All Forum Posts by: Ray Harrell

Yes you can begin exterior work. Yes, you are liable for the tenant and any eviction if they choose not to leave after October. Get used to communicating with tenants you are evicting. Don't incentivize until they are still there in November. No need wasting $1,000 if they are going to leave anyway.

don't respond for 30 days.

Also, installing windows means you will have to get a structural engineer to see if a bigger window can handle the load, especially if you have a brick building.

One thing I didn't factor in my review, along with vacancy, is delinquency. If ur in D area, figure a good 25% for delinquency. Vacant units you can fill to get the cash flowing. Delinquent units you cannot. Along with delinquency, calculate cost of removal.

Do other rentals in your area have washer and dryer? If so, Keep it and make sure the rent covers all the utilities. FYI, when people don't pay utilities, but have free reign, they will leave things on for no reason. They may even allow friends to come use their FREE washer and dryer. Imagine your water and utility bills.

I believe you can have the utilities taken OUT of your name, and provide the name/number of the tenant to ComEd.

Why not just include electric with the rent? The cost of a meter box and separate panels is EXPENSIVE!!! If renters go into the deal knowing electric is included, they shouldn't be pissed off. But make sure you charge enough in the rent to cover even the most extreme bills. Find out what the highest bill was in the past 5 years and divide it by 2 and add that to the price of each tenants rent.

Originally posted by @Greg Dickerson:

Originally posted by @Ray Harrell:

I want to follow this, because if my property doesn't sell this month, I may consider this option. My only concern is, what if the person taking the lease doesn't maintain the property or allows violations to occur, and then backs out? He has taken all the profit and done none of the repairs, and you're worse off than when you started.

You need to really get the buyer/lessee and have your attorney structure an ironclad contract that addresses all your concerns.

The problem still is, people enter and breach contracts all the time. No matter how ironclad, if someone doesn't want to do something they don't have to do it. My remedies would be limited to the resources that the lessee already has, which in these cases is likely nothing. That's why they couldn't secure financing to purchase outright. Am I thinking about this correctly?

I want to follow this, because if my property doesn't sell this month, I may consider this option. My only concern is, what if the person taking the lease doesn't maintain the property or allows violations to occur, and then backs out? He has taken all the profit and done none of the repairs, and you're worse off than when you started.

I would look at some case studies of what happened in areas where rental ceilings were implemented. Illinois has no ceiling, so in theory, I could raise someone's rent from $500 to $1,500 upon new lease, and there is no law stopping me. In Chicago, this likely happens often in areas that are quickly gentrifying. If there was a limit, areas would improve more slowing.