All Forum Posts by: David S.

@David Oberlander

What does your lease say on subletting?

What does it say about running a business out of your home?

I have clauses in my leases forbidding both of these issues.  If you do (I assume you do, since you said they were in lease violation), you have the AirBnB listing as proof and you can evict based on a lease violation.  Getting proof is usually the hardest part on lease violations (sometimes witnesses are required), but you have that already. If you don't have these clauses, time to update your lease, assuming these clauses are legal in your state.

I know another landlord running an AirBnB in Florida  and I do know they are very strict on the hotel taxes (not sure if it is the state or the municipality). You may liable for thousands in back taxes. He had over 10k due when he fired his property manager.

I once had a tenant running a hotel and restaurant out of one of my apartments..... She just didn't understand why it was a problem.  She even wanted me to upgrade the apartment for her commercial use! I kept getting broken stoves and everything else before I caught on.

In the deep South, I would recommend a PM (Preventative Maintenance) service at least once a year.  This will keep your equipment in good shape, make it last longer, will uncover potential problems, and may potentially keep you from a costly night/week-end call-out.

At minimum, this check should include about 20 or more items, checking the capacitor, amp draws of your fan, compressor, pressure check, air flow check, inspection of electrical components for corrosion/pitting, and many other things.  It should also include cleaning of the condenser (outside part).

Whether you do this yourself (if qualified and hold an EPA card), hire a company for a one-time fee, or sign a maintenance contract are all options.

At minimum, I would at least clean the condenser once a year, which you can do yourself.

Some contracts include this and also include a Winter PM for your heating components.

I would want to know exactly what they would do and what discounts for service they give you before signing any contract.

I would like to add to @Kyle Hipp.

You must do a market survey of the rent to determine the proper rental amount.  Check the rents of several apartments in the same area with same amenities. You can base your rent on that "market survey."

You may also do a price survey on insurance policies.

Unfortunately in the landlord business, we get hit with unexpected expenses and price increases.  Repairs, taxes, or in this case, insurance.  Insurance is a major headache in some states because of limited competition.  Also, when a hurricane blows through in Louisiana, for example, I have experienced more than 200% increases from one year to the next on insurance costs.

@Josh L.

Most likely the eviction part....CA is a tenant friendly state and takes much longer to evict than many others.

I stopped giving estimates for how long a given job will take.  A 5 minute job often turns into a 4 hour job.  Sometimes they go as planned, sometimes not!

What do Landlord-Tenant laws say about abandonment?

Your contract/lease does not supersede the law. Taking possession of property because it is in your lease and the law does not support that clause will get you in trouble.  Violations of the lease are grounds for eviction, which will return possession back to you through the eviction process. On a side note, I have seen in court in a very landlord friendly state, a landlord slammed with 4 figure fines due to illegal treatment of tenants.

If you don't want an attorney, get the NOLA Landlord-Tenant book for your state and learn it backwards and forwards. Then look at local laws as well.

If you want some free legal advice, you may try asking the court/Justice of the Peace that handles evictions for your area.

Also, you may contact the local BAR Association, and they can usually get you a consultation with an attorney for about $50. 

I understand your concerns; I have a similar situation going on. Please don't evict him based on being ill. That would be inhumane and HUD would consider this discrimination against the disabled.

Please do like previously suggested and try to get him some help.  Have contact with his close relatives on a regular basis.  If he stays, it may require regular check-ups on him to see if everything is ok, especially if his support network is non-existent.

You could offer to help him find a new place if yours is truly bad for him.  But tread carefully. It will require a delicate and diplomatic tone and you may have get his family involved.

First of all, you must keep in mind that you must use a qualified intermediary for a 1031.  The fees may be hundreds to a few thousand dollars, so you must take that into consideration in your calculations. Reverse 1031's, where you buy, then sell in that order costs even more.  Sometimes you just can't time the transactions right, and it may have to be done this way.

For a 50k to 60k capital gain, which is what you are looking at possibly after expenses, would be rolled over into a another "like kind" property of equal or greater value.  If it is not equal or greater value, then you may receive a reduced benefit.  Therefore, you would be responsible for paying some taxes.  You may use several properties in a purchase to accomplish this.

You can use this amount to do several things, apartments, houses, shopping centers, or even tenancy in common (TIC's). TIC's are a hands off type investment, similar to a REIT. This would be a personal choice.

You can ask other investors/friends/family who they use.  I have gotten some of the best contractors that way.

Also, Angie's List has been a good resource from time to time.

I would assume the interior needs a complete rehab and figure that into my costs.

Further, you need to set the "maximum" price you will pay for it based on market value, closing costs, and any rehab costs.  Keep in mind that on some of these auctions, the bank has the right to bid against you.  That's right, they can artificially drive up price to get what they want.  Then mysteriously, a day or two later, the property in run through the auction again. So keep firm on your maximum.

I never did like auctions for the aforementioned reason and that sometimes you are bidding against people who do not have the means to buy it, so in my opinion, are just placing more faux bids.  You can also add in first time investors/homeowners who may over bid it due to emotion in the process, emotion on the property, and have not counted the correct rehab costs.  Sometimes due to this emotion, there are bidding wars, resulting in a price that is just too expensive.