All Forum Posts by: Michael Peters

I agree with @Anthony Wick here.  If you can sustain some vacancy and turn over costs I think this is the best move.  

If not the 5 people and 3 dogs will only cause more damage the longer they stay specifically if they are already violating their lease.  If your feeling guilty regarding the older lady, as some of the other comments are hinting at, have a conversation with her to see what her financial situation and that of the daughter.  Rent definitely needs to be higher but you can possibly make it more bearable by getting the other person on the lease, if they are worth keeping.  

If you keep any of them make sure to get an Estoppel Certificate.  @Nathan Gesner shared this link in another recent post that had some great information on it.

https://eforms.com/rental/estoppel-certificate/

I would continue to hold both tenants responsible until arrangements can be made.  If you wanted to make the situation with the Mother work I would recommend a sublease agreement.  If she assumes the liability of the tenant who is leaving then you should be in the clear.  Just make sure you qualify the Mom just like you would any other tenant.

You definitely need some more concrete information to back up the prior owners rent claims. I would require copies of the lease (review all special provisions), sellers tax returns (someone might inflate rent rolls but they'll likely not lie on their taxes), proof of held security deposits, current rent roll, recent utility bills or contact your local utility service, HOA Documents if there are any, and finally maintenance records.

I would also contact the current tenants to have them fill out a basic questionnaire about their rent rate, lease time frame, and any deferred maintenance on the property.  Also known as Tenant Estoppel Certificates.

I know cash is "King", but I don't accept it for rentals.  Their is no way of tracking this and I don't want to have the argument with the tenant who claimed to have paid.

Regarding the post office excuse I would include in your lease that you need to receive the funds by the 1st of the month at 4pm or whenever you pick up your checks.  If its not there it is late.  The tenant always has the option of post dating a check to the 1st and mailing it well in advance.  Not doing so could lead the tenant to believe as long as its dropped in the mail by 11:59 PM on the 1st they are on time.

Check your local regulations.  If you can require it and make sure they provide proof before you hand over keys.  Make sure maintaining it through the entirety of their is is also required on their lease.  We had someone years ago move in and 3 hours later burned the entire kitchen down.  We no longer let anyone into the property without it, no exceptions.  This protects the tenants and your investment so its a win-win.

I like to do an initial walk through about 2 weeks prior to move out.  Here I simply outline my expectations for the tenant at move out.  Point out any normally overlooked cleaning items, minor items the tenant can handle like replacing broken blinds, ensuring their lawn is mowed, and changing light bulbs.  This puts the responsibility on the tenants shoulders.  I want to be able to give back every dime of the deposit which makes less work for me at turn over and keeps the tenant happy.  Like others mentioned before surprises are what tenants get angry about.

I do a final walk through at their lease end date.  Collect the keys, make sure the property is empty, get a forwarding address, get some feedback from the tenant on making the experience better for the next person.  I've found meeting them in person greatly increases the odds of everything getting done.

I also have sworn off doing a full move out inspection with the tenants present.  It takes a good amount of time and I'm not having someone over my shoulder arguing with every detail.  

When you withhold from the deposit just make sure you have documentation on every item and provide an itemize list within your states required time frame.

It would entirely depend on your state laws.  In Iowa I'm under no obligation to do a move out walk through of the property with anyone whether they stay to the end of their lease or break it.  I always do a quick walk through as a courtesy but do the in depth inspection in private.  If they broke the lease I most definitely wouldn't give them a walk through.  From a legal stand point doing a move out walk through and accepting keys back affirms that the lease is mutually ending.  Just make sure you provide the tenant with a Disposition outlining what they are being charged for and why within your states required time limit.  I would make sure this is sent certified mail for your records.

How were you notified that the tenant was breaking their lease?  Do you have a condition catalog and pictures of the property of before the tenant moved in?  Do you have pictures or records of all work that was completed?  Having this information would dictate whether you would settle or fight the tenants claims.

Found a quick breakdown of California Deposit and Walk Through Laws.  Not a lawyer so make sure to do your own research and consult a lawyer if you have any concerns.  Based on what I read it looks like you have 21 days to return the deposit.  You need an itemized deduction and you can without funds for work yet to be completed (I would get a contractors estimate for your records).  The article doesn't state a walk through is required.  In my opinion this was waived when the tenant broke the lease.  

It sounds like the tenant is just trying to extort money from you.  Unless you believe you missed something or receive an actual demand letter from an attorney I would disregard the letter.  Hope this helps as a good starting point!

https://www.thebalancesmb.com/california-security-deposit-law-2125062

Are you planning on doing the improvements yourself or hiring the work out?  Formica is a great option and higher qualities look very similar to granite.  Just look at some of the competing rentals in the area and aim to finish one notch above the rest.  If you can do the measurements and install yourself Lowes will custom cut counter tops.  I did an average size kitchen earlier this year for under $500.  Just have a chat with their Pro Department.  They should also have some insights on what products/colors are trending like a black suit.

During a walk through I'm looking for any red flags, unreported maintenance, cleanliness, and the general condition of the property.  My primary goal is to catch anything in advance of someone's lease end date, mitigate ongoing issues, and anticipate future capital expenditures.  I would make sure not to give the tenant to much more then the 24 hr notice.  My intention is not to step on their privacy or that I'm untrusting but I want to see how they live not what it looks like after they know they have company coming over.  

Check all the bigger items (furnace, water heater, roof, siding, carpets, paint) to ensure your prepared for future repairs or replacement.  Look for any items that need maintenance.  Check the furnace filter, make sure downspouts are attached/down, ensure tenant is caring for landscaping, check on smoke detectors, are there evidence of pests, does it look like more people are living here then indicated on your lease, and finally is there evidence of pets not on the lease.  Regarding pictures, I only take a snap of everyone room as needed for future reference and take pictures of any items you identify as issues from the list above.  

I also like to challenge myself to find one item that I could update for $200 or less that would either increase the properties value or tenant appeal. Sometimes its as simple as replacing a boring light fixture in a kitchen, adding a programmable thermostat, or removing troublesome landscaping.  You can even keep these upgrades in reserve for right before or in negotiation for a renewal or rent increase.  Hope this helps!

First off are you 100% sure the tenants do not have deposits?  If you are assuming their lease it doesn't matter what the owner says or didn't receive.  If its in the lease your on the hook.  Been burned once and never again.

Not having a deposit is a major liability.  If they break anything or move out without notice you have zero security.  What kind of condition is this unit in?  Just curious if you plan on doing work in the near future or if its great as is.  Deferred maintenance typically comes up as soon as ownership ends so make sure you account for that.