Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
Followed Discussions Followed Categories Followed People Followed Locations
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Sylvia H.

Sylvia H. has started 8 posts and replied 140 times.

Post: Owner Occupied STR Question

Sylvia H.Posted
  • Posts 142
  • Votes 61
Quote from @Kristin Astourian:

Hello!

I live in Atlanta and am looking to split time in Nashville. My finance owns our ATL home, so I would be looking to buy the home in Nashville as my primary residence with the intention of short-term renting when we are not there. I found a property near down town that allows owner occupied STRs and was curious about 2 things:

1. Do you think there is a high-risk that an owner occupied permit could be revoked or that the city will change their regulations?

2. How accurate do you think the Airdna tool is? The location shows that it would have a 51% occupancy rate with an average nightly rate of $583. This sounds fantastic, but I’m not sure how confidently I can lean on the numbers from Airdna.

Lastly, does anyone have a STR management company that they like?

Thanks in advance!! I have a long-term rental and have been eager to jump into the short-term market, but am lacking the confidence to move forward. Any feedback would be so appreciated!


 Hi there. So much to unpack here. If you are going to use this home for a rental the first thing you need to do is make sure the lender allows that type of renting. Some lenders could call the mortgage if you do not owner occupy it after telling them you would. The second place you need to check is with your insurance carrier. Short term rentals make the property more at risk for liability claims, etc. Your insurance agent may not honor a claim if they gave you the owner occupied rate and you are renting it out to holiday makers. I personally am not a fan of short term rentals because of the damage that can occur to the property for people who are just there for a night or a weekend. I prefer long term renters. Your call just make sure you don't get in trouble in not disclosing to lender and insurance company what you are doing. If something were to happen and you needed to make a claim they could deny the claim. Best of luck to you

Quote from @Wesley W.:
Quote from @Greg M.:

FYI, just like carpet and other fixtures, you may only be able to bill the tenant the replacement cost based on the remaining useful life of the prior toilet. 


Does the toilet itself have a depreciable useful life?  I mean, it's porcelain.  The service call to replace a toilet would be the same regardless of whether the toilet was old or new.

And for the record, I would charge the tenant, especially since she is not accepting responsibility, which seems to be a trigger point for a lot of us today (and not just in landlording).


You are so right. lol

Quote from @Jordan Moorhead:

I would bill her for it. That's not normal wear and tear.


 Thanks for your response. I agree. I'm billing her for it. 

Quote from @Linda S.:

@Sylvia H.,

I had a similar situation early in the pandemic, when there was a TP shortage, tenant flushed some paper towels down the toilet-- completely backed it up.   I split the cost with her 50-50.

If she is a good tenant, and the toilet was older/having issues and  planned to be replaced, I would probably just eat the cost and have a firm discussion.

If she is an average tenant, and relatively new toilet, my favorite discussion point is to bring up the facts, and ask her "What do you think it is fair?   Most people are reasonable and will take accountability.    I'd say splitting it 50-50 is fair.

If she is a irresponsible tenant,  I would charge her the full amount.   If she doesn't pay, let her know the charges will be removed from her deposit. 


 Thank you so much for your response. That is a good approach that I will definitely consider in future. I like the "what do you think is fair" question. It kinda puts it back on them. Thanks

Thanks for the response. All great responses on here. So grateful. 

Quote from @Kevin Sobilo:

@Sylvia H., if it was an excellent tenant who admitted fault, I might not even charge them.

For a very good tenant who maybe is struggling to get by, I might also not charge them.

For an average tenant or worse, I would charge them, and I would 100% charge anyone who tried to claim it isn't their responsibility. Enabling that kind of mindset will only lead to more issues later on.

From a technical standpoint, I would simply bill them back and add the cost to the next months rent. I use apartments.com for secure ACH payments. So, they will see the bill and be able to pay it there.

If they don't pay it, my lease states any money paid goes to pay fees and bills FIRST and rent LAST. So, the toilet would be paid for with the next rent payment and they would be short on rent and then evicted for nonpayment of rent. 


 You know I thought about doing that. That is a great idea to apply it to unpaid invoices. Thanks so much for that tip. I think it's a great idea. 

Quote from @Wesley W.:
Quote from @Greg M.:

FYI, just like carpet and other fixtures, you may only be able to bill the tenant the replacement cost based on the remaining useful life of the prior toilet. 


Does the toilet itself have a depreciable useful life?  I mean, it's porcelain.  The service call to replace a toilet would be the same regardless of whether the toilet was old or new.

And for the record, I would charge the tenant, especially since she is not accepting responsibility, which seems to be a trigger point for a lot of us today (and not just in landlording).


 Agreed. Thank you for your response. You are so right. 

Quote from @Scott Mac:

And no matter what you do with this charge, on the next service call for kids toy in the new one, and you should make it clear--that cost is on her.

They make Lid Locks to keep kids from doing this.

Maybe the mother should look into buying such a device for her child.

Good Luck!


 That is awesome. I've never seen one of those before. Thank you for your response. I really appreciate it. 

That is fantastic. Thank you for such a well thought out response. It was very helpful and I will for sure update my leases in future to include this language. 

Cheers

Quote from @Wesley W.:

@Scott Mac's post reminded me.  Yes, make it very clear where the responsibilities lie, since in today's society that "common sense" notion as flown the coop.

Here is my lease language regarding plumbing:

24. PLUMBING: You shall report all drips and leaks immediately to us. You shall never pour cooking grease or other damaging/obstructing objects down toilets, sinks or drains. No products aside from bathroom tissue may be flushed down the toilet. This includes feminine hygiene products and “flushable” wipes. You are liable for all expenses or repairs resulting from the stopping of waste pipes or overflow and spillage from sinks, tubs, toilets, showers, washbasins or containers. You are responsible for reporting water leaks or a running toilet within a reasonable period of time, and we reserve to the right to charge you for any additional expense from gross water overuse due to a failure by you to report such condition to us.

I also have tenants sign off on receiving this document:

IMPORTANT NOTICE - Wipes & Personal Hygiene Products Clog Sewer Lines!

Many household products are labeled and marketed as DISPOSABLE and/or FLUSHABLE; many baby and adult personal hygiene products, along with household wipes and cleaning towelettes are labeled both disposable and flushable. While these products may be marketed as a convenience item in this way, the truth is that these types of items have the ability to clog and stop up not only the sewer line on this property, but also can cause blockage and service problems in the public sewer system and pump stations.

Unlike toilet paper, these products DO NOT break down once they are flushed. They can cause blockages in your building’s sewer, especially older pipelines that may have greases, roots, or other obstructions already existing. An unclogging of the sewer line can result in a very costly sewer repair. Your lease terms prohibit the flushing of these items. If you are using these products and there is a clog at this property, it will become your financial responsibility!

What Can You Do To Help?

The following items should NEVER be flushed into the sewer system:

Disinfecting/surface wipes

Mop or “Swiffer” type refills

Baby/ Adult wipes

Paper towels

Jewelry wipes

Pet care wipes

Cosmetic wipes

First Aid wipes

Disposable diapers or diaper liners

Bio-pads (nursing home, home health care, etc.)

Cotton swabs

Feminine hygiene products

Toilet cleaning pads

ANY Moist type towelettes

ANY CONSUMER ITEM THAT IS NOT TOILET PAPER!

PLEASE - Do not flush the listed items; place them in the trash, not the toilet.

Lastly, I have them sign an addendum that outlines the cost estimates for materials and labor for typical repairs.