All Forum Posts by: Steve K.

@Daniel Zapata That's a simple (few lines) solution. Thanks. It would be expensive. It is not something that we or our electrician want to do.

That's really cheap. My Geico property insurance quote has always been 3x higher. Even after they tout the auto bundle discount. You may never file a claim until you own that property. I would take it if savings are such.

I would be least concerned about the owner occupancy clause signed with your mortgagee, as long as you're not intentionally violating it.  Bank is getting their interest income, so why would they care if can't move. Those clauses are standard and move in as soon as you get that tenant out. If tenant is not cooperating they definitely will be out soon. Document everything and file for eviction if you need to. Please get a good landlord insurance policy to minimize your liability. 

Good Luck.

I would take 1 years rent upfront if it's legal in the state. Credit score is not the only factor we look during screening. We also review no. of year on job or in a profession, etc. 23 points in not a big difference. 1 years rent upfront during this time. Please send your tenant to live in PA.

If I was in your place, I would never do Option B. Both A and C are good options. A is OK if you're getting close to market rent. C is good if rent being paid is too low. NYS is not the most friendly for LL to operate.

I don't think that 2 years applies to new property owner unless specifically noted. Moreover, you don't know if she is really living there for last 2 years.  Not many tenants know those rules. 

Option C cash for keys is reasonable and the best option. Good Luck

We recently closed on a property, where some things slipped thru cracks, during our due diligence. We inherited (Old lease 8 months left) a tenant who doesn't pay for electric because gas furnace is hooked up to meter they were suppose to have on their name. Other common thing on their meter is 1 light bulb. Neither previous owner nor tenant would tell what arrangement they had, nothing is in writing and it doesn't matter.

I'm thinking to type up amendment to lease document where tenant will be responsible for entire electric bill minus cost to operate that furnace and a light bulb. Our Electrician said it cost $10-15/month to run the furnace and the bulb would be $2/month. We're thinking to keep electric meter on our name and plan to credit $25/month to tenant and bill the rest. Can we do that? Does that sound reasonable? 

I appreciate your comments and suggestions.

Not that I know about. If you already own the rentals, the answer should be no

Have you looked into Opportunities Zone investing? How much sizeable money are you talking about? You may PM me.

I'm not a CPA. You need a knowledgeable CPA.

 

Rental Insurance is a must. We make sure tenant have $300K coverage. Some policies also cover equipment like HVAC or you can add to the policy.

You can also change limits on items listed on your policy to save money. For example: You don't need much personal property coverage when most belong to tenant. Some even cover loss of income, which is advisable if you have a hefty mortgage balance. Don't settle for the cheapest policy which may sound tempting initially. Compare apples to apples.

Recently Commercial lenders were asking for 30% at start of COVID. Now some are bank back to 25% already.

Seller shouldn't care what down-payment your making. May be their deal fell thru in past because buyer couldn't come up with full DP. 

Can you show them you got 30%? And tell them that you will make minimum DP that the bank would allow.

My previous tenant fell behind on rent at start of COVID/in March. Their excuse was 2 weeks work schedule, I don't think they really had an issue. We were also having some maintenance issues, that were not in our control, which they dealt with. We let them pay partial rent and waived all late fees because we knew they have paid on time for 2 plus years. They paid back everything they owed. YMMV.

Typically, we don't allow partial payments after the rent is late. Under current Covid moratorium rules they are not protected because they still have a job. 

Notice to quit or pay/eviction notice typically sets people who make excuses right, and ensures that they make rent a priority. People typically get really scared after seeing that notice, then we have to calm them down, telling them it's a warning and a step before court. Most pay or leave asap.