All Forum Posts by: Lynnette E.

Thanks everyone for your comments.  The actual abuse happened in the adjacent county.  I do not know if it is with any of the children living in the house, probably not.  It went to the grand jury and they voted that 3 charges of child rape were warranted, plus the age charge. So I would not doubt there will be upheld charged and a long sentence when all is done.  The man's brother has/is serving time for the same charge.  

She is trying to find some help with the rent, so it may be an issue.  The lawn work will be an issue too, huge yard and its leaf time.  I am waiting to see what happens on the 5th.  Her problem only becomes my problem when a judge will not put them out in the Winter with Daddy in jail....

I ALWAYS do a background check.  I do NOT accept violent felonies, domestic violence, etc.  So, now a tenant with SIX children in the home is arrested and charged with 3 counts for rape of a child.  He is in jail with a $750,000 bail amount so he will stay there.  His wife who is in college for a degree that will lead to a great job with great pay when she graduates in June, now has full rent to pay, plus the cost of raising 6 kids by herself.  She already works, but now will have her regular low wage job, schooling full time, and will be getting a part time job added to her schedule.  One child is serious special needs.  

She is checking with community services to see if anything is available to help her.  She wants to stay in the house.  It is rare to find really nice large houses that will take 6 kids.  They are now month to month, but with what happened there is no way I can ask them to leave.

Sometimes landlording is hard!

Since the LLC is in your name this is what I would do, but I tend to take a hard line, check with an attorney, even if its just a one time consultation:

1. See if you can just completely close the bank accounts. Open new ones in your area and the LLC's name. Do not tell him where since he is not the owner on the main one and because he took disbursements in violation of the LLC agreement for the lower one. This is called embezzlement. Change the address for everything associated with the LLC -utility bills, property taxes, whatever, to your address.

2.  Contact Airbnb and tell them that you own the houses and are not allowing the other person to rent them out.  Please remove and block listings for those properties.  Cancel all current reservations.  The property is being sold.

3. Transfer the property to your name by selling or whatever your LLC allows to make you whole. Consider the $ your ex-partner took out for personal use and try to match that amount to distribute to you if you transfer it for more than the mortgage. That way you can justify keeping it all. Then change the locks and list it with a realtor that only answers to you. Goal is to sell it quickly before he can react. Alternatively, if there is no equity in the property do a friendly foreclosure between the LLC and you mortgage holder. Have them agree that they take the house back, your LLC owes nothing and they do NOT report a benefit to the IRS for which you owe taxes. This could work if there is some equity over the mortgage owed to cover their costs, but not so much you lose out. You could do this on some property but not other property.

4. If he asks about the LLC, tell him the main one is none of his business and you will not be discussing it. The sub LLC will be closed after the taxes are filed next year, and he will get the bill for his share if the LLC does not have enough $ to cover the LLC's legitimate expenses. Plus you will be filing a lawsuit for the records of income, expenses if needed, so taxes can be filed without criminal errors. And after your (not his, yours) accountant looks at the ledger you will be telling him how much he owes which he will pay you within 30 days or you will see him in small court, and file criminal charges against him for embezzlement. Make it clear that there are consequences for his embezzlement.

5.  In the future, NEVER give up financial control for something that you are responsible for filing the taxes on.  NEVER, if the IRS is holding you responsible, be responsible.

6. Keep the main LLC. Let it go inactive, but you set it up so now you have it if you need it in the future.

7.  Know that this too will pass and be thankful he is known for what he is and shortly will be out of your life.

You are not going to court if you do not have a forwarding address.  You can not serve them.  In my state, TN, the law states that if you do not have a forwarding address, you are to mail the accounting of their deposit to the last known address and if it is not received there the extra deposit, if any, is to be forwarded to the state unclaimed money program.  I also ask them for the forwarding address when they give notice that they are vacating the address and also give them a reminder notice of their right to be present at the close out inspection and ask them to tell me when the property will be completely vacant and a request of a date and time to have that inspection if they desire to be present.  In TN if they do not attend this inspection their rights to object to the condition of the property is pretty much non-existent.  If they attend the inspection, they can only object to items that they object to at the inspection or that the landlord adds later if it is not noticed at the inspection.  

I also send them a text and e-mail after they leave asking for their forwarding address again after they leave.  Then I send them a text and e-mail telling them that I have the accounting of their deposit and a check for any remainder, if any, and again ask for a forwarding address.  So, I have proof that I asked two ways three different times to show a judge, if needed.

I did have a tenant call and ask for the check and accounting once about two months after he left and I explained the process again.  I told him I had the returned letter.  I again asked for a forwarding address and told him I would send a copy of the accounting and a check, if any.  I never heard from him again.

I do NOT send the accounting electronically as they can then change it.  They only get an original signature.

Yes, I write on the envelope do not forward and tell the post office.

Sorry,  I would not know about current rules in CA.  I left in 2017.

 Wow!  I never trust tenants that much!  I am not willing to put my credit rating in the hands of a tenant.  If they do not pay or do not pay on time and the bill is in your name, your credit score will drop fast!  I like my 830 to 850 score...

If the washer and dryer is actually in the one unit, then I would only have that unit be able to use it.  However, if the washer and dryer are in an area that has easy access for both units and is not infringing on either tenant then I would have them share it.  You can charge a lot more for a washer and dryer use.  I get about $100 a month more by having the washer and dryer and have many more applicants than with out them as no one likes going to a laundromat.

Also, make sure you put in both leases that the washer and dryer is for personal use.  I did have a tenant that charged her friends to use my washer and dryer...do not let them go there.

I would put the electricity in their names.  Once you get that tenant that does not pay the rent and you have to keep paying their electricity as you go through the eviction process you will understand that you should always pass the utilities on to put in the tenant's name as much as you can.

In the duplex with the dryer state that the rent was set with consideration that that tenant would be paying for all of the electricity for the dryer use, including the use for the other unit's tenant.  Just be very clear that this tenant is paying for the electricity, so that they can not sue you later over that issue.  And for the other side of the duplex you will need to state that they can do up to maybe 20 dryer loads a month.  Make it so that there is enough capacity for them to do their laundry, but not so much that the dryer becomes a weapon between the 2 tenants if they do not get along.  And put that in their lease, and also state that the reason is because the electricity for the dryer is billed to the other tenant.

Estimate how much the water bill will be and then make the base rent high enough to include the water.  Put in the lease that you pay for a 'reasonable' amount of water.  I would recommend this rather than splitting the bill and trying to collect that amount each month.  Its not worth trying to collect it each month, the time and hassle, for the little amount of difference it will be over a good estimate.  Plus collecting it by splitting it evenly can lead to the 2 duplex tenants getting into wars over who is using the most and if its fair.  And often it is not fair.  Example, I have an apartment and two units share the water.  One is a traveling nurse who is only there between jigs and the other is a husband, stay at home wife, and a year old baby.  It would not be fair to split that bill.  But by having the rent at a set price everyone is happy and know what to expect.