All Forum Posts by: Peter Mckernan

Hey Nate,

Sounds like a sticky situation and I'm sorry to hear about the problems you're having. In California the laws regarding security deposits are strict and the California rental law book that I purchased awhile back talks about how to word the lease to tailor it to protect yourself. In California you can charge up to one and a half times the months rent for a security deposit. It also explains that it isn't a good idea to state that a tenant needs to pay first months and last months rent at the signing of the lease. If you state that you need first months rent with an additional last months rent it can open up a landlord to liability. 

In your case they told you to just use last months rent for the month that they rolled into, which leaves you high and dry for a security deposit since you have to use it for the mortgage and not the fixes! Now you can't really go back on your lease and to try to clarify what you meant.

As for the late rent I would file a 3 day pay or quit notice (in California it's 3 days) for the amount still owed that month. If they pay you a little after you serve them and not the whole thing, serve them another pay or quit for the remaining balance. If they don't pay, start the eviction process immediately! 

I don't have too much experience with going to court over past due bills and payments. Disclaimer, I have never gone to court for anything to be exact; however, you can always try and take them to small claims court. I know that California's Law is that a landlord and tenant would have to go to mediation and then to small claims with an amount not to exceed $7,000 (if it's less someone please correct me). You would have to weigh the benefits of your time in court with the amount of money you will receive.

Good Luck,

Peter 

Hey Cory! 

Welcome! I live in Orange County, but buy property in the Inland Empire. Hope you are doing well!  The website is great and provides a lot of help and information! 

Peter  

This information is has been very beneficial to the goals and thoughts I have set out for the future rentals I buy. Thank you for throwing in some of your thoughts!

@Wade Sikkink

@Adrian Tilley

@Marcia Maynard

@Ali Boone

@Bill Coleman

@James Wise

@Brett Russell

@Dewayne Gammel

Hey everyone,

I have a house that I bought last year for a buy and hold investment, and I'm going to purchase one this year with the same investment goal in mind. I was looking into when I should establish a LLC for the investments. I was wondering if everyone can give me some common guidelines they use on placing their rental properties into a LLC (i.e. two houses, three, four). Let me know how you guys view this concept.

Thanks,

Peter

Thanks for the information! Some people can do some terrible things!

@Bill S.

Hey Bill,

Sorry for the late response. I was thinking the same thing you were about depositing a personal check into the account and she did. I waited and the check cleared a day later.

I'm stopping by the house tomorrow to talk to the tenant about the late fees, and also some other fees. Basically I was happy to resolve the issue of this months rent; however, I'm going to keep an eye on this tenant for the future rent payments. Thanks for your response!

Ya, Smart Move is really nice to use! It makes the credit and background check easy.

I served the tenant a "Pay or Quit" notice, and that day she paid rent by depositing the money straight into my bank account. Thanks for the tips, and I will make sure I don't let this happen again.

@Jerry W.

Hey Jerry,

Thank you for your insight. I have been using the newest version of the California Rental Law Book. I don't want to go into it blind and have made sure I cover my bases. I am being reasonable about it, as in it might have to do with some type of family issue, medical issue, or some other pressing issue; however, there should be some type of communication. Thanks again for your response.

Peter

@Joel Owens undefined

Hey everyone,

Thanks for the response. The property was a planned rental and I did send the tenant through a credit and background check. I do agree the tenant did not have the best credit rating; however, she had good standings with her previous landlord.

In California, the law on security deposits is one and a half times the rent that the landlord is asking. @Colleen F.

I got the security deposit before she moved in and it was paid in full. The tenant moved in a few days before the first and I told her should would need to send a cashiers check for that prorated amount and also the first months rent. @Aly L

I have text her, called her, left her a voicemail, and also e-mailed her. I did that all in that sequence. I have a business partner on the property and he has also tried to contact her with no luck. @William Shaffer

Ultimately I don't want to have to evict her and that is the most severe option; however, I am just planning ahead and wanted to grab some insight on what other people thought.

Thank you,

Peter