All Forum Posts by: Patricia Steiner

It's too comprehensive for a forum post.  I recommend using a solid general residential lease; in my state, the Florida Bar provides one free of charge and it is available online. A lot of folks complete it incorrectly so free isn't always the best. You might want to invest $50 or less with a legal service to have one prepared.  Then I have a separate Addendum to the lease that lists in plain language the "rules."  These include "this is a crime-free property," "smoke-free," how long a guest can stay and how frequently (sometime the guest isn't a guest but someone who has moved-in permanently), pet policy, specifics on reporting maintenance, and more.  I strongly recommend that Renter's Insurance with Landlord as Additionally Insured coverage be required of the tenant; it's inexpensive and it is there should the tenant damage your property so that repairs are made prior to departure and a security deposit battle.

Hope this helps - and please look into lease preparation services in your community.  It's a cheap date for an important document.  

There are several online sites that have a garage lease for non-occupancy.  I would secure one from a reliable source rather than attempting to create one.  Here's one site that has a pretty comprehensive lease:  http://www.lpsdata.com/wp-cont...

And, I recommend being very specific about what is acceptable and what is not.  If the garage has electricity, that poses a lot of other issues as well in addition to payment of the utility.  Will you be willing to have a Tesla charge installed in your garage and possibly a $40 electric bill for it alone?  Can the garage be altered in any way?  Can shelving be added, a washer/dryer?  What can be stored (what's the purpose of the rental)?

A colleague shared with me that a tenant who rented his garage defaulted and when they evicted him, they discovered that it was a "hoarder den."  Rotting food, trash/mattresses, car parts long since operational, and it looked like someone was squatting there. There were holes in walls and more.   In most other cases, it's a non-event and is used responsibly by someone who just wants to protect a car or boat from the elements.  

Hope this helps...

Nooooooo. What starts out crazy, ends crazier - and the more people with their hands in the till, the less control and return you have. It's not that hard to do any of this if you understand the business. First, know the booking sites that are the best for your property. AirBnb and Vrbo are pretty standard bets and you can easily set-up the marketing and reservations for your property yourself on those. They each have checklists/training that prepare you for setting up and running a successful business - for free. And, do yourself a favor and don't list your property if it's not maintenance-free; do the work first so that no major issues arise - including replacing the toilet flush valve, air filters, light bulbs (if old), and ensuring there are no trip hazards on the property; have an entry process/system in place for guests. A housekeeper who specializes in vacation rentals and a handyman/handyman service who can be available when needed is all you need. Please take a step back and get a better understanding of how this works before proceeding. Setting up right from the start ensures happy guests leading to great reviews, responsive resource partners, and a greater ROI. Best...

Please take a look at this article:  https://www.nolo.com/legal-enc...
If the departed tenant is still on the lease and the remaining tenants are covering the rent, your right to a replacement tenant may not be your decision.  If the property was leased by all tenants and one leaves, the tenants are all jointly and severely liable for the rent and they have the right to use the property as though no one/no changes have taken place.

Great job on choosing tenants who understand their obligation to pay the full rent regardless of who might depart from their group.  Hope this helps.

Use a Queen...no one will appreciate a King size bed if it makes the room feel like a closet.  When you have to go down a size, get a great mattress and upscale the bedding a bit.  It will make all the difference.

Best...

With today's interest rates, affordability is an issue with many buyers.  Inventory in my market is almost non-existent and prices are not dropping. But that's in my market and others are experiencing some price drops to accommodate interest rates that are now in the 7% range.  

Bottom line: it's a tough time to start a business in real estate - especially when you will need to pay desk fees to a Brokerage to hold your license as well as fees to the MLS and Realtor's Association. Reality. Not always what we want or like to hear.

Having said that, your odds are better if you target a specific type of buyer.  With your flipping experience, you might want to target like minded investors and specialize in those properties - and you'll need to place your license with a firm that is known for doing that type of business. You'll also want to make sure that you're not seen as a competitor with potential clients over those properties.  A couple of other things to know:  Getting your license will prepare you for nothing.  It's a weeding out event.  The real learning happens after-the-fact so you will want to find a mentor or join a realtor team that can build your knowledge.  And, it will be a forever process; real estate is so diverse and always changing that if anyone tells you that know everything about real estate, you should thank them for the warning and bolt!

Nothing great is easy...just prepare for a hard entry and be the best at what you do.  

Best...

Tim, let me just give you the whole enchilada on some of this:

"First, in the case of a rental property, the individual beneficiary cannot handle the eviction if the tenant doesn’t pay rent. The trustee will bring an eviction action on behalf of the land trust. The beneficiary does not directly control the eviction process.  

Secondly, the trustee must be involved in all real estate transactions, such as rental agreements, property sale listings, permit applications, contracts, and so on. Most land trust agreements provide for payment to the trustee for actions on behalf of the trust. CPAs or attorneys acting as trustees will charge the trust and beneficiary at their professional hourly rates.

Some people mistakenly believe that a land trust provides personal asset protection. A land trust is a “self-settled” trust meaning that the person who establishes the trust is also the trust’s beneficiary. A beneficiary’s interest in a self-settled trust, even if made irrevocable, is not protected from creditors. Other legal entities, such as LLCs, provide better asset protection for real estate."

I recommend using an LLC which is more "lending friendly" and provides asset protection. There are ways you can mask your ownership but unless your wanted by the mob, I see the cons of the Land Trust to outweigh the anonymity benefit. I'm a former wealth banker as well as an investor and I've spent more time than I care to admit on titling properties. I also recommend taking out an Umbrella Policy; here's an article on the benefits of an LLC versus Umbrella Policy - but I recommend both.

Glad you addressed such an important issue.  Acquiring real estate is one thing - but building AND preserving wealth is the real thing.  Best...

Geez...are you aware of the cons of using this trust? While it does provide a lot of layers to afford anonymity, it does come at a cost which includes the beneficiary cannot file for eviction if rent is not paid, the Trustee must be involved in all real estate transactions from rental, sale, permits and more - and the Trustee in most jurisdictions is either an attorney or CPA. Also the Trust does not provide asset protection like an LLC. And, financing will be quite challenging and definitely require personal guarantees. There are other ways to achieve anonymity as well as other ways of insuring against any direct liability. I would recommend something else as what you're proposing removes your involvement but not the risk while increasing your cost for basic real estate transactions which will require representation by an attorney/CPA as Trustee.

Fun, huh?

Only use what can be washed repeatedly like a light bedspread and have your cleaning service change the cover after each guest (meaning you'll need at least two sets per bed).  And, here's why:  you'll score big reviews by leaving a small notecard on top of the bed stating that even the bedcover has been laundered just for them.  It takes away that cringeworthy yuckiness of wondering how long that sucker has been laying on top of the sheets.  I recommend buying "hotel quality bedspreads" which are affordable and available on Amazon/Retailers.  

Hope this helps...

Contingencies should include:

inspections over a specific number of days (note the plural on inspection so that if you want to walk the property with contractors in addition to an inspector, you can do so.

Financing - not just the ability to acquire it but the get an interest rate that is acceptable to you - which is normally defined as the prevailing rate for a defined mortgage (fixed, ARM).

4 point/Insurance - note that an acceptable 4-Point is required for the engagement of insurance; should you not be able to get insurance on the open market, you can cancel with your escrow returned.

Vacant Possession - require the property be free from trash/personal items/tenants - and/or any commitment to rent the property - on the day of closing to be verified by a final walk of the property by Buyer.

There's more but these are the ones that I recommend every contract should contain.  And, your realtor should verbally walk through the contract - item by item -  with you and show you where these are contained within it.  

Hope this helps...