All Forum Posts by: Atul Mohlajee

My daughter goes to school in Michigan.  Her lease (13 month lease) ended June 30, 2024.   She did not give 45 day notice of non renewal of lease.  She paid rent till the end of lease.  She moved out on June 28, 2024.  Property management Company is demanding 1 month rent for failure to give 45 day notice of non renewal of lease plus 60 day rental fee for time for finding tenant.  These items were in the lease.  I am cosigner on the lease and have refused to pay hem.   How enforceable are these items in Michigan?   In Illinois, I have problems getting rent for last month on the lease.

Please advise.

Thanks.

I would not accept until and unless I see evidence of cosigner's financial status in their home country.  I might ask for a minimum six months rent in advance for a 1 year lease.  

Leverage is great but risk should be managed. I have $1.5 million total in 6 mortgages while I have 7 properties that are all paid off. Total loan amount is $1.5 million while my RE portfolio is worth $6.5 million. Part of the reason is that I used leverage at low interest rates but I kept paying off properties one by one to reduce risk. Never used real estate cash flow for living expenses but only used it for making extra payments to one chosen property at a time. Always lived off W2 jobs even when I had enough cash flow to retire. A few houses (cheaper ones) were bought in cash and were never mortgaged. I have paid off $2 million loan in mortgages while there has been appreciation of properties as well I donot want to lose sleep when a few tenants leave or I have waterproofing or permit expense of commercial property of $30000 all of a sudden. I preferred to take leverage because I could buy smaller properties (condo, SFH, townhouse etc.) for cash but not a 6 unit apartment building or a commercial 5 store unit for cash. Use leverage but little carefully.

Real estate agent kept giving info to her. 

A potential tenant filed a housing discrimination by maritial status against me (Owner) and realtor (Rental).  The complaint was that we gave an apartment to a family and not her (single person).  Anyone with experience in fair housing complaints, please comment.

Hi Art,

Please mention to Raj that I referred you. He has been handling many other cases for me parking issues, encroachment issues, HOA issues etc. as well as eviction.

Raj Sanghvi, Chicago Attorney

He is reasonable. Just did one eviction with him today that took 2 months time in Cook County.  I retain him for all tenant issues in multiple properties that I own and he has always delivered results.

Any responses with experiences will be appreciated.

Tenant moved in on July 3, 2023 with 1 year lease.  Keeps making excuses about maintenance issues.    I have worked on all her maintenance requests in a timely manner.  I told her it is expensive to prepare apartment between tenants, pay realtor to rent, and vacancy costs.  If she breaks lease on her excuses, I will take her to court for remaining amount on the lease. The Village Director called me that he got complaints but I have worked with him before and he seemed to agree that these were bogus complaints and the tenant wants to get something from me.   

You are right.  I could sell all and be fine and totally stress free.  I choose to hold because in addition to $10000-$12000 cash flow per month, there is mortgages payoff of $7000/month (most are 15 year mortgages.)  Appreciation at 3% is $150000/year which is about $12500/month although it has averaged 5% appreciation for most properties.  In addition to that, this cash flow is taxed at a lot lower rate than my W2 incomes.  Real estate helped me with financial stability after immigrating to Chicago in 1986 with $15 ( It was actually $20 but spent $5 on pastries at the layover airport).