All Forum Posts by: Nathan Gesner

@Alvin Sylvain in the eyes of the law and regarding housing, an ESA is treated just like a service animal. Whether it remains an ESA or not, the Landlord has to treat it like they would any service animal.

Separate accounts.

Question: why did you set up three different LLCs if you don't even know the basics of how to operate them? You may be throwing a lot of money out the window.

Your uncle is probably not a very good attorney. He may have made a good living for himself, but he sucks at giving legal advice.

The lease does offer some protections for the tenant, but they're basically the same protections you would offer as a decent, honest human being. For example, you agree to keep the home in good working order. You agree to not enter the home without proper notice and a good reason. That's basic human decency.

The lease really offers protection for you as the Landlord. When does the tenant pay rent? How much? What does he pay for a deposit and what happens with it? Who's responsible for mowing the lawn? What happens if the tenant leaves early?

There are a hundred different protections in a good lease. If you ever end up in court, a he-said/she-said is probably going to work in favor of the tenant.

Should you do month-to-month or a one-year? I can give plenty of good reasons why a one-year lease is better and more lucrative but it depends on your state. If it's hard to evict a tenant, then a month-to-month simplifies things because you can get rid of a bad tenant by issuing a 30-day notice (assuming they honor it and leave). You have to know your laws and make the decision for yourself.

@ToRena Webb-Thomas I agree with @Karen Rittenhouse that you are failing as a Landlord.

When you made an offer to purchase the property, you should have received a copy of the lease for review so you know exactly what you were buying. When you closed on the sale, the paperwork belonged to you and should have been handed over with the keys, security deposits, etc. You are required to abide by that existing lease until it expires and you sign a new one. You can always sign a new one earlier if all parties agree.

Once that lease expired, you don't "ask" the tenant to sign a new lease. You tell them they will sign a new lease or they can move out. You don't let them dictate things for three years. If tenants are just $100 below market, you've essentially given them $3,600 dollars!

I think you've already made too many mistakes with this tenant and should get rid of them. I would give them written notice of termination in accordance with your state law. Do not negotiate, do not change your mind. Clean the place up and start fresh with a tenant that is properly screened, paying market rent, and respecting your authority as the owner.

Another thought: you may want to consider a property manager. Yes, they can cost you 10% a year but that would be cheaper than letting a tenant stay there for rent way below market.

The fact that your CPA and financial planner are "against the cash out" tells me there may be more going on here. Then again, your financial planner may be trying to protect his job.

i see too many people start investing from a shaky foundation. Bad credit, no savings, a low-paying W-2 job, etc. They spend everything they've got to make their first purchase so they have nothing saved up for the unforeseen issues that always pop up and they're still practicing the same bad financial habits they always have.

It's beset to have a strong foundation with good credit, an emergency fund, etc.

It depends on their role. If they are marketing and bringing you new properties, then a percentage or a flat finder fee for each property may be appropriate.

If their role is purely administrative and they are simply managing the rentals once they are received, then I would only consider a periodic bonus based on the increased workload. For example, you may give a bonus every quarter, half, or year based on the overall performance of the company.

You can start by going to www.narpm.org and search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addendums. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

I hope this basic guide helps. If you have specific questions about property management, I'll be happy to help!

I always need help. Doc says I shouldn't lift anything heavy.

Here's just one of many, many blogs and threads written on this subject:

Quickly Evaluate Multi-Family

In my experience, the most common issue is noise between levels. Some units are poorly insulated and the tenant downstairs can hear the tenant upstairs talking on the phone or watching TV. You can warn them a thousand times over and it still causes problems. I think it's probably the highest reason for turnover in apartments, at least as far as complaints go.