All Forum Posts by: Matthew Lindsey

@Eric James Thanks

@Nathan Gesner

@Karl B.

@John Warren

Thank you all! It’s pretty clear what I should do. That was my first thoughts however I had recently read some comments on other post on here that made me second guess my thoughts. I’d like to start my journey into multi family property on as much of a correct path as possible. Again thank you for your opinions.

Matt

@John Warren

Thank you for your reply. I respect that opinion and can see where that makes sense. Would you recommend doing as I mentioned by offering the other unit to them once it’s renovated for the higher price. I am very certain that it won’t take the 60 days that they have to move out to renovate that one unit. I thought about telling them that if they want that unit that they will have to move into it within 30 days but I’m not sure if that causes any legal issues.

Thanks

Hi,

Im getting close to closing on my 1st multifamily property and I'm in need of advice and opinions. A little background on the property: The property is 2 brick ranch duplexes on crawl spaces and on one piece of property. 3 out of 4 units are occupied. I have asked that the other unit not be rented out until I take over. I plan to do some light renovation on the 1 unoccupied unit and put it back onto the market. The tenants are month to month with verbal leases, I have signed estoppels. The tenants have been there 2,10, and 13 years and there are no tenant applications or anything for me to look at. The owner just inherited the units and doesn't want anything to do with them so he doesn't much information. My questions is:

- Unfortunately, the unit of the 13 yr tenant needs work pretty quick in my opinion. I believe they are still happy and not complaining because they are paying below market rent. I feel like I need to address the issues in their unit but I don't believe it can be done with them living in it still. For instance, one of the bedrooms has a sagging floor due to a few floor joist needing to be replaced and their bathroom needs the same thing. I feel like it needs to be addressed because if the joist decided to give out then I may have a lawsuit on my hands. My 1st thoughts since I have to give them 60 days notice to evacuate the unit was to renovate the one vacant unit and see if they would like to move in it for good and then that would free up their unit to be fixed. I feel like it wont go over well because the rent on the renovated unit will be a minimum of $150 more per month. On the other hand at least it gives them the option of a place to live and I'm not kicking them out on the street. I just don't see how I can get their unit fixed safely with them in it. What would you do in this case? My head keeps going back and forth from a business stand point to being a nice landlord. I'm sure I need to weigh the fact that they have been there 13 yrs, but on the other hand they are the messiest unit. So much clutter in their unit that my exterminator probably could not treat their unit properly for pest, I guess from being there the longest.

Thanks ahead of time for any information and opinions.

Matthew Lindsey

Hi,

Im getting close to closing on my 1st multifamily property and I'm in need of advice and opinions. A little background on the property: The property is 2 brick ranch duplexes on crawl spaces and on one piece of property. The tenants are month to month with verbal leases, I have signed estoppels. The tenants have been there 2,10, and 13 years.

My questions is:

-I feel like I need to have the tenants sign a written lease once I take over. I feel like month to month leases are better now days especially since they are long term tenants already. With written month to month leases, do the tenants have to sign another lease each month or is there a way to word it in the lease where it continues until I decide not to renew it. I may be mistaken but if they just sign one time when I take over and I just keep accepting rents every month after that doesn't the rules of the lease they 1st signed stay relevant until they leave or I ask them to leave. Can they still be held accountable if they break rules only signing one time? With the lease on BP I got I'm not clear on what the blank in font of month to month is for, if that somehow keeps the lease going until I decide to not renew their lease. I attached the line from the lease: Subject to the terms and provisions of this Lease, Landlord leases the Premises to Tenant from twelve o’clock noon on ____________________, 20______ until 11:59 p.m. on ________________________, 20_____ or ___ on a month-to-month basis (the “Term”)

Any help is appreciated.

Thanks,

Matt

Hi,

Im getting close to closing on my 1st multifamily property and I'm in need of advice and opinions. A little background on the property: The property is 2 brick ranch duplexes on crawl spaces and on one piece of property. The tenants are long term and month to month with verbal leases, I have signed estoppels. My questions are:

1.) I have no information on the tenants. As soon as I close would you have the tenants fill out new tenant applications with ID's and just tell them its for our informational purpose and that no background check will be run. Since we need a way to contact them other than mail, etc.

2.) One tenant pays on the 31st of the month and the other 2 pay on the 7th of the month. Would you try to figure out how to have them all pay on the same date or leave it as it is?

Any help is appreciated.

Thanks,

Matt

Hi,

Im getting close to closing on my 1st multifamily property and I'm in need of advice and opinions( I may need to create more than 1 post to get these answered). A little background on the property: The property is 2 brick ranch duplexes on crawl spaces and on one piece of property. 3 out of 4 units are occupied. I have asked that the other unit not be rented out until I take over. I plan to do some light renovation on the 1 unoccupied unit and put it back onto the market. The tenants are month to month with verbal leases, I have signed estoppels. The tenants have been there 2,10, and 13 years and there are no tenant applications or anything for me to look at. The owner just inherited the units and doesn't want anything to do with them so he doesn't much information. My questions are:

1.) As soon as I close would you have the tenants fill out new tenant applications with ID's and just tell them its for our informational purpose and that no background check will be run. Since we need a way to contact them other than mail, etc.

2.) One tenant pays on the 31st of the month and the other 2 pay on the 7th of the month. Would you try to figure out how to have them all pay on the same date or leave it as it is? 

3.) I feel like I need to have the tenants sign a written lease once I take over. I feel like month to month leases are better now days especially since they are long term tenants already. With written month to month leases, do the tenants have to sign another lease each month or is there a way to word it in the lease where it continues until I decide not to renew it. I may be mistaken but if they just sign one time when I take over and I just keep accepting rents every month after that doesn't the rules of the lease they 1st signed stay relevant until they leave or I ask them to leave. Can they still be held accountable if they break rules only signing one time? With the lease on BP I got I'm not clear on what the blank in font of month to month is for, if that somehow keeps the lease going until I decide to not renew their lease. I attached the line from the lease: Subject to the terms and provisions of this Lease, Landlord leases the Premises to Tenant from twelve o’clock noon on ____________________, 20______ until 11:59 p.m. on ________________________, 20_____ or ___ on a month-to-month basis (the “Term”)

4.) Unfortunately, the unit of the 13 yr tenant needs work pretty quick in my opinion. I believe they are still happy and not complaining because they are paying below market rent. I feel like I need to address the issues in their unit but I don't believe it can be done with them living in it still. For instance, one of the bedrooms has a sagging floor due to a few floor joist needing to be replaced and their bathroom needs the same thing. I feel like it needs to be addressed because if the joist decided to give out then I may have a lawsuit on my hands. My 1st thoughts since I have to give them 60 days notice to evacuate the unit was to renovate the one vacant unit and see if they would like to move in it for good and then that would free up their unit to be fixed. I feel like it wont go over well because the rent on the renovated unit will be a minimum of $150 more per month. On the other hand at least it gives them the option of a place to live and I'm not kicking them out on the street. I just don't see how I can get their unit fixed safely with them in it. What would you do in this case? My head keeps going back and forth from a business stand point to being a nice landlord. I'm sure I need to weigh the fact that they have been there 13 yrs, but on the other hand they are the messiest unit. So much clutter in their unit that my exterminator probably could not treat their unit properly for pest, I guess from being there the longest.

5.) Can you and is it normal to have something in the lease that states the tenants cant have so much clutter in their units? Like can you state its a fire hazard or pest issue? Its not like a hoarding issue but just boxes stacked up high along the walls and such. I understand there is not enough storage to hold that many years of your life but there has to be a line drawn somewhere. Not sure how this questions going to go but I'm curious if this is normal and if landlords just let it go?

Sorry- I know that is a lot on one post. If something gets skipped I can just repost that question later somewhere else. Also, not sure which forum I should post this in so I may post it in another as well. 

Thanks ahead of time for any information and opinions.  

Thanks Luciano! That is real assuring. When you you said that y’all go in and and repair and update the property after purchase is that meaning that you repair what needs to be fixed inside and outside and update just the outside? 

Thanks again,

Matt

Thanks for all your suggestions so far. I greatly appreciate the input. I believe that I will ask for the seller to get a estoppel signed  by each tenant before due diligence is over or else I may need to ask for an extended due diligence period. Can I modify an estoppel? The reason I ask is because I was told that a rental increase is supposed to take place about the time I take over. I’m pretty sure that was verbal as well but I’m checking into that. If I can modify an estoppel then I’d like to have it mention the increase somewhere and that the tenants agree to it. 

Judging by what I’m reading I shouldn’t be to worried about not having a written lease or tenant application/ID for the tenants as long as I can get an estoppel, correct? The landlords exact words were that the tenants were month to month at will. Supposedly many years ago they each had a year lease that turned into month to month at the end and they have been there ever since. I just feel that without something in writing I have no control of how the place looks or what the tenants can and can’t do. The newbie part of me felt like all leases had some form of written agreement. I’m just now learning about verbal agreements being a thing.

Thanks,

Matt

Hi Brad, unfortunately I don’t have an estoppel either. I assume that I should have him get this done during due diligence. The landlord has only been in possession of the duplexes for a couple months since his mother passed and he inherited. I’m sure he has no idea what a estoppel is either. Can you suggest a place to get a estoppel form that is legit?