All Forum Posts by: Michael Claus
Michael Claus has started 2 posts and replied 2 times.
Post: Water Bill Responsibility
- Toms River, NJ
- Posts 4
- Votes 0
I have a question pertaining to water bill payment and responsibility. I own a condo and the tenants are responsible for paying the water according to the lease. My last tenants were not consistent with paying the water and built up a 750 water bill. The bills go to them since they signed a water billing authorization form with the HOA. The water is billed to the HOA and then the HOA bills the account linked to the address.
Here is the wording contained on the form:
"hereby request that the water bill shall be addressed to me/us as the owner(s) of the unit but shall be mailed to the property address in my/our name in the care of (c/o) _________________________________________, my/our tenant.
(Tenant’s Name)
I/we understand that I/we are fully responsible for the payment of the bills and am/are held responsible if the bill is delinquent, plus any late fees and any legal fees incurred."
So does that mean me, as the owner, I should not pay using the security deposit? Would the association be able to place the blame on me which would eventually or potentially lead to a lien on the property? Is that possible since the water is billed to the HOA? Also, the HOA places both the monthly HOA fee and the water fee on one account. Is there a way to legally separate that or demand a separation? The account is a mess when the HOA arbitrarily would apply my monthly HOA payment for the amount due for water. I did use the security deposit to pay the water, but should I have let the HOA go after the tenants for the amount through legal means? Is there a legal obligation for me to use the security deposit for over due utilities? The property is located in Virginia.
Thanks in advance for any insights!
Post: To buy cash or not buy cash
- Toms River, NJ
- Posts 4
- Votes 0
There is a deal with cash only due to a high rent ratio. The listing is currently at 110K. If I offered 100K, I think I could generate a cash flow of aprox 14k/year. I am also using cash from another deal that I am making 70K off of an initial investment of 32K.
Is it wrong to view this deal as 14k cash flow off of 32k invested? I'd also avoid 15K tax bill.
Is buying cash the wrong move? Another consideration is a property that I own is in CA and I know live in VA.
Propertly MLS number: 1419159