All Forum Posts by: Casandra M.

My husband and I want to re-title our three Wisconsin rentals into an LLC. Is it absolutely necessary to do this through an attorney? Any opinions if it's really necessary to use a warranty deed vs a quitclaim deed? There shouldn't be an issues with the titles, so I assume quitclaim deed would be fine.

@Adam Ramsey -Here is a map of District 24 which I believe includes more than the 4th ward, but generally outlines the area where you would need to start being concerned with the type of tenants the property would bring in, or be concerned about housing appreciation because of the surrounding area. Page 7 of this document has a rough outline also. 

Here is also a map of flood zones in Janesville. There is a reason why duplexes are a bit cheaper near the river! There are also several areas along Ruger Ave near the I-90 overpass that  at one point in the past 20 years had some flooding and while they are not mapped by the city of Janesville as a flood risk zone, they are by insurance companies and may require expensive flood insurance. 

We would like to start creeping towards Madison with the spreadout of our rental locations, especially getting into Stoughton and McFarland since the properties are just a bit cheaper than Madison, but rental rates are getting higher and higher from the "Madison effect". Doesn't Madison have an additional layer of tenant-landlord laws?

Hi Adam! My husband and I have only rentals in Janesville - we started about 3.5 years ago and each rental is in a different area. There are clear affluent areas and forgotten areas of Janesville, but I will always stand by my opinion of tenant screening being the best defense of your rental property value.

The Northeast side is, by popular opinion, one of the best areas to be in for newer duplexes and larger lots (for more money, of course) - take a drive down the side streets off of Wright to get an idea.The homes here are at a premium price, and rents are higher, but we've found the ROI is too low to start out in that area.

We just closed in November on our first duplex in the 4th Ward, which will also be our first section-8 unit... the area is definitely a beast of it's own that has come to be the trouble spot of Janesville, in my opinion, due to the large amount of "slumlords" in Janesville. The 4th ward rentals are mostly owned by absentee landlords who treat getting citations from the city as a to-do list for bare minimum upkeep. But there is hope... if you drive through the 4th ward area, you can clearly tell which properties are owned (single family homes with kept lawns and neatly decorated) and which properties are rentals (usually a broken window or two, falling apart porches, messy yards)... the closer to the single family-dense parts in the 4th ward, the better chance you have of getting a rental property that hasn't been laid to waste that you can purchase for a fairly cheap price. 

One of our properties is on the far south side over my UW-Rock, which is my favorite rental spot because it's full of single family and duplex homes, lots of cul-du-sacs that keep traffic noise down, and near the interstate. Property value is cheaper due to being on the south side, but you can get just as much space as parts of the Northeast side and just as decent tenants (depending on your screening criteria, of course). 

We have purposefully stayed away from Beloit... there are some decent properties there, but we found that there are not enough quality tenants to occupy the homes. Beloit does house some large, well-paying corporations and lots of construction for new businesses in the business park off gateway blvd though, that have the potential to bring in larger amounts of quality tenants. Housing prices in Beloit are definitely cheaper than Janesville, and Janesville is (for obvious reasons) significantly cheaper to invest in than Madison.

Can't be of help to the property management part though... we've looked and looked but haven't found a company we are comfortable with... your best bet there would be to join up with the Southern Wisconsin Landlords Association and network for a quick recommendation. 

How has your rental experience been in Madison?

We are in the process of purchasing a property in Wisconsin that is currently managed by a property management company. Does the  contract that the current owners have with the management company legally get transferred to us when we assume the property, or are we legally able to cut off ties with the property management company right away? I am not sure yet if there is a contract with the property management company... I'm only assuming. 

There may also be an issue of what the tenants are paying vs what their lease says. The lease (and property information that we've got up to this point) states that they are paying $670 a month, but when we look at the lease and pet addendum, they should be paying $670 a month + $25 per month pet fee. If they are not paying the $25 pet fee per month for the dog they have, are we legally able to start enforcing that as soon as we assume the property? Our other properties currently also have a $25 pet fee, per pet.

Thanks everyone!

Hi All - We are looking into Property Management companies and we can't find a straight answer online as to whether or not Property Management companies need to be licensed in Wisconsin if they are strictly only managing rentals, and not acting as a broker in real estate. 

Any one have knowledge on this?

Have you reviewed your HOA contract to see if it specifies a responsibility for fixing immediate or urgent issues in a specific range of time? Or local rental laws? That would give you a good basis of information to include in your letter of demand.

I also use rentometer for a broad view of the current rents, which pulls from online ads, however, it only takes bedroom count into consideration. They do have a subscription based version of rentometer which gives you more options. Nothing beats live-rental rates like looking at the paper and craigslist though, or calling around to apartments to see if they have available units and what they are renting them for.

The problem I've had with publications online is that the information is not "live" and often does not consider things such as the grade of the neighborhood (or their grade is way off) or provide details on the state of the housing.

 WI Legal Blank is awesome and will even alert you (when you sign up) if local or state laws change that impact landlords. One of the attorneys that run the site also holds a yearly landlord bootcamp :)

Hi @Glenn Zhao - You may want to check with your local ordinances because in some areas (in the US), Knob and Tube wiring is actually illegal now, and technically, needs to be updated prior to selling a home. 

If you are having trouble with insurance, ask them if the home will become insurable if you add a ground fault circuit breaker. Per MrElectric.com (I know, sounds cheesy, but I've referenced this site many times), "This type of circuit breaker adds a ground loop right at the circuit box. It was designed exactly for this type of two-wire circuit."... and this can often be leverage for an insurance policy.