All Forum Posts by: Don Blake

Hello BP... Seeking advice or opinion on how to handle a situation.

I have single family home in PA jointly leased to a couple with 2 kids. It turns out the boyfriend has been charge with abusive behavior and has been issued a restraining order by the courts that essentially evicted from the home.

Due to the fact they both did not strong credit, I had initially taken 2 months rent from them as security deposit, with the understanding that 1 month would be returned at end of 1st year lease if they decided to renew.  The boyfriend has since advised me he is no longer at the home and wishes to have "his" security deposit returned to him. After some discussion in which I advised security deposit was held on behalf of both parties, he withdrew request until end of lease in September.

I have advised girlfriend of his call, and she then stated that the security deposit monies really belongs to her.

My dilemma is that the lease is coming to an end, and I understand that in PA, a landlord is required to return 1 month security deposit if lease is to be extended.

The place has not been vandalised and is basically being taken care of, and I'm willing to renew lease with the girlfriend, who very interested in renewing lease, but who also now appears to have allowed a new boyfriend to move in.

I suppose I could have this situation handled by hiring a lawyer, but my challenge is how should I go about retaining at least 1 month security deposit while returning the other.  The girfriend has not admitted that the new boyfriend has moved in, but it does appear a new lease is required instead of simply a renewal of existing lease.  She is really a good tenant, and if she doesn't want to add her new boyfriend as occupant, I'm not sure I want to stress the situation since rent is being paid and place not being destroyed.

Anyway, the main issue is how should the return of deposit be handled so appreciate thoughts....

I have home rented to a couple on a new new lease, and recently the wife called to advise she had to take out a protective order against her husband. Now husband cannot be in the home, so question now is how will rent be paid as she cannot afford it on her own. She is also requesting locks to be changed. Any thoughts from Bigger Pockets forum would be appreciated...

Quote from @Laura Greaney:

I have several long term rentals but am recently considering investing in a vacation rental in St Augustine, Florida for a better cash flow. I am aware that the property must be in an area zoned for overnight and/or weekly stays. However, I feel a bit apprehensive because local government can change these laws arbitrarily. Am i wrong?   

Just checking if you made any headway with your plan in St Augustine, Florida. Asking since I have an 1/2 acre property with B2 zoning in Ocala, FL and am wondering if it could be used for short term rental facility or storage facility... I'm thinking I prefer STR.

Quote from @Kim Meredith Hampton:

I agree with Scott, you usually don't charge another security deposit when the tenant renews, although, you could increase the amount of the security deposit to match what their new increased rent will be; i.e. their rent is now $2000 and they have a sec dep of $2000.  Now their new rent will be $2400, so ask for another $400 to put in escrow with their first deposit they paid.

This is great info as I was currently struggling with same question. Though I agree with the principle of just asking for additional $400 for rent change from $2000 to $2400, this is same as increasing the deposit from $2000 to $2400.... which is essentially in principle what you should want to accomplish.  Great idea!!

Originally posted by @Pedro Bartolomei:

@Don Blake we just had a ton of estimates and most came out to about 10k for a 3 bedroom I bath home . we decided to do the work ourselves and have a license electrician just do the service

Licensed electrician I used was JEOAH ELECTRIC @ 484-619-7611

Good luck with search.... Please let us know if you found any you consider dependable and reliable..

Application fee with every application can even be considered taxable income, and as suggested earlier, bordering near unethical. Unless you charging time to review application, cost is really incurred when doing background and credit check. I'd think it's more reasonable to have a screening process to review initial application, and if applicant satisfies initial criteria, then they will incur charge for background and credit check. Just the same, be careful of "karma".....

Wonder if anyone would have any idea of cost to change out and update Knob-and-tube wiring in Easton, PA. I am searching for electrician to perform same work, and any recommendations would be great, and appreciated.

Erick:

Earlier in the year after closing on property, I received a letter from City of Bethlehem advising me that it was a requirement to register rental property with the city since rental activity is considered business activity.  At first I ignored it, but since then I have received another advising that this will be my "final notice".  After checking further, I now find that there is an annual $25 license fee to pay, and then will be charged 0.15% of rental come tax time I assume.  I'm thinking .15% may not be that bad, so I'm getting ready to comply.

If you are operating and not received this before, more information can be found at www.tfgtax.com.

Yes..