All Forum Posts by: Lyle Cooper

 You nailed it.  Is it really worth putting up a big fight for $800? You know the NYC market.  A lost month in rent is big bucks.

I own a condo in NYC. It's a small building. I've been renting out my unit for almost 10 years. There is an annual rental fee of $1000. All leases are 12 months in length except the most recent lease.

1. The first renter stayed for 2.5 years and asked to leave mid lease b/c she was getting married. The condo board agreed to allocate 1/2 of the already paid rental fee to the next renter.

2. The next renters stayed 5.75 years - leaving b/c they were expecting a baby and needed more space. The condo board refused to apply the 1/4 already paid rental fee to the next owner. Their point was that a) they should never have credited me for the already paid rental fee to the next owner. b) there is wear and tear on the building when new renters move in. After some back and forth I agreed to forfeit the already paid fee. It was only $250. Plus the condo board needs to approve my tenant - so any delay would cause a much larger financial loss.

3. I signed the next and current tenants to a 14 month lease to ensure future renewal happens in the summer. (More demand in warmer months). I paid the 1000 fee. The rental fee was recently due and I paid 2 months of rental fee (~$200) and told the condo board I would pay the full 1000 when the tenants renew. This way, the rental fee and the renewal are in sync. The board returned the payment and requested I pay the full 1000. If the tenants don't renew this year or any future year I will forfeit ~800. This seems a bit punitive and strikes me as a money grab.

The actual language of the by laws : "Each Owner who rents his/her Apartment Unit must pay an annual rental fee of $1,000.00 to Condominium at the start of and each anniversary of the rental"

Any advice on how to handle this? 

Each wants to pay their have separately.

Is there any legal reason not to agree to this?

My tenants damaged the following:

1. Broken bathroom sink with 4" hole in it.  The sink was cemented to the marble countertop so the repair isn't easy.  Repair cost was 1200.  Replacement cost 1000.  I replaced it.

2. Cabinet below sink was completely rotted out and molded.  Drawer was rotten and had to be cut out. 

3. kitchen sink - there was a leak they never reported.  Entire base of the cabinet is rotted out with mold.  The hardwood flooring below the cabinet is molded as well.  

B/c I had new tenants coming in, I was forced to repair and not replace both damaged cabinets.  But I will have to replace them b/f the next set of tenants.

I feel I should get replacement cost for these cabinets and the sink/countertop.  They were brand new, and now their useful life has been greatly shortened.  I am not going to charge them for labor to replace the cabinets.

How do NYC landlord/tenant laws deal with this issue?

 1. rental activities qualify as a business : How do I determine if the IRS considers me as a business or as a passive investor?

-100% ownership

- I have fairly stable tenants - 2+ years occupancy

- I do all the following myself: lease negotiations,  repairs (hvac repair, sheetrock, painting) trash out, etc.

2. Home office is used exclusively for rental business

3. I use the office for rental business regularly.

I have 2 properties that I rent out.  I report my rental income & expenses on Schedule E.  Can I take the home office deduction?

I have a condo in Manhattan that I rent out.  My R/E agent has been pushing me to sell the property b/c he says the market is hot, rates are low, and demand is high.

They suggested an ask price of 2.7mm.  I rent the place for $10,500/mo, and I net $1700/month after all expenses (including 3k/mo. of principal on my mortgage).  From a cap rate perspective, its a terrible investment.

I bought the place many years ago.  If I were to sell, I'd walk away with 1.3mm after commission, taxes, lawyers, etc.

A little background on me: I don't have a job.  I'm renovating a 3 family building in the area.  I occupy one unit.  I had one tenant but they left during covid.  So the property isn't making me money right now.

If I were to sell I'd incur a decent sized tax bill.  I'd like to 1031 exchange it, but I'm so swamped with my 3-family renovation project.  If I were to 1031 exchange it, it would be for a turnkey investment(s).  The only problem is I doubt the bank will give me a loan, b/c I don't have a regular source of income.  My thought process is wait until the my 3-family building is cash-flowing  and then sell the condo.  At that point, I think the bank will lend me money for a 1031 exchange.

Any advise or suggestions are welcome.  Thanks

I know I can start showing at least 3 months before lease expiration.  I didn't talk to them b/c I didn't want to open the floodgates for requests to reduce the rent.  

I sent my tenants a renewal lease 1 week ago. I haven't heard anything back from them. I'm a little nervous b/c the lease expires mid-June. They've been there for 2 years which includes a renewal in June 2020. I kept the rent the same for that renewal and this renewal.

When should I follow up? And when should I think about listing the property for rent and start showing it?

I received my approval letter for my SBA loan for $60,000 30 day ago.  I have 60 days from approval to accept the loan.  I've been delaying taking the loan in order to time it with a large upcoming business expense.  

SBA contacted me directly and said if I'd like to INCREASE the loan amount, I should do so in writing.  I would like to increase the amount.  Has anyone requested a loan amount increase?  If so what details did you provide?

Thanks!