All Forum Posts by: Matt Romano

Hows it going BP? Alright, I always find my posts to be way longer than they need to be, so I'm going too try and make this as short and sweet as possible.

Basically, I've always done my taxes myself (turbotax), and never had an issue.  I actually really enjoy doing them.  I'm a total numbers geek. But my previous returns were very simple, basically just my W2 income, and thats it (short of one year I did itemized deductions for tools for my job)

Now THIS year, I've purchased a 2 family home (in July 2017) in Rhode Island that I will "House Hack". I inherited tenants, and have 8K of income to claim.  I also have over 12k expenses that I've made since closing to the end of the year.  I talked to a few CPA's who said that with only one property, I shouldn't have any problems doing it on turbo tax myself again.  But I'm realizing that its a bit more complicated than I thought. Between having to depreciate items over their useful life (27.5 years).  To only being able to partially deduct things to common areas because it will be considered my primary residence.  To not being able to write off ANY improvements to my unit.  Although, my theory is that the improvements I'm making to my unit are to increase rent value for future tenant.  I only intend to live in unit for 1-2 years.  So will I be able to take these deductions in a different tax year? (when its rented). 

I'm pretty sure I'm just going to end up using a tax professional. I just wanted the 2 cents of you guys first.  That's just the start of a list of questions that I'm unsure about with this tax season.  But it's enough to start for now, haha

Also, if there are any CPA's that focus heavily in real estate in the East Bay of Rhode Island, or anywhere in RI really, I'd appreciate any recommendations. 

I have a tenant whom deducted some money from this months rent for the purchase of salt and sand.  She included the receipt of a local store but sent me NO previous notification.  The law here for this type of stuff goes as follows:

Self Help for Minor Repairs

If the landlord does not live up to his or her responsibilities (see subsection 3D) in maintaining the premises (excluding common areas), and the cost to make the necessary repairs is under $125, the tenant may make repairs or have them done in a workmanlike manner. The repairs must be good enough to pass State and local housing and building codes. The tenant may then deduct the actual and reasonable cost, or value of the repairs, from the rent that is paid the following month.

When using self help for the aforementioned repairs, the tenant must do all of the following:

1. 1) notify the landlord in writing of the intention to correct the condition at his or her

   expense; and

2. 2) wait 20 days as specified in the notice to the landlord to see if he or she complies or makes a good faith effort to comply by correcting the conditions; if it is an emergency situation and the landlord can't be reached or fails to comply as quickly as conditions require the tenant may act sooner.
3. 3) when the next rent payment is due, submit a written statement listing actual or fair and reasonable costs of repairs made and pay the remaining rental amount owed.

The tenant can't repair at the landlord's expense if the condition was caused by a deliberate or negligent act or omission of the tenant, his or her family, or persons on the premises with the tenant's permission. 

As far as I'm concerned, thats the only law regarding this matter.  And, it doesn't seem like her deduction meets the requirements. And, if it does, I didn't receive proper notice.  Salting and sanding is maintaining, not repairing.  My lease only states that I'm responsible for snow removal.  I'm currently renovating the apartment above theirs, so it's been a little noisy to them.  I think she's just a bit salty (pun intended lol) about that.  It's a $16 deduction.  It's not the amount of money that bothers me.  Just the annoyance factor.  What do you guys think about this?  What would you do?  

Thanks everyone for the replies! @Anthony Thompson I do not have an LLC yet, but will absolutely hire an attorney anyway. I just wanted to get a feel for the process from anyone whom may have dealt with this type of situation first. Any suggestions on a great commercial real estate lawyer? I know Steve Conti is our go-to guy for residential evictions in RI, and I know he could do it. (he's the one that told me it's illegal to lock the tenants belongings in the garage). But if there are any other attorneys you guys could recommend for this I would appreciate it!

@Ryan Heywood that link would be much appreciated! :)

@Thomas S. I actually already locked his stuff from the inside out, which is technically illegal (according to the attorney I spoke with). There's no paying up with this dead beat, his belongings have got to go. 

Hey BP, I was hoping to get as much info as possible about an eviction process I need to start on a garage tenant. The unit rented is on a residential property. Tenant hasn't paid me since December, and has no intentions to do so.  I reached out to him multiple times, with no response. And I stopped by his residence today to speak with him and try to resolve things civilly, no luck.  I just reviewed my lease with him, and as far as I'm concerned, it has me very well covered. The space is in Rhode Island, so laws are to follow RI evection process. Would it be considered commercial space as its used for storage? I'm under the impression that it should be much easier to get rid of a garage tenant than residential. I have NOT yet sent out my 5 day demand notice for eviction of non-payment. I suppose thats the first step? Is an eviction like this as costly as residential?  How is his stuff removed from the premiss? At his expense? Auction? likeliness of me getting paid my rent? Any light you guys could shed would be GREATLY appreciated! :)

thanks so much for the feedback everyone. Definitely going with the acrylic tub with 3 piece surround. Makes more sense for the type of tenant this unit will likely attract. and the less maintenance is always a plus. I'll save tile for a future project. Any recommendions on specific ones you guys have had good luck with? I see Sterling Accord (made by Kohler) and Aquatic A2 as potential options. Anyone use these? 

Thanks for the replies thus far. Yeah, unfortunately there is no way to fit a 1 piece fiberglass in in the unit, otherwise I'd undoubtedly go that route. Glad to hear some positive feedback about the composite / acrylic stuff.  

How's it going BP family? First off, Happy New Year!!!  I hope everyone accomplished some incredible things last year, as we look forward to another amazing year ahead!

I am currently renovating a 1 bed / 1 bath unit that I will occupy for a short while before renting out and moving on the the next endeavor.  The bathroom is completely gutted, and I was hoping you guys could shed some light on tub / shower combo options.  To paint the picture a little better, I think this unit will rent for at least $800 ($900 if I'm lucky) once its completed and when I move out.  I was going to do a cast iron tub with a tile surround, along with a tile floor.  I understand that this is probably the most tenant-proof option, however I've decided against it recently mainly because Im way too eager to move out of the parents, and I just want to get this project finished and be living comfortably. So now I'm thinking more along the lines of a composite Tub with a 3 piece direct-to-stud surround. Not to mention they have some nice looking linoleum nowadays or even the life-proof floating floor. I believe this could be a much quicker answer to my project, while still remaining aesthetically pleasing and durable for tenant abuse.  What are you experiences and thoughts with this stuff BP?!?! thanks in advance :)

Hey @Russell Lavoie thanks for the reply. The property is in Warren RI, a solid B area of the town.  I think it may be worth the extra $1k. And that's awesome, I would love the contact for some countertop options. Feel free to send it my way.