All Forum Posts by: Kar Sun

I have a tenant that pays on time and keeps place clean.

I also offer him a desirable place to live that is being taken care of.

To me nice tenant is not the one who expects me to subsidize their rent. 

I provide a service and a roof and that is why I have responsible tenants that I chose to have a professional relationship with.

The place has lot of very desirable amenities and has a great location..

He has been with me for 3 years and I have only raised rent $125 in all these years and last year there was no rate increase.

However, things have changed.

I have expenses, taxes and other costs that must be covered as otherwise I will be in negative..

Also, there is a lot of demand.

I sent a very nice letter to a tenant stating the data and a comparison rate with the market properties.

In my market rental properties went up 124%.

The hike is $400.

Small apartments in my area go for the same as my discounted rate for him.

But the place is spacious and is a townhouse.

He is highly unhappy.

He calls it is a money grab.

He is saying that he is under duress if he decides to stay as summer is a busy season for him.

Well, the contract ends end of summer and the rate increase letter went out prior to that.

There is no rent control in my state.

And in my state I do not even have to send rent increase letters.

This tenant makes 300K in income.

I have been nice responding to his texts but it makes me think if I actually want to keep dealing with him.

He states that my property is not worth the increase.

Well, my property is in such a location and  condition that it is difficult to find anything similar.

It is also a business.

Any one wants to share a relevant experience?

Please do not bother to send me points on how to write letters to tenants; mine was very much to a point with all the data, comparison photos, prices....

I just think if as a business person himself he does not value my business why should I renew the contract especially now he says he is under duress.

yes, if it is in your lease

no. not the future. you need to have the existing rental contract.

I would not rely on zestimates as they are often inaccurate. Zillow algorithm may not differentiate between 2 similar properties in the same neighborhood. Instead I would look on multiple websites to see what similar properties go for. You should gather the date for a couple of months to arrive at accurate values. 

My rent is now about $600-700 below the market. In 3 years I have increased the rent 6% total, for my long term tenant, which is 2% per year. The rents have gone up tremendously in the past year. Unfortunately, I am unable to absorb such cost and I will be increasing my rent $450. Even then my tenant will still have a great deal because there is nothing similar for the price in 15 miles radius. If he decides to leave then I will find someone else at the higher rent. I am not too worried.

avail.co

 The square footage is 60 sq ft less that the tax record. Each square foot is about $280. Yet the source the square footage is listed as s tax record. The appraiser never measured anything. He spent 5 minutes at the property taking photos and leaving. He also values the subject property in a good condition the same as the uninhabitable comp he used from the same neighborhood. The uninhabitable property was listed as is with the repairs needed and photos of the damage due to the extensive leakage. It is like comparing a rotten apple and a good apple and applying the same value to both because they are both apples. Currently the appraisal is being re-evaluated. I wonder if it was the mistake to share the inadequate appraisal with the seller. The contract does not provide for the appeal so it can be interpreted either way. 

I checked with the real estate agent and he said that the seller cannot terminate the contact on her own as it is not a unilateral matter. Both parties have to sign. But at the same time the seller may not release the escrow funds and they can hang in there forever if we will not sign until the updated appraisal comes in.

 It pretty much says within 3 days of the receipt of the appraisal to terminate and agree with the lower price or to bring more money to the table. Nothing else. The seller keeps talking about terminating the contract. No real estate agents on either side. 

 Thank you @Kevin Luttrell. Does it mean that the 3 days in the appraisal clause cannot be counted until that appeal is settled? I did share the appraisal with the seller however I stated that it is being appealed due to inaccuracies. The clause is silent about appeals. The lender finally let me know that the appraisal is being re-evaluated. I just want to make sure that 3 days is not applicable to the appealed appraisal.

What is the recourse if the appraisal contains data not listed anywhere and the appraiser did not measure the property? 

The source of data is listed but that source has the higher square footage than listed.

The contract has contact clause that has 3 days limit upon the receipt of the appraisal.

Either the buyer accepts lower appraisal and terminates contract or brings more cash to closing to cover for the difference.

I filed an appeal regarding the erroneous data and neither lender nor the appraisal company will give me an answer.

Thanks