All Forum Posts by: Kathy Henley

@Dorys Prentice If you are not yet convinced that the applicants qualify, ask them for more information. As the report shows, they have trouble keeping up with their spending (late CC payments). Ask about the write-offs, was it because of a family business and Covid, or they sold their 18 wheeler? Verify their response. Verify their current income. Can they afford the rent? Are they a good fit for the building? It is okay to tell applicants that they are not qualified today and when they clean up a few things you would reconsider the application.

@Linzey Ledesma It is unlikely that a lender would lend more that a property is worth. A developer might be. Do you have experience in ground-up building? Find a partner that knows what you lack. Is a duplex with small units a good deal at $370K? What is the cost of developing the adjacent lot? Get some numbers and keep analyzing.

@William Roy How did you choose PMC to manage your property? Are they the only game in town? If they are not serving you well, find a company that closer aligns with your needs - communication and worthy renewals. Did management verify income of the tenants for the rent hike?

There are other steps to do before filing for eviction. First is to talk to the tenants and ask why (empathy forges a relationship), encouraging partial payments and payment plans. Keeping tenants on the plan (more good communication is important. Second, posting notices for non-payment. And thirdly, following the lease for the consequences of non-payment of rent. Your PM may be doing this without sharing the day by day tedious correspondence with you. Being assigned to a different PM may not be a solution since direction comes from the top. Trust their process or replace them. You need an agent that works for YOU.

@David Cha The expenses for the WHOLE property will be entered on the Schedule E form, when filing your personal tax return. Take a look at the categories on the form and keep track of the year's expenses of each category. No need to break down the expenses by units. As owner and property manager, your internet service may be a business expense, as well as mileage reimbursements for all real estate related activities -  like driving to Home Depot for furnace filters. Keep good records, save receipts. The gas and light bill for your personal unit are not business expenses. The CPA will review the records when preparing your tax return. Ask questions - they know stuff.

@William Hinsche Are you the buyer or seller reading the report? The inspection report calls out the conditions of the property will let the reader know when a contractor should look deeper. If for example the report suggests a roofer take a deeper look, schedule a roofing contractor for a deeper evaluation and a budgetary quote for its replacement, before you decide to continue with the purchase. Same for electrical panel or weird wiring, HVAC, low water pressure (plumber) or foundation issues. The purpose is to find out the costs of owning the property.  As a seller, one hopes that the buyer doesn't make a fuss about the condition of the property. The seller has the option of making the repairs before closing, to avoid higher priced replacement bids.

As the new owner, a handy man might be hired for the minor repairs and the pricey work postponed, if the budget is tight. A handyman can chase a roof leak for a few seasons but it will eventually need to be replaced.  A contractor would be used for the more skilled jobs. Contractors have better tools and know how to use them, have a better relationship with the city inspectors, if permits are required and has suppliers for well priced materials. They have reputations to live up to.  More skills are needed to replace a furnace, roof, electrical panel work, water supply lines, shower bodies, tile work and floor refinishing.

@Kuriakos Mellos What are the local expectations and current market rent rates? If the cost of installing water supply, dryer venting and a drain makes sense, do the upgrade.  My C class tenants do not expect in unit set-up. My grad students near the university expect them and pay more.

@Zach Norris The applicant presented financial documents and qualified for rental assistance. They housing voucher represents the outcome.  If a person says that they could pay more than is on the voucher, they should be encouraged to re-submit their financials to the rental assistance program. Do not help this person commit fraud. 

As is, this applicant does not qualify to sign a lease with you at the rate of $1,850.

@Karim Smail Eviction is a strong word. Do you mean that you do not intend to renew the lease?

The current lease will have a section on how the LL gives notice to the tenant, when discussing renewal. Until the day of close, you cannot do anything. When you become the owner, follow the lease. Inform the tenant's case worker of the notice to not renew. The tenant will sign a form to the housing authority to start the process of finding / moving to their new place. The county will terminate the rental assistance on a certain day, to your property, because you said so.

A person who depends on rental assistance to pay rent, will need every moment to find a new qualifying apartment. If the move-out date takes an extra week or two, the new owner should be able to weather it. Be kind, 17yrs is a life time.

Do you have property manager in AZ to be your eyes? 

@Joseph James Is it on zoom?

Of course you can say no. What does the signed lease agreement say? Mine says no one can live there without the landlord's permission. If a tenant wants a partner or roommate to move in, I do a background check. If they are qualified, the new tenant signs a full lease agreement and the original Tenant and Landlord sign a one page Amendment To The Lease Agreement, acknowleddging any changes, like a rent increase or additional tenants.

If your lease is vague, learn the local Tenant /Landlord laws in your area and get help. Our city has a place for free mediation services for such disputes.