All Forum Posts by: Gunnar F.

Thanks, Marcia. I did not want to start a new discussion on the identical topic -- hope this was not a breach of protocol here as I was actually trying to honor protocol as set forth in other forums.

As I live out of town and finding a tenant for this kind of high-end property can be challenging (sometimes there are dozens of interested folks and sometimes barely a handful) I am not excited about trying to identify another.

I was only going to include my complaining neighbor's contact info -- at his request. Agree it is not a good idea to divulge the tenant's info.

My selection of the tenant was not premised on their housing a large dog. But I admit that at a certain point I might take a tenant with a T-Rex, depending on bleak my prospect pool looks.

Your other advice is also certainly sound. Thanks.

Thanks, Colleen. Will alert them formally. Will also suggest that my neighbor drop my tenant a letter (he has been demanding the tenant's contact info, which I have declined to furnish).

Solid advice, Colleen. I actually have NO desire to evict them at this point. I just want them to cure -- not quit. (Tenants able to afford the rent are not easy to come by.) The situation is complicated as I am out of the country on assignment (which means the furious texts have been mid-day for me). 

I think I will probably just notice the dog issue and omit most of the rest -- and the color commentary -- setting aside my compulsion to make everything interesting.

The more I ponder this the more I feel I should allow the neighbors to work it out, one way or another. I actually like both of them a great deal. And I am not sure my further involvement benefits me -- or them. If my neighbor is forced to call Animal Control the dog will be removed in any case. I am not concerned about the other issues from a landlord standpoint -- though this alleged behavior by my tenant is regrettable.

I have a similar case. Wealthy tenant pays huge rent like clockwork and doesn't bother me (though she is utterly non-communicative and clearly does not like me or my property manager and avoids all contact with us).

But there are other dimensions that [seem to] compel me to take a proactive approach. There are potential liability issues around the dog [I think]. And the neighbor appears to be objectively correct about the noise issues.  

I was about to pull the trigger on the letter below and would appreciate your collective thoughts....

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Heather:

Doberman

I have now been informed that the barking Doberman you indicated had been removed has remained at the house in violation of the lease. Please remove the dog from the house right away. Your neighbor, Paul Smith, has been repeatedly awakened by this dog’s barking in the early morning hours (roughly around 2 am). He alerts me that he is prepared to contact Animal Control. This breed of dog creates an unacceptable liability in any case and cannot remain in the house under any circumstances. I try to accommodate my tenants as best I can but I have had liability concerns with large-breed dogs as a landlord and the barking is only one dimension of the problem.

Loud gatherings

As a general matter, I would also request that house guests attending outdoor gatherings at the home please refrain from making undue noise at late hours. It is a wonderful home for parties but these events should quiet down by 10 p.m. I have received numerous recordings from Paul documenting the noise from the parties (and from the barking dog) and the situation is intolerable for him. He mentioned that he is now literally sleeping in his kitchen to ensure he gets some rest. Paul has sought you out to discuss this but has not managed to contact you. In the interest of good neighborly relations may I please recommend you communicate with him and reach an understanding: [Paul's email].

There is a school of thought that suggests that I not intervene in such cases but I feel I owe a duty to other residents and would prefer to head off any escalation if I can do so.

Additional resident(s)

Additionally, if there are other residents at the house this is also in violation of our lease. This is not an issue in principle but I would ask that your agent prepare a suitable amendment so we may bring any such persons under the lease.

I regret the nature of this communication and value your tenancy enormously. I can assure you that I would not reach out to you in this way if these were not serious issues. Please acknowledge your understanding and confirm that you will comply with the terms of the lease. Thank you for your immediate attention to these matters. (Copying our respective agents as I did not receive a response after my last efforts to reach out to you.)

Sincerely,
Landlord

Great Idea, @Joseph Gozlan.

I am, for once, ahead of the curve. As my company does not offer a qualified, US-based 401(k) I have established an SEP, which I must fund with after-tax salary, but that is better than nothing.

I will certainly put some gains into that but I am already limited to only about 50K a year and fortunately the gains far exceed that limit.

@Bill Exeter sounds very solid -- many thanks! I think my Financial guy would be able to help by managing this account on an informal basis. I have a good trusts attorney in mind. Really appreciate the additional advice!

@Dave Foster many thanks. 

Reality is I don't have any interest in tying up my money in more rental property since I live in Asia and I am looking forward to a break from landlording. But I think your idea to delay tax using the 1031 approach is clever. If the tax is big enough maybe I could find some kind of vehicle that would offer a meaningful guaranteed return. Free money!

Will kick it around also. Thanks and best to Gunnar from Gunnar!

You rock, Brandon. Thanks. The tax advantaged trusts looks interesting. The thing is, my financial advisor has an amazing record over the last 15 years and I am not sure he deals in those. I will check. 

I am anticipating a meaningful profit on a residential rental property sale in a year or so (the sale is contingent on certain zoning changes the buyer should be able to achieve). I purchased the property in 2002.

- I will not qualify for a full or partial home profit exclusion as it has operated as a rental for the last 7 years.

- I do not wish to conduct a 1031 exchange, preferring to deploy the profits in stock market investments at this time.

Are there any other kinds of significant tax breaks that might be available?