All Forum Posts by: Jan Gudell

Deadbeat tenants left an apartment with several thousand dollars in damage and stole some items. Gouged, badly worn hardwood floors, missing and damaged window treatments, window screens, light fixtures, holes in walls, screen door, pet odor, waste etc. An attorney advised there is little chance of recouping damages from them. Is an insurance claim likely to yield any funding for repairs and replacement?

Thanks for your insightful reply Frank. We did have a discussion collectively and began to discuss some of these issues. Although there is not consensus yet, we are approaching the shared goal of turning the building into a market rate rental. The siblings in the property were understandably hesitant about turning the unit they currently reside in into a market rate rental. I'm not interested in receiving rents from them; I would like my father to see some benefit from the property while he can but that is unlikely in the current situation. He has said he would like us to be more involved in the building's upkeep and planning. He also said he would be appreciative of rents and financial assistance with the cost of keeping the building going. However, there are divergent views because of the circumstances I described. Emotionally I feel it's time for my siblings to "grow up" - they are each 35+ years old and shouldn't be a drain on my father at this stage in his life. Legally I would assume the trust could incorporate some principals that address equity, maintenance, expenses, finances etc., but I am not a lawyer so I'm not sure what precedent there is for something like this, but I am certain mine is not the only family in this situation, as you've pointed out. I believe, however, there has to be a smart way to address these issues so that they are not emotionally roiling.  

My father recenlty put a 100+ year-old two-unit rental property in a trust which includes my father, me and two siblings. The building is paid-off and in a desirable urban neighborhood, however it is in need of upgrades. One of the issues is my two siblings live in the building and are free-loading. One of them has been living in the building for many years without paying any type of rent and the other  moved in about 5 months ago and they each paid their first partial rent June, 2017. Neither are doing anything to maintain the building or contribute to its upkeep while my 70+ year old father has been providing them a free apartment and paying for property repairs and going to the property to do work himself. He should be retiring and enjoying a nice supplemental retirement income but that's not how it's turned out. It seems the building could be made into a self-sustaining rental property but not while two trustees are using it as free or nearly-free housing. How can the trust be used to change the situation so it is more equitable? Are there bylaws that a trust can adopt or incorporate to address equity? And is there some way to ensure that the two trustees who are benefiting from the free rent cannot vote to keep the status quo by force of number or split vote? It's a frustrating situation and my apologies if this is the wrong forum.