All Forum Posts by: Vinson Lee

Thanks for all your responses.  I'll pro-rate the first month as many of you suggest.  And also end the lease on the last day of the month.

I learn so much from all of you!

Hi I was wondering what some of you do in terms of setting a rent due date.  I mean, I have a lease that is going to start on the 14th of March.  It is a 12 month lease.  I was thinking of having the tenant pay me the prorated amount for 3/1-3/31.  then starting on 4/1 they would pay me the full monthly amount.  Am I being too complex or should I just make rent due based on the start of the lease and have them pay me the full monthly rent on the 14th of every month.  Part of me just likes collecting rent on the first of the month, but the other part of me says maybe im just making things more complex.

I agree all the points you two brought up are things I need to consider.  I think I have to ask the potential tenants a few more questions to see what they can verify besides their bank account.  My guess is that they don't work for a large company.  I actually don't know what they do.  

Hi All,

My property is up for rent and I've been getting lots of interest.  One family that is interested just moved to the states from another country.  They really need to rent a place while they are waiting for a new house to be built. They say they just bought a brand new home, but construction will take a year.  They seem like a decent family.  They are willing to have a one year contract.  They are also willing to show bank accounts, but it will be from another country.  The main thing though is that they may be willing to pay for 6 months rent up front or maybe even the full year upfront.  

If I do consider renting to them, is there anything that I need to check?  If they do pay me the full year, does that make them a good tenant?  I feel for their situation and would like to help them out but at the same time don't want to take any more risk than I normally would.  What do you guys think?  What would make you rent to them or not?

Thanks

Thanks for sharing your experiences.  Based on all the feedback, I'll definitely include the cost of having a gardener maintain the yard.  It is a bit inconvenient having the controls to the irrigation in the garage.  Besides having to adjust it each season, if there is a blackout, it needs to be reset sometimes and such.  I guess I can write some easy to follow directions for the tenant and send them reminders to adjust it once in awhile.  It may be hard to coordinate access to the garage for the gardener.  If you have have any other ideas for this it would be great to hear what you have done.  I wonder if it would be worth it for me to have the controls for the yard to be moved to the exterior of the house?

Thanks!

Was hoping to get some advice based on experiences you guys might have had. I am planning on renting out my SFH in a nice neighborhood. I have a gardener that currently comes once a month to mow the lawn and trim the shrubs. There is also an irrigation system with sprinklers and drip to water the lawn and plants. The controls for the irrigation system are only accessible from within the garage.

My question is do you have any suggestions on how the maintenance of the yard should be done for my rental.  I was thinking of paying for the gardener so the tenant does not have to pay for that of their pocket.  But every once in awhile the irrigation would also need to be adjusted for the seasons (more water in the summer, less water in the winter).  Who should be responsible for that.  In general would all yard work be the responsibility of the tenant ultimately.  And how do you explain this in your rental contracts?

Thanks for your help.  I am thoroughly confused about how best to set up this part of a rental arrangement.

Hi BP Community,

I just purchased a home built in 2001 as my new primary residence.  I am closing on it in a few days and was asked whether or not I wanted to purchase a home warranty on it.  I had a couple of questions for those of you that have had experience with this.

Is there any benefit to getting a home warranty at closing rather than sometime afterwards. Is it cheaper if I buy it at closing?

What's your general thought to buying a home warranty for a primary residence vs rental property?

Where can I get the best deal on a home warranty usually? (direct with the company, through a realtor, online?)

I am considering the warranty because the previous owners have had some issues with plumbing and also the fact that the appliances are all about 15 yrs old now so was thinking about getting it at least for the first year.

Thanks,

Vinson

Thanks Natalie!  I think I understand it now.  That was very helpful.

HI All,

I'm confused about something that I'm hoping you guys can help explain.

I've heard that generally when you are buying a primary residence that the interest one only 1million dollars of your loan would be tax deductible.  But I also hear that you can deduct an extra 100,000 some how.  I guess I'm confused about that extra 100,000.  Lets say I get a loan for 1.1million now.  Is there anything that I have to do special to be able to deduct that extra 100k?  Or do I do nothing and then come tax time just enter all the interest into the right box in turbotax?  In other words do I have to call out somewhere or split out somewhere the extra 100k.  Let me know if my question makes any sense. 

Thanks

Just a random question that I am not sure about but was wondering.  Assuming I had a rental property and a primary residence.  Both have mortgages for the same amount and the same rate and same length remaining.  Would it be more beneficial to pay off one or the other?  What should someone consider when deciding?

This is sort of hypothetical, but I think what I learn from the answer to this may help me understand investing a bit better.