All Forum Posts by: Nick Gagel

Is a 3rd account necessary for expenses on the property? Is keeping it in the account (2) above best until lease is up and profits can be transferred into personal account?

Or, should I have a separate account for tenants to pay into, another account for mortgage to come out of, another account to keep funds for expenses, and another for profits? If this is the case, when is best time to submit profits into personal account?

Thank you!

1 Vote

Louisville, Kentucky

Quote from @John Teachout:

I'm curious as to how the rent due date became the 12th in the first place? That's pretty unusual.

Just poor contract language and organization for first rental property. Aligning the move in date with the rent due date. First year was paid in full so it wasn't an issue to begin. Now that the second year is beginning, It has come to my attention.

0 Votes

Louisville, Kentucky

Quote from @Matt Bishop:

@Nick Gagel, keeping the terms of the lease as is will lessen the chance of losing your tenant. Hopefully you have the money to float the mortgage for 11 days. I would suggest, don't rock the boat.

Great thought. Thank you!

0 Votes

Louisville, Kentucky

Quote from @Sergey A. Petrov:

I don’t understand what you are prorating. Doesn’t your lease say *monthly* rent of X dollars is due on Y date? The only thing you are changing is the Y date. Or does it say rent of X dollars for June 12 through July 12 is due on June 12?? That would be a rare find in any standard lease forms. The proration usually happens during the first month of the lease and the rest is monthly rent.

Outside of the above, the only reason you’d even consider any kind of a refund is if your tenants moves out for 11 days, gave you the property back, and then moved back in on day 12. That would be an even weirder situation in the world of renting real estate.

Correct. Month to month contract. Tenants were requesting prorate or refund and my initial thought was no. This all makes sense. I wanted to reach out for guidance to clarify. Thank you greatly for the help!

0 Votes

Louisville, Kentucky

Quote from @Sergey A. Petrov:

There is no biting the bullet. You are not changing the rent amount, you are simply saying X dollars was previously due on the 12th, now that same X dollars is due on the 1st.

There would be no prorate or refund needed for amending from the 12th to the first? Could you explain? Thank you for the help.

0 Votes

Louisville, Kentucky

Quote from @Sergey A. Petrov:

You can change the lease terms via an amendment that both the landlord and the tenant would sign. Whether or not the tenant would be agreeable to that is a different question.
A better answer however is that you really need to build some reserves. If you are relying on this month’s rent to pay this month’s mortgage, your first vacancy (or a major repair) will put you in mortgage default/foreclosure proceedings.

Thank you for your reply! They have agreed to change from the 12th to the 1st. I have an emergency fund (reserves) for the property in place. I suppose I am seeking the best possible way to go about amending without losing out on the money from 11 days of the amendment.This would be the same if they renewed lease and I wanted to change to the 1st for new contract, correct? Or, will I be biting the 11 day bullet either way?

0 Votes

Louisville, Kentucky

I currently have my rent due on the 12th of each month. Mortgage is due on the first. I now know it is better to have that date be the 1st of each month.

2- What is the best way to go about doing this without losing out on money? Or is a refund of those 11 days and amending to the 1st the only way to go about it? This is a 2 year contract and thinking of amending it at the end of this month which is the end of the first year.

Or, is keeping it the 12th of each month for the rest of the year best?

Thank you!

0 Votes

Louisville, Kentucky

All Forum Posts by: Nick Gagel

Nick Gagel has started 2 posts and replied 7 times.

Post: Bank Account Clarity

Post: Amending rent due from 12th to 1st of month in middle of contract

Post: Amending rent due from 12th to 1st of month in middle of contract

Post: Amending rent due from 12th to 1st of month in middle of contract

Post: Amending rent due from 12th to 1st of month in middle of contract

Post: Amending rent due from 12th to 1st of month in middle of contract

Post: Amending rent due from 12th to 1st of month in middle of contract