All Forum Posts by: Han T.

@Marceline P. Hi I second @Edwin Rivera. Both of us have been investing in Columbus from afar. I'm sure @Edwin Rivera is able to give you a lot of solid advice and sharing, he has shared a ton with me and has helped my REI journey! :)

 Dear Nathan, thank you for your advice. We actually did that, ie inform them that the house was not a good fit and welcome them to terminate their lease with no charge, and they insist on staying, at first accepting the property was AS-IS. My only concern is, as a out-of-state investor (in a landlord friendly state), I have some problems trying to verify if their complaints are unjustified, and therefore ignore them.

Currently I rely on the professionals to go out and give me feedback before I could then decide if the requests are justified or not. And these service calls are costly. So I am trying to figure out, how can I find ways to manage their maintenance request expectations, get them to move out (they are not moving out, but i'll continue to try doing that). 

Which brings to your point to find opportunity to terminate their lease. Will thread very carefully.

Dear @Bill B. and @Theresa Harris,

Sincerely appreciate the valuable advices! Will see how I can incorporate the advices into my follow up actions! 

Have a great day.

Regards,

Han

Dear @Bill B. & @Theresa Harris,

Sir, Mdm, thank you so much for your time and advice. Yes. I have offered for lease termination previously at no costs. They did not want to terminate, despite me reminding them that it was rented AS-IS. 

My goal is to try to last till lease renewal, and NOT RENEW them. However, I do not know if I can last with these service call costs, death by a thousand cuts. Note that they keep putting up CASH OFFERS at the same time, as if to remind me that selling to them is the way to end all these costs.

Nevertheless, I heed both your advice. 

May I ask, with regards to @Bill B.'s advice on "Please be aware ...In the future you will be billed for each service call where no problem is found." I think it is a fantastic idea, but my worry is that the lease didnt specify such things clearly that I can start charging them if no problems were found (lease were not written for such problematic tenants). My lease is a normal lease, I have tallied with multiple property managers which I have used in the past, and also cleared with an Attorney. Any potential ramifications on such charge backs?

Thanks once again! 

[Advice needed]

TL:DR - Tenants repeatedly made various maintenance request, most request were followed up by professionals that said that the request were not justified, including Building Code Enforcements. Sending these professionals (plumber, electricians) out has been costly, especially when the request were mostly not valid. In addition, tenant repeatedly send reminders that they are ready to put in ALL CASH offers to buy the rental. Need advice on how to manage the situation and minimize unnecessary, unfounded maintenance request.

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Tenant complaint of multiple electrical issues, electricians were sent out and found that nothing were unsafe. Tenants were unsatisfied with the results and requested for City's Building Code Enforcements to come in to inspect for unsafe items. Report from Code enforcement found nothing was unsafe. 

Subsequently, tenants reported multiple plumbing issues, including some corrosion seen on the external of the water heater. A plumber came and quoted aggressively to change the water heater. A second opinion was called and the plumber came, fixed a faucet's water pressure and informed me that the water heater is functional, and the maintenance can be deferred. I clarified on the corrosion and he assured me from his professional opinion that it is definitely something to be change eventually but it is still functional and can be deferred. Obviously I will defer them. 

There are a ton of other maintenance request (see picture and comments below) that they deem unsafe, but after seeking multiple opinions, are not an issue. These requests are costing me an unnecessary ton of service calls! Furthermore, the property was advertised AS-IS, and they knew of these issues before moving in. On top of that, previously we have offered to terminate the lease at no costs, however, they refuse to terminate, yet at the same time they are UNHAPPY of the condition, and still keep asking to buy ALL CASH (without saying the price). I was wondering if there are any ways to manage their maintenance request (keep them in check) or if need be, find legal recourse to get them out should they continue to ramp up the costly maintenance requests? 

Thanks in advance.

Pic 1: Tenant's complaint on the electrical issues that creates potential fire hazards. Note that tenant claimed to have corrosion, when we called the electrician, electrician did not verify corrosion was observed. In the next pic, you will see that the Inspector also agreed that there were no corrosion.

Pic 2: Building Code Enforcement reverted to say nothing (from the electrical) was unsafe. (and we have subsequently sealed hole in building exterior sheathing)

Pic 3: Tenant complaint about Foundation Hole, claimed that rodents can crawl through one hole and into the garage. Firstly, hole is pretty small. Secondly, garage door closes along the blue line. Both exit/entrance are outside the garage.

Pic 4: Corresponding email with building compliance on the Hole, stating that the repair was discretionary.

These are just some of the maintenance request, there are a few more which are also invalid as advised by professionals.

Hey @Natalie Kolodij, I see what you mean. Very well explained! 

Just a further clarification, would it matter if my D4D was in one or a few state, in say, TX, but then eventually, I ended up buying a property in another, say OH. It was a legitimate D4D (added into the basis of the next pty in OH). Would that be a major red flag?  

Right! that totally make sense (for the qns on start up costs and capital expense before I place a rental property in service). I got it!

Sir @Nicholas Aiola, with regards to the 2nd qns, do u mind sharing on how to account/expense (home appraisal, inspection) for the failed attempts on the purchase (eg, 123 Main St)? Apologies I did not clarify the context, which was that there were already existing rental properties in service and generating income (eg 567 Sub Street). So in this case, as I did not have the 123 Main St to expense these home appraisal/inspection, is it right for me to park the expense for home inspection and appraisal for 123 Main St under 567 Sub Street instead?  

Thanks in advance

___________ 

 Hi @Nicholas Aiola, thanks for all the 1.8k+ replies so far...I would like to expand on this thread. Assuming I had a start up costs (registered agent, PO Box, etc) of below $5,000 within the first year, as a rental property investor with most of my expense on Schedule E, how do expense the start up costs? Should I file it under Schedule E? 

I noted that all expense in Schedule E are related to a specific properties...if I have yet to purchase any properties...how then do I file these expenses in Schedule E?

A second related question...I attempted to purchase a property, paid home inspection, appraisal, etc. However in the end, it did not close due to unforeseen circumstances. The same principles applies in the sense, Schedule E's expenses have to be categorised to existing properties placed in service. How do I file such expenses on my Schedule E (or anywhere else)? 

Thanks in advance! 

Hi BP Gurus, just latching on to this topic, assuming an aggressive CPA, where does this miles deduction goes to on the tax form? I would assume since it is for a rental business, it would go under Schedule E, however, Schedule E expenses are pegged to properties...how do one expense such deduction that are not specifically related to a property? 

I was wondering if there's a way to check on the results of the tenant screening before PMs officially place a tenant in the property? Are there any laws that that permits landlord to view the results of the screening?