All Forum Posts by: Matthew Dennehy

Evictions are never easy, but you want to make sure and handle them the right way.

It’s very important to document everything that happens, when/what time it happens, and where it happens/where you are when you receive a text or call. Some of this matters for the eviction and some is important to determine jurisdiction in a criminal matter.

If a tenant makes threats against your health and safety or continues to harass via phone or text, go to the police right away. It’s important not to let things escalate, and the police will either be able to diffuse the situation or resolve it. So don’t wait on this. Even if you don’t believe the tenant will follow through, you don’t want to risk a bad situation.

Also, check your state laws, but threats can have an impact on your eviction. In NH we can evict based on health and safety and it requires a shortened notification window. Additionally, the judge takes it into consideration if the tenants ask for a discretionary stay.

Revising your lease without speaking to an attorney is never a good idea. Your lease form has been prepared to comply with specific state laws and it has been prepared to protect you. You don’t want to risk diluting that protection or worse, voiding that protection from the wrong changes.

Secondly, it’s always important to keep fair housing in mind, even if you’re not at the point where it applies to you. You don’t want to change your lease document for one tenant and not another, even if the circumstances are different.

It sounds like you did the right thing by passing on these tenants. If they brought up any changes that make sense for a lease, just make a note of them for a potential lease revision down the road. The lease I use gets reviewed and updated regularly to make sure it’s always valid, relevant, and in compliance

It’s not a strategy to preselect the wavier, and if done can open a lot of people to liability. That said, it’s likely an error, so if you want the inspection period then just ask the form to be appropriately filled out.  Typically lead inspection aren't part of your normal home inspection, so if you want one done, you will need to get a professional.  The only way to confirm lead is with an XRF gun, which only the lead professionals have because its a regulated item

People do get a little funny about lead paint inspections though. Lead paint is one of those things everyone know exist in old houses, but no one ever gets tested because they don’t want the knowledge compelling them to abate. Lead Abatement is a very expensive project and averages about $10-15k/unit around here, with the amount of lead being the biggest factor in cost.

The biggest concern is always the old windows, they are responsible for 86% of your lead problems. Vinyl replacements can take care of that problem and then it’s a matter of maintenance and ensuring paint doesn’t chip, peel or flake.

When you’re house hacking your own personal house, or apartment/unit, then my preference has always been to get a friend or relative. It’s almost identical to a roommate situation, which people do successfully all the time. Just make sure to be up front about the expectations and costs up front.

Your alternative is to rent a room to someone you don’t know. People do this successfully, in fact I just place a tenant in a vacant unit who has lived in this situation previously and the owner said she would not have re-rented to him just because of a clash of personality. An otherwise “clean” candidate, I haven’t had any issues with him.

It seems preferable to me to take a risk with losing money vs having to live with someone you might not be completely comfortable living around (and not necessarily because they’re a bad tenant). It is your house after all. At least with a friend, you should have a better idea of who they are.

Renting units to friends and family that aren’t house hacks is very different. I have done this a few times, but with the constant awareness that future problems may arise.

You can let the lender know about the problem you have with the appraisal and they should be able to get another appraisal. If you have the contact information for the appraiser, you can even contact them directly and ask why it’s so much lower than the previous appraisal. Perhaps even sharing the other appraisal with them.

Appraisals can be funny sometimes. Almost like a shot in the dark, you never know where it will land.

It’s best to run two separate calculations. First, calculate your income and expenses for the first few years while you’re living there (only include actual rent from units you don’t occupy). Next calculate you income and expenses when you move out (all projected income). If the property makes sense in both these scenarios, you can feel safe proceeding.

When it comes to financing, lenders often let you include 75% of the gross income of the property in your debt to income ratio when qualifying. That doesn’t include projected rent for the unit you will occupy.

+1 vinyl plank flooring

It’s cost effective, durable, waterproof, and with modern technology it looks great too. Many people are using it in residential apartments, to single family homes, to commercial spaces.

I typically still use carpet in the bedrooms because I can get some great deals and people like it in bedrooms. But everywhere else is vinyl plank.

At a minimum you always want to screen holdover tenants and have them sign your lease. You can’t do this if they’re on a current lease, but leading up to its expiration you certainly can.

One consideration you might have is the condition of their unit. If it isn’t up to current housing code or there are significant defects, then you want to address those up front, which might require the rehab.

Also, if you have extra cash burning a hole in your pocket and no other place to invest it, it might be wise to rehab for a better return.

Otherwise, letting them stay might be a much easier route. Just make sure to bring rents up initially to where you need them to be, it won’t get easier by waiting longer for that.

I downloaded the state specific lease from BiggerPockets when I became a Pro member and compared it to the lease I currently use to see how it stacks up. It’s actually quite good. Of course an attorney is good too.

An attorney is the best place to get advice on this matter. It sounds like you acted within the scope of the 7 day window, but the entire contract should be considered to be sure. Additionally, there might be a liquidated damages clause that would preclude anything the buyer is claiming anyway.