All Forum Posts by: Mark N.A

Here in NC it costs more to file an eviction for multiple persons so I generally try to keep it just to one name (think low-income tenants with nothing to lose).

However, in the case of more than one tenant with something to lose in an eviction (a husband and wife, for instance), I'll include all their names.

But feel free to get an application for anyone 18 or over, because the info might prove useful if they do damage and you want to pursue a claim.

Sorin,

Most of the true professionals here who have created LLCs have done so after consultation with both CPAs and attorneys specializing in estate planning, asset protection, and so forth. It's not a cut-and-dried decision or solution.

One question to consider is how robust is your particular rental market? How easy will it be to re-rent your place?

I lowered the rent for a very good family two years ago who keep the place neat as a pin and have always paid the rent. They didn't even ask, but were about to move out and I wanted to keep them.

-- Understand, this flexibility on my part is the result of buying at a big discount so that I still have an excellent ROI.

OTOH, with my most desirable places my only rent concession (with good tenants) is to let them lock in another year at the present rent.

Since their lease is up in April stick a For Rent sign in the yard and start marketing the place now, hopefully for a higher rent, and see how they react.

As Charles inferred succesful REI involves a lot of time and effort.

As has also been written elsewhere RE is a slow way to create wealth. IMO if you don't really LIKE what you're doing, you will really HATE it.

If your motivations are solely wealth-creation then REI is only one path to success.

Welcome to the land of opportunity and keep us posted on your adventures.

That is my experience, too. It is very frustrating when no one wants my money. Or the flipside when someone wants too much of it!.......

As a LL you're going to need dependable people to work for you, as well as a 2nd string and 3rd string to fall back on.

You say you got one referral, now get more. Other local LLs will often share names, as will back-counter guys at Lowe's, or maybe your regular plumber, real estate agent, and so forth.

It will cost nothing to call, introduce yourself and ask for a bid. The serious ones, looking to establish a relationship with you, should respond fairly, and you will get an idea of what a fair price is vs. getting gouged.

Here's the sad truth, though; sooner or later they will all retire or go crazy or move or find other jobs and you will be back to square one.

Happens to me every few years and the cycle starts again.

It really depends upon multiple factors, such as: how quickly can you rerent the unit? how good a tenant was she? what are her future prospects?

If she pays up back rent and includes court costs it sounds like she's trying to make amends. So if you continue renting to her it also sounds like you're trying to work with her and giving her the benefit of the doubt. Could you get screwed? Duh, welcome to the biz.

That aside, I'm doing exactly that myself with a tenant right now.

Look, LLing is a people-managing business, and you'd better have some people-knowing skills. Whether you're managing your managers, your contractors, your tenants, your neighbors, your city code bureaucrats, or whoEVER, it ain't all black and white.

But good luck whatever you decide and keep us informed on what you do. We're all continuing to learn.

Kirkland - you're starting out like many do in RE, either renting out rooms or living in one side of a duplex. It's a viable way to build equity and cash. But it's a lot of work and a real PITA.

The good news is that if you succeed with this rental you will have gained invaluable people skills and business practices that will help you succeed if you continue as a LL.

Two points. First off, you are operating a real, genuine business. Know the law as it pertains to your particular business model. Good tenants will make you money. Bad tenants will impoverish you or worse.

Second point, your lease should already provide the answers to your questions, i.e. if tenant doesn't pay on this date then this happens, or if tenant causes damage then this happens, and so forth.

Hint: procure a very good lease. One way is to join your state apartment association which will generally provide a sample lease for members.

Lastly, I'm not a big fan of year-long leases, especially with 'iffy' tenants. Where I live, either party can give 7 days notice (no reason needed) to end a month-to-month lease.

I tell my tenants if they are not happy living in my place they can leave any time they want. I then tell them that if I'm not happy with them, I can make them leave any time I want. And brother, I'll take a vacant unit over an a**hole any day.

Remember, this is your place, bought and paid for with your money, and there's no reason under the sun to do business with anyone who doesn't appreciate it.

Good luck and keep us posted.

If their lease is up in February why are you forgiving them rent? Why do you need some contract from them stating that they will leave? The lease is ending, is it not? They understand this, correct?

The reason to be 'very very very nice' to them is that if they reneg on the lease you might probably be more screwed than them. And if they decide to reneg on the lease no 30-day notice or forgiveness-of-rent contract will change that, and moreover it might just p*ss them off.

Really, for your own safety and peace of mind, do as Bienes said and consult a qualified attorney.

Many times the only satisfaction I get is knowing they now have an eviction/judgement on their record, and knowing that no decent LL will rent to them.

However, in some states one can attach liens to certain property in certain instances.

Your best defense is knowing the law better than your tenants, and that can be addressed by reading some reference books and studying your state laws online.