: Using a Collection Agency to collect debt from prior tenants
- Posts 65
- Votes 28
Quote from @Carlos Hennings:
As a former collection agency owner, I can share that recovering past-due rent is challenging, primarily due to difficulties in locating or contacting the former tenant. To improve your chances, ensure you collect as much information as possible upfront, such as emergency contacts, employer details, and references. This will aid in the skip tracing process.
When selecting a collection agency, verify that they report to all three credit bureaus and ask about their reporting timeline—some agencies wait 30-90 days as leverage to encourage payment plans. Additionally, look for an agency that not only sends letters but also makes calls, and consider those that work on a contingency basis, as this aligns their success with your recovery efforts.
Be aware that collection fees in this industry can be high, often around 50%, due to the extensive skip tracing and effort required. To protect yourself, consider adding a lease clause stating that tenants are responsible for legal and collection fees. While this does not guarantee full recovery, it can help offset costs. Working closely with your agency and following their guidance can improve the likelihood of collecting what is owed. Hope this helps.
This is very helpful! Thank you so much.
Post: Using a Collection Agency to collect debt from prior tenants
- Posts 65
- Votes 28
Quote from @James Mc Ree:
Do you need to get a judgment before turning the debts over to collections? I haven't done this yet, but may need to do so next month.
No I did not need to get a judgement.
Post: Using a Collection Agency to collect debt from prior tenants
- Posts 65
- Votes 28
Thank you so much for your responses. I will turn them over for collections just so that it can go on their credit report.