All Forum Posts by: Michael Robbins

I use umbrella insurance. There are usually minimum liability coverage required on your auto. I do not have an LLC for my rentals.

My understanding is that the LLC can easily be pierced anyway so that is why I opted for Umbrella Insurance.

The lease will have to be followed.  Hopefully you have a roommate release clause in your lease agreement.  I would not let them out of the lease.  They have to decide who is going to stay and who is going to go.  Don't let them put you in the middle.  Your concern or area of involvement is the lease.  All the rest, the fight, arguments, etc..are a police matter.

  The roommate that does remain will have to re-qualify (basically reapply) on their own.  If the roommate cannot qualify on their own then they need to find a new roommate and everyone must apply.  If none of that works out then the lease stands.  I have dealt with similar circumstances and that is how proceeded.  There have been exceptions when it comes to domestic abuse.  I am not an attorney, and maybe you should consult one, but that is my opinion.  

I would put them up in a reasonably priced hotel during the ordeal.  I would not provide a rent credit unless the tenant makes the request.  If the weather was better it would not be an issue but that does not appear to be the case.   

I don't know the laws in MS but I would proceed with an eviction then deal with the belongings (according to local laws).  The tenant already sounds unreliably dishonest he/she may come back and claim they never intended to move out etc...  Which, if that occurs, this thing will just be drawn-out longer.  Alternatively, you might consider requiring the tenant to put something in writing stating (not a text message) that they have moved out.

At the very least I would delay closing and determine 100% what caused the flood.  Have the seller sign a new addendum stating that after the remediation you are entitled to a new home inspection.  The addendum should also state that your due diligence period is to be extended accordingly.  Next, I would have a new inspection done.  Try calling another competing restoration company and see if they will send out someone to inspect the work.  Good luck.  

Before dropping your price make sure you look at how long it typically takes comparable properties to rent. 

When I receive a tenants 30 day notice to move out I then send them "move out instructions" according to how the home should be left upon move out (in accordance with the lease agreement).  I also set a "pre-move out walk through."  This way I can point out any potential security deposit deductions and set expectations.  I also remind the tenant that a fell assessment will not be done until they move out.  So if I do end up charging the tenant it will not be a surprise.  

I will not hold a home vacant for longer than two weeks from the time of an approved application.  The tenant does not physically have to move in but their lease should start.  In my case I try to keep it simple and charge a move in amount of the prorated rent plus the security deposit (other charges may apply depending). 

@Iaroslav Demydovych I attach the qualifications on the first page of the application and have the applicant(s) initial.  The qualifications are essentially part of the application.  I leave the stack of applications on the kitchen counter.  If the applicant requests to apply online I email over the application (along with the qualification acknowledgment).  It is also important to to keep the qualifications consistent across the board.  This helps prevent any fair housing violation claims. 

I do not list the qualification on the actual listing though.  I want to have as large a pool of applicants as possible.  

According to the qualifications I use this would be a denial unfortunately.  Qualifications:

1. All occupants over 18 yrs old must complete a rental application and are subject to all credit and criminal background screening.
2. Income - All applicants must supply verifiable proof of income such as pay stubs, personal bank statements over the last 3 months, or retirement income.
3. Rent to Income Ratio - Applicants must have income of at least 3  times the tenant paid rental income. 
4. Guarantor’s income will not be accepted or considered.
   
5. Guarantor's and co-signers will not be accepted or considered.
   
6. Credit Screening - An Applicant with an unsatisfactory credit report will be denied.
   
7. Bankruptcy, regardless of discharge, within the last 7 years will be grounds for denial.
   
8. Rental housing debt, evictions, or collections will result in automatic denial of application.
   
9. All applicants must have at least 12 months of verifiable and positive residency history immediately preceding application.
   
10. All applicants will be screened for criminal history.
    
11. All persons 18 and over intending to reside in the home must qualify in each of the above categories with the exception of the household combined income may be used to satisfy the rent to income earning ratio.