All Forum Posts by: Nathan Gesner

Go to www.narpm.org and search for managers there. Members of the National Association of Residential Property Managers voluntarily subscribe to a higher ethical standard, have more education, and are generally motivated to provide a higher level of service instead of idling collecting rent. It's a good plate to start.

If the home was as filthy and damaged as you say, how did they get any deposit back at all? In my area, a 2bed/1bath apartment would cost $2,000 to carpet so even a depreciated value after four years is well over $1,000. If it was a pig sty, the general cleaning could be another $500 or more. Either they had a huge deposit, you are exaggerating the condition, or you were way too generous.

I'm also curious about whybyou are going to court. It sounds as if you initiated the court claim. Why is that? The standard process is for you to apply their deposit and if the tenant disagrees then they take you to court to dispute the charges. Am I missing something?

The house is considered placed in service in when it was ready and available for rent, which may be earlier than the day it was actually rented. For example, if be started.advertising the home for rent in August but didn't find a renter until September, he may be able to start depreciation in August. Check with an accountant to verify your circumstances.

Here is the specific IRS guidance with examples: https://www.irs.gov/publications/p527/ch02.html

I would check out something free like www.truerent.com (free for up to 5 units) just to get your hands dirty and see how a software program can help you. You can also use some basic accounting software like Quickbooks or spreadsheets because you have very little data to handle with four units. I don't see any reason to spend money on software if you have fewer than 20 units. Instead, spend the money on a couple classes on how to use spreadsheets or hire a college kid to build them for you and then track it for free. Sign up for a free account with Google Drive or Dropbox to store all your documents in the cloud so it's accessible from anywhere and available even when your computer crashes.

Once you build up to 20 - 40 units, then I would recommend finding a simple software solution like Buildium that can really pump up your capabilities without breaking the bank.

First come, first served. If two people apply at the same time, the first one that is qualified is the first one I offer it to. If they don't bring me the security deposit IN FULL then I offer it to the next person in line or put it back on the market. Money talks.

Imagine if your policy was to wait and show it to the other applicant on Saturday. By the time Saturday rolls around, they might have found something else or changed their mind. Meanwhile, the first tenant you approved may have taken offense that you made them wait and they could walk away, as well. Now you are out both prospects! As someone else pointed out, a first-come, first-served policy will also help avoid claims of discrimination. If applicant #1 meets your qualification requirements, why deny them?

Write down a policy of first-come, first-served, and make sure it is clear. Think through various scenarios to ensure it is complete. Then tell people up front what your policy is BEFORE they apply so there is no confusion. If you have a web site, point them to that so they can read it themselves and avoid any miscommunication.

Not an attorney disclaimer. I've dealt with crazy tenants before and they can be difficult to nail down. I would start with a written warning that you are not in violation of any codes and that her behavior is considered harassment of yourself and the neighbors. Warn her that future harassment may result in eviction.

If she continues, have an attorney send a "Cease and Desist" letter. If she still continues, talk to your attorney about eviction options because it may require you to start with a stalking order or other steps before you can evict.

I do not recommend using social media - or any other device - to "shame" the tenant. That's not professional or ethical and brings you down to the same level as her.

Most investors managing their own Rentals get into trouble because they have weak lease agreements and no procedures for handling problems. Your lease should stipulate the minimum requirements of maintaining the home and what happens if they fail. If you walked by the house and noticed the front door off the hinges, what would you do? What if a window is cracked? What if you smell a foul odor or smoking? Trash piled in the front yard or tall grass? Three dogs in the back yard when you only allow one?

It sounds as though your current lease doesn't give you much leverage. I recommend trying what you can to motivate him to clean up. 30 days prior to his lease ending, send a written notice that his lease is due to expire on January 31, that you will not renew, and that the property must be returned in the same condition it was received or he will be charged for any necessary cleaning or repairs. I also recommend giving him instructions on how to properly clean each room. Examples can be found on Google by searching "Tenant Move Out Instructions."

Why are you creating so much stress for yourself? Do they know when rent is due? Do they know you only accept online payments?

If the answer is yes to those two questions, quit bugging them about it and give them the chance to do the right thing. If they don't, then you can deal with them like you would anyone that fails to pay rent.

Your description makes it sound as if you are hovering over them too much and they got tired of it.

Are you familiar with the National Association of Residential Property Managers (NARPM)? Go to their web site and search for a Property Management company. Their members voluntarily subscribe to a higher standard of ethics, have more education, etc. It's a good place to start.

This is a personal issue between the tenants. Assuming you have a good lease agreement, provide them with their options and then step away. If she wants to leave, they would have to break the lease because he can't qualify on his own. If he wants to leave, follow your procedures to remove him. If neither wants to leave, tell them it's their own issue and just keep collecting the rent.

I do not recommend placing only one tenant on a lease agreement. There seem to be quite a few members of this board that have no idea what "joint and several liability" means. If you have three tenants but only one of them signs the lease agreement, what happens to that lease when the tenant dies or decides to move out without notifying you? Your legally binding contract is with that one person, not the two that remain. What if Tenant A is on the lease but Tenant B trashes the home and then disappears? Your legal recourse is with Tenant A but then Tenant A can stand up in court and say the damages were caused by Tenant B whom you allowed to live in the home. I suspect the judge will tell you to go after Tenant B!

Put everyone on the lease, hold everyone 100% liable. Anything less is asking for trouble.