All Forum Posts by: Nancy C.

I recently switched management of my three family over to a management company and they handled new tenants moving in. When I do the move in, tenants sign a condition statement that includes "smoke detector batteries were replaced on 9/1/12 and all smoke and carbon monoxide detectors were tested and found to be in working order". I think this will help later if there is ever a fire to verify that batteries were replaced, etc. Unfortunately, the new management company just sent the tenants a blank condition statement without the above statement.

Do you think it's sufficient that the management company "signed off" on the operation of the smoke detectors, or should I have the management company go back and have each tenant sign something stating that the detectors are in good working order?

I recently switched management of my three family over to a management company and they handled new tenants moving in. When I do the move in, tenants sign a condition statement that includes "smoke detector batteries were replaced on 9/1/12 and all smoke and carbon monoxide detectors were tested and found to be in working order". I think this will help later if there is ever a fire to verify that batteries were replaced, etc. Unfortunately, the new management company just sent the tenants a blank condition statement without the above statement.

Do you think it's sufficient that the management company "signed off" on the operation of the smoke detectors, or should I have the management company go back and have each tenant sign something stating that the detectors are in good working order?

Fabulous advice - Thanks! I especially like thinking about it in terms of exit strategy, since it will be easier to sell a SFH than a multi.

I'm not too concerned with having property scattered all over as long as the PM is good and is willing to keep me up-to-date with photos and video (although I've been using a PM for only 6 months so this could be pure fantasy). I was considering good markets where I have family since I would be going there anyway, hence Denver. I don't want to invest in Boston again because it's really expensive at this point, plus it's a tenant's rights state and I would like to get away from that.

I've been trying to explore the options from a cap rate outlook but have gotten a little bogged down. From the TX investor that I spoke with down here, the cap rate is much better for SFH than MFH in that market. But I need to verify that myself as I am also a believer in take what the market gives you. I like the idea of more truly passive income, but higher returns meets my financial objectives better.

We have no clue where we will end up when we are finished here in Australia, so that's no help. But you all have given me quite a bit to mull over.

I own a three family in Boston that's doing well and I have transitioned it to a property manager while I am in Australia for 2-4 years. I want to invest in the US again to take advantage of the low interest rates, cash flow and better returns than in Australia.

The normal progression for an investor is SF to MF, but I have been connecting with other local investors that have multiple SF's in the US.

Do I buy a couple of cheaper SF's, or another multi? Right now I'm considering the Denver area (because I have family there) and 3 specific Dallas suburbs (because another investor has great contacts that I can leverage, but his experience is in SF's).

I'm doing the analysis at the moment to see which area seems better, but that analysis is skewed if I look at SF's vs. MF's. Or am I making this too difficult? This is probably too broad of a question to throw out there, but I have been running around in circles the past few days and thought I would ask for some advice or guidance.

Ideally, my goal is financial freedom in 5 years, I have about $75K to invest, and am about 1/8 of the way to financial freedom right now.

Thank you all so much for your wise advice. I have written to the PM asking them to nullify the current lease and write a new one.

Thanks so much for all the advice.

Yes, I am currently in Australia and there is a property manager handling the property. They are leaving it up to me sublet vs. new lease. The new roommate and co-signer have all been approved so I feel comfortable allowing the change in roommates, it's just the paperwork that I'm trying to get correct.

The original lease allows subletting. We are definitely doing an inspection once the current roommate vacates. I am leaning towards writing a new lease for everyone because that makes the security deposit much clearer. An attorney friend suggested that things might get murky if I refund the original roommate's security deposit and accept the new roommate's security deposit when doing a sublet (she doesn't handle property though and is a relatively new attorney).

Thanks again for all the advice.

I just discovered this site a couple of days ago and have already learned so much - things I wish that I knew before I made all the mistakes with my current building. I am hoping that the community can help me with a current dilemma (this time I figured I would ask before I just go charging ahead like I have done in the past).

I own a multi-family in Boston and rent to college students, typically 3 roommates. One of my units needs to change one of the roommates because the student is leaving university to take care of a dying parent. They have been very responsible tenants so far, but their lease just started Sept 1.

Do I approve a sublet (it requires all the same paperwork and co-signer paperwork as a normal lease) which I normally do in the summer for students leaving before the end of the lease?

Or sign a new lease with the new roommate since the duration the new roommate will be staying in the unit is 10 months instead of the typical 3 month sublet?

Lastly, is there anything that I need to be aware of or watch out for in releasing the current roommate from the lease? Is there anything I need to have the remaining tenants sign in changing the lease as they are all responsible jointly and severally?

Any help greatly appreciated!