All Forum Posts by: Account Closed

A lot of times we can call something a "non refundable fee" or a "Refundable Fee"

For instance in the lease agreement a $100 refundable carpet cleaning fee, or a $100 non-refundable carpet cleaning fee.

Or

$250 Refundable Pet cleaning fee

$250 non-refundable Pet cleaning fee.

Depends on your state law. 

In Michigan our laws were one and half months rent as a Security Deposit plus first months rent.  You couldn't call anything a deposit that didn't fall within the amount of the month and a half months security deposit law.  

So to get around that we created a non-refundable fee or a refundable fee, and never had a problem. 

Nancy Neville

Brett:  If you are using QuickBooks Online Plus (The one for $39.00) a month it will have a Class feature for you to setup your properties into and then link your income and expenses to.  Even though the Online version has improved a great deal and has a lot of nice features now, it doesn't keep track of your fixed assets as the Desktop version does. 

I just did a Free Trial on QuickBooks Online Plus (I believe it was Plus, the one that is the most expensive anyway.  The $39 a month one) a few weeks ago, because I hadn't used it in a few years, and as I was testing it out I thought "Cool".  However, when I calculated the cost of using it for just one year ($468.00 a year) compared to just buying QuickBooks Pro  Desktop right out, for a little over $200 and it's mine for life, I have to say that it wasn't so cool to me anymore.  

Nancy Neville

Don, there is nothing wrong with your opinion and that is what is good about having a forum like this.  We get to read other people's views, experiences, what works for them. 

Your method has worked for you, and I know a lot of Landlords who use your method,  and many landlords use my method as well.  But how do we know what method works best for us, if we don't know of other "methods" available, by people like you and me and everyone who posts on here?

Never feel like you "came on too strong", or your method of doing anything may not be what the majority of people feel about it, because it's people like you and me and everyone on this board that makes us better landlords.  

Life changes.  My method may not work in today's world.  Your method may not work tomorrow.  But everyone's idea's and experiences shared on here, educates us, and it's up to us to choose what method we want to try and what methods really work. 

So Don, I for one, enjoy your posts, and I come on here and feel strongly about a lot of topics and speak my mind and maybe not everyone agrees with me.  But you know what, If I had helped at least one person on here with what I write, then that mean a lot to me.  And you know what?  You've got 15 votes so far and that goes to show that 15 people agreed with you, not to mention the people who don't vote, which I'm sure there was a lot of them who agreed with you..... 

So I look forward to your next post!

Nancy Neville

I receive lots of questions regarding Detroit.  Here is a link to the current events in Detroit.

http://insider.foxnews.com/2015/04/03/gutfeld-concealed-carry-permits-only-piece-brings-peace

Nancy Neville

You're right!  I post some negative stuff about Detroit, however, what I am  about to post was before the crash of 2006 before we lost an arm and a leg.

From 1986 to 2006 we made a good profit.  $23,000.00 a month.  However, we did have 13 mortgages, so that took up a lot of the dough.  (the rest of the homes were paid for) and we had a whopping payment of $36,000.00 a year in taxes to the City of Detroit.  

Even though we worked 24/7, always on call from our tenants, we made a good living. 

Because I used QuickBooks, it only took about 2 hours a day, if that, for me to enter in data regarding our properties and tenants.  (40 properties all total)

We were able to purchase a beautiful 3200 sq ft.. house to call our home.

(Repair men would come to do some repairs on our home and say, "Wow, are you a doctor?  I said no, we're landlords.  They'd reply in amazement, that's all you do?  I smiled because I could see the look on his face, the same as everyone, that landlords don't work, they just collect the dough, and said yes.    Wow, I think I'll become a landlord too, they'd say.

We purchased a new car every year.

We went on several cruises (but always were in contact with our work crew)

Took a train trip to Ontario to see Phantom of the Opera

Went to the Fox Theater to see Jekyll and Hyde (the musical)

We lived the good life.

However, it took a lot of work.  And it took some time to design a plan that wouldn't entail us having no life at all, just because we were landlords.

Yes we were always there 24/7, but because I screened well, I chose good tenants and my time in court was hardly anything.  

Because I am organized and had a system in place, tenants paid their rent and on time. 

But nothing lasts forever.  In 2006, tenants left to purchase homes of their owns and left us with a ton of vacancies and a loss of income like you wouldn't believe.  Thieves broke into our homes and stole the furnaces, water heater, siding on our homes, that had siding, copper plumbing and really did us in. 

We had planned to retire in 2006 but because of the market crash we couldn't retire as planned, and ended up selling our houses for a song and a dance, a pretty sad fair of events.  

But life goes on.  We should have sold and retired earlier, but hubby didn't listen to mama once again. But Detroit was his dream.  What can I say.  

So there are some good stories to tell.  

Nancy Neville

Good Job Chris!

FICO SCORE

That is the Key Word for banks and other lending agencies to determine whether they should loan you money or mortgage loan or a car loan, etc.    However, I don't believe it suits our Industry. The reason being, a roof over one's head is usually more important than paying their bills. 

Part of my speech when I sign the lease with my tenants is that I chose them because they paid they bills on time.  That I don't except any excuses for rent not being paid or late.    That rent should be the very first thing they pay when they get their pay check. 

I tell them that without a roof over their heads, they have no place to sleep at night, to shower, to live, or to store their stuff.  So paying their rent should be a Priority, and 99% of the time it is.   I tell them that their rent is my paycheck.  That they wouldn't like it if their boss said I can't pay you today because my car broke down or my mother passed away.  You worked hard for that money, you need the money, and so do I.  I tell them that without their rent, I can't take care of them, I can't take of their repairs.  That their rent check is what takes care of them and me. 

Of course you will have those that don't pay their rent or anybody else.  But that is way I choose applicants that are COLLECTIBLE.

When I run a credit check it's not to see their FICO Score.  I want to see the landlord/tenant Judgments they have against them.  I want to see if they pay their utilities.  I want to see how bad their credit is or how good.  

I could care less about a SCORE.  There are two things that most people will pay first, their Mortgage (or rent) and their cars.  So a Score Figure doesn't matter at all, it's just a figure, just like someone's age is just a number.   I want to know how they live.  What's going on in the report, what's going on in their life.  A figure is just a figure.  But when you read a credit report in all it totality, it tells you more than just a figure.

So..that's just the other side of the story. and only my opinion.

Nancy Neville

First of all an "APPLICANT" must be COLLECTIBLE !!! 

 (Someone you can sue and have a good chance of collecting).

This means they must.......

• *Have a Job
• *Pay their bills on time (look at their credit report)
• *Must make at least three times the amount of the rent.

(These are just some)

Now if an applicant is questionable, then there is nothing better than a good Ole' CO-SIGNER!

The co-signer must also be COLLECTIBLE and have the same qualification to qualify as the applicant who plans to be the tenant.

POSSESSION OF THE HOUSE

Every person who will be in Possession of the home, that is of legal age, must be on the lease and must qualify, therefore be COLLECTIBLE, or have a Co-signer.

AND ALL OCCUPANTS

When you type up a lease you should always have on all legal forms the tenants names and these words "AND ALL OCCUPANTS. "

Because if you don't have the words AND ALL OCCUPANTS and you evict only the people's names that are on the lease, then guess what?  The only people that will be removed from the house are the people you named on the Lease and not everyone in possession of the house.  (However, not many people know this and so they leave when the tenants receive an eviction notice.  However, if someone wanted to test this fact, all they have to do is say, "Hey, my name isn't on the lease or the eviction papers, and I live here, and I'm not leaving, and the Bailiff couldn't evict them until the landlord filed for eviction on these unknown occupants who are in possession of the home.  (See Pacific Heights-the movie)  People who are in Possession of the home without a lease agreement, or listed as Occupants, are "Squatters".  

Therefore, when you add the words "And All Occupants" you are evicting everyone in possession of the home, including the dog!

Just a little tip.

Nancy Neville

Normally I don't do this, but here it goes. 

QuickBooks is a software program that landlords can use to keep track of their real estate investments, whether flipping them or not.  So basically, it is a software program that we need to help us understand where we are in our business.

HOWEVER, with that said and done, if we decide to use a TAX SOFTWARE PROGRAM, with QuickBooks, (doing our taxes ourselves) then that is a different story!!!! We better to it right! So don't do what I'm about to suggest!

I would say 99% of us have a CPA do our books, therefore we can do things in QuickBooks that other people can't if they are going to use QuickBooks with an accounting software program, e.g. doing it themselves.   So what I'm about to tell you is something that you should not do if you plan to do your taxes yourself, but only if you have an ACCOUNTANT. 

SETTING UP YOUR COMPANY IN QUICKBOOKS

Well, you can setup your main company as Johnathan C's Investments

Then setup all your LLC's as a class. List all the properties for that LLC as a sub class.

Then, setup your LLC's (individually) as a Customer, with the properties of that LLC as a Job, then make the tenants of that property as a job of the property. see example below:

Big Time Realty LLC

    1102 Hartwell Street

            Andy Kandy

Do you see where I am going with this?

Maple Street Apartments LLC

    7778 Maple Street Road

         Sandy Beach

If you want to use one bank account, you can use Johnathan C" Investments Bank Account. You could make each LLC a sub account of that bank account. Then you will still be able to balance all your income and expenses via one bank account statement. But you are going to have to link everything to the correct LLC's and properties, etc. Which isn't hard. That's why you have everything setup as a class.

Once again, if you were doing your taxes yourself, you would need to setup all your LLC's in their own individual company file.

So is this protocol?  There is no law, that I know of, that says you have to use QuickBooks as though you were and are an accountant. 

The reason we buy QuickBooks is not only to have something to give to our Accountant at the end of the year because the Government says we must, but for US to keep track of OUR OWN STUFF!  That's the main thing.  

So...off the record...this is an option for you.  AS LONG AS YOU HAVE AN ACCOUNTANT!

Foot Note:  Security Deposits should be put into a Security Deposit Trust Fund Accounts.  In some states that is a law, so check with your state law regarding that.

Nancy Neville

A very big clause in my Lease Agreements.  NO DISH ALLOWED ON THE ROOF!

They are instructed that it can be put on a pole behind the house or beside the house as long as it is not attached to the house or is an eye sore. 

That if a dish installed on the roof that the tenant will be responsible for repairing the roof when they leave after the dish has been removed. 

And I hold them to it!

I am amazed when I look around a neighborhood and see several dishes on a roof.  Even new build homes.  You never want to put holes in the roof for any reason.  

Nancy Neville