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All Forum Posts by: Arron Achey

Arron Achey has started 10 posts and replied 30 times.

Hello all, 

I did look through some previous posts on similar topics and lean towards NOT allowing this but our situation is a little different then I've seen. Our downstairs unit (duplex) pays for pretty much all of PITI and utilities that we are responsible for, where the upstairs is mostly gravy. We just turned the upstairs over, tenant seems to be taking good care of it where maybe some patching and paint needed but otherwise just a deep clean as I would for anyone else.

I'm trying to find the downfall of having her move into a renewed lease, year long, she's a good tenant, and paying higher rent to cover all our expenses while we try and re rent out the top floor. 

Just want to make sure I'm not missing something drastic. 

Thanks in advance!

Arron

Post: Shared Laundry Service Common Area Headache

Arron AcheyPosted
  • New to Real Estate
  • Norfolk
  • Posts 30
  • Votes 5
Quote from @Richard F.:

Aloha,

It would likely be far less costly to split off the common electric to a third sub panel, with a second submeter, vs. the additional plumbing AND wiring costs to relocate the laundry equipment. No doubt you will continue to have exterior lighting, possibly hall/stairway lighting, hvac or water heater on either one or both of the two panels you currently plan to split. 


 It would actually be a third sub meter after I split the duplex into two. Quote at around 1200. 

So it's that compared to washer dryer hookup upstairs, getting equipment etc.

Post: Shared Laundry Service Common Area Headache

Arron AcheyPosted
  • New to Real Estate
  • Norfolk
  • Posts 30
  • Votes 5

Hello all, 

I have been stuck now for awhile trying to figure out the best course of action for an already present shared laundry common room in my new duplex.  Its a up/down duplex. Washer/dryer in the downstairs unit with exterior access for the upstairs unit to come downstairs and use it. I do want to offer a washer/dryer as my location almost everywhere offers one so marketability will take a hit if just removed.

Current duplex runs on one electrical panel. Where I'm stuck is I am getting the panel split into 2 in a few weeks so the washer/dryer will most likely be on the downstairs panel. Another separate meter for shared space was quoted at around 1200-1500 which isn't in the budget.

I've thought about having the upstairs pay a monthly fee of some sort to use the washer/dryer downstairs, but when thinking as a tenant that seems annoying to me.

Another option I'm looking into is just another washer/dryer hookup and setup upstairs. Feel like this could get pricey fast though when all said and done.

Another option I'm looking into is an appliance leasing company bringing in a washer/dryer, they charge a monthly fee everything else free of charge and finding a way to split that up between the units or even lease two pairs and just up the rent to cover for the monthly fee.

I would love any advice or suggestions, probably overthinking it but this just continues to have me stuck. Thanks in advance!

Post: How to list utilities in lease during transition

Arron AcheyPosted
  • New to Real Estate
  • Norfolk
  • Posts 30
  • Votes 5
Quote from @Eliott Elias:

You would have to charge them a set rate no matter how much they use. Look at what average monthly bill has looked like and split that into 4. 


Sorry can you elaborate? Are you saying with the new lease charge a set rate based off of previous months until the official separation goes through? 

Post: How to list utilities in lease during transition

Arron AcheyPosted
  • New to Real Estate
  • Norfolk
  • Posts 30
  • Votes 5
Quote from @Nathan Gesner:
Quote from @Arron Achey:

I agree with Michael, though I don't think it needs to be formally written by an attorney. You just need a clear explanation about the change and a general timeline of when it will happen. Tell them about it when you show the property, and again when you sign the lease. Example:

"Tenant agrees to pay $XXX every 30 calendar days for their share of electricity until Landlord is able to install a separate panel specifically for Tenant residence. Once panel is installed, Landlord will provide written notice and Tenant shall have five business days to establish their own utility account. The final shared utility bill will be prorated based on the number of days between the last bill paid and the day Tenant utility account is established. Landlord will close his account after five business days. Failure to establish or maintain the utility account in good standing is grounds for termination."

Appreciate it, will definitely follow up with the attorney on this one. This verbiage sounds great though!

Post: How to list utilities in lease during transition

Arron AcheyPosted
  • New to Real Estate
  • Norfolk
  • Posts 30
  • Votes 5
Quote from @Michael Garofalo:

Hey Aaron,

I 100% support the decision to split the electric, as that is the legal and most fair way to do things, and will increase the desirability of the property whenever it comes time for you to sell. However, I want to preface this by saying this is definitely not a small undertaking in terms of cost or work involved, and will most definitely require permits and inspections with both your municipality and the power company.

Specifically for the electric service, my recommendation is to upgrade to a 3-gang meter socket: one meter for each unit and then one for common area electric. Even if you have no common area utilities now, it would be more economical in the future if you ever wanted to add another panel to cover miscellaneous common area lighting, CCTV, etc. If the existing service panels is in good shape and is sufficient for one of the units then I'd try to avoid replacing that. If things are overloaded you may want or need to consider upgrading to 200 AMP service however in my experience, 100 AMPs per meter should likely be fine.

As far as the lease renewal goes, I would just talk to your attorney and work in a clause that covers you for whenever the cutover may occur. Something along the lines of "landlord reserves the right to install additional electrical panels and separately meter the electricity...yada yada yada." I actually did this a few years ago with water (I submetered the units and wrote into the lease that there was a flat charge per person but that I reserve the right to install submeter devices at any time and then bill tenants accordingly).


 I did think about doing a separate sub meter because there is a shared room with washer dryer unit and I haven't quite delineated how I'm going to make that work quite yet when things are separated... Cost certainly increasing fast I've gotten a 3500-4000 and a 4000-6000 for the split and extra manual labor time my energy company possibly required.  I've been told by two electricians now with the current 150 A (decent condition) an additional 100 A would probably be sufficient for the top unit which is a 1/1 and doesn't have a full blown kitchen or anything. 

I like this verbiage though thanks it's much appreciated! 

Post: How to list utilities in lease during transition

Arron AcheyPosted
  • New to Real Estate
  • Norfolk
  • Posts 30
  • Votes 5

Hello all,

Quick preface to question, I have a current tenant who wants to renew and I would like to renew her as well. I have a current duplex running on one electrical panel and looking to have it split as previous tenants have had complaints due to splitting electric evenly when usage wasn't even.  Previous owner paid some of utilities for tenants up to a cap so they definitely ran it up. Earliest someone can come out is early February and this is when the tenants lease is up.

Question is how would you structure the lease, specifically utilities, when the electric may not be officially split come time of renewal?  I'm still splitting water evenly, gas just on one unit as the other doesn't use any, but electric I'm stuck on finding the right verbiage. Maybe I'm overthinking it, either way any input is appreciated thanks!

Post: First Tenant Move Out...No check in/inspection list?

Arron AcheyPosted
  • New to Real Estate
  • Norfolk
  • Posts 30
  • Votes 5
Quote from @Nathan Gesner:
Quote from @Arron Achey:


Think about your own home and how you would leave it. Floors swept and mopped, appliances cleaned inside/out, windows washed, carpets vacuumed, finger smudges wiped off light switches and doors, all lightbulbs work, etc. If you had the carpets professionally cleaned before they moved in, they should be professionally cleaned when they move out.

a few small nail holes is ordinary and shouldn't be charged. 30 nail holes in one wall is excessive. It's normal to have a small scratch in the wall from moving furniture in/out, but a fist-sized hole or a dozen gouges would not be normal.

It definitely takes a little time to develop a sense.

Just did my walk through and they did not leave the space how I would have left it, not even close. 2-3 large holes which they apologized about, a broken door they apologized about, and really no cleaning at all that I could notice other than most of their belongings were removed. I'm willing to eat a little bit of this but seems excessive?

Post: First Tenant Move Out...No check in/inspection list?

Arron AcheyPosted
  • New to Real Estate
  • Norfolk
  • Posts 30
  • Votes 5
Quote from @Max Ferguson:

If there is nothing major broken, don't waste your time. A lot of things can be considered wear items which you can't charge for. If they are nice, pay rent on time, and don't give you a headache I would just return the full deposit. 

It is also really hard to define how much they would owe you since you accepted the condition of the property on the day of close. Did you take pictures during the final walkthrough? Was anything majorly damaged from that point on? 


 Hey Max just following up after actually going through my final walkthrough. Despite the tenants noting they were going to clean the carpets and clear everything out they left by not even vacuuming the carpets, definitely didn't clean the carpets, left the fridge/freezer full, kids clothing and toys all over the place, and their bed and bed frame (king) still in the room since the screws were stripped and they couldn't take it apart. 

They only provided 1 of 3 keys as lease states they had, 2 fist size holes in the walls, which the tenant actually emailed me about and apologized, along with a door they tried to put back on the hinges to their bedroom but was broken by their child in doing so which they also emailed me about and apologized. 

They were very accommodating as I took over ownership and were on time with the one rent payment they had so I wanted to let things be, but these things seem a little much to me. Am I a little off base with this assumption? Again this is my first rodeo so nothing to compare things to. 

Post: First Tenant Move Out...No check in/inspection list?

Arron AcheyPosted
  • New to Real Estate
  • Norfolk
  • Posts 30
  • Votes 5
Quote from @Nathan Gesner:
Quote from @Arron Achey:

it's hard to know what to do with the current renters without seeing evidence of the current condition.

You have a phone with a camera and can take (almost) unlimited pictures. Before renting it again, clean the place up and then take pictures of everything. Every wall, ceiling, floor, appliances inside and out, front and back of all doors, windows, screens, window treatments, lawn from every angle, siding, garage door open and closed, garage floor, driveway, mail box, etc. On a typical 3bed/2bath I might take 200 photos to document the condition. When the Tenant moves out, do the same thing and compare the two to see what is "ordinary wear and tear" and what is chargeable damage.


This is my first rodeo seeing what normal wear and tear may look like. Appreciate your input, the more pictures the better just makes to much sense but didn't think to take prior to me cleaning up. Thanks!