All Forum Posts by: Randy E.

Izabella, I would be careful about collecting "high" security deposits in Chicago.  There was a thread recently where a new landlord in Chicago was fined an obscene amount that was tied to a high security deposit.  Apparently, Chicago/IL landlord law requires regular payments and/or accounting of interest earned from security deposits, and failure to follow through on that can result in a fine of treble the amount of the security deposit.  Bottom line, the larger the security deposit, the larger the fine to the landlord.

A couple of Chicago-area landlords chimed in to add that they don't collect security deposits at all -- that they charge extra fees or do something else to eliminate the collection of a security deposit .  Search the Chicago forum and prepare to be horrified by that thread.

Here's one, but not the one I was thinking of: Chicago Landlord Returned Security Deposit, No Interest

Good luck,

Randy

 I would probably file now.  If they pay and/or move quickly enough, you can always stop the eviction.  You'll lose the eviction filing costs, but you'll have a head start on the process in case they don't pay on the 18th and don't move out at the end of the month.  

BTW, if they do pay and/or (agree to) move, don't stop the court eviction process until they actually move out.  Otherwise, you might lose some unnecessary time.  It doesn't sound like they're good tenants anyway.

 I buy without inspections, but I buy knowing beforehand that a lot of rehab is necessary.  Also, I probably have a more experienced eye than you do, and I can discern whats acceptable to me and what appears to be too expensive for my budget.

If you don't have a good idea of what you're looking at, I say you should get an inspection.  Better safe than sorry.

 Don't forget.  In this case, that would also mean the parents would be suing their son, not just the girlfriend.  The OP said both are on the lease.  Thus, if one is responsible for the unpaid utilities, both are legally responsible for the utilities.  Oh what a sticky thicket.

The title of this thread should be changed to "Unprepared Landlord, Never switched off Utilities ... Can tenants take advantage of this ridiculous mistake???

Answer to your question: I'm not a lawyer, but I would never turn off the utilities in this situation ... meaning once eviction proceedings have commenced in court.  It seems that might be construed as landlord revenge at this point.  Just wait for the court and sheriff's department to finish the process.

Also, it seems the parents and brother should shoulder as much, if not more, of the blame for this situation than the girlfriend.  Not piling on your parents here, just pointing out that this could have been prevented.  But you know that.  And your parents know that.  They probably knew the risk they were taking.  Sometimes we have to get burned to learn better.

But with all seriousness, once the eviction process has nearly reached the end, never ever ever ever stop the process and give the tenant a chance to stay like that.  Never.

Good luck.

 Yes.

My first income property was purchased via a personal LoC loan from a credit union.  @Mike Cumbie has laid out a treasure trove of practical advice for you in this regard.  

Having a job, no-to-low debt, and a good credit score really is just about all you need.  Besides, it doesn't hurt to ask.  It's not like you ask once, get denied, and can never ask any bank anywhere for a loan forever.  If one bank/credit union says no, ask another.  And another.  In my case, I got through on the first ask.  

Go for it,

Randy

If she has paid for through the last day of the month and she has not returned the keys to you, I would not assume she has "abandoned" the property.  

At the very least, I would wait until the first of the month to enter the unit.  I would prefer to wait until the tenant has notified me they have moved out and returned the keys, and/or I can see all the furniture has been taken out of the property.

Why not just call and ask her?

No.  As @Linda S. said, if the applicant can't afford to spend $25 for an app fee, they can't afford to rent your property.

However, if an applicant expresses concern, I explain a few negatives that might eliminate them, like having a past eviction show up on their report.  That way, if they know they have such a negative, they can save their money and not apply.

 Different strokes for different folks.

My goal to give up my regular job?  My lifestyle is not extravagant, so $6000-$7000/month cash flow will do for a walkaway-point.  I'm about halfway there, and can realistically plan on being there in 10-18 months.  I would continue to add to my portfolio after that point.  

Cash flow? Includes CapEx, but not PM.

Retirement? I would actively manage and grow my portfolio, and raise my kids.  Some would say that doesn't qualify as retirement.  So what?  I'm not looking to live by someone else's beliefs.  Not going to work everyday while I'm still far away from 70 years old is good enough for me.

I'm also another guy who got started, more or less, with cash purchases.  It worked for me (so far.)  I'll incorporate some leveraging soon enough, but that really wasn't an option before.

Good luck to everyone with their own respective paths.

I use SmartMove.com