All Forum Posts by: Shawn Davis

Sergiu - You should definitely get a copy of both leases and a copy of the check-in sheets BEFORE closing.  You assume the lease so if it is a 10 year lease at $300/month you need to know that long before you close.  I know you said in your post that it is a month to month lease which gives you a lot of flexibility but you never want to take a sellers word for that.  You need to see the leases.  I get copies of the leases in the due diligence phase (inspection phase etc.,)  If you are working with a realtor (are you?) you should let them know you need copies ASAP.  

Also at closing you should be receiving pro-rated rents (the portion of the May rents that these tenants have already presumably paid to seller but cover the days -May 22-31st that you will be the owner.  

Hello Sergiu - Congratulations on your purchase!

For the tenant that is leaving...

1.  Be sure you get a copy from the seller of the 60 Day Notice of Termination.  Be sure you know how/when it was posted, mailed or both.  Just some way for you to prove timeliness if it becomes an issue.

2.  Next, be sure you get a copy of the tenant's check-in sheet that she should have filled out when she took possession.  This is proof of the condition then.  Sometimes however, these are not filled out or a part of her file.  When you do your walk through you should take a lot of pictures to establish at least what the condition was like then, in case it takes a turn for the worse.

3.  Be sure that you get a full accounting of the security deposit from the seller and these funds should be transferred to you at closing as you will be responsible for accounting for the security deposit when the client moves out and will be obligated to return any monies due her or provide a written accounting within 31 days of the day she returns possession of the unit to you.

4.  I find that tenants like to have a list of what is expected of them on move-out.  I provide this both when the lease begins and again once notice has been given.  Tenants want their security deposit back and if they turn the unit over to you, empty, clean, and free of damage (other than normal wear and tear), they have a reasonable expectation of getting it back.  

For the tenant that you would like to have sign a new lease:

1.  It depends what parts of the lease you want to change and also how long the tenant has lived there.  If they have lived there less than one year, you can raise rent, and terminate the current lease with 30 days proper notice (posted) or, if mailed, you need to add 3 days.  You can't just change the lease without proper notice.

2.  If they have lived there more than a year, you need to provide 60 days proper notice to increase rent or terminate current lease

You should consult the Oregon statutes to determine what type of notice is required for the kinds of changes you want to make.  If you want to increase their security deposit for instance, and they have lived there for more than a year, you need to provide proper notice and allow them 3 months worth of security deposit payments to reach the new number.

Remember, this is not legal advice and you should definitely familiarize yourself with the Oregon Statutes.  Good luck with your new place!

@Linda Weygant 

Thanks for the info.  I probably just should have left out the line about "not believe(ing) in Obamacare".   Not trying to make this political, just want the right amount of coverage for my family at the best price.  Oregon has had a heck of a time with their "state exchange" which they recently scraped altogether after a year and about $250,000,000 and not a single person was ever able to get coverage under the program.  Just a huge fiasco.

(http://www.breitbart.com/big-government/2015/03/09...)

We are not eligible for any subsidies. I understand there is always the Federal program but am I wrong in thinking that the exchanges are for individuals and I would get a better price if I could go through a group I may be affiliated (i.e., ABA, VA, AAA, etc.,) that would be going in as a larger group? Maybe these don't exist any longer either? That is really what I am getting at. I was assuming that many on BP may also be in a situation where they don't have employer provided coverage and have gone through the task of finding the best coverage for their situation at the best price. If there are certain group affiliations that provide better rates, I would love to know. Of course, I can just go through a broker (for individual rates) while at the same time calling each of the associations we belong to to find out what group rates they have, I was just looking for a shortcut if someone else had already been through this.

@K. Marie Poe

Great idea.  Thanks.  I have now started the process with a broker.

Thanks for all the responses.

Hello All -

We are about a month away from getting completely out of all W-2 employment and going full time (hubby & I) in REI. We have been thinking about this for a while and feel like we are in good shape to do so BUT, we have always gotten our Health Care through hubby's employment and need to find the best alternative. We have 5 young(ish) children that will be on our policy so not looking for "catastrophic only" but good, comprehensive health coverage. Don't believe in Obamacare so don't send me there. We have AAA, AARP, both members of the American Bar Association, and my husband is a veteran (former marine). I figured BP would be a great place to find people who have already cracked this issue as so many of you have already jumped off the W-2 train.

Would love to know what type of coverage, who it covers (just yourself, or a family with children) and about what it costs you monthly, if you are willing to share.

Thanks for any and all ideas!

Okay, I'll bite:

1.  My ads all say "No Smokers, No Pets, No exceptions" but even so, I always reiterate on the phone prior to meeting for a walk-through:

Me: " Just to double check that you are not a smoker and you don't have any pets - I don't allow either"

Prospective: "That's not a problem.  I don't smoke and only have one cat"

2. Talking with a nice sounding prospective tenant, qualifying before meeting for showing.

I say: "I run a credit, background, and eviction check with the application fee so if you know there are potential negatives on those, let's discuss them ahead of time so you don't waste your money."

Prospective Tenant " No, everything looks good on those for me.  The only bad thing in my background is that I killed my dad when I was 17 but that was like a really long time ago because I'm 21 now.  But, you don't do a criminal check so I think my application will be good.."

3.  My most recent.  From a tenant who I inherited with the building but only agreed to close if the seller posted a 60 day notice to terminate on the day of my inspection because it was the filthiest thing I had ever seen.  She wants a walk-through prior to her move-out because she wants to make sure she will get her whole security deposit back.  I explain that the security deposit refund is based on condition upon move-out, not prior to so we reschedule for morning after her move.  She meets me out front and is babbling on about how there is "one small BB hole" in the bathroom wall and she is really worried that I will try to charge her for the repair because it was like that when she moved in.  She opens the door to the unit and it is the most disgusting place I have ever seen or smelled (human urine).   Her stuff is gone (a huge blessing) but all the walls and floors are covered in dirt and trash and damage.  The kitchen is full of old moldy food and nasty gunk everywhere including inside the dishwasher, walls from top to bottom just dirty and sticky, with wax etc. all over everything, Every smoke detector, carbon monoxide monitor pulled of the wall, trash stuffed down the bathroom drains, 100s of holes in the walls and ceiling (her stripper poles) etc., Just gross.  She says, Well, I just want to know how much you are going to charge me for the BB hole - because I need that whole deposit for my next place.  I say, "I will be doing a full accounting as directed by Oregon law and will have that, along with any monies due you back to you within 31 days."  And then I add " But, I can tell you that this unit is the dirtiest unit I have ever received back from a tenant and will have to be cleaned."   

And she says " Oh, I'm a really good cleaner.  You could pay me to do it.  I really need the money!"

Hello All - I am wondering if any Landlords are aware of a more economical way for potential tenants to make application to several rental units, owned or managed by different entities, without having to pay multiple application fees?

I am an owner/landlord of several properties in a market which has been experiencing between 1-2% vacancies for a few years now.  My application fee ($40.00) is typical of the area, and in my case at least, is used entirely to cover the cost of running credit/criminal/eviction reports.  This amount is reasonable if a tenant only has to apply to one rental before being accepted, but it can become burdensome quickly to renters in our area who routinely apply to several units before being accepted.  As a landlord I simply want thorough and up to date screening information (credit/criminal/eviction).   I can envision a service which offers those screenings reports for a a one time fee and assigns the tenant an access code which can be used by several different landlords over a set period of time (say 90 days), or for a certain number of updated inquiries.  Of course, the tenant would still have to fill out the individual landlord's application and give written permission for access to the reports.

1.   Does this service, or something similar already exist?

2.   Would you, as a landlord, have any objections to using it if it did.

3.   Do others see this need in their markets?

4.   Do you "make" money from your application fee above and beyond the cost of your hard screening reports?  For example, is part of your fee used to cover administrative cost of checking references?

Thanks!  

Hello everyone.  THANK YOU for all the responses!!  I am in agreement with all of you who pointed out that there are several good measures of a good/bad tenant.  Since I am still under 20 units, I meet each prospective tenant and "gut instinct" has been a great barometer.  Maybe I have passed over a good tenant because they gave off a bad "vibe" but luckily, I have not accepted any bad ones yet.  My original question was based on my own ignorance.  Pretty much just couldn't wrap my brain around how you could be a "grown up" without any credit history.  Wasn't sure if I was seeing the result of a scam and wanted to run it by you all.  Thanks for chiming in.  I really appreciate that you all are willing to share your ideas and knowledge.

I manage all my own properties and screen all my own tenants.  In the last year, I have had 5 prospective tenants, all between 34-67 years old who have NO credit history.  Is this a scam of some sort?  Their names and social security numbers pull up a credit report which simply says something to the effect that they have no credit history.  The first gal (64 years old) that fit this profile has now been a tenant for 2 years and always pays early and does not cause any trouble and keeps her place clean.    Now that I have seen it a few more times, I'm wondering if in am missing something...