All Forum Posts by: Daria B.

 No not taking any additional fees just not reporting it correctly and inflating my 1099 since it included the utility.

 There is a % of rent BUT they are not including that - I would have seen that right away and objected or fired them.

I noticed the 1099 was the exact amount of the utility and questioned it. I keep my own records monthly to make sure I get the correct amount after PM % and if there were any authorized repairs by me, which would reduce from rental income.

None of this is the case. The 1099 just has the additional utility with the actual rental income.

It was hard enough trying to find a MD PM in that area. The last one did it but couldn't or wouldn't do the distance any longer (office based in VA a distance away) after 2.5 years. I suspect it was something else they just didn't say. It was a small father and son business. I asked before hiring them would this be an issue and he said no of course.

The PM refuses to log the utility reimbursement from tenant properly, is this really a big deal?

I pay the utility directly, for reasons of ensuring it gets paid and is not the issue here.

The tenants receive a bill copy of the utility and they pay that to the PM who turns it around to me. 

This is a new PM I have and they, unlike previous PMs, are listing this under “rental” and showing it lumped into the 1099. I asked them to correct this and they refuse giving me some lame answer. 

My CPA says don’t worry it will balance out by setting the expense against it and it’s a wash. (my words and description not his)

I have never expensed the utility because the tenant has always reimbursed me. But now I need to save this and give the amount to the CPA.

I am concerned that it shows, however small, that the rental income is more than what was actually collected.

Is this really an issue for me, IRS? I don’t believe it’s proper bookkeeping. I did some research and found several articles that speak of the same situation where I am paying and get reimbursed from tenant clearly showing it’s utility and not income.

I considered the countertop and I think the PM may have suggested that as an option for the tenant to buy. If I supplied that in lieu considering it’s 2 months left on the lease it “should” quell the constant inquiries and provide the missing functionality. And considering the plumbing bill hasn’t been paid, the microwave isn’t at the top of my list. 

The lease is not being renewed and they have already been notified.

I think my biggest issue is the non payment of the plumbing bill, unpaid rent though it was paid by the state and the overall disregard for those things but yet I am supposed to just get this microwave fixed.

If a tenant has 2 months remaining on a lease, who has not paid rent since 9/2021 and has no plans on paying  (and is working) but has had state funds from COVID who finally paid the late rent, complain about a non working microwave, what would you do?

Tenant also owes for jamming up the plumbing and hasn’t paid that bill either.

Yes, the microwave was part of the rental ad and I feel compelled to get it replaced but it’s not an essential part of the house and I wanted to wait for this tenant to be gone.

The PM had the handyman over twice to no avail no solution other than dropping $$ to have another one installed. The unit was broken by a former tenant and the handyman tried some glue that didn’t work on the frame.

Would you just drop more money now and get it replaced? 

I should add this is not a countertop microwave it’s one that requires wiring into existing electrical and mounted under a cabinet over the stove. What if I provide an inexpensive countertop - it’s still something?

There’s no telling if this tenant will cause damages. There was no red flag when the application was submitted and credit and all other checks were done. COVID has made what would be good tenants turn bad.

UPDATE: The more I think on this the more I lean towards just replacing it. I was grappling with the feeling of being at the insistent of the tenant who isn’t paying. There’s more to the unpaid rent/state story and past communication on that but it’s not necessary to air here. 

 I have a former tenant that caused damages and have unpaid rent to about $8k. The PM sent this to collections and said some pay but most don’t. This one hasn’t paid anything. I looked into getting a lawyer but that cost is so much as well.

How were you able to get your money from the collection agency you used? Why did they do so different than other collection agencies?

In my case example though the borrower paid off the note, it wasn't a sale. I mention UPB just for the sake of info.

In your example the principal is paying down the cost basis ($60k). I would need to look at the principal amounts of those payments to reduce the $60k, I get that.

So say, I pay $60k, borrower makes some regular payments (p/i) for 2yr (arbitrary number) then decided along the way to just pay off the note.

Borrower gets savvy and makes additional principal only payments. This should reduce my cost basis, yes, thereby paying back my initial purchase money through the extra principal payments. 

How do you track that? 

I got this from the commission meeting held in September. Much like what the city just did so too will the county.

At their September 28 Regular Meeting, the Alachua County Commission discussed their draft Residential Rental Permit ordinance, which has a proposed effective date of March 1, 2022. It is similar to Gainesville’s Renters’ Rights Ordinance and will apply in the unincorporated county, while the smaller municipalities will be able to opt in but will not be required to participate. The permit application for landlords would include a completed self-inspection checklist certifying that the unit complies with the standards in the ordinance (including energy efficiency standards for attic insulation and attic access and efficient shower heads, faucet aerators, and toilets), documentation of maintenance of the HVAC system, and payment of a fee, which will start at around $70 per year. Units will be inspected once every four years, and complaints will trigger inspections in between. The ordinance will require the County to hire four codes officers and a licensing clerk for a recurring cost of about $345,000 per year.

As part of adopting the ordinance, the commission will also adopt a new Tenants’ Bill of Rights, which landlords will be required to provide to tenants. Commissioner Anna Prizzia said she was interested in adding “some of our human rights… maybe adding them to this Bill of Rights that is given to folks so they know both pieces of it, both the maintenance pieces and just the human rights pieces.” The commissioners decided that they had time to work on that and set it aside.

Gainesville FL is over built with big money skyscrapers now. They continue to build and aren't filled. Far too many apartment complex builds. It's hard to see any balance of SFR to that of multi-units with all these high-rises popping up.