Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Kate K.

Kate K. has started 9 posts and replied 70 times.

Post: Zillow screening tool? Pros and cons?

Kate K.Posted
  • Rental Property Investor
  • Lake Zurich, IL
  • Posts 70
  • Votes 14

@Alexander Szikla, did all the things you listed the 1st time around, when we rented to these first people over 2 years ago and just did all of these during my screening process again 2 months ago. Successfully re-rented our property to a new family. Thank you for your input!

Post: Rent payments through Zelle in IL?

Kate K.Posted
  • Rental Property Investor
  • Lake Zurich, IL
  • Posts 70
  • Votes 14

@Jared Hottle, that is exactly what my gut feeling is telling me too. So my husband and I discussed it and decided to receive rent payments from our new tenants by checks, and by them depositing it directly into our bank. He owns his local automotive business in our neighborhood and is right across the street from our bank. They were fine with this option and it will work for us. Basically it is going to accomplish for us our "direct deposit" goal. Our bank recommended that.

Post: Rent payments through Zelle in IL?

Kate K.Posted
  • Rental Property Investor
  • Lake Zurich, IL
  • Posts 70
  • Votes 14

Hi BP Community!

If a Landlord is not considered a business yet (properties are not in LLC), what I was told by our bank is that our tenants cannot set up direct deposit with us. So we were offered Zelle, Venmo or PayPal. But I am not sure about either of those, not necessarily trust them, except maybe Zelle.. Sure, checks are always an option. Has anyone used Zelle? What are pros and cons? I know that Venmo cannot be used for business purposes, only for personal use. So that's out.

And my main question: is it allowed by law in the State of IL to collect rent payments from tenants through Zelle and what is best for direct deposit, if properties are not in LLC yet?

We were trying to set up direct deposit payments with already 2nd renters on our 2nd property, but no luck so far with either 1st ones that moved out or our 2nd ones who are moving in. Our very 1st renters on our 1st property did set it up 3 years ago without any problem through ACH their direct deposit rent payments (it was easy and smooth process and we receive payments without any issues for these 3 years), but on our other property already 2nd renters that are trying to set up direct deposit are having the same issue (and they are banking with the same bank Chase, as our other renters do, who did have luck). Any suggestions are welcome!

Thank you!

Post: How to valuate deductions from Security Deposit properly?

Kate K.Posted
  • Rental Property Investor
  • Lake Zurich, IL
  • Posts 70
  • Votes 14

Jonathan Klemm, we are happy we are not in Chicago. But just to be fair, you've got to admit that in Chicago Landlords are aware of "their perspective" having their properties being trashed, therefore are not very inclined to upkeep them to begin with. If we were to have properties that we just collect rent from but not take care of them as a lot of Landlords do (particularly in Chicago area, unlike in the nicer suburbs like ours), then damages in the house left after each tenants wouldn't be my concern. But we take pride in our properties and strive to offer our tenants a great place to live. They even live in better conditions and most updated houses with newer appliances and machines than my husband and I live ourselves. So, while we are happy we are not in Chicago, most Landlords in Chicago not taking care of their properties, knowing it's not worth it. So let's be fair, they don't loose much. Our standards are high as to what we have to offer, therefore our standards as adequate to what we expect from our tenants as well. If we were to offer them run down property, we wouldn't be expecting them to renovate it and return it to us brand new. It would be unfair to them and it doesn't make sense. We would never do that. But if we offer brand new property, minus normal wear and tear, everything else is unacceptable, sure, most of it can be fixed/replaced/cleaned, but they should pay for it. Everything costs money. Correct me please if I am wrong. 

Post: How to valuate deductions from Security Deposit properly?

Kate K.Posted
  • Rental Property Investor
  • Lake Zurich, IL
  • Posts 70
  • Votes 14

@Jim Cummings, thank you for your advice! It is all very helpful. I messaged you. I appreciate all useful information!

Post: How to valuate deductions from Security Deposit properly?

Kate K.Posted
  • Rental Property Investor
  • Lake Zurich, IL
  • Posts 70
  • Votes 14

@Kenneth Garrett, good for you! We own properties in Lake Zurich, IL (just 15 min away from yours). Make sure you do a thorough credit and background check on perspective tenants as you recover and move forward with new tenants. I've just went through a new screening process. We've had over 70 inquiries over the phone and via email. Unlike 2 years ago, this time around at least 50% or more interested candidates were either unemployed, in a position of having to move out suspiciously because a Landlord is selling the property (figured why!), or with inadequate monthly income to rent our property, or were on government assistance already and still were asking for additional assistance on top of it (not sure what kind of "additional assistance" were they looking for, perhaps were confusing private owners of rental properties with the with charitable organizations, but for a Landlord it doesn't mean anything good, especially during COVID). Drastic difference in inquiries this time.. Very few people were eligible to rent our property and we did a thorough selection before we even showed the house. Then if they fit our minimum income requirements and other standards, we showed the house, saw if they likes it and if our rental is what they were looking for, we were choosing most qualified candidates. So be aware! It's easy to fall under influence of own sympathetic feelings to people who need a place to live, when they pushing your "pity button". I know many tried that with me for the past few weeks, the same scenario: low income or unemployed, moving out from not the best neighborhoods (mostly from Chicago), owner is selling the property and they need to move in ASAP. That's a big red flag!! So don't let compassion and sympathy drive your business decisions. Once Tenants got their way, they no longer care and at that point once they moved in and are not paying rent, as you already know, it's hard to evict them. Good luck with new tenants! Hopefully they will be a responsible ones🙏👍💰!!

Post: How to valuate deductions from Security Deposit properly?

Kate K.Posted
  • Rental Property Investor
  • Lake Zurich, IL
  • Posts 70
  • Votes 14

@Mark Faustrum that's only fair. I read it before also. Though if thr law would be dictating that if a Lessor/Owner/Landlord does thr job themselves and there would be no provisions for charging tenants reasonable fee for labor, then the only option would make sense is to hire professionals and to charge tenants whatever the labor it is end up costing. Otherwise, seems like in other states than IL it would be like contractor's labor worth money and if the owner performs the labor it doesn't. So yes, it's fair that Landlord is allowed to charge reasonable fee for labor if their do the labor themselves.

Post: CDC Eviction Moratorium - USE THIS FORM

Kate K.Posted
  • Rental Property Investor
  • Lake Zurich, IL
  • Posts 70
  • Votes 14

@Nathan G. So then the judgement does nothing for them. Right? If they don't care about their credit score, bounce from one job to another and have no money to pay for anything, then no matter what, even if Landlord wins in court after expensive eviction battle, the Landlord still is in the loss? Since those judgements not really affecting already irresponsible tenants.. That's what's I've gathered from what's going on and what other Landlords are sharing.

I do my due diligence to screen tenants (credit and their full background), check their previous Landlords' and employment references. So far so good in terms of them paying rent.

How does this CDC Moratorium form helpful to Landlords, if you don't mind my asking? Most of the people are making less than 100k/year and very few only did not receive stimulus checks. So that means that according to this form everyone qualifies and is exempt from paying rent the moment their household income has decreased or lost and if they face to become homeless? Just checking if we ever run into something like this in the future. Thanks for sharing👍!!

Post: How to valuate deductions from Security Deposit properly?

Kate K.Posted
  • Rental Property Investor
  • Lake Zurich, IL
  • Posts 70
  • Votes 14

@Colleen F., in IL we are allowed to charge a reasonable fee for labor when we do it ourselves. I read that in our local regulations a while ago and I re-read it again from that link that Mark sent me.

It's good to agree upfront on things, but if services will end up costing more than our initial estimates, then we either have to pay the difference out of our own pocket or not have upfront agreement as such but charge them at the end according to how much it actually costs. Both options have their pros and cons.

Post: How to valuate deductions from Security Deposit properly?

Kate K.Posted
  • Rental Property Investor
  • Lake Zurich, IL
  • Posts 70
  • Votes 14

Louie Gabriel, we are very well aware that business has expenses. And we are investing more than most landlords do into maintenance and improvements of our properties because we respect and care about our tenants (perhaps even more than we should). There are landlords that are never even doing inspections of their properties, never maintain them.. Doesn't mean we have to be the same with ours. For if we would, our new house would be trashed in no time after a turnover just a few tenants who will gladly say "it's normal wear and tear!" and then we would end up doing major renovations a lot sooner than we would have had to otherwise and would have to absorb unnecessary costs to our business because we didn't charge adequately or at all every tenant who were leaving their own damages behind after them moving out. We're pretty much good with where we at after our 1st turnover and have a clear idea of what to do and how much to charge. We will use estimates where vendors cannot come out to perform the job before I have to refund the remaining of the security deposit, where we can, we will provide receipts and itemized list of charges and send remainder of security deposit within 30 days.

Normal wear and tear is acceptable and we all know that. Accidental damage(s) due to neglect, misuse or abuse of the property is not. Most tenants don't care about rentals because it's not their own (especially transient tenants). I compare condition of our newest rental to our own house, to our older rental (major renovation was done 13 years ago), to my parent's home, to my husband's parents' home and other people's homes, and I see that our newest rental is in worst condition after just 1 tenant (young couple), who lived there for only 2 years since it was brand new. Thoughts? Any of the other homes I just listed, had renovations done years and years ago, and they still are in a better shape than our newest rental. What does it tell us? It tells us that people who live there take care of the properties and are not negligent or abusive of it. So it looks better and things last longer. And if anyone who lives at the property being neglectful and careless, abuses or misuses the property, will cause a lot more damages and a lot faster than those ones who are careful and responsible. 

Before those people moved in 2 years ago, I researched back and forth BP and downloaded tons of useful information, including Tenants Move-Out Checklist. I sent it to our tenants for their reference, so they were very well aware of what's expected of them. And we even reminded them about it and mentioned that all items are required as there will be no exceptions, when they gave us move-out notice. Mark Faustrum uses and offers Security Deposit Agreement, which I also like and it is basically reiterates similar things except that it covers a little less items but does have prices vs Move-Out Checklist don't. 

What I was looking for is to properly and fairly assess the damages beyond normal wear and tear and incomplete cleaning in some parts of the house, and charge them fairly for all these items. In eyes of our previous tenants, everything they left behind is "normal wear and tear" (so they told us), despite that they signed Lease Agreement with Rider that specifies certain things and they were sent Move-Out Checklist ahead of time. 

Here is an example of what people thing is "normal".. Our next door neighbors/tenants for 2 years (2018-2020), where we live, also thought they live normally and treat their own property and properties of nearby neighbors in acceptable matter.. I will not even mention they were rude and offensive to everyone around, including police officers. And I'll tell you what, beyond the point that they didn't pay rent for 1.5 years out of 2, they trashed the house so badly and entirely that the sister of that guy who lived there with his family, came to clean up after them feeling bas for the landlord, even advised to police officer against entering the house, that revolting it was - 3 dogs' feces IN THE HOUSE everywhere, raw nasty meat and intestines all around that they fed to their 3 dogs (the dogs appeared sick and looked abused), that was all over their yard and by their neighbors as well including our own, with green bottle flies everywhere, and it was in summer, when it stunk enormously! I thought it was bad that their backyard and backyard of their neighbors was a dogs' toilet, but I was wrong, the house inside was even worse... They were evicted last year, their landlords (elderly couple) suffered massive financial damages and losses (I even posted on here a question concerning our neighbors/landlords situation and asked for advice what to do with it). But these tenants are gone now. 

So, my point is that all tenants have a tendency to be neglectful more or less and refer to all the damages they cause as "normal wear and tear". And is it really so? No, it doesn't mean that landlord has to go with it just because tenants want it to be considered "normal". I read a lot more experienced landlords' advice on BP and I learned a lot from our own experience too what tenants typically do (which aligns exactly with what our colleagues on BP are saying and predicting) and how best to respond to it, according to local and State laws and regulations, of course. But, thank you for reminding, we know that REI business has expenses :)