All Forum Posts by: Michael Buckley

Along the lines of BP growing by the day, and creating a heat map. I think it would be amazing if @Joshua Dorkin got a team together to build a BP Property Management app. They could use anonymous data from that to build a heat map. And it could be a huge income source for the site. Say for example: $2 per month per unit. Plus members get 25% off and pro members get 75% off. Between the staff and members of BP, plus the massive advertising platform; the property management software would quickly become the best and top selling PM software

I never even thought of that. That is a fantastic idea. Not for long term, but a temporary fix to prevent further water damage until it could be replaced

 That's what I was saying. A dedicated escrow account, where the tenant is the account beneficiary. I currently use Chicopee Savings Bank

MA security deposit laws are tricky and complicated and open to interpretation. Which is where people can get into trouble. If the judge finds you did something wrong, you are liable for 3X damages (3X whatever you took for security deposit). My own real estate attorney doesn't take security Deposits for that reason.

I am by no means a lawyer or an expert, however, after reading the laws pertaining to this subject, here is my conclusion:

Security Deposits may be taken upon signing the lease, in an amount that is no greater then 1 months rent.

The security deposit must be placed into an interest bearing account, and held within the Commonwealth. (No large banks, a bank that originated and currently resides in Massachusetts)

Interest on BOTH security deposit and last month's rent, must be either paid, or credited to the tenant annually on the anniversary date of the lease signing in an amount up to 5% (chances are the security deposit will only yield like .05%, which is like $0.20 annually. However, if you don't put last month's rent in the account as well [you are not legally required to] it is safer to pay the 5% then nothing)

You are required to give the tenant information such as, the name of the bank, address, phone number, account number, date deposited, and interest amount (am I missing anything guys?)

It is your best bet to keep the money in an escrow account for that specific tenant. They would be the beneficiary of the account for both tax reasons and upon your death they can claim their money

Yes definitely tell all of your applicants that you do a full background and credit check. Neither felons or evictions are protected classes, it's just like a dirty car.

You should be advertising on both CL and Postlets for your rentals. Postlets is free and sends your listing to all the major real estate listing services.

You should also look at the neighborhood that your property is located in. If it is a "C" or "D" neighborhood, you have a much higher chance of getting those low quality applicants. If I owned n that type of area, I would consider signing up for sections 8. That way I get most of the payment from the government, and you can use section 8 as leverage against he tenants.

I'm in a similar situation, similar income, similar mortgage, and similar rent, plus I pay all utilities as well. When i bought the house I thought I would get $1500 a month rent, I'm getting $1300. I don't like the idea of paying utilities because of them being abused. Currently it costs me an average of $300 a month for utilities. I suggest that you pay to have everything separately metered you don't have to worry about that. it will cost you a couple thousand dollars more upfront but it will save you a lot of money in the long run. and I wouldn't worry too much about who gets the backyard the tenants will use it whenever they decide to if at all

I figured I would be the one eating the cost. I do appreciate them letting me know when they found out as to not make the water damage worse. Taking an unexpected hit like that really hurts the bank!

 The pictures that I have don't show anything on the shower floor as far as mats go, so the tenant did place that mat there when they moved in. I also walked the apartment with them during the lease signing with a "current damages" list writing down any damages that we saw, and I gave them 7 days after move in to add to that list. It was then signed by both of us and a copy was made. The tub was never on that list. 

The shower floor that was in there was fiberglass with foam underneath.

Two prop weeks ago I received a text from my tenant "I just removed the green shower mat that has been there since we moved in (about 3 months) and there is a crack in the shower floor. I don't know how long it's been there." When I took a look at it, it was a spiderweb style crack, right where you would stand to shower.

This is my first tenant since acquiring the property, and I have no significant physical proof that the crack didn't already exist. I have pictures of the bathroom, but no close pictures of the shower floor. 

When i received an estimate, I was told that the shower floor and walls would all have to be taken out and likely replaced. So i had a new tub and tub walls installed. Between the parts and labor, it cost me almost $1,500. 

In Massachusetts, is this something that I can legally charge my tenants for, or take out of the security deposit?

Alright I'll have to look into that, I won't be able to go to any during the week. So BP will be my saving grace for networking, at least for the time being. I did like episode 43! At the time I was still in my learning what things ment, and trying to figure out the basics of education stage. I've just started relistening to it, and now I'm (a little) more experinced I'm take much more out of it. Thank you