All Forum Posts by: Account Closed

Hi all,

After doing some research, I think that I'm comfortable with the requirements of how to handle abandoned property or items that tenants leave behind after an eviction or left-the-city-overnight escapes...but I'm not as clear on what to do if tenants leave behind something after a legitimate lease move-out and ending. This is in North Carolina, if it matters.

If tenants turned keys over and signed a document stating that they have vacated the property and returned possession to the Landlord, are we under any obligation to keep the possessions (mostly random trash/small pieces of furniture/paintings/food/etc., likely less than $100-200 of value total) for a set period of time, or can we simply dispose/donate as needed?

For what it's worth - this isn't a situation where the Security Deposit could be charged or kept due to cleaning fees (long story), and the tenants did verbally acknowledge that anything left behind could be disposed of. Just wanting to make sure we're not under a legal obligation to do otherwise.

Thanks!

Hey @Ashley Giordano - welcome!

If you haven't already begun to check out the BiggerPockets podcasts, take some time and pick out a few that interest you; they are packed full of great information.

I'm also in the Asheville area...our local CREIA chapter meets once a month for the main meeting, with other smaller sessions throughout the month (including a beginning investor's meeting next week).

Have you thought about whether you would like to do a rehab/flip, or are you leaning towards rehabbing a distressed property and holding it/becoming a landlord?

Best of luck!

Assuming the prospective replacement tenant matches all of your screening criteria and can put up the appropriate deposit of his own, no. At that point, you would see 0 loss of income, yet still be penalizing the tenant - notwithstanding any legality questions, that feels like bad business practice.

Bought it yesterday, almost done with it now - it's been great so far! After finishing the section on using retirement accounts to fund RE, I had only one major question: The income from buy-and-hold RE held in retirement accounts...I am assuming none could not be withdrawn from the account for income until traditional retirement age, correct (at least without some form of penalty or tax)? If this is answered in the bonus materials, no need to re-word. I'm watching that video next!

There are definitely a few benefits to keeping them separate, and potentially legal implications depending on where you invest:

1. Opening a separate account for security deposits will ensure that there's no chance of them being spent - this is the one that might be legally required as well.
2. Keeping a separate "operating account", even if you're not a business, can absolutely help you keep the two sides of your finances apart and more accurately track income vs. expenses and the reserve level that you have for the properties.

Theoretically, if you're using a very detailed budgeting/outflow tracking application or scheme, you could make the operating account unnecessary...but it's a very small action that will help you simplify things greatly, especially around tax time.

Roy N. , do you mind sharing more information or a link to the electronic deadbolts that you are deploying?

Great, thank you very much for that perspective and information!

If others can either confirm what Jeremy's accountant said, or has a different understanding, that would also be helpful.

Yes Jeremy Pace , one single tax bill for all 3 buildings.

Welcome to BP James! I'm in Buncombe County myself - are you primarily in the Waynesville area, or are you also working in the Asheville/Buncombe region?

Hi all, I'm trying to make sure I understand how a schedule E would work with the following situation: Five apartment units total that share the address 123 Main St., each with their own Apt. 1, 2, 3, etc. identifier on Line 2 of their addresses. These 5 units are split across three individual buildings; two duplexes and one SFR. For the Schedule E (and more generally to the IRS), should I combine all 5 units under one "column" or property, since it is one master address? Or instead, is each building on the 123 Main St. address its own property? Thanks!