All Forum Posts by: Jenny Sung

• @Jenny Sung My comments are below. I'm a local Broker/PM. I'm not an attorney so you may need to seek legal advice.
• Do I have any leverage in this situation?
  Yes, Texas is very pro-landlord. Normally tenants can't withold rent due to repairs unless they follow a specific protocol. I know you said that they are trying to break their lease. Are they current on their rent right now?
  
• Should I start evictions?
  I'd recommend you drive by the property first and see if they left. If it's obviously vacant (no utilities, nothing inside the house), then you may just want to document that (we usually take photos/video) and move forward with your final accounting and rekey. I'd then send them over to collections for collecting what they owe. 
  
  If they are still there and behind on their rent then I would issue a 3-day notice and then file once the 3-day is up.
  
• What is the best way to insulate myself financially from a broken lease?
  Again, I'd drive by the property and if it still looks like they are there, I'd knock on the door (I don't know where this property is but I wouldn't go alone). This is part of the "game" of being a landlord. I'm hoping you have a decent deposit on file. If not, hopefully you will collect once you send them to collections. On a bright note, this is peak leasing season so if they are out, at least it's during a time of year that you should be able to re-rent quickly.
  
  Last but not least, since they are on Section 8, I don't see why a tenant would risk losing their section 8 by breaking the lease but it does happen. You may want to drop a note to the case worker and see if they know what's going on.

Everyone has probably had a bad experience with a section 8 tenant at some point, but I've also had great experiences. It's really a bit of a roll of the dice. Ideally, you are inheriting a M2M lease that you can modify with your own lease asap or give notice if it's not a good fit. 

Good advice above on the repairs- I find one mistake many new investors make is that they overthink simple repairs. Most of the items on your list are basic maintenance items or inexpensive fixes. One of the most common questions I get from new investors is "what type of repairs are deal breakers for you?" The truth is there is no such thing as a deal breaker, if the deal works, anything can be fixed. If the numbers work for you here, don't sweat the small stuff. 

Nice work, good luck! 

It doesn't sound like the repairs are really that much an issue from your list there.

What you should be more concerned about in my opinion is this part, "Comes with Section 8 Tenant (Mom & 3 kids)"  Now she absolutely could be the best tenant in the world but she also may not be. Are you prepared for the latter?

The most frustrating / worst part of investing for me over time has definitely been inherited tenants, with repair and construction headaches coming in a distant 2nd. It's definitely part of life for us real estate investors, I'm just saying to be prepared for it.  Especially in tenant friendly New York. 

Hi Jenny, Have you taken advantage of the BP rental property calculator to run your numbers? Is it safe to assume that your Realtor has provided both rental and sales comps for the area? Have you seen the property in person? Have you seen a signed copy of the current lease? 

Why did you choose Spring, TX? Do you have reason to visit the area at least annually? My wife and I own property out of state. We have found that we can ensure the property manager does a thorough inspection at least once a year when we schedule a visit. During our last visit, we discovered an issue that resulted in a couple of thousand dollars in repairs. It would have been more expensive if the issues had gone undiscovered longer.

What do u estimate the value is at?

I live just north of Spring, TX.  Parts of Spring flood.  Does this home have any history of flooding?