All Forum Posts by: Carl Graff

I think this article sums it up nicely:

http://www.insure.com/home-insurance/home-replacem...

It  emphasizes that the current market value of your home (say Zillow estimate) is a very poor way to estimate how much it will cost to rebuild in case of a fire or other loss. Yet a couple of the insurers I contacted based my coverage solely as a percentage of the current market value.

What I am going to do going forward is ask them how they calculate the coverage I need and if they don't know exactly or don't want to let me know I will just move on to another agency. So far I think I the most knowledgeable are independent agencies that are not locked into some large cooperate mandated formula and they take more care to match you with "Just Right" coverage.

I am in the process of obtaining landlord insurance for 2 properties:

1. 2300 sq. ft. home with 3 car garage and in-ground pool worth ~ 560K

2. 504 sq. ft. condo in La La Jolla worth ~ 285K 

I am getting suggestions on coverage by property value but I think it should be square feet because the condo is worth about 285K and 5 miles away would be worth half that. I will call construction companies but I think they quote by square foot.

I am amazed at the lack of information available for average cost per square foot to rebuild condo just interior and house everything.

Best ballpark I can get is $75 - $125 / ft for condo and $200 - $250 /ft for house.

Also insurance agencies I have dealt with tend to jack up the personal property limits for example $20K personal property for a 1 br 1ba 504 sq. ft. condo - give me a break.

Here is what I will go with unless someone has better recommendation:

-------

Condo 504 sq ft HOA covers all external :

504 * $100 ~ $50K Property + $6K Personal (appliances mainly)

-------

House 2300 * $225 ~ $518K Property + $10K Personal (appliances mainly)

Also what if it cost less than the insured amount does the insurer get to keep the extra?

Any feedback appreciated.  

Carl

@Al Williamson Probably this level of detail is not necessary but I will automate it in a spreadsheet or other means so it wont add any more effort to my screening.

I agree John - but if there ever is a situation where an applicant wants to know why they were not selected or worse tries to take legal action, I at least have this to fall back on - rather than a more subjective analysis. I always require credit scores so that is indeed a part of the total score (perhaps I could weight it more) I use to determine "hopefully" the best applicant.

@Al Williamson

Thanks Al,

I think I will will add that if income is less than 2.5 times rent they will not be accepted. I probably will in time raise it to 3 times as you indicate. The formula is my attempt to account for the fractional part of the credit score and emphasize its importance to the cumulative score  - some examples using 2000 for simplicity are: 

I will create a spreadsheet to calculate total score for this once finalized and provide to anyone interested. I also plan to add a link to my web page where my applicants can download theis criteria and then add this link to my listings.

Carl

Thank you Alex! perhaps I will remove #3 and definately review #4 and #6.

Carl

For of all thank you all for this great site that has made me so aware of the importance of doing things correctly. I particular I have (based upon the advice and input of others) created a Screening Criteria with scoring to help applicants know how I select the most appropriate renter as follows (please advise if you think I should make changes):

Rental Application Screening Report

Interview: House showing:

1. Walk-through of property:
   1. In person 5 points
   2. Using licensed realtor representative with FaceTime or equivalent 5 points
   3. Using licensed realtor representative without FaceTime or equivalent 3 points
   4. Other: 0 points
2. On time for appointment: 5 points
   1. Running late, called to inform: 3 points
   2. Late: 0-10 minutes 2 points
   3. 11-20 minutes 0 points
   4. 20+ minutes- landlord leaves, applicant rejected
3. Respectful and courteous: (subjective, score -5 to 5)
   1. To landlord:
   2. To each other:
   3. *Cursing, swearing, pushing, shoving, and violent behavior, demeaning speech or treatment of landlord or landlord’s agent or to one another: Applicant rejected
4. Neat/Clean appearance of all parties: 5 points

Application:

1. Filled out application entirely leaving no blanks:
   1. Yes: 5 points
   2. No: -5 points, grounds for rejection
2. Paid for application fee? (maximum of $39.99 that is collected by 3rd party not by landlord)
   1. Yes: 5 points
   2. No: application shelved until funds received
3. Application complete without errors or omissions:
   1. Yes: 0 points- expected
   2. No: application rejected
4. Able to provide if requested on application:
   1. Verification of previous address: Driver’s license or utility bill: 5 points
   2. Proof of income, employment: Pay stub: 5 points
   3. If self employed, a tax return or bank statement: 5 points
5. Able to pay first months rent:
   1. Yes: 0 points
   2. No: application rejected
6. Able to pay full amount of security deposit: 5 points
   1. Half of security deposit? 0 points
7. Monthly income.
   1. Total / Monthly Rent * 2 (e.g. 4500/1500 = 3 * 2 = 6)
   2. Supplemental income not reported on applicants IRS Income Tax form may be considered if cosigned
   3. 2.0X or below: Application rejected, co-signer may be considered
8. Stable income or employment
   1. For of 3+ years: 5 points
   2. 1-3 years: 3 points
   3. 0-1 year: 0 points
9. Credit history:
   1. Score over 750: 10 points
   2. Score 701-750: 5 points
   3. Score 651-700: 2 points
   4. Below 650: 0 points
   5. Bankruptcy: -10 points
   6. Collections: -5 points
   7. Unknown or withdrawn: application rejected
10. At current address for a minimum of:
    1. 1 year: 3 points
    2. 1+ years: 5 points
    3. Less than 1 year: -5 points
11. Pets:

    1. No pets: 5 points

    2. Pets accepted on a case by case basis: 0 points

    SPECIFICALLY PROHIBITED BREEDS: THE FOLLOWING SPECIFIC BREEDS OF DOGS (OR DOGS MIXED WITH THESE BREEDS) ARE NOT PERMITTED Pit Bulls (aka American Staffordshire Terriers, Staffordshire Bull Terriers, or American Pit Bull Terriers), Bull Terriers, Bull Mastiffs, German Shepherds, Huskies, Malamutes, Doberman Pinschers, Rotweillers, Chow Chows, and Rhodesian Ridgebacks. Dogs must be contained in an area so as not to interfere with any maintenance service which has been requested. No wild animals are permitted – such as birds (except those that are caged), chinchillas, ferrets, fish (in tanks 20 gallons or more without adequate insurance naming CMG Leasing as additional insured), iguanas, monkeys, pot-bellied pigs, rabbits, raccoons, rodents of any kind, skunks, snakes or reptiles of any kind, tarantulas, scorpions or spiders of any kind, weasels. .

12. Non-smoker: 10 points
13. Number of residents does not exceed occupancy limits: (2 per bedroom+1)

Background Check/Screening

Name must not appear in Sex Offenders Registry.

Criminal history may not contain drug offenses within 7 years except for one conviction for possession of a controlled substance.

Criminal history may not contain felony convictions within 7 years for violent crimes or property crimes.

Those with criminal history’s dating 7+ years will be considered on a case by case basis.

1. Verified previous landlord? 5 points
2. Verified 2 previous landlords? 10 points
3. Gave proper notice to previous landlord? 5 points
4. Verified rent amount to previous landlord? 0 points
5. No problems with previous landlord? 0 points
   1. Problems: Possible rejection
6. Prior evictions: Application rejected
7. Previous deposit fully returned: (None held for damages) 5 points
8. No significant violations of previous rental agreement: 5 points
9. Complaints filed with police dept for disturbances: Application rejected

Score: ______

Applicant: Accepted _____ Rejected____

Can anyone refer me to a Real Estate Attorney in San Diego (or perhaps California) that I can use to either help draft a new lease or review one that I create with EasyLandlordForms or LegalZoom (which they both say are state specific). 

I saw one post that said they get their leases reviewed for under $70 but I think it is more expensive than that.

It would be especially useful if someone could let me know a ballpark figure for an Attorney they actual used to either draft or review a yearly lease. 

I would like to avoid sitting down for a consultation only to find out they want $500 or more to create a lease for a 1 bdr 504 sq ft condo.

Thank you,

  Carl

Hi Yvette,

Thank you for responding I will check your PM.

Carl

Thanks to all for the advice after speaking with the prospective tenant they agreed they would do a 12 month lease but because they saw another rental for 9 months they wondered if I would consider it because hey are starting a new job and did not know the area that well. 

I think I will go for the 9 month lease with a 12 month option because the unit is easy to rent - especially during June time frame and everything else checked out fine.