All Forum Posts by: Patricia Steiner

Buy used units from an established company that offers both installation and warranty for parts and labor for at least 30-days.  Then add a clause to your lease that the washer and dryer are provided for the tenant's use but that the tenant is responsible for the care and maintenance of the units.  Have the tenants carry Renter's Insurance with Landlord As Additionally Insured coverage (very inexpensive through places like GEICO) so if any damage to your property and/or the units is incurred, a claim can be filed by the tenant or you.  

My market (and the quality tenants we want) require that we provide laundry in our properties.  We have several local sources for quality used units (they look new) at prices that make it easy to do. The cost of one repair can be as much as the cost of the unit so putting the responsibility on the tenant to not overload the machines, to keep the lint filter clean, etc., and to pay for any maintenance makes it well worth doing.

Hope this helps...

Question: Do you really want to go to college or do you really want to follow your girlfriend and travel? There's a lot online about incurring great debt to attend elite colleges that later prove not to provide the ROI to even repay the student loan debt. That debt is included in your Debt-to-Income Ratio used by lenders - that will impact your ability to finance real estate, a car, more. Your FICO Score is important.

And, while you can flip houses while out-of-state/country, you most likely don't have the skill or the money to buy and renovate a property anytime in the near future.  It's not a passive event nor is it inexpensive.  Don't drink the Kool-Aid that you can do this with no money and become rich and famous. That's the stuff of 'real estate porn.'  A lot of flippers fail...what you don't know, will kick your butt.

My recommendation is to not eat the elephant. Go to college - it's the best investment you can make in yourself. But be careful how much debt you incur; consider the ROI of paying that tutition/room and board. Have you considered going to Paris with your girlfriend but studying elsewhere for the first year - or even taking an internship there?

And, real estate investing.  It just won't be an option for you until you've learned the business, saved some money, developed credit and the ability to get financing.  It can wait.

Having a goal - a plan - is your map to success but the road won't always match the map.  Change is inevitable.  Don't eat the elephant...enjoy the journey.

Hope this helps...

February!!!  And, you ideally want to finish with a GC who hasn't done anything since February simply because you're out-of-state?!!!  Noooooooo.  You're not thinking like a business owner.  This so-called GC is costing you money - and a lot of it in our market where demand far exceeds supply and year-over-year rent increases are in the 18% to 21% range.  Without knowing more about the property and it's condition, I can share that my clients have done complete 'rebuilds' of properties in St. Pete that were completed and rented in 60 days.  You're at eight months and sitting.  And, during that time, our trades have incurred even greater backlogs due to the recent hurricane and our market growth/renovations.  Time for a reality check:  Is this really the business for you?  Should you sell and find another property that is more turnkey?  If you want to stay with the property, you need to get involved personally.  You need to arrange for trade walk-throughs and be on premises to meet with them.  You need a Scope of Work and a contract.  When you're MIA, your trade will move on to another property where the owner is engaged and managing it to the scope of work.  There is nothing passive about real estate.

My recommendation regardless of how you proceed is to terminate with the GC.  Send the "GC" an email stating that you have lost confidence in their ability/willingness to complete the project and, as such, you are terminating with them.  Real GCs have real engineers available and more.  This isn't working...don't invest more time in doing nothing with a guy who is doing nothing.  

I also recommend reviewing the renovations that are needed and possibly engaging multiple trades rather than a GC - due to current market conditions/trade availability.  Again, I don't know the property or it's condition but I bet there are multiple ways to proceed that will get you where you need and want to be.  Please let the "GC" go...he's holding you back and wasting your time and money.

Best...

Best...

Here's the case for both...

Many clients prefer a shower curtain - actually most of my investors go this route. A good hotel quality curtain with a non-plastic liner have a higher-end look at an inexpensive price.  The con: the tenant has to use it. We actually include the requirement for closing the shower curtain during bathing in the lease as a mold deterent.  

The shower door.  Unless you're going to invest in a higher end door, they tend to look outdated. And, tenants aren't very good at cleaning these which leaves what you are encountering now.  The upside:  better at controlling water onto floor than a shower curtain.

My recommendation would be to go with a hotel grade showing curtain; they're available on Amazon.  Keep it sleek and clean like a waffle white fabric and buy a good liner.  A stainless steel rod keeps the 'hotel' decor in play.

Hope this helps...

Geez...maybe we start here:  

1.Lead paint is expected with any building/structure constructed before 1978.  Landlords have an obligation in most states to provide a Lead Paint Disclosure (brochure) to tenants that basically states this fact. You don't need to test for it but if you have knowledge of the existence of lead paint, you are required to provide those reports/disclosures. (Where to get Lead Paint Brochure for free if you don't already have it:  https://www.epa.gov/lead/protect-your-family-lead-your-home-...

2. Peeling paint is a problem. If you have it, it needs to be remedied - whether it's lead or not. When it is not remedied, you   open yourself up to tenant issues like the one you're experiencing. But....  

3.  You're not required when no child is present to remediate it.  See the following (and there are tons more online):

https://www.justia.com/real-estate/landlord-tenant/informati...

Considering that adults do absorb 11% of lead paint (children have much higher risk) and you now know it is present, it is worth curing to preserve your property valuation and attract/retain quality tenants.  There are many inexpensive options that include having the tub sealed/reglazed.  Lead Paint poses a danger when it is deteriorating so sealing it cures the risk.  The other option is to replace the bathtub altogether.  

While you don't have a legal obligation to do anything (and hopefully you gave out the lead paint disclosures when you rented it), all a tenant has to do is claim their health has been negatively impacted to initiate a law suit against you for damages.  Those are also all over the internet...whether they prevail or not, it's an expensive avenue to go down.  

I recommend telling the tenants that you had no knowledge of the lead paint and that you appreciate them bringing it your attention. Share that while you are not required to cure it as no children are in the unit, you would like to do so by (whatever you choose). Schedule the work and give them the required notice of entry.  Take back control by acting - and just make this issue go away.  

Hope this helps...hope even more that this issue goes away for you soon.

Best...

Pass. And, please do an online search on the pros and cons of having a sauna in a rental property...it's very telling. The maintenance cost alone is reason to pass but all the risk of dehydration and other health issues is another reason not to move forward. I also don't see the ROI for adding a sauna; it doesn't appear to be something that renters/guests appear willing to pay more for - like a hot tub does. It sounds like you already have a great property as it is - and over-improving it doesn't gain you anything. Maybe it's time to buy another one and grow your empire?!!!

Let's start with the last question about suing the seller:  No.  As the buyer, you have the duty of due diligence and under Michigan law: "Each license is exclusive to the licensee, and a licensee or any other person must apply for and receive the board's approval before a license is transferred, sold, or purchased." (Source: https://www.legislature.mi.gov/(S(vpmdcwmtfl2ilehvtou3vlar))/mileg.aspx?page=GetObject&objectname=mcl-333-27406#:~:text=Each%20license%20is%20exclusive%20to,transferred%2C%20sold%2C%20or%20purchased)

And, I bet the seller didn't include any guarantee of transferability in the sales contract either.  Simply, put - it never was an option.

As for selling it, I don't know how you're marketing the property but it appear there are several vacant lots/acreage for sale there with most being unsold for almost a year and at prices less than what you're seeking.  My recommendation would be not to market it as another lot for sale but for a specific purpose and to a specific buyer. For example, would this be a better location for an area business to build a larger facility or for an expansion?  Reach out to businesses that are expanding or considering moving into the area (Chamber of Commerce would be a source).  Would an out-of-market builder be interested in it?  And, use a Commercial Realtor - not residential; that lane is already taken.

The lesson here is vet everything. What happened to you is that the seller sold you his problem.  Intentionally - and you have no recourse because the responsibility for due diligence is/was on you as the buyer.  The best way out is to sell what you have to a targeted buyer; and let the fear go.  Buyers can smell it...the reason for the sale is that your plans have changed, when asked.  Don't sell your problem - sell someone a real opportunity based on the land and its improvements.

Hang in there.

Torn on what review to leave?  What was posted isn't the stuff of a review - it's an inspection report.  Weren't you on vacation?  The TV wasn't a smart TV?  Did the host claim there was a smart TV and that there were more than one?  Cleaning issues that other people would not have noticed?  Why did you?  Your findings say more about you than it does about the host.  I recommend that you not post a review at all or share only what was enjoyable about the stay and what could have made it even better.  Hosts live and die by reviews and for someone to exceed their role as a guest in giving one is pretty lowbrow and out-of-scope.  Please rethink what you're trying to achieve here. 

One year lease.  Sometimes a swipe For Rent sign in the yard is enough and a lot of folks use Zillow in their searches.  Other factors:

1. Be sure to set your tenant criteria first.  Minimum credit score, employment history/length, more.  This ensures that you have criteria that is not subject to a violation of the Fair Housing Act (discrimination claim).  And, have condi photos of the property pre-tenant taken to evidence condition.

2. Screen only qualified tenants; this also means doing an online verification of their employment and past residence. Google those...falsification of applications is common. They will have a friend take phone calls to verify employment and past residence. Address searches have shown people living at Taco Bell and working at a vacant lot address. And, check their social media and more...if the guy has an online profile that is not in keeping with who he says he is, it's a safe bet that his online persona is what you'll end up with.

3.  It's worth having an online application associated with a screening resourse. The cost is nothing - as you can pass it on to the prospective tenant. This along with your online search is a minimum vetting process.  

4.  You need a real lease - and an Addendum which outlines in plain language what the rules of the property are.  If you're allowing pets, you'll need a pet addendum as well.  And, the tenant signs the lease first - then you as the landlord to accept it.  

Marketing a rental is the easy part. Selecting a quality tenant and protecting your investment - those are the real drivers.

Hope this helps.  

Are you kidding me!!??  Should you address the issue now?!!!  It needed to be addressed in the lease - before they moved in.  And yes, the 'nice tenants' who aren't so nice and respectful to the other tenants by taking over the backyard as a dog park - need to be told that the dog must be within their control at all times.  Yes, this means that if the dog is in the backyard, they need to be in the backyard and have their dog on a leash so others are not 'shocked and awed' by their fur baby.  The dog isn't the problem - the tenant is.  Address the issue immediately before someone gets hurt intentionally or not.  

Bottom line:  you cannot build and preserve wealth if you fail to mitigate risk.