All Forum Posts by: Kyle J.

In that case, perhaps this BP article will be helpful: 

What Florida landlords should know about security deposits

@Jonathan Bombaci  In addition to just a general "home inspection", I'd also suggest adding a roof inspection and a pest/WDO inspection.  

@Nati Hanuka  The laws on how much of a security deposit can be collected, where security deposit funds must be kept, whether interest must be paid (if at all), etc are SO dependent on the state (and sometimes the city) you're located in, that it's pointless (in my opinion) to give you advice on the matter without knowing where you're located.  And you don't mention where you're located or where you intend to invest.  Without knowing that, we could be giving you advice that's completely contradictory to your local laws.

For example, in my state (California) there are no laws whatsoever that specify where security deposit funds have to be kept, what type of account they need to be kept in, how they need to be kept (separate or not), or address whether or not a tenant has a right to any earned interest on their security deposit.  However, in Chicago (as just one example), it's pretty much the opposite.  In fact, here's one post that discusses how landlords there don't even bother taking security deposits (due to the strict ordinances) and instead take "move in fees":

https://www.biggerpockets.com/forums/52/topics/826503-security-deposit-in-chicago

Point is, if you really want information that will actually be helpful to you, I'd suggest posting what specific market you're actually in (or interested in) so people there can respond with advice tailored to that exact location.

Just my two cents.

@Michael Leeson  Keep it simple.  Collect rent from tenants.  Pay professionals to fix things if/when they break.  

I re-evaluate the fair market rent every year and raise the rent accordingly. There have been a few years I did not raise the rent, and a couple times where I raised it multiple times in the same year (rent growth in my area has been very aggressive and that is one of the benefits of month-to-month).

On average though, I raise it at least a small amount ($45-$75) every year. 

I try to keep the rent (even after the increase) slightly under the going rate for nearby comparable properties though so there’s no incentive/reason for them to move over a small increase. Turnover and vacancy are cashflow killers in this game. Most of my tenants have been with me for 5-8+ plus years. They rarely leave unless they have to (e.g. moving out of the county for a new job, get divorced, etc).

@Carmel Duffy My initial thought when I read your first post was, I wouldn’t have even bought the snow blower. If the tenant is responsible for snow removal, let them figure out how to remove it. Buying the blower means just one more thing you’ll end up having to worry about and maintain (and apparently replace). 

There’s no snow where my rentals are at, but they do have lawns and the tenants are all responsible for the lawn care. I don’t buy them all lawn mowers. 

My second thought, after I read your second/updated post, was exactly along the line of what @Danny Polanski posted. Your tenant is very shady. No question about that. 

@Kevin H Jones Sr  They're not real lenders.  No real private lender that you don't even know is going to initiate contact with you out of the blue and ask you to borrow their money at 4-5% interest.  Just not going to happen.

Like @Steve Vaughan said, a lease locks the landlord in, but it doesn't truly lock the tenant in.  In theory it does, but in reality, life happens and tenants can/do leave whenever they want as they lose jobs, get new ones, their family expands/shrinks, or they just want to move for any other number of reasons.  And what happens when they do?  In almost every state, the landlord is legally required to mitigate their losses and find a new tenant and re-rent the unit.

@Michele Sargent   You're going to need to post what your "area" is for anyone to give you any helpful feedback/tips.  The laws on tax deed sales vary greatly state-to-state, and the rules on them often vary county-to-county.  So, while I could point you to information on California tax deed sales, that won't help you at all if you're actually interested in them in any other state.

If it were me, I wouldn't do an 18-month lease based on the facts you presented (tenant who no longer has a consistent job/income).  I wouldn't renew the lease at all.  Just do month-to-month.  She can still stay as long as she wants if things continue to go well, but it'll be easier (for both of you) to part ways if they don't.

I have tenants that have been with me 8 years on month-to-month.  Works out great, and honestly it's more advantageous for the landlord since you can raise the rent or change the terms whenever you want (with proper notice).  Longer leases tend to favor the tenant, more than the landlord.