All Forum Posts by: Penny Clark

@Shelley A., I understand your frustration, and many landlords try to save money cleaning and repairing items themselves. This is where many landlords get in trouble with the Small Claims courts because they fail to provide documentation to back up their deductions. Tenants and the courts in tenant friendly states (Hello, California!!) take security deposits seriously and this is where most landlord tenant disputes arise. Document thoroughly ( by using receipts and estimate/invoices from vendors) and learn what is a legitimate deduction. Although landlord labor may not be seen as a legitimate deduction, the cost of materials you needed to restore those items back to pre-move in condition may be (for example, replacement of a broken glider on a drawer or replacing broken blind slats not due to age but over handling).  The Rental Housing Association offers some excellent suggestions in what Cali landlords can deduct and not deduct from tenant security deposits. 

When in doubt, hire it out. Good luck! 

@Account Closed

I would let the tenant know that you will enforce the terms of the lease if the unit goes vacant, which means either he or his company pays the rent through the duration of the lease until a suitable tenant can take his place. This will serve as an incentive to him to help you in any way possible to find a qualified tenant such as:

- allowing you to show the place multiple times when you have a good prospect AND keep it neat and tidy so it is aesthetically appealing.

-Alert friends, co-workers or family about the availability of the unit

- His ability to get future housing can depend on how he left his last landlord - which is you. Property management companies often ask on their landlord verification forms if the tenant broke the lease or left the unit owing money. It would bode better for him if he honored the terms of the lease until you can relet it.

Don't be so eager to  release the tenant from his obligation to you. You'd be surprised how helpful a tenant can be when their own dollars are on the line. 

Good luck!

@Spencer Wetmore, already you've got great responses. I would do the following:

- Send an intro letter instructing tenant you have taken over management and where, how to send rent and whom to make money order, check out to or how to log into a portal to make a payment, etc. Also let tenant know the number to contact if there are service repairs needed or in case of an emergency (burst pipe, tree crashes through window, etc.)

- Follow this up with a formal notice to increase of rent. Believe it or not, most tenants expect this when there is a turnover in management or ownership. Check the laws in your state on the type of notice you must provide. For example, in Cali, to increase the rent by more than 10 percent requires a 60 day notice, less than 10 percent a 30 day notice. I prefer 60 day notices regardless because it gives the tenant a chance to shop around to see what a deal they have already. Most of the time, the expense and hassle of moving is not worth it to save $150-$200.

If your tenant fails to pay either on time or proper amount of rent due, issue another notice immediately (usually, this is a 3 day to pay or quit). 

It's a great thing if you can meet the tenant and ask he provide you with current contact information. However, this is the information any buyer should get from the owner prior to the sale along with leases, application information, payment record, estoppel certificates etc. 

I wouldn't worry so much about the deposit (since it apparently wasn't transferred to you during the sale). The security deposit is not income to you. It is the tenant's. Those funds go to replace lost expenses that you pay out to vendors to repair or replace items that are damaged beyond normal wear and tear. When the tenant moves, he gets NADA.

Good luck!

@Bryan Young, Before you worry about non-compliance of your property with their disability, first screen them as you would any other tenant so that they meet your qualifications for credit, income (be sure to ask for an award letter showing the amount they receive and you can track monthly installments by viewing their bank account statements), and rental history (get written permission from them on a form allowing you to contact their present and previous landlords; your form should ask them non biased questions that can be supported by documentation. For example, did they ever pay late and what were the dates? Were any three day notices issued and what was the reason? Did they leave the unit owing you any money?).

Don't ask them what their disability is unless they offer that information. They can request you make an accommodation but check with your state to see who foots the bill. Usually, it is the tenant if it is an accommodation that is made for their personal space but it could be the landlord if it is a common area like parking or access curbs in commercial units. In Cali, tenants can request an accommodation be made that is reasonable and the tenant usually pays for it and the landlord can require the tenant pay to revert that change made to the unit back to its original condition. 

The applicant may not make any requests.

In the meantime, I would check with your local rental housing association or HUD office to see what Fair Housing and ADA compliance classes are available if they offer them.

Good Luck!

@Jeremy H., Meghan gave some excellent suggestions. I believe if your tenants are on a lease and move out prior to expiration date, they would be obligated to keep the utilities operating in their name until you re-let it if that is in the lease terms. I would start marketing it now and work out a regular time convenient for both you and your tenants to show the property. They can assist you by keeping the unit clean and tidy on the day you show it. They should have an incentive to do this because the sooner you get it filled, the less money comes out of their pocket. 

In the future, consider taking some pics once repairs, updates, cleaning is done so you have your marketing ready to go a couple weeks before your next tenant vacates. Winter lease-ups can take more time, so you'll want to start advertising the property immediately. As far as the satellite dish goes, check with your local rental housing association to see if you can deduct the cost of restoring your property back to its original condition by removing the dish. The California Apartment Association has an addendum on satellite dishes you may consider using which covers conditions of satellite installation and removal (You can use any of their forms by joining Sacramento Valley Rental Housing Association). I don't believe CAR forms have that.

With Craigslist, Zillow, Hot Pads and a plethora of other free mediums, the $350 marketing fee seems a bit excessive unless it serves to cover the landlord's time in administrative costs for re-marketing the unit.

Good luck!

@DL Martin, Thanks for sharing your story. Utility bills are one thing an owner MUST  check out prior to buying. The probate company who handled the sale of a property we bought only provided us with one electric bill which did not accurately represent the regular utility bill cost for both units which were on the same meter. We should have insisted on seeing all utility bills they were responsible for paying for the past four months it had been on the market. Unfortunately, not all listing brokers are as ethical as the one you dealt with. These forums teach us that practicing due diligence before you buy is your best bet to AVOID buying into a money pit.

Honor the lease they have until its expiration date. Provide intro letter regarding new management and instruct them who how, and where to send rent to and whom to call to handle emergencies or maintenance requests. Let them know by proper notice what new rent will be on what date with proper notice. Check with your state. In California, for example, if they are on a mo to mo and there for a year or more, and  or your rent raise is more than 10 percent, they get a 60 day notice. If they are on a lease that hasn't expired yet, send intro letter and separate notice of increase a month or two before lease expires. This gives your tenants time to decide if they wish to stay. If they do stay and sign a new lease, it's a good idea to update their contact information.

Learn the landlord tenant laws in your state, and take a Fair Housing class.

Good luck!

Once the lease reverts to a month to month, you can choose to not renew the lease for any reason. Give her proper notice of what the new rent will be in X amount of days effective on this date and find someone who will pay the rent on time. If she does not pay her rent on time, issue a three day notice (or what your state requires) the next day it is late - not when the late fee is due. If you don't retrain this tenant now, she will continue to play this game with you. That's why it's just better to start over with new tenants nine times out of ten.

@kaleb carsten, stop wasting any more time with this tenant. Hire an experienced landlord attorney and start the eviction process now. This tenant knows what she is doing and may already have an eviction history. She is likely to hold out until the sheriff shows her the door. Let this be a wake up call to you on your next purchase with an inherited tenant. Always verify what an owner and realtor say about the tenant you inherit by requesting payment history, leases, utility bills before you close the deal. If they hesitate to provide you this, assume the worst and budget to get the tenant out or use this as a bargaining chip to negotiate down the purchase price.

For the record, even tenants with good payment records will test you when you become their landlord. Have a system in place to enforce rules immediately and start learning the landlord tenant laws in your state.

Good luck!

@Derrick Ward, Before you tie the knot, find out if North Carolina is a community property state and if it is, what is the definition of separate property. For example, if you have a property that you purchase and fund in your name only with separate funds that are not co-mingled with funds used by your spouse, it may be considered separate property - check with an attorney who specializes in this in your state. 

You may also want to consider purchasing property in your name and your wife may want to purchase property in her name. Doing so will allow you to get more properties financed if you both have strong incomes and low debt to income ratios. This is a strategy that is touted by Rich Dad, Poor Dad author Robert Kiyosaki. 

I agree with the above comment about insuring yourself well and would not waste money setting up LLCs until you have enough properties under your belt to justify the cost and the paperwork.

Good luck to you!