All Forum Posts by: Kazi R.

I need to open an escrow account to keep my tenants' security deposit. So far I have stopped by 2 different banks to inquire about escrow account, both of which told me that I could just set up a checking account for this purpose and call it an escrow account. What they weren't able to answer is this: can I open up an interest bearing savings account and call it an escrow account? Ideally I would like open an online savings account such as Barclays or Ally online saving account for this purpose.  I appreciate your input on this.

Georgia's law regarding security deposit is following:

What is the landlord required to do with the security deposit?

Under Georgia law, a landlord who owns more than ten (10) rental units, including units owned by their spouse and/or children, or who employs a management agent is required to place the security deposit in a bank escrow account, used only for security deposit funds. The landlord must give the tenant written notice of the location where the security deposit is held but is not required to disclose the account number. As a substitute for having an escrow account, the landlord may post a bond with the superior court clerk of the county in which the rental property is located. 

FYI.. It turns out that Chase QuickPay has a daily transfer limit of 5k for business accounts (2k for personal). I exceed that amount on the day the rents become due, so this will not work for me.

@Craig Rismiller  Thanks for the feedback on QuickPay. I am seriously considering opening a checking account with Chase to take advantage of this service.

@Jeff Rabinowitz Sent you a PM. Thanks.

I am looking at various online rent payment services in order to accept electronic rent payments from my tenants. So far I like Google Wallet and Chase QuickPay. I am in Georgia where a landlord cannot evict a tenant if a partial rent payment is accepted, so I need a service that allows me to reject a partial payment. Google Wallet allows returning money within 10 days from when it was initially sent. So my question is: if I return the rent money quickly, would that be the same as rejecting a payment in the eyes of an eviction judge? Thanks for your opinion on this.

Those of you who are curious about GA law regarding this, following text is directly from Georgia Landlord Tenant Handbook:

My tenant and I disagree over the amount of rent due this month. The tenant gave me a check for part of the rent. Should I cash the check?

If the landlord accepts partial rent he cannot then seek to dispossess or evict the tenant for failure to pay the monthly rent. If the tenant fails to pay the remaining amount of rent due, the landlord would have to sue the tenant for payment but could not dispossess or evict the tenant for nonpayment. A landlord’s acceptance of a tenant’s check for less than the full rental amount, does not release the tenant from having to pay the disputed amount. 

Thanks everyone for chiming in. I better keep my 99 Camry, which I bought used in 2002. It runs great, so I probably will be able drive it for few more years. It's not nearly as old as the cars some of you are driving! :)

@Eric M.  & @Stephen E.  I have been thinking about getting a newer car for 2 years now, even test drove a few,  but haven't been able to pull the trigger because of exactly you said about depreciating assets. I too would rather acquire another rental property than splurging on a car. One brings in income every month, while the other drains it. I haven't been able to justify it (still struggling)! 

I drive a very old sedan. Most of my tenants drive nicer cars than I do. Now that I am considering purchasing a new(er) car that probably will be nicer than theirs,  I am wondering whether to keep the old one to commute to rental properties or sell it. I heard and it makes sense that it's better to avoid driving a flashy car to rental properties, otherwise tenants may feel they are the ones who are paying for landlord's fancy car, therefore feeling less obligated to pay rent on time etc.  It's better to appear broke! So my question to my fellow landlords, what do you think should be done here? If you drive a nice car, do you maintain another not-so-nice one for rental properties? I would love to hear your take on this. Thanks.

@Jerry W. I will consider it. Thanks.

Thank you everyone for great advice. This is going to help me out a great deal. :)

@Jerry W. I did get all the leases, but seller's property management company hasn't been able to provide me with move-in inspection checklist for any of the tenants. Apparently they took over the management responsibility from another management company and didn't get the checklists from them. All the utilities are paid by the tenants. BTW, I met a maintenance guy (during property inspection) who the tenants' contact if there are any issues with their units. I took him out to lunch and picked his brain about the tenants. I feel I know quite a bit about all of them. :)

I would love to get books for several years, but seller is unable to provide me that due to change in property management company.

@Sharad M. I am comfortable with the numbers, especially happy with 30 year fixed rate of 4.625%. I don't know what others are getting on similar deals, but this seems pretty good to me.

Regarding estoppel letter, I can't really approach tenants because seller doesn't want them to know that the property is being sold. I do have the lease agreements though. Shouldn't that be sufficient?

@Marcia Maynard Thank you for sharing your experience / process. The units have washer dryer hook-ups, so all tenants have their own washer and dryer. I accompanied property inspector during inspection of this property and met all the tenants (they were all home because it was supposed to snow on that day in Atlanta, and we all know how good we Atlantans are dealing with snow! :P). They were told that property was going through insurance safety inspection. Long story short, I do have a list of fixes that tenants would like to have (I asked them while chit chatting) and plan on getting those done as soon as I close on the property. I am planning on sending them a letter of introduction (is there a template somewhere?) and stopping by afterwards to allay their fear as you suggested.

@Wade Sikkink Thank you for sharing your process. I feel I already have built pretty good rapport with all the tenants, so the process to reintroduce myself as their landlord should be pretty smooth. I wasn't planning to ask them to sign a new lease as existing leases last til Aug/Sep of this year, but now I am considering it.

@Will Wiest I used a multi family purchase and sale contract (suggested by another BP member) that has language for security deposit transfer, proration of rent etc. I should be good with these issues.

@Brandon Turner This is a great site! Thank you for everything you do for us.

I have a fully occupied 4plex under contract in Atlanta metro area. Inspection, appraisal, title all look good. I am likely to close on it in next 2 weeks. I am a bit worried because I have never bought a tenant occupied property before. I have experience in buying vacant single family properties (then fix and rent). What are the things I need to do to ensure a smooth transition? Tenants don't know that property is being sold. Seller has provided me with the following documents:

a) proforma,
b) rent roll,
c) tenant leases,
d) list of repairs and improvements

Thanks for your help / advice.

Chris, I definitely see the benefit of beginning with month to month lease, especially because (in my experience) if you treat a good tenant right, they tend to hang around in your property for a long time anyway, so there is little to lose. I will consider employing your approach. Thank you so much.