All Forum Posts by: Kelly G.

Greetings 

My tenants have moved out of my SFH in Milwaukee - I took the water meter reading and called the city for a final bill. Milwaukee wants to charge $35 for a 'final' water bill.

Milwaukee landlords:

1) can I pass this $35 on to the tenants?

2) any reason I can't just calculate the bill based on reading (using rates on the back of the bill) - and save the $35 req'd by the City?  with approval by tenants?

Also - the current 'quarterly' water bill (meter reading April 13th) won't arrive until May 21 - the last day the security deposit refund is due in WI (move out on april 30).  I'd rather not expect my tenants to pay me for the bill, but can't hold their deposit and city won't issue the quarterly bill earlier.   So I'm tempted to calculate the full amount due myself - using last meter reading (from last bill in Jan) and current reading and deduct from security deposit - with coordination/agreement from tenants.  

Does anyone see a problem with this?  How do Mke landlords handle this?

Thanks

@Leanne H. - I think you sent me a pm and I replied to that 

@Scott Schultz  the house is a manufactured  (mobile) in Colorado and no - I don't have much/any income on my 1040; kinda living off retirement/investments for now.  I kinda gave up on the loan and am just using my savings - hope to get the house back on the market soon and make a tidy profit.  I'm lucky to have the resources though I hate to tap them.  

Thanks for the in put and good luck in all your endeavors

Kelly

Just for clarification . .  @Eileen Murray - re: my explanation of why I'm losing money - the same would be true if I held the house as a rental and just took out a mortgage.  Essentially this would also put the $145k (more or less) in my pocket to re-invest and make money on elsewhere, while the rent would/should cover the monthly mortgage payment, property taxes and other (minor) maintenance.  

@Bob E. - thanks for your comment.  I need to look into a 1031 exchange - I know Nothing about them.  I'm haven't really been an RE "investor" until recently - aside from the milw. rental.  Anyway - 

This is not a good time to have a vacancy or to sell (although the market is likely to turn soon - IMO) - I just have too much other stuff on my plate.  I really have to take a day to evaluate my options.  

thanks again

thanks for all the help.   

It occurred to me after I wrote the first post that my comment about not contacting me was a bit snarky.  My apologies - that was not my intent.  

I agree that I am probably losing money.  I should have taken a mortgage on the property years ago and re-invested.  But that may not have been possible either as I have not had a steady income for longer than I have owned the property - so . . . thinking while I'm typing, that's probably why I didn't get a mortgage.  

@Eileen Murray - I'm pretty sure this is what @Thomas S. is referring to:  w/o a mortgage I have @$160k in equity in the house.  If I sold and pocketed say . . $145k (just a number) after selling expenses, I could probably/possibly make more money in the stock market, or in purchasing other real estate and renting/flipping than the paltry $6-8k I am making (after expenses) in rent.   Right Tom?

It is true - I am tired of the hassle in renting this house.  I have never managed to hold a tenant longer than about 15 months; that's alot of turnover.  I have no idea why:  it's a nice house in a good neighborhood at decent rent.  I think I mostly just got lousy tenants/bad management.  I only took over management last year.  The current tenants seem disgruntled that I expect them to adhere to the rental agreement (we've had a couple minor issues).  

Anyway - I appreciate your time and comments

Good luck in your endeavors

Kelly

Greetings BP

I have a SFH in Mke and my current tenants just gave me their 30 day. I am looking for general advice; just looking for things to consider. Here's the scoop:

The house has been a rental for @ 6 years with decent income; clearing @ $6k + annually; no mortgage; current market value @ $160k

I have probably broken even at this point with initial cost and all (many many) upgrades;  have no idea what the tax situation will be if I sell; would not be able to use 2 year personal residence - no cap gains rule.  

I'm kinda tired of managing it and have had lousy luck w/ property managers; . .  I live in CO - so have never been there to manage myself - only long distance

How's the airbnb - short term rental market in MKE?  I have no idea, but this seems like a possible option;  I'd hire my sister to do the short term mngt; cleaning; renting etc - Much to investigate here - maybe even for just a few months while I deal w/ my chaotic life (fix/flip) here in CO.  This is just NOT a good time to have a vacancy on my MKE house!

How would I go about figuring out tax implications of selling?  know a good accountant? (tee hee .. ;-)))))  )

Thanks for your thoughts - and Please - Do Not start contacting me about buying the place - thanks!

Kelly

Greetings

I appreciate the continued feedback.  It seems I have an 'out' on paying the excess in the water bill.  I checked my original agreement and there is a clause which states the tenants are required to notify me 'immediately . . . if toilet continues to run."   As they did not notify me - and I had to inquire about an excessive water bill, seems I should be able to pay my share based on 'normal' water use.  

@Jorge Ruiz  - not sure what I would/could do differently if I lived in Milw or not.  I have family there who could/would act if necessary - i.e. emergency.  If there's fire, the tenants would call the fire dept; anything broken would be handled by a call to a service company or handyman.  My only concern is a power outage during a rain event - in which case the sump pump in the basement would overflow and flood the basement.  Anyway . . 

I certainly appreciate all other comments.  thanks

Kelly

@John Underwood - In Milw - trash and winter snow removal are tied into the water bill.  I've always thought that paying trash ensured it gets picked up - but that may be a carry-over thought from my California days. so I pick up a small part of the water bill.  

@Dawn Anastasi  Good idea!  thanks

@Jorge Ruiz  yes, I 'manage' it from CO; as I still have family in Milw and make 2-3 visits a year, this gives me a chance to check in personally.  It's been 1 year now and - aside from the water issue - it's worked out OK - but I also have pretty good tenants.  

thanks all for the input

I just thought I would relay my costly lesson in 'fairness'. I have a SFR in Milwaukee. This is the first year I am managing it myself having burned through 3 property managers in about as many years - costing me more $$ than it was worth. I don't live in Milw or WI so a PM seemed to make sense.

So I got the package of rental forms from WI Legal something or other, and on the initial agreement (M-M) I only required tenants to pay for "water"; not fully realizing that the Milwaukee water bill also has "sewer" and "muni" charges - which are far more than "water".  I was trying to be "fair" -

Well - I changed that agreement in November, requiring the tenants to pay "water", "sewer" and 1/2 of Muni - that seemed fair too.  

Unfortunately I did not word my rental agreement modification carefully enough. I got a notice from Milwaukee Water telling me that the water use for this quarter was 4 times higher than 'normal'.  I sent an email to the tenants inquiring about a possible leak, which is when they said the toilet was 'making noise'.  

So this quarter's water bill was $663 instead of the 'average' $250.  Since my rental modification did not specify that I would pay 1/2 of the "normal" "Muni" charges (which includes some sewer, so it's also based on 'water use) - I am ending up paying $175 this quarter instead of $50!  Ouch!  This in addition to having to fix the toilet (I need a cheaper handyman too!)  

I would love to only pay for "normal" use, but that's not what my rental modification says.

Longer story than I anticipated, but . . .  when writing/modifying rental agreements - the devil IS in the details.   I'll be preparing a modification to my modification!

Greetings

I am looking for a contractor w/ experience with manu homes; good help hard to find here in Teller County!  Need assistance/consulting with kitchen/bath remodel, flooring specialist.  House is near Divide.  PM me if you prefer

Thanks

Kelly

Greetings;

I cannot find any legal language or guidance on changing the rental terms for a M-M rental agreement in WI (milw).  My Nolo Landlord's law book says there is no state statute , but some doc I downloaded from the Wi Dept of Agr, Trade, & Consumer Protection says I must give 28 day notice to increase the rent.  

I'm not increasing the rent (per se) but want to change the payment of utilities to tenant (I was paying partial sewer); which would effectively increase their rent.  I don't mind giving 28 day notice.  Just want to be sure I'm not missing something.  

I also need to clarify/modify/add some 'rental rules and regulations' - regarding maintenance of the property - mostly

I am assuming I will need to send the tenants a new/revised rental agreement for them to sign.  I used to have a PM so never had to deal with this; now I'm on my own.

Any advice is appreciated

Kelly 

SFH - Milw