All Forum Posts by: Kay March

Damage and wear and tear are not necessarily my main concerns. Occasionally a tenant will violate the lease and try to let the security deposit cover their last month's rent. I would like the security deposit to at least equal the current rent for that reason.

I've self-managed 2 to 4 houses over the past nine years. Of course I've considered hiring a PM at various times, especially at turnover, but I've seen a number of PM managed properties decline due to neglect, including a very nice house ($600,000 plus) nearby that was managed by one of the best-known companies in town. The tenants reported a leaking refrigerator three times as well as a leaking roof but the PM didn't take action, and the house became infested with mold. So it's not only cash flow considerations that motivate me to do my own managing. Just to continue the example, it's because I self-managed one of my own houses that I discovered, in the course of repairing a faucet, that the tenants were making a habit of stuffing towels in two areas where there were leaks. I also discovered that they enjoyed leaving the windows opened when it rained -- a big "no, no" here in Florida. Although I tried, I could not get them to appreciate my point of view on these matters, so I allowed their lease to expire. I don't think a PM would necessarily have noticed the problems or ended the lease to solve them.

I normally require a security deposit equal to one month's rent plus $200, and I raise the rent annually by $25 per month. For tenants who stay year after year, the security deposit over time shrinks in relation to the monthly rent to the point where it's clearly inadequate. Does anyone have a clause in their lease that provides for regular additions to the security deposit to prevent this problem?

And for current tenants whose lease does not contain such a clause, can I just demand that they add to their security deposit at some point?

@Ronald Allen Barney Thank you for that suggestion. I am sure that the agent wasn't really trying to "help"! She really does play the "good cop" role in a lot of her advertising, which features cuddly kittens.

Generally, you don't deduct for ordinary wear and tear. You do deduct for damage. You might also deduct specific amounts for cleaning specific items or areas. All this should be spelled out as clearly as possible in your lease, and your lease should follow local laws.

If there are areas where the tenant has damaged the paint, aside from normal nail holes, I deduct the cost of a fresh can of paint. I do the touch-up myself and don't charge for the labor. I do this no matter how long the tenant has lived in the rental. I take pictures of the damage and the repair.

By the way, I don't allow nail holes or screw holes or any kind of adhesive fixative on doors, interior or exterior. If they want to hang a wreath on the front door, they can use one of those over-the-door hangers.

On the subject of walls, I install curtain rods and require the tenants to use only those and not to install their own. They are not allowed to move or alter any shelving. They can use only stand-along shelving in the garage.

I was selling a rental as a FSBO. An agent that I had no relationship with drove to my house to "help" me. She showed me a printout of my FSBO ad on Zillow and said she knew that I had received a lowball offer that, in fact, I had never received, but it was close to a lowball offer that I had received only by text. That lowball offer was from, I'm guessing, a wholesaler, and the agent wanted to assure me that it was a "scam." She said, "They sell those contracts over and over." This was how she was "helping" me. Why would she claim to know about an offer I had received, or an offer very similar to one I had received? Does Zillow make such information available to agents?

@Larry S. what kind of loans were involved with those three purchases?

@Michael 

@Michael Chiafulio and @Jay Hinrichs, thanks for your replies. The appraiser that I referred to in my original post was from the VA. He's the one who said that the price my buyer had agreed to pay for my single family house was too high by $10,000. As I said, today, two years later, that house is worth about $40,000 more than the price my buyer was allowed to pay.

This is a technical question that arises from the painful experience of having an appraisal come in low. It happened two years ago when a VA appraiser, citing comps, said that the price my buyer had agreed to pay for my single family house was too high by $10,000. Today, two years later, that house is worth about $40,000 more than the price my buyer was allowed to pay. So can someone please explain how prices in general can rise over time if appraisals are based upon comps?

@Dustin Allen, thank you. Yes, this property is on the market in Florida.