All Forum Posts by: Michael Craig

@Jacob Suder

Congrats on the property and the potential 3 family! As owners we tend to get antsy when units are under renovation. My experience is to wait until the renovations are 100% complete and the unit is polished. It's easier for the renter to see the final outcome rather than try to visualize a space with construction material all around. Also, why would a renter sign an agreement when a unit is being renovated? For all they know, you could take their deposit and not finish the renovation or half a** the remaining items.

Lastly, you get the most views and inquiries when a unit first hits the market place. It is during this time you want a stellar, fully renovated unit on display. Good Luck!

@Alex Waite

Hi Alex, congrats on the house hack. A lot of ways to go about this situation but I believe the simplest way is to charge the downstairs tenant a flat rate (say $35 dollars a month). This way the tenant is conscious of additional utility costs and they won't feel like you're nickel and diming them each month. This will also avoid the argument of "well you're using more so why should I have to pay as much". 

This will also make the process a lot easier for when/if you get a roommate. Also, same thing for when you get a roommate. Charge them an additional flat fee per month. If you are a respectable person and lead by example the roommate and tenant aren't going to take advantage of the utility usage. If they do then consider changing your strategy.   

@Davon Johnson

You need to go to your cities Municipal and Zoning Appeals Department or Building Department (depending on your city) and file an application/permit. It is up to the city to decide on whether they will approve your request. This process usually takes months and your desired outcome is not guaranteed. 

@Daniel Haggar

Parking should never be an issue and it should be clearly outlined in the lease. Number each spot and assign each spot to a tenant. No one should ever park in a spot that is not assigned to them.  

@Rhett Miller

Hi Rhett, let's say best case you clear $60k profit for selling the house even after paying all the fees and brokers. If you cash flow $400/month you're looking at an 8% return on your equity per year - this does not include appreciation, amortization and tax benefits.

Obviously this does not factor in operating costs, taxes and vacancies but not a bad return when you figure that interest rates are at an all time low. 

It's up to you to figure out the opportunity costs and if that money and your efforts are better used elsewhere. 

@Jonathan S.

Solid points above. If you decide to keep the seller as a tenant, I'd be sure to address the illegal bedroom situation in the lease.

@Kallie Krammes

That is correct. Existing agreements with the tenants and previous landlords are still in effect, even after closing. It is important that you receive a tenant estoppel from the selling party. The tenant estoppel will verify existing agreements an will protect you in the event the tenant doesn't want to abide by the existing agreement.

Inherited tenants can be tricky as they have been living at the property longer than you have owned it. They can feel a sense of seniority. Be sure if you close you are firm and you set expectations early. 

If a tenant wants to renew a lease, it is within your right to screen (background/credit check, etc.).

If an existing tenant is month to month and you decide to keep them, keeping the lease month to month is beneficial as it is easier to evict should the need arise. Long term agreements should be reserved for tenants who have proven to meet your rental criteria.

@Ramon Mota

A final invoice with paid in full written and initialed by the owner/representative is all you need

Hi All,

I have tenants renewing their lease. Typically, I meet in person to sign or have them scan and send me a signed copy.

The tenants are working from home and don't have the equipment to print or scan the lease. Will the lease be valid if the tenants fill out the new lease using a PDF Editor? 

Happy Friday,

Two roommates occupy one of my apartments - this is their third year living there and they are both great tenants. One tenant would like to have their significant other move in while the other tenant would like to move out and be taken off the lease. 

The significant other qualifies for the apartment (screening process has just been completed). What is the most effective way of going about this? Do I scrap the existing lease and make a new one? Do I keep the existing lease and add an amendment?  Your thoughts are much appreciated!