All Forum Posts by: Bruce Cook

Nobody has addressed this part yet - The tenant is always on time with rent, but there are now four adults living in the condo with a kid on the way

So you have a good tenant in some regards. Four lives will be affected. And they're in a possibly precarious spot with a kid on the way. Whatever you do be a good human being. First of all, a tenant who pays on time is a blessing and an asset. That has to count for something. Hopefully, they can get close to what the true rent value is. If not, make sure you give them plenty of time to find a new spot and a good reference (I'm assuming they're good tenants all around). Life is not all about numbers.

John,

I totally agree. And that is actually why I put that part in the post because that plays into my decision here. I'm thinking if the comps say 3700 then maybe I give them 2 or 300 off What the rent is around the area to take care of them. Just like they've been taking care of me by being on time with the rent every month. They have slowly added more and more family members to the property, which means more wear and tear. And as pointed out elsewhere is illegal and breach of the lease agreement which is why I do not feel bad at all for raising the rent. But I do feel that this could be a win-win situation. Contacting an attorney is definitely going to be my next step on monday or Tuesday. I'm hoping to get a referral from the BP community. Thanks everyone!

1 Vote

Orange County, California

Quote from @Chris Seveney:

Quote from @Bruce Cook:

Hi, I am new to bigger pockets. I caught the bug two weeks ago and have watched about 50 videos lol. I have a rental condo worth about 550 payment is 1000 per month HOA dues are 150 per month currently rented at 2000 per month just did comps through the bigger pockets tools and it is showing 3700 as a good comp for rent. 3 bed 2 bath with 2 car garage. The tenant is always on time with rent, but there are now four adults living in the condo with a kid on the way. I don't have a lawyer or know what the laws are regarding rent, raising asking them to leave remodeling and getting a new tenant. I only have one of them on the lease which is actually expired. They are basically month-to-month.. was thinking of letting them know I leg rent more than a certain amount here in California unless that person decided to move out and one of their other not on the contract tenants signed a new lease at the higher rate? Just a reminder I am new to this.

I would not solely rely on BP tool. What are some of the comps in the HOA? Are there other rentals, what are they getting? Have you spoken to a realtor ? They can also provide comps. I would do that before getting all hung up on it being that underpriced.

Excellent point. Will do. Thanks you.

0 Votes

Orange County, California

Quote from @Nick Maugeri:

Quote from @Bruce Cook:

A little difficult to make it through the end of the post with typos, not sure I understand it entirely but I'll answer what I could grasp. The rent cap and rate adjustment law in CA is not allowed to exceed 10% annually. You are charging $2,000 per month and you need to send a notice tomorrow that their rent is increasing to $2,200 in 30 days and have them sign it.

They are violating the lease agreement by having others live there who aren't on the lease, this is a real liability concern with your insurance so that should be addressed.

Getting the bug is great, but being a sound asset manager is imperative to REI. It's well worth your time and money to hire an attorney on Monday.

Nick,

Ya sorry about the typos, I accidentally hit the send button before I had gone through it. Voice to text is a wonderful thing. As long as you have time to edit your response lol.

Thank you for your feedback. And yes, after reading everyone's response I will be contacting an attorney on Monday. I would absolutely love a recommendation if anybody has one in california.

0 Votes

Orange County, California

Quote from @Colleen F.:

@Bruce Cook first find out what the law is, if you are under rent control you need to thoroughly understand the law and raise rent probably to the maximum you can (if rent conrolled). If not rent controlled and you can give notice you might want to give notice if you have a lot of people moving in and out. Second you don't let anyone move in except who is on the lease so you need to enforce the lease and qualify anyone who is on it. California is tricky so make sure you understand if you have both state and local requirements. Hopefully someone local can give you some insight.

Yes good points.

0 Votes

Orange County, California