All Forum Posts by: Jason Krawitz

Good afternoon! I feel like I use this forum like an advice prostitute except the advice is free! (KIDDING) Thank you in advance. You have all been super helpful since I started this journey and I need to get better at actively participating.

I own 1 rental property and have my first set of tenants still. They've been AWESOME but all good things must come to an end. When the first 15 month lease was nearing expiration, we agreed to a month to month agreement with a 120 move out notice/clause, essentially working like a 5 month lease that auto-renewed each month. They wanted the flexibility because they knew they would be moving and I wanted more than a month to month lease.

Well, a few weeks ago my tenants notified me they will be moving to Charlotte NC soon. They didn't give me an exact date but based on the terms of the lease, the end of October would be when their half of our agreement is fulfilled.

My question is what should I do? Just sit and wait? Is there a letter I need to send them? I'm a complete novice and have been very fortunate with great first tenants. I want to do this part right just as much as the screening and lease initiation parts.

Also - How soon should I list the property as available for rent again and begin showing it if they won't be moving out until October?

Thank you so much!

Jason

Hello! It's been a while which generally speaking means things have been going well! My tenants lease expires the end of April. They have been excellent tenants and I hate to see them go. Recently, however, they contacted me and asked if next year's lease can be month to month with a 120 day move-out notice clause. One of them has been offered a job in Charlotte, NC but doesn't know exactly when he will have to move. He's been told it will likely be 6 months from now at a minimum and he will have at least 90 days notice after that before he has to be there. He will be the GM of two hotels that aren't even built yet. Thus the un-exact timeline.

I've already decided I'm going to do it because frankly, I'd like to keep these folks as long as possible. However, I'm unsure on a couple things. 1. How to re-write the lease to be month to month (I need to pull it out and read it before asking this because it may be pretty self-explanatory once I re-read the thing.) and 2. is there a surcharge typically expected on a month to month lease? My current rent is 1595/month and the lease has written into it that the rent will go up 5% (I think) each year. So... should I just raise the rent 5% or more because he wants to go month to month?

Thanks for listening to me ramble. I appreciate the help.

Thanks everybody. Very helpful responses.

So rent was due yesterday. As of today, still no money in my bank account. I provided a stack of deposit slips when we signed the lease and outlined expectations on how rent will be paid via deposits into my account.

The lease says I will charge a late fee if the payment is more than “0” days past due.

Since yesterday was a Sunday, would you wait until tomorrow to drop the hammer on him? Would you call or e-mail a friendly reminder and clarify expectations again? Any other advice?

Many of you have been helpful and encouraging to me as I have gone through the process of converting my first home into my first rental property over the last 8-12 weeks. On Saturday, I met my first tenant at the property, went over the lease, and signed the lease agreement!

I have a lot to learn still but wanted to just say thanks to the folks that created these forums and to all of you that took the time to read my posts and engage with me as I fumbled through this like the newbie that I am.

Have a great Monday everyone!

I'm considering e-mailing this to my new tenants. Any thoughts or reasons why I shouldn't? Thanks!

"As I am preparing the lease I recalled Chris mentioning you plan to live in the home for longer than the 15 month lease term. Your application says 1-3 years. Do you have any interest in signing a longer lease? I wouldn't normally offer this but you are the exact kind of tenants I'd love to work with long term. If you're interested in a 36 month lease, I would give consideration to accepting an average rent of $1550 with the first 15 months at the $1595 rate and the balance of the lease at a lower rate to make the average $1550.

For example, if you wanted to sign a 36 month lease, the first 15 months would be $1595 each and the last 21 months would be $1517.85 each.

It that doesn't interest you I completely understand but it's something that might be mutually beneficial if you plan to live in the home longer term."

Thanks everybody! I really appreciate you taking the time to read and respond to my question.

I'm meeting one of my two new tenants at the property on Saturday to sign the lease and collect the deposit and 1st month's rent. His wife still lives in Florida and is the co-applicant. Is it okay for me to accept an e-mailed copy of her signature on the lease or should I ask that she overnight mail a copy with wet ink on it? Does it matter?

Thanks!

Thank you for your help on the phone today Sara!

Good Evening! I'm screening two joint-applicants and having trouble understanding the smart-move credit reports. The applicants are a married-couple, both professionals transferring to Nashville. The applicants scores are 604 (her) and 642 (him). Smart move is suggesting I accept them both. They have great income but several write-offs/un-paid collections on their credit but I can't tell if they are recent or really old. Can anyone help me with a "guide" on how to read this report? Here are the entries I'm confused about. If the account was closed in 2011 but the report date is December of 2014, what does that mean? Does "account closed normally" mean it was paid eventually?

Discover Account – Opened 11/02 – Reported 12/14 – Account closed normally 9/2011 (Charged off as bad debt – 9147 past due) Both Applicants

AMEX – Opened 4/07 – Reported 12/14 – Account closed normally 6/2010 (Charged off as bad debt/cancelled by credit grantor - 8909 past due) Lady Applicant

KOHLS – Opened 12/00 – Reported 3/12 – Account closed normally 6/2010 (Charged off as bad debt – 770 past due) Lady Applicant

WFHM – 120 Days past due Settled – Less than full balance – Opened 6/05 – Reported 10/10 Lady Applicant

They both have good "recent" credit and the male applicant explained some of his bad history was due to divorce etc. Here is my dilema... Not all, but many renters are renting for a reason. If they had perfect credit, they wouldn't rent a house in this price range, they'd likely buy. I've gone from an applicant I declined due to a bankcruptcy and already being 2 months behind on a new car, to an applicany with a credit score over 800 that I accepted and backed out on me at the last minute, now to these folks, with mediocre scores. After meeting them, the subjective factors were strong but I want to make sure I understand this credit report to make an informed decision.

Any help is greatly appreciated! Thank you!