All Forum Posts by: Chad Hale

@Jose Amer  There are exceptions to AB1482.  You have have given notice to the tenants that the property they reside in is exempt. Without giving tenants this notice they are included in the protections by default.   If you need advice from attorneys on this, call the Law Offices of Todd Rothbard.  The specialize in this area.  https://toddrothbardlaw.com

@Alex Martens As the others said, it doesn't sound like this business is going to make it. Two years in, the business trajectory should be fairly well known.  Probably best to work out a termination agreement and find your next tenant.

Of course, you have to consider your financials to carry a potential vacancy, location of the unit, how quickly can you rent it, etc...

@Stephen Bruce Tenant leaves system for free agreed to in writing by both parties or tenant removes the system and returns property to move in condition.
If the systems stays, the next tenant can use as-is. No warranty of condition, repairs, replacement, etc give as to the system. You don't need the extra headaches of maintaining a security system on a SFR. You don't need the tenant calling you about how to use the system or that it is not working...

10yrs is a long time with a lot that can change outside of your control. You could do a 5 year lease with a 5year option.  Make sure to have language allowing rents to go up to market rates.

I would use a NNN lease. That way increases in costs of insurance, property taxes, etc are passed onto the tenant. This will help some in planning for cash flow.

@Josh Cissell I don't open separate accounts either.  If you did, you still would not give the owners direct access.  That is part of setting it up as a "Trust Bank Account"

If you open a bank account using your owner's TIN, you don't need to file 1099MISC as they are receiving the rents directly, not you.  You just manage the account.  Downside is you need to do this for every owner and they usually have to sign the bank docs in person.

@Matt Roth for mailers there are various list providers that provide different filtering options, absentee owner, by county, state, type/size/class of building etc.  You can tweak these to narrow in to what you want.

@Edwin Gackstetter  Sorry I don't have a fair housing attorney rec.  You can try Hopkins and Carley for custom lease addendums.  They are not cheap but they are good.  They probably have fair housing attorneys too.

@Becky Wong Kaplan Your friend can terminate the PM based on the management agreement. Sometimes, extenuating circumstances will change that, if both parties agree. 

Removing the tenant is a different situation.  The Lease controls how that may happen.  There is a case worker assigned to each Section 8 tenant. If the tenant is breaking/not following the lease, one of the steps is talking with the case worker.

@Matt Roth Make friends with commercial brokers that only buy/sell.  Send out mailers.  Do great work so that referrals come in.