All Forum Posts by: Kyle Meyers

I rehabbed a rental property this year that had no dining room. To give a good space for an eating area, I took out the cabinets on one side of the kitchen and extended them on the other side so there is a large space where a table could be placed. I did not stage the property to rent it, but did mention to potential tenants that part of the remodel and how well a table could fit there. I think either telling buyers where a table could go, or staging the space will get them to see how it can work.

I am getting a cash out refinance mortgage on one of my rentals and will be using the cash to rehab another property to rent out. As I understand it, the appraisal fee and some other closing costs are not immediately deductible. Are they amortized over the course of the loan or do they get added to the property basis? Also, should I deduct them on the schedule E for the property with the mortgage or the one I will be renovating with the funds?

I agree with Bill Gulley, have them sign an addendum: Landlord and tenant agree to extend the term of lease originally signed XX/XX/XXXX through XX/XX/XXXX. Monthly rent will be $XXX.XX. All other terms will remain the same.

My lease is 17 pages, I wrote it myself based off of several samples, real estate law classes, landlording books, and several websites including this one, then had it reviewed and edited by my attorney.

I mostly just categorize by schedule e line item when I enter into my accounting software. Repairs are to fix something broken. Maintenance is to upkeep a property and keep it in good condition.

I have a few 2/1 rentals and a few 3/1s, don't have any 3/2s at the moment. I haven't had them long enough to really know if there will be a difference in the average length of tenancy between the two, but I have not had any experience that would cause me to avoid more 2/1s.

In my area a lot of apartment complexes have security deposits that are only $200 or $300, I don't think I would set mine quite that low, but I do think that if there is a difference between the rental amount and the deposit amount the tenant will be less likely to think of the deposit as their last month's rent. Other than that, I think Mark Yuschak has it right with sending them a pay or quit notice.

Read the instructions for lines 1a, 1b, and 2 for schedule SE, I don't think you will have anything on these lines if you just have income for line 17 on 1040. My schedule E rental real estate income is on line 17, and is not included on my schedule SE. You should probably check with a CPA for advice on your individual situation.

I don't believe there is a maximum late fee you can charge, though it cannot be punitive and must be related to your liquidated damages. I like to charge a lower daily fee instead of a large one time fee, because it better reflects my liquidated damages, also the tenant still has incentive to pay sooner rather than later. As for giving notice to change the terms, I believe 30 days is required, buy I would go with 60 days to be safe.

I would not recommend having the tenants pay separately and chasing each for "their share" of the rent. Your lease should state they are jointly and severally liable, so you should serve both with a 3 day notice and enforce your lease terms.

I am not an attorney, and I don't manage properties in CA so check with your attorney to make sure all of this is right for your situation.

Update on the Vuezone and TruConnect combination security system I mentioned before. The Vuezone cameras work alright if you just want to be able to watch live, you can get a good idea of what is going on at your property, however the video quality is poor and when recording a clip from the motion sensing, there is not enough to identify someone in the picture. The motion sensing also has a lot of false alarms. I never got the TruConnect wireless hotspots to work, didn't spend much time on it once I found the flaws with the camera system. Luckily there were no break-ins at my most recent rehab, though the neighbor told me she called the police one night because she saw someone snooping around.

The HOA dues should cover a portion of long term capital expenses which are a part of the 50% rule, but normally not something you set aside money for each month. There are sometimes additional costs as a result of poor management which would not be covered under the 50% rule. And of course, every property is different and the 50% rule is a estimation guideline, not a true rule. Learning about the budgets, including reserves, and the management of an HOA is very important before buying.