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All Forum Posts by: Gerald K.

Gerald K. has started 7 posts and replied 460 times.

Post: I love my tenants

Gerald K.Posted
  • Real Estate Investor
  • Kirkland, WA
  • Posts 480
  • Votes 116

Yes, we also have tenant's that are great. Some of them put up with issues because they know we have planned maintenance periods and instead of bothering us outside those times, they wait. Some have been easy to communicate with, quick to respond to our questions, and very low key. We've also had some that are very up front about damage they accidently caused and that they will pay for repairs - same with some that have been late with rent - letting us know in advance , telling us the late charge will also be paid. Most of our tenant's are quite good. It's just the rare bad ones that make for the interesting story.

Post: Do I need Nevada based LLC

Gerald K.Posted
  • Real Estate Investor
  • Kirkland, WA
  • Posts 480
  • Votes 116

You didn't indicate what type of real estate business you were going to do, but if you're talking about rentals and associated liability issues, you might consider in addition to your regular rental policy insurance, an umbrella policy. It's quite inexpensive and can provide significant additional coverage. The topic of insurance and LLCs has been discussed before on BP. Do a search in the upper right to find more. Good luck.

Post: Move-In Inspection Checklist - streamlining the process. What do you do?

Gerald K.Posted
  • Real Estate Investor
  • Kirkland, WA
  • Posts 480
  • Votes 116
Originally posted by @Marcia Maynard:

When moving a tenant in, it is easy to skimp with the move-in inspection check list (or "Property Condition Report", as we call it) yet it is a critical document. I'm looking to improve my process for getting this done efficiently.

Here are some of my ideas for stream lining the process. What are yours?

1. Put "C & F = clean & functional" at the top of the form. I then put C & F on every line as I check the unit before move-in day.

2. Note known deficiencies on the form ahead of time. If you are the one who does the "make ready" on the unit, then you will know the unit flaws. Look at the previous tenant documents for things you may have missed.

3. Repair or replace items in need and keep a record of the date that was done. On the form, I will write things like "new carpet 2012". If it is in the current year, I note the month, as "new refrigerator 5/2014". If something is older than a few years, I just keep those dates in my purchase/maintenance records.

4. I might use ebay type descriptions for noting condition, such as: new, like new, excellent, good, fair, worn, dime size, nickel size, quarter size, inches/cm, scratch, chip, dent, tear, stain, broken, bent.

5. Photograph condition of unit.

6. Obtain all tenant signatures before handing over the keys. Ask the tenant to let you know within 72 hours if they find any other problems with the unit that they would like noted. It is not uncommon to miss something significant during the hustle and bustle of getting a unit ready or on move-in day. You can decide if you want to amend the record later.

7. Put a note in the tenant file if you do an upgrade, repair or replace something during tenancy. This will supplement the original move-in condition record.

Marcia,

We have also been trying to figure out ways to improve this process. What we've been doing (which isn't the best) is to record our own data including photos and videos. It can be very time consuming. We then give a blank move-in condition report to our tenants which we have them fill out and return within 30-days - which I think is too long. Most of our tenants do a good job, but now and then we receive the report back with vague information that doesn't indicate exactly where the issue is, how big, etc. General statements without the number, size, location, etc, could mean anything and makes it impossible to distinguish between what existed and what happens during their tenancy. That would mean we would need to record all areas of the house, both clean and undamaged areas in order to dispute what they might indicate already existed.

If I understand your process correctly, you are providing the tenant a copy of the move-in condition report that you have filled out, have them sign it, then give them 72 hours to add any additional items. Is that correct? Seems like a lot better process.

It's always a big rush for us cleaning up and making repairs from the last tenant and documenting that for the return of their security deposit, then recording the condition of the unit prior to the new tenant moving in. We try to get repairs done while the previous tenant is still there but some things have to be done after they have moved out. There are times when we have just hours between tenants, but we like to get at least a few days unless we have a big project such as replacing flooring, repainting, or other larger projects.

Our rentals are B+ areas, so our method have been to provide the incoming tenants an email providing them access to the house (hide-a-key location and/or keyless entry code) without the need to meet them there at a specific time. With a full time job and the units 20-30 minutes away, it has made it easier. However, if we're going to get signatures on the move-in report, I think we'll have to actually meet them there when they move in - which could be challenging at times.

How has your systems been working so far? Any changes or additions to the list of items you have provided? I wonder if anyone else reading this has other ideas to improve the process.

Post: New to BP (Hello!). 1 man band investor.

Gerald K.Posted
  • Real Estate Investor
  • Kirkland, WA
  • Posts 480
  • Votes 116

@Eric B. 

Welcome to BP. There's a lot of us from the Seattle/Tacoma area. If you haven't done so, check out the "Learn" tab up top along the blue border. You'll find free guides, podcasts, and blogs. There are also some meet ups from time to time where you can meet fellow BP members. Set up your keyword alerts and you'll be able to see when they come up. Congratulations on your 3rd deal. Keep going!

Post: Looking for RE Lawyer

Gerald K.Posted
  • Real Estate Investor
  • Kirkland, WA
  • Posts 480
  • Votes 116
Originally posted by @Karyn T.:

I may have a "professional tenant" and need legal advice asap.

Anyone know of a reputable RE attorney in the general Seattle Area?

If you still need a good lawyer, let me know.

Post: Experienced multi-family buyers! Does this seem odd?

Gerald K.Posted
  • Real Estate Investor
  • Kirkland, WA
  • Posts 480
  • Votes 116

Do you have copies of the rental agreements? If not, you'll need them to figure out how payments are received and to which days they apply - and since  you're the new owner, you'll need to know what's in them to know if they are being complied with - what the rules are. It would be strange, but not impossible for payments to be received half in arrears - on the 15th - for the 1st through the end of the month. Or maybe a mistake was made, so yes - ask for a breakdown. They may have a buffer in there for unexpected things. We sometimes end up with an escrow refund check down the road, but ask - they should be able to explain it to you. Good luck and good to hear you're moving forward. Keep it up!

Post: Prospective tenant wants reason for declining them.

Gerald K.Posted
  • Real Estate Investor
  • Kirkland, WA
  • Posts 480
  • Votes 116

We have a form we send to those not accepted. It has a bunch of check boxes we check for the reason. If they do not meet a minimum requirement, such as income equal to three times the rental amount, then it's an easy disqualification. Normally our pre-screening eliminates them before we even get started. If it's credit score related, we give them info on where to check into that - our screening service provides a contact for that. A lot of times it comes down to accepting someone else with equal or better qualifications.

Post: Help! My tenant wants to fill our first rental house with daycare kids!

Gerald K.Posted
  • Real Estate Investor
  • Kirkland, WA
  • Posts 480
  • Votes 116
Originally posted by @Jessica Hinman:

When the house was run as a daycare previously, the neighbors had lots of issues with parents turning around in their driveways early in the morning and late at night. I know they called the police about it previously, and the neighbor has stated that she will again, which I told her she should definitely do. Maybe a couple of police complaints will help my case.

I did contact a lawyer and he recommended mailing a crease and desist letter and then getting back with him if that doesn't fix things. We'll be writing one tonight and sending it out tomorrow.

This feels like horrible luck-we've only been landlords for 2 months!

Sorry to hear about your troubles and it's good to hear you've contacted a lawyer for help.  If you have a landlord association in your area, I would suggest you join them. They can be a great resource during times like these. We have clauses in our rental agreement stating - the property shall be used for residential purposes only - similar to what you have. In WA state, there are processes in place for tenant's not complying with the rental agreement. Unless there is some exception for Day Care in your state landlord/tenant law, you may have a similar process as we do in our state. We use a 10-day notice to comply or vacate. If you manage property long enough, this will not be the first time you run into issues where tenants try to bend or outright break the rules of your rental agreement. Bottom line, you need to let your tenant know the rules are to be followed or there will be consequences. It's been my experience, if you give them an inch, they'll take a mile. Be respectful, enforce your rules and follow the landlord/tenant law in your state. Good luck.

Post: Newbie from Burien, Washington (Seattle and Tacoma)

Gerald K.Posted
  • Real Estate Investor
  • Kirkland, WA
  • Posts 480
  • Votes 116

@Kevin C. 

Welcome to BP. You found a great site. Check out the "Learn" tab up top along the blue border. Tons of great info - free guides, podcasts, and blogs. See you around the forums.

Post: Another Rental Property! (This time a townhouse)

Gerald K.Posted
  • Real Estate Investor
  • Kirkland, WA
  • Posts 480
  • Votes 116

Wow! Ten times that price would be a good deal in my area. Amazing!