All Forum Posts by: Mark Wolka

I had a tenant who grew "Medical marijuana" in a rental property in Warren, MI.  They did not disclose this to me until I smelled it during a maintenance visit.  I informed them that I smelled marijuana and was told me one of the renter's mom that the grandma also living there was growing pot.  I had the police come and check the house.  When they did, the paperwork was magically on the door.  They were only growing one plant in a tent, which the police officer said was pretty fancy compared to other grow operations he'd seen.  The fact that only medical marijuana is legal on a state level, recreational use and Federal law are illegal, prevents me from tolerating someone to grow in the rental.  I went so far as to include a marijuana no grow/use clause in the lease agreement for the next tenant.

Ultimately, it is up to you to decide if the reward of 1.5 times rent is worth the added risk and liability you could incur.

What does the property appraise at?  My brother owns a house in Warren with similar numbers, but he is underwater on the mortgage (bought in 2004-2006 time frame).  Add in additional maintenance costs due to the house being older (1940's construction) and not maintained well previously, so rent does not cover costs.

Thanks, Jeff and Marcia.  I do not think the PM company we now use has the terms stated in the lease agreement for tenants as in your example.  In the PM/owner agreement, they have terms stating how money in the account is distributed, but that is another thing all together.  I'll mention it to the PM to include in the lease agreement going forward.

Thanks again.

Mark

Marcia,

I suspected current month's rent would be last.  Is this in your PM agreement or your rental agreement with the tenant?

Thanks!

Hello,

What is the order that rent, fees, and utilities are applied when a tenant makes a partial payment?

For example, a partial payment of $600 was made for the following due:

$800 rent

$25 pet fee

$35 late fee

$40 water

and the PM takes his cut of $80 (10% of rent).

I understand that if the tenant had any remaining balance from the previous month, that would be paid first.  But then after that, how does one figure out the sequence?

My brother and I are partners, with me acting as the PM, and taking the fee, but we have no formal agreement on sequencing the payment.  We had to kick the tenant out so their last payment did not cover everything.

Please Help!

Thanks in advance.

Mark

Thanks for all the comments and suggestions everyone. Currently, they are late on rent so I will probably be able to get them out on that violation, but good to know all of the different angles I have going forward.

PS. Aaron, was that property in Warren? Whereabouts? I am still considering buy another property in Warren, but am definitely looking north of 696.

@Jon, going forward, I will include that in my lease agreement. However, the tenants have been in there for 4 months and I cannot change it at this point.

Michigan law does not require a MMP card holder to disclose the fact to a landlord. There is not a lot of information out there yet, as this is a law only recently introduced. I do not know how many cases have gone to court over this issue yet, but I imagine there will be plenty going forward, especially for concerned landlords and their rights.

I have a tenant who has an MMP card and is growing marijuana. It is not clear on the landlord rights to have access to the room. According to the law for the grow room, only the caregiver and patient should have access to the room:

"“Enclosed, locked facility” means a closet, room, or other comparable, stationary, and fully enclosed area equipped with secured locks or other functioning security devices that permit access only by a registered primary caregiver or registered qualifying patient. Marihuana plants grown outdoors are considered to be in an enclosed, locked facility if they are not visible to the unaided eye from an adjacent property when viewed by an individual at ground level or from a permanent structure and are grown within a stationary structure that is enclosed on all sides, except for the base, by chain-link fencing, wooden slats, or a similar material that prevents access by the general public and that is anchored, attached, or affixed to the ground; located on land that is owned, leased, or rented by either the registered qualifying patient or a person designated through the departmental registration process as the primary caregiver for the registered qualifying patient or patients for whom the marihuana plants are grown; and equipped with functioning locks or other security devices that restrict access to only the registered qualifying patient or the registered primary caregiver who owns, leases, or rents the property on which the structure is located..." (emphasis my own)

Does this mean that as a landlord, I do not have the right to keep a copy of the key and access the room to check smoke/CO2 detectors, check for damages, enter in the case of an emergency, etc.?

I have not been able to find anything regarding landlord/tenant law regarding this issue. I will be contacting my lawyer next week, but was wondering if anyone had experienced this before.

Hello,

If you are or know a good, reputable RE agent in Canton, MI area, please respond below or send me a message.

Thanks,

Mark

Joe,

Does it appear that houses are being sold to investors looking to rent or to owner-occupiers who are trying to buy at a low period? I am looking to purchase another SFH to rent in the next year or two in a suburb north/northwest of Detroit (possibly Warren, but preferred on the west side, ie Livonia, Canton, etc.).