Originally posted by @Francesco Barbati:
Originally posted by @Robert Nason:
I think it's your betrayal of someone who's done something very nice for you that is upsetting people
Wait a second! Who do you think was doing something very nice to who?
I would expect experienced investors been able to read between the lines, but I was wrong again.
The fact that I was renting below market value does not mean that I was renting below the "rentable" value of the place, and the fact that I was rehabbing it myself should have been a clear indication of that. He would have never been able to rent that place, and it would have kept not being able to pay the HOA (and subsequently risking to lose the place) and get in more trouble. Since it was obviously conveniente more me also to move there, and not only financially but for family reasons, I said ok, let's help each other out (I am very humble and frugal and don't need to live in mansion) and at the end it turned out that I was helping him more that the other way around and keep in mind this is only a part of the whole story. I have also paid rent much earlier when he need it.
I would expect seasoned investors and mature folks not to just read a couple of line, get emotional like teens and spew opinions or insult some one they don't even know, but on the other hand I admit I completely failed in telling the story, conveying a message, and asking the right questions so I apologize again and I thank every one for his time and critics, and I also apologize for pissing people off.
I should probably take more time think thoroughly before posting, but circumstances don't always help.
You really need to take two steps back and remove your personal interest in this property. Verbally or not, friends or not, tenants do not have the legal right to modify a property unless they got it in writing. Regardless of how you want to look at it, your landlord (that is what he is) never owes you anything.
I have seen hundreds of lease agreements where tenants have to fix and repair everything at their expense, and if a tenant took a junky condo and turned it into a multi million dollar condo on their own dime, and the owner sold it, the well that's the tenants dumb luck. Don't invest into something you don't own!
Legally he can sue you for modifying his property, if the modification improved the property or not. Without a written agreement that clearly outlines that you can sublease, well, he could sue you for that as well. Most states, if not all states, do not allow a 3rd party to act as a real estate agent for someone, so you could get in trouble for that as well.
No matter your moral view on this, or what you feel you are owed, you have zero rights in the property unless it was given in writing, and you are fully liable on the flip side. Clearly your not happy that you invested a lot of your time and money to improve the property, and feel the LL is getting a better deal, but that is your own fault for investing in something you do not own.
My advice is you keep renting it and enjoy the rents he is leasing it to you for, or move on and let him do what he may with it.
Legally if you want to sublease it, you need to get a written lease from him saying you can sublease it. With $100 cashflow per month between what you would owe him and the sublessee would pay, your going to lose your shirt big time. I would not touch that with a 10 foot poll if I owed the property. Your better off offering to get it rented for him, then charge him $100 a month for taking care of business on behalf of him without all the risk on your end, but then you get into the entire real estate licenses thing.