All Forum Posts by: Chan Park

So I've decided that due to poor caulking and grout condition of the upstair bathroom, I will cover the water damage, although the tenant did eventually cause more water damage. I asked the tenant that he pay the 2nd plumbing fee of $79. I'm in the process of getting a contractor assess the water damage. 

 You're right in saying it's making me feel uncomfortable asking them to pay (which sounds odd). We've been very friendly and respectful to each other, and just don't want to ruin that kind of tenant-landlord relationship. However, like you said - I gotta step up and be a landlord. 

So Nathan, is it also the tenant's fault for not recognizing that caulking and grout is missing which led to the leak in the first place? I'm trying to give them the benefit of doubt that he just DIDN'T know. I just don't want to come off as totally unreasonable and that the first leak could partially be paid by me.  

 Hi Kim, thanks for your input. They recently renewed their lease, and it was in my intention to ask for the new renters insurance, and things got busy during the holiday season and I never took the time to ask them. Very poor decision on my end. To answer your question, no I do not use a PM, I've been self managing for a few years. Which software are you referring to? 

Hi BP community, 

My tenant, who lives in a two-story, newer construction SFH complained of a water leakage in the bottom floor kitchen ceiling (through the LED lights). Upon tenant's brief inspection, he thinks that water is leaking from the 2nd floor restroom showers.

I sent a plumber the very next day, who said that the caulking is completely gone in the showers and that it needs some good caulking and call it a day. Tenant caulked the bathroom w/o any issues and did not hear from him for about 10 days.

I get another call last night. Tenant said there's another water leak and he thinks that it's coming from the 2nd floor restroom again. Sent another tech from a different company to get a 2nd opinion. Upon inspection, the tech said the tenant's younger son actually let water overflow while brushing teeth, which led to water finding its way down to the bottom floor ceiling. The plumber removed the debri built up in the sink, which could've help cause the water overflow.

But THIS is when things get interesting. So the water damage in the ceiling remains. I'm trying my best to prevent mold growth, so I asked tenants for their renters insurance, to which he said, "our renters was with geico and we just switched insurance providers this month and have not got a policy active yet." 

We have a renters agreement, which states tenants shall be held responsible for all costs to landlord's repair or maintenance of any plumbing stoppage or slow-down caused by tenant. AND an agreement to have a renters insurance. It also states if they allow insurance to lapse, "the same shall be a default of this lease." 

TBH I don't know whether that means I have the right to expire this lease or they're completely responsible for all expenses.

I like my tenants, they're always paying on time & communicative. They've been w/ me for a little over a year. But NOT having renters insurance and allowing water leak is not OK in my book.

The water damage in the ceiling appears minor (to the naked eye). But we just don't know how extensive the damage is on the inside. 

Should I use my homeowner's insurance policy to cover the costs? How would you go about this issue?

Thanks in advance for your input and knowledge.

Thank you everyone for your advice. I can see the two months' rent upfront is a win, and I definitely want to keep my word. 

Just like the title, my tenant bought a house and plans to move out at the end of the month. Long story short, we have a lease until 05/23. He and his family have been GREAT tenants. Upon renewing our annual lease, he brought up a concern that he could purchase a house in the near future, and I plainly said, "I wouldn't hold you and keep you if you're going to purchase a house." Now just six months into our lease, he notified me that he plans to purchase a house, and will close by the end of the month. 

My question is: "my tenant is willing to give me 200% of rent upfront for breaking the lease early vs. should I make sure he is responsible for payments until I find new tenants? FYI the property sits in a desirable area close to Tesla Gigafactory in Austin, TX. I'm guessing it shouldn't take two full months to rent out the property. Should I take the 200% of the rent upfront or make sure I cover my back and keep him accountable for the lease until I find new tenants? Thank you for your feedback. 
 

@Malcomb Stapel Thanks for your take on it. I did look into HELOC as well but I do like the fixed rate with cash out refi. I'll definitely look into it

Hi BP community, I have been watching and listening to podcasts and youtube videos from BP consistently but I still feel stuck where I am, and so I am asking for your input as to what I need to look into or suggest books I should read. 

The last two-year run has been amazing for my family as we now have 3 SFHs in Austin, TX. Two SFH are being rented out and cash flowing very well since we bought them during the first wave of COVID. One of them is a secondary home and the other is an investment home. They have about 175k and 290k of equity, respectively. Our 3rd house will be a primary home and is a new build scheduled to be finished by end of this year.

I am a vet, so I am thinking about using the VA loan for the first time, but I'm still planning to put down 20% for the primary home. My ultimate goal is cash flow so I want to look at multi-family. For my next project (after closing our primary home), should I use my VA loan on this property instead and cashout refi on our investment/secondary property? I have never cashed out refi yet, so how will that affect my current cash flow?

Thanks for your input!