All Forum Posts by: Maggie Tasseron

I would add a penalty into the lease, kind of like a service call for stupid stuff. Honestly, you will never stop someone from smoking outside the property if that's what they choose to do, but as long as they clean up after themselves then it shouldn't be the end of the world. I'd tell them that you'll make monthly inspections of the property and the fines will be assessed accordingly. 

RE: Liability Insurance

Thank you for the above comments on liability insurance. I really do agree on this point, but must ask - how long have you had your liability insurance policies? How much in approximate premiums during that time? How much in approximate claims?

Is liability insurance something that can be purchased independently from the properties? What sort of premium should I expect for 2 million of liability coverage? I have general commercial liability policies in other much larger businesses that run around $425/year. I've not seen a similar type of policy in the RE arena. Am I overthinking it and just need to call my general liability carrier from the other business and have them write a policy for me?

With all of the properties being in different trust names would I need to purchase a policy for each property? I would like to be protected in this area - I think the properties with no mortgages look like appealing targets to bottom feeder lawyers and with low-income tenants it's only a matter of time. 

Suggestions?

Greetings from AZ :) I can not believe this home is $700K!!!!! Who can afford entry level home at this price? Looks really run down. Good luck and please let us know how it ends!!! Power to you :)

Thanks for everyone's speedy replies.  After seeing the kind of a damage a daycare did to this property before we bought it, I'm definitely not interested in having our tenants run one.  I'm guessing an eviction is the way to go, which really sucks since this is our first tenant in our first property, and he's only been renting for a couple of months!  

I've got a $1000 security deposit from the tenant, he has money and so does the daycare he's working for.  At this point I'm considering just contacting a lawyer and letting them take over.  Do you think I'll be able to cover lawyer's fees with the security deposit and/or suing for damages?  Or do you think an eviction is an easy enough process that I can file it on my own?  I talked to a friend who's managed properties and he's worried that since this isn't your typical eviction for not paying rent that it might be a bit more complicated.

 You are in California. For any rental in California, you have no choice. You have no role. And you don't even get to charge higher rent.

While that is a disappointment, there might be a chance to renegotiate the rental amount to a higher price, on threat of eviction.  

@Brandon Turner

As long as no one was hurt, the rest can be repaired.

Has the fire marshall identified the cause yet?   If it does turn out to be arson, will that impact your insurance?

A property behind one of ours suffered a similar fate early in the spring, it turned out the tenant was cooking shatter when things exploded.

Last year we started doing a "$99 first month rent special"; when the lease is signed, it's the security deposit (same as one months rent) and $99 for that first month no matter the date they move in (and no, I don't "prorate" the $99 for that month...believe me, someone asked about that).  Seems to help with some of my rentals which sometimes attract folks who might have a hard time coming up with a security deposit and the full first months rent and a pet fee (if it's a unit where I allow pets).    Initially are pet deposit was just that; a deposit that would be returned at the end if no damage; now it a non-fundable fee of $250.

Folks seem willing to do the pet fee but like the $99 special.  I explain this is for folks who qualify after going through our standard screening process (credit check, criminal check, proof of income at least 3 times the rent).

Gail

I wouldn't waive the application fee because, aside from eating into your costs, it requires the applicant to have some skin in the game. Knowing that there is a credit/background check, and knowing there is a fee, those who are fairly certain they would not pass won't bother, and if they are serious about wanting the unit the fee is immaterial. At worst, you can offer to include the fee for a successful applicant as a credit to the first month's rent. 

What happened with the one applicant? It only takes one to rent, so long as they meet all criteria. I am upfront in general requirements with people before they complete (Monthly income of 3X, reasonably good credit, clean criminal background) so that they are not needlessly wasting their money nor my time.