All Forum Posts by: Ravi Kiran

Hi All,

Here is my scenario. Please let me know your thoughts

My tenant originally signed for a 13 month lease in Arizona: starting from Apr 2019 to May 2019. Now she broke the lease, citing safety issue (due to a guy filing a lawsuit against her). The guy was sent by property manager.

Background:

1) when the lease was signed I had property manager draft the lease. 60 day notice needed for move-out. Full rent due until lease expiry.

2) One day, the property manager sent a guy for repair to the property. Tenant’s dog bit the guy. The guy sued the tenant. Tenant claims (but no proof) that the guy is an illegal immigrant. Now

3) In June 2019 I had to fired the Property manager due to some discrepancies. I am directly dealing with the tenant since then.

4) End of May 2019, the property manager forwarded me a Lawsuit notice for the tenant for the dog bite issue. I sent it over to the tenant

5) Now the tenant says she is feeling insecure as she feels the guy who sued her is an illegal immigrant and that she is a single mom staying in the house. She keeps citing Safety issue with the house due to the above issue.

6) she vacated the home by giving just 10 days notice. She says that it’s a safety issue and she need not give 60 day notice.

I only have her security deposit of 1 month. I am wondering if I should insist her on paying rent for 60 days (30 days of rent from security deposit and ask her to pay remaining 20 days of rent + move out cleanup). I am not aware of any law that allows a tenant to vacate without giving any notice. Please correct me if I am wrong. She left the place in okay condition, but now the tenant is expecting the security deposit back.

Please advice on my questions.

1) After property manager left, is my original lease agreement still valid ? As I didn’t sign another one after property manager left.

2) Am I supposed to honour her safety issue (though without proof) and allow her to leave without proper 60 day notice ?

3) I am happy to get rid of the tenant though, but wondering if I should bear the burden of her moving out of the property, as the property is left vacant now; in spite of having a signed lease in place.

Thanks,

Ravi

Thanks for your inputs. Had lot of learnings from this fix & flip. 

I finally took the property off the market in March and converted it to a long term rental. Going back to buy and hold rentals, that's where I belong. Rental market was pretty hot in the neighborhood, got rented in a day. I am planning to hold on to it until next year and put it on sale then. 

Thanks @Account Closed Days on market on Redfin and MLS were reset. But Zillow didn't reset even after relisting with new agent. Thanks for your tip on open house.

Hello BP Team! 

Could you recommend a good Real Estate Attorney (to review tenant leases, purchase contracts, Title etc ) in Phoenix, AZ ? 

Thanks in advance!

Thanks,

Ravi

Thanks @Scott Mac, @Jay Hinrichs & @Account Closed

We let the initial listing expire and had fresh listing with new agent in January. Though days on the market for Redfin was reset, Zillow still shows the cumulative days from October.

When we listed in October we had  comps supporting the price, but since then last quarter was a bit slow, even Zillow zestimate too dropped in past 2 months. Holiday season didn’t help either. Actual foot traffic started in January. Also we didn’t have open houses when we first listed. Now we are keeping it open every weekend.

From what I heard from the Realtor, Couple of people were interested, but in the last minute ended up choosing the other property due to 4th bedroom (mine is a 3/2)

Commom feedback I get is
Pros : Finishes are good, nice pool, Covered Garage, Camelback Neighborhood
Cons : Step down in the backroom, small master bath, no 4th bedroom

This is my first flip. Earlier I was in buy and hold properties.
I bought this home, got it fixed in 2 months, and put it on the market in Oct 18, but having hard time getting it sold

There were few hiccups initially - First of all the budget overshot by 50%. Had issues with pool, after couple of times emptying the pool for repainting the surface, finally had to bite the bullet & resurface after the property was listed. As the budget shot up, I thought of increasing the sale price (that was a bad move though) by 10K

All the feedback I get is
Pros : Finishes are good, nice pool, Covered Garage, Camelback Neighborhood
Cons : Step down in the backroom, small master bath

I've dropped the price by 25K since the property was listed. Holding costs and Interest from Hard money Lender are killing it as well.

• So far I am trying to offer the buyer a credit to get the floor level lifted in the backroom (if someone is concerned about it) and Home warranty.
• I've considered Refinancing, but its only delaying the selling option(as rent wouldn't matchup the mortgage) , moreover closing costs would add up. Also cool down period of 6 months : by then I would be missing the peak summer time - when serious buyers are in the market. So dropped it.

There were many learnings with this flip, but for now I would like to complete this transaction and analyze the issues.

So I request my fellow BP members, who have been through this:

• What are the possible exit strategies at this stage ?
• How could I attract more eyeballs of the buyers : as the days on market is increasing ?

Thanks a lot for your help.

I would be interested to meet. Thanks !