All Forum Posts by: Marcia Maynard

You can make an offer without those two items and adjust the offer later depending on what you find out during your inspection and due diligence.

Instead of relying on the seller's numbers, create your own based on how you would manage the property, not on how he's doing it. Look for the potential.

Sometimes anecdotal information will provide valuable information. Show genuine interest in the current owner and let him know you would be a good steward of this property if given the chance to buy it. Ask him a few open-ended questions, such as what he has liked best about owning the property and what have been his greatest challenges.

Do your pre-offer research quickly before someone else gets the property under contract.  You can find out quite a bit from property records: age, construction quality, square footage, past permits pulled. Google the address and see if there was a time when the property was listed with a description that notes when certain components were updated. Walk the neighborhood. Sometimes a neighbor will engage in conversation and candidly share information about their impression of the property. Know the market rents for the area. Then go with what you got! Good luck!

Our first purchase of an investment property was at age 38.  Twenty-five years later, we're holding 17 rental units (5 SFH, 2 duplexes, 1 eight-plex) that are all cash flowing.  Real estate investing is not a full-time occupation for us, as both my husband and I have other careers. We're within 7 years of retirement and our portfolio will support that, in addition to our other investments and retirement funds. 

Strategy.... Be a person of integrity, be kind to yourself and others, take care of your body (it's the only one you have), be a lifetime learner, set goals, stay the course, adjust to new circumstances, work smart, save more than you spend, don't hold consumer debt (pay off bills every month), build your credit worthiness, maintain a stellar credit score, nurture relationships with others, keep faith in God, believe in yourself, be a positive person, give back to the community with your time, talent, and treasure.

Please clarify "utilities", are you talking about water/sewer, electric, natural gas, oil, garbage/recycling, other?

If the utilities aren't separately metered, then it's reasonable for the owner to keep the utilities in their name and either make them inclusive in the rent or as a "bill back" to the tenants. 

Calculating use can be tricky.  Who's to say the next tenant who resides over the garage will consume less or more than the previous tenant? Or when the current tenant in the main house moves out that next one will consume less or more?  I'd use a percentage based on the square feet of the living space or a percentage based on the number of residents.

Also, keep an eye on the utility bills for unusual spikes.  For example, a spike in water usage could be from a leak in the plumbing system, maintaining landscaping during a dry spell, keeping a vegetable garden, washing vehicles on the property, or doing other peoples laundry.  Overuse of electric can result if the tenant is not using energy efficient lights and appliances, keeping the lights on unnecessarily, using electric heat on with windows open, etc.

Tenants will leave when they need to leave, lease or no lease. Take the high road and make it easy for them and for you.  I agree wholeheartedly with the previous two posters.

Most municipalities require permits for good reasons. Permits and inspections help preserve property values and enhance health and safety of the community.

If you're changing key components or systems, such as structural, plumbing, electrical, HVAC, driveways, etc... then you're going to need a permit to make sure the work is inspected and documented that it meets current code. When we purchase a property, we always look into what permits have been pulled in the past to better evaluate the value and integrity of the structure and it's surrounds.

You wouldn't need permits for aesthetic elements such as:

• Cleaning, painting or refacing cabinetry.
• Replacing cabinet knobs and drawer pulls with simple, modern hardware.
• Installing new countertops on existing cabinets.
• Replacing backsplashes.
• Updating lighting fixtures.
• Updating plumbing fixtures.
• Replacing floor coverings.
• Painting over existing interior and exterior surfaces.

Good photos!  Sorry you're experiencing this.

1. Read the EPA booklet "A Brief Guide to Mold, Moisture, and Your Home."  2. Identify the source of the moisture and mitigate that. 3. Remove the mold by removing the affected drywall and replacing it. In areas prone to moisture we use water-resistant greenboard instead of regular drywall. 4. Check the areas behind the affected drywall to evaluate the extent of the mold growth. 5. Be sure to use appropriate PPE (personal protection equipment) when doing this type of work. 6. Maintain proper heating, cooling, and ventilation in the home. In areas prone to high levels of humidity, a dehumidifier can help.

Most pets provide comfort and emotional support for their owners, but that doesn't make the animal a legitimate ESA (Emotional Support Animal).

Some people try to pass their pets off as and ESA or a Service Animal to avoid pet policies and pet fees.

It's best to establish a clear policy that's in alignment with non-discrimination laws.  A person with a qualified disability can request a reasonable accommodation. For the housing sector, look to Fair Housing laws for guidance.

A legitimate "service animal" requires training but an "emotional support animal" does not. Both can be considered "assistance animals".

Privilege to keep such an animal without it being considered a "pet" requires the tenant to have a qualified disability as defined by non-discrimination laws.

Conditions for keeping a service animal/assistance animal:
1. Does the tenant have a confirmed disability as documented by a qualified professional? 2. Has the tenant requested an accommodation?  3. Does this particular service/assistance animal provide necessary service/assistance specific to the Tenant's disability?

People who fake a disability to get their pet into housing, or on a plane, or into a public place, do a great disservice to people with real disabilities who have a real need for a service/support animal.

Most fakers will back off if the landlord has keen knowledge of non-discrimination law and a procedure in place which requires appropriate documentation. @TJ I'd be glad to talk with you about strategy. This is a topic which trips up a lot of people.  My professional background as the non-discrimination compliance officer for a large medical center has helped me as a landlord too, although different laws apply.

Tax laws are complex and ever changing. You would benefit from the skills of a person on your team who is well qualified to assist you with tax advice, tax form preparation, tax filing, and tax representation with the IRS.  The size of your portfolio, the complexity of your business, and your own skills will factor into the type of professional best suited to meet your needs.  Try to find a professional who is well versed in working with real estate investors and rental property.  A CPA (Certified Public Accountant) or EA (Enrolled Agent) may serve you well. We have 17 rental units held in LLCs and no employees. An EA has been serving our needs very well for more than 25 years. If our business required the more advanced skills of a CPA, we would certainly look for a CPA.  All the best to you!

Not sure about Illinois law, but I doubt a landlord would need to wait for the probate process to commence or conclude before regaining possession of their unit. The landlord may need to arrange to move the tenant's belonging into secure storage, much the same as in the case of abandonment, and notify the appropriate representative of the deceased of the location and process for retrieving the possessions.

It's a difficult situation for all involved that would be made much easier if the landlord prepared in advance for this kind of situation and maintained open and honest communication with the family. If the tenant had communicated to the landlord their wishes in writing as to who else was authorized to enter the unit and tend to their matters in the case of an emergency or death, then the landlord would be better prepared. Perhaps we should be proactive and talk with our tenants about their wishes in advance. Regardless, we still need to follow the laws for the jurisdiction, so family members should do what they need to do to establish a legal representative for the deceased and that person should be contacting the landlord.

First, the landlord has a duty to not let unauthorized persons into the unit and to secure the property according to applicable laws of the jurisdiction. So I'm not surprised the landlord changed the locks. The landlord also must make sure the appropriate authorities have been notified about the death and the body has been removed.  He must also take steps to vacate the unit and prepare it to re-rent.  The rightful heirs of the deceased will need to wait for the executor of the estate to sort out the process and work with the landlord.