All Forum Posts by: Matt Devincenzo

I think this is a State specific legal ruling in WI if I recall correctly. I'd personally find the attorney for your new lease and ask him how to address it. If you simply ask the tenant to resign the lease and then there were issues I could see them claiming deception to coerce a lease signing, so at minimum I'd likely shar with them there was a recent court ruling and you need to revise to make your lease legal.

That said even if your lease is void I believe the tenancy would be governed by State law. So it isn't a complete waste, you would simply need to follow the strict reading of the law with no private clauses for consideration...I'm not sure how that plays out since technically if the lease is void, so is the tenancy meaning you could terminate anytime and not wait for the original lease expiration...I'm sure that's covered somewhere, but again I'd ask my local atty what to do given this is such a locally specific issue. 

Like the above poster mentioned, the issue is probably loan type more than the tax agreement. Typically HELOC lenders don't escrow since they're often set up to be in 2nd and rely on the first to check tax/ins more regularly. By pursuing it as a first that's likely where their issue is coming in. I'd look for a cash out refi that includes escrowing the tax/ins as that will probably eliminate the issue.

I haven't done one like this, but I would agree an addendum is the best way to add the extra details. The other things to keep in mind utilities, cleaning before/after (fee, does it need to be dictated?), any personal items to be removed/locked up etc? Otherwise it seems like it should work well enough. 

You could do a roll on silicone roof sealant. Here is a common one I've seen stocked. You'd probably need a couple buckets and a day's labor to do the work, but it should by you a few years and completely seal any leaks for now.

Here is the link to the HUD booklet for the fair housing guidelines. Under the rental section it doesn't make any distinctions re: advertising, but it does under mortgage lending and mentions rental housing. It says that there shouldn't be advertising of a discriminatory preference. My opinion is you should advertise as if you have no OO exemption, and then screen out men/ESA etc when they contact you. You can advertise no pets which will eliminate most people and just deal with the few that do reach out.

Start by going to this thread:

https://www.biggerpockets.com/forums/899/topics/1214813-pm-h...

And review the suggestions @Nathan Gesner shares there for selecting a PM. It sounds like you're getting a realtor leasing agent, which I have almost always seen end poorly. They charge the same amount as a PM for leasing and then you're on your own to manage after that.

Do you need a cash out or just a rate and term refi? If you are currently at say 80% LTV with the HML in place then you could do a rate and term for what are likely to be much more favorable rates than a cash out.

One caveat to what @Dave Foster shared above. The full exclusion only applies if you OO, move out and do not move back. If you do move back in at all then you are back to pro-rating the gain...it doesn't sound like that's the case here, but just another detail to keep in mind.

You don't actually say what the nexus of their problems is. They don't get along; great! But why? He's loud, rude disruptive? Either the neighbor or the tenant could be the problem, but you could only try to fix the issues with your tenant if they're actually causing the problem. Otherwise there's really nothing you can do since you can't get rid of the neighbor, and if the tenant isn't doing anything wrong you have to abide by the lease. 

A few thoughts...

One I had something similar with a neighbor who had my number and texted me after I moved out of my unit and moved a tenant in to complain about my tenant and his dogs. I simply said the issue wasn't a lease item, but he was welcome to walk over and talk to my tenant...he never did. He asked for their number to text them which I declined since it isn't mine to give. The hurdle of discussing face to face was enough to prevent him doing anything for the remaining 9 months and then he moved. 

In this case it sounds like she is really an issue, so I'd give her the happy clause. "It sounds like you're not happy with this living situation, so I'm willing to allow a one time lease break with no penalty so you can find somewhere you'll be happy". She will either leave solving your problem, or may very well stay because the reality is she just wants to complain. If she stays your response is "Great, well then since you are happy here I don't expect you to send any other texts like the ones on XXX and XXX". Now you have confirmation from her she's happy, and have set the expectation that she doesn't text you problems that don't exist. 

If she's out of her lease time then the other thought is simply give her 30 days and re-rent. Even two weeks of turnover and cleaning will be worth the mental sanity that a stable good paying tenant will bring you. Screen well and you'll avoid a lot of these issues.