All Forum Posts by: Patrisha Leybovich

They are right. You're best bet is to be absolutely professional and write them a very nice letter informing them that their lease will be cancelled in 30 days. You could be very nice and give them a 30 day term to vacate afterward. However, these people are savvy and they know their rights. Know your rights as a landlord, or loose your shirt!

Hi there! I'm an agent with Keller Williams in AZ, but I may be able to recommend a good agent for you locally who could help you get to know the ins and outs of the market. Let me know if you're interested and I'll do what I can to put you in touch!

Best,

p

I like option 2. Good luck!

I think you are safe to trust your agent. You're not putting anything at risk here, and the title transfer will take care of the rest. However, you are the one authorized to sign on behalf of your LLC, so its always your name on the line. Been through this a few times as an investor and as an agent. Don't lose sleep on it. Sell your house and make your profit! (Make sure your SPDS are perfect, and disclose everything you can think of. It's your best protection anyway.)

-p

Be careful. Whatever you do, do it consistently and with the utmost consideration for people's circumstances. The last thing you need is a lawsuit. I vote to return their money, and change your policy about collecting funds while the app is still in need of approval. 

Have a first come, first serve policy so that you can collect other applications up until you an HOA approved tenant. Give them 24 hours to put down all fees AFTER HOA approval, and then move on to the next applicant.

In regards to not renting to them just because they rubbed you the wrong way, I get that. I really do. BUT, while its within your rights to not rent to them, it's within their rights to sue you because of some sort of discrimination, whether they have proof or not. Trust me, it happens. Be smart, be nice, keep excellent records, and stay consistent in your habits.

Good luck!

I agree. When you bought your policy they underwrote it as a triplex, owner occupied. The most important thing you can do in my opinion is be sure that your tenants know that you've got the structure covered, but that does not include their personal property. It's good to send a notice in writing explaining this to tenants and encouraging them to purchase their own renter's insurance policy. 

I like to use an example of a pipe breaking. If their apartment is flooded, your insurance will pay to repair any structural damage to the building. But it will not buy them new furniture, etc.

This tidbit is always included in my leases:)

Hi! My husband, @Ben Leybovich would be an excellent resource for you in this. He's quite gifted in creative finance. I tagged him on this to see if I can provoke a responses... Hopefully it'll work!

Good luck!

Hi there! 

I totally get your perspective, but here's a bit of reality. In the rare instances when your tenants do cost you an unexpected arm-and-a-leg for a plumbing or sewer bill, you'll find that they generally don't have the money to reimburse you for the expense and it ends up costing you a turnover...

You can absolutely amend your leases to require the tenants pay a percentage (in this case 1/4) of the utilities. I actually suggest you cap the allowable bill back amount to secure their interest, and then be willing to eat it in the event a pipe breaks, etc. 

The other thing you can do is impose a penalty for not notifying you of the necessary repair. This way you can get something from them that's reasonable without running the risk of unwanted vacancy. 

But, yes, billing back tenants for unseparated meters is a normal practice and you are within your rights to either ask for a percentage repaid, or else tack on an increased rent (like a budget plan) specifically for utilities. 

Good luck!

@Brian V., You're getting awesome advice. When my husband Ben and I first started investing we first invested some money in professional legal advice. We called it "cost of education". Pay somebody to read the contracts, talk to you about state and local specifics, and guide you through the areas you're insecure in. 

Best peace of mind money can buy you at this stage in the game! 

Good luck!

-Patrisha