All Forum Posts by: Brad Rabinowitz

For those who have filed this form, and I'm sure it's many of you, how is it filled out legally and thoroughly in situations where the security deposit does not cover the damages owed? Being that the form is strictly a tool used to impose a claim on the security deposit specifically, is the below example correct? This difference would need to be settled in small claims, but as it relates to the form, what's right and wrong?

That's the thing..... they have two months left on their lease, they defaulted and left, and are attempting to strong arm half of the deposit back by sending attorney letters stating unsubstantiated and egregious hardships during the 2, yes, 2 showings I had in mid March prior to the COVID-19 downward spiral. It's complete hogwash, but here I am having to actually play through this. 

In a surprising turn of events, I received a letter from my tenants attorney yesterday morning stating they've moved out, essentially abandoning the property, and are demanding 50% of their deposit back. Wow. 

I'm rarely surprised at tenant's thought processes and actions, but this one is incredible. 

Hi All. Long story short. I decided at the beginning of March to list my tenant occupied rental property for sale (great timing huh). My tenants at the time were very understanding and were willing to accommodate showing requests etc. That lasted about a day, after the first showings on day one of the MLS listing going live. They then made there stance very obstructive and I realized they were going to make this difficult. The lease is written in a way that 100% allows for me to market and show the property without issue.

Along came COVID-19, and I halted all showings anyhow, as requests slowed down, so they got their way. April 1st rolls around, and no rent. I served them a 3 day notice on the 2nd, which will expire on Tuesday the 7th, albeit late fees should be assessed according to the lease terms. 

Here we are at the 5th, no rent, no communication on any hardship due to COVID-19. Lease states late fees are incurred if rent is not received on or before the 5th. 

With Florida under a statewide rent moratorium, halting even the filing of eviction for nonpayment and restricting assessing late fees, I'm confident they're using this to simply be difficult and retaliate for the listing of MY property for sale. With only April and May left on their lease, and me being in possession of 2 security deposits totaling 2 months rent, I'm fairly protected, other than having zero cushion for damages to the property if I were forced to use the security deposit for the back rent. These tenants are still employed to the best of my knowledge, aren't impacted medically due to COVID-19 and combine for $250K a year in income. 

I find it completely unethical, spiteful, and flat out disgusting to use this crisis and rent freeze to their advantage when it's intended for those who have lost their source of income and/or are dealing with life and death with themselves or their loved ones.

How would you navigate this during the moratorium other than retaining a lawyer?

Being that I am using a flat fee MLS service I essentially am the broker. I'm going to try to be at every showing, but they've begun to try and dictate how this process plays out, and that in itself is making things far more difficult than they need to be.

Hi all. I've listed my rental property using a flat fee MLS service and have begun scheduling showings. The tenants work from home and have decided they'll stick around during showings which I don't agree with, but am trying to accommodate as best as possible to maintain the peace. I've also held off on a lockbox for the same reason.

I’m providing at least 24 hour notice and trying to bunch showings together to limit the nuisance to these tenants, but they’ve demanded I be present during every single showing, even though they’re home. 

The question is do I need to be there if a licensed broker is showing the property here in Florida?

Thank you all for your input. It seems that selling this property may be in my best interest at this point in time. Here's to not looking back 10 years from now saying "If only I would have......" =)

Thanks for the response. The $215,000 is merely an estimate, assuming a sale price of $400,000 and 8% in fees. As for any other tax implications, I'm not factoring in the depreciation recapture for the past 18 months, but I don't believe that to be too significant. 

There are the tax advantages of holding the property which is currently in an LLC, but I'd imagine I'd use some if not all of the proceeds to get back into another property of some sort to reap that shelter.

Hi All. I'm a new member who has been battling the all to common question of hold vs sell. My situation is perhaps a little different, in that I'm in a position to sell my only rental property, which was my first home (tri-level townhouse), to avoid having to pay capital gains on it. 

I'll try to make this as concise as possible. I purchased the townhouse in downtown Fort Lauderdale as a bank owned property back in 2009 when I was 27 years old, for $232K. I put close to $80K into it over the course of 10 years or so, never considering it an investment property down the road; this was my home. Fast forward to 2018, married, my 2nd child arrived, so a larger SFH was in the cards. I was fortunate enough to be in a position where I didn't need the equity from the townhouse to put down on my new home, so I decided to turn it into a rental with the intention of a long-term hold, knowing I wouldn't really cash flow anything significant until the mortgage was paid off in 2030.

I have great tenants who pay on time every month, and with all of the property upgraded, I'm not currently bothered with maintenance issues. 

• Current Scenario:

1. 1. Purchase Price - $232,500
2. 2. Upgrades - $80,000
3. 3. Current Mortgage - $159,000
4. 4. Refied into a 15 year from 5.00% to 3.25% in 2015
   
5. 4. Current Value - $400,000
6. 5. Potential Profit UNTAXED after broker fees/closing - $215,000

The property cash flowed about $300/month for the past 18 months, but after losing my Homestead exemption and taxes doubling, it doesn't cash flow. Again, this was a long-term hold strategy, knowing I wouldn't cash flow for some time. I believe the market in Downtown Fort Lauderdale will continue to be be very lucrative for rents and will only continue to appreciate, but at what rate is anyone's guess.

So the dilemma is whether to save approximately $25,000 in capital gain tax alone by selling this year and finding a better investment vehicle for the profit without the time crunch of a 1031 exchange,  or count on the long-term appreciation

Thanks in advance for any advice.