All Forum Posts by: Chad Hale

Welcome to BP!

Lots of great info here.

@Sean Peters

@Sean Peters

Not a lawyer or even pretending to be one:)  So please consult one.  That being said this is what I would consider doing.  (my responses in italics and prefaced with CH)

-Tenant has recently contacted me to state that they would like to exercise their option to renew. 

CH:  Often times there are conditions to exercising an Option. Did the tenant meet all those conditions?

1) Considering the rent needs to be brought up to a reasonable market rate, right off the bat I plan on raising it for the new lease.

CH:  The lease probably has a provision for determining market rent. If not, then either get an appraisal/opinion letter from an MAI commercial appraiser, like Valbridge Property Advisors in S.J., or an opinion letter from two commercial real estate agents. After sending the notice of rent adjustment if they do not pay then turn over to attorney for 3 Day Notice.

-Since tenant’s non-payment of the late fees are essentially a breach of contract, is it possible for me to refuse to renew the lease due to this, specifically since the tenant refuses to pay the late fees?

CH:  Depending on what the default clause reads I would have the attorney send a 3 Day Notice for non-payment of late fees. Late fees may not be considered rent. Check with attorney. All communication in writing so you can present it to a judge at an Unlawful Detainer hearing.

3)After raising the rent, I am 100% sure that tenant will begin to argue and make claims of the legality of raising the large amount at one time.

How would you respond to baseless claims of the legality of the rent increase?

CH:  I would not respond and enter into a verbal exchange. He either pays or doesn’t. If he doesn’t then see above.

Welcome to BP and RE investing

sounds like you have your feet wet and are looking for more :)

Replace with anything but carpet.  Carpet requires constant cleaning and/or replacing and can hold all sorts of pests.

Straight from my bill: 

The $1 is an "Administrative Fee"

"The $1 fee is a state-imposed fee (SB 1186).  Under federal and state law, compliance with disability access laws is a serious and significant responsibility that applies to all California building owners and tenants with buildings open to the public"

More info:  http:// www dot sanjoseca dot gov / BusinessTax

@Alex Mosqueda  In addition to Kim and Ryan's input, here are several BP blogs that should be helpful.

3 part series Questions to ask a property manager

http://www.biggerpockets.com/renewsblog//2008/11/28/some-questions-to-ask-a-property-manager/

http://www.biggerpockets.com/renewsblog/2008/12/06/more-questions-for-a-property-manager-and-some-answers/

http://www.biggerpockets.com/renewsblog/2008/12/27/son-questions-property-manager/

Landlords: 8 Tips for hiring the best property manager

http://www.biggerpockets.com/renewsblog/2011/02/25/hiring-best-property-managers/

http://www.biggerpockets.com/renewsblog/2005/10/07/things-to-consider-when-interviewing-property-management-companies/

If you are still interested in reading:

http://www.biggerpockets.com/renewsblog/2011/12/22/how-to-train-a-property-management-company/

http://www.biggerpockets.com/renewsblog/2010/10/13/hire-manage-property-management-rental-property/

Landlord how to deal with a negligent property manager

http://www.biggerpockets.com/renewsblog/2011/10/20/property-managers-negligent-landlords/

http://www.biggerpockets.com/renewsblog/2011/07/26/property-management-expectations/

~Chad

@Vinny Vu 

I'd suggest finding a good mortgage broker. You'll likely get better rates.

PM me if you want a recommendation.

With today's technology they don't need to be local.  You want them to be organized, communicative and experienced depending on what you want to do. 

In CA, you are legally required to accept the first qualified applicant.

The 2+1 rule will generally keep you in compliance in CA

HUD is 2 per bedroom

The federal health department is a bit more complicated.

Last time I checked it was 70sqft for 2people and then 50sqft per additional person  (Do not count bathrooms and hallways)

Quickbooks can be used with Intuit Merchant accounts.

ACH fees are $0.50 per transaction.

Nicely links with QB.

However, QB has a steep learning curve but is powerful once you know how to use it.

End of year taxes/statements and monthly client statements are easy and configurable.

I typically charge between 5-8% with no "hidden" fees/costs.  No placement fees, no maintenance mark ups, etc.

As an owner/investor/PM I work hard at aligning my success with my clients success.  I want them to succeed!