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All Forum Posts by: Rob S.

Rob S. has started 2 posts and replied 64 times.

Post: OFF MARKET 9 DUPLEXES INDIANAPOLIS 18.1% CAP RATE

Rob S.Posted
  • Investor
  • Portland, OR
  • Posts 65
  • Votes 46

@Charlene Gaard I am a cash buyer and interested. Send me the financials and condition report of the properties. Thanks

Post: HELOC used for purchase of SFH rental, now what?

Rob S.Posted
  • Investor
  • Portland, OR
  • Posts 65
  • Votes 46

@Ryan Ellis What @Kevin Romines said is spot on. Good luck!

@A G. You need to check what the Washington landlord/tenant law says as the law will override the standard NWMLS form. In Oregon, your lease can't stipulate that a tenant will forfeit security deposit for breach of the rental agreement. That can be interpreted as charging liquidated damage which is prohibited by the Oregon landlord/tenant law. Your lease can however state that landlord will claim and retain part or all of the security deposit necessary to cover landlord's damages due to early termination. It's basically saying the same thing but the terms used to say it matter otherwise requiring a tenant to forfeit his/her security deposit may be interpreted as requiring liquidated damages at the time of the agreement. Note that this is based on Oregon law. You need to find out what the Washington law says about "liquidated damage clauses" in rental agreement or consult an attorney.

@A G. One more thing, based on Oregon law, if you charge a tenant a fee for early lease termination/breaking the lease then you can't charge the tenant any rent for the remaining months in the lease term or for advertising cost etc. From your lease posted above "In addition Tenant agrees to pay any re-rental costs incurred by the Lessor ... advertising costs, statutory costs and a re-lease fee as follows: one month's rent.

It looks like the one month rent for re-renting which is in your lease may be construed to be a fee for early lease termination. That may also be what your tenant is referencing. In Oregon, you can't charge a tenant early termination fee and turn around and charge rents for the remaining months in the lease term or for advertisement. You need to research and see what Washington law says about charging early termination fee and rents for the remaining months in the lease term.

@A G. As long as your neighbor (the owner) didn't take advantage of the tenant in any way, and as long as the previous property manager didn't take advantage of the tenant, I don't see how changing a property manager or consultant removes tenant's responsibility to pay rent. Now if tenant was taken advantage of or harassed by any of the parties involved then that is a different story. 

As far as the part of the lease that you posted "If Tenant vacates prior to the expiration of the Lease term, the entire Security Deposit shall be forfeited"; 

Based on Oregon landlord/tenant law which the Washington law is similar, a rental agreement/lease can't stipulate that a tenant forfeits all of his security deposit. 

Your lease can stipulate that lessor/landlord will claim and retain part or all of the security deposit necessary to cover lessor's damages due to early termination. So, that may be why your tenant quoted the "severability clause" to let you know that the section of the lease stating that he will forfeit his security deposit is invalid per the law.

But what your tenant failed to realize is that the same law states that he is liable for rent for the duration of the lease or until lessor re-rents the property whichever occurs first.

I always advise landlords or property managers to read and master the entire landlord/tenant laws in their area or hire an attorney otherwise the pro tenants will take them for a ride. Again, good luck to you and your friend.

@A G. Inform him in writing that RCW 59.18.900 which he is referencing does not relate to terminating a lease without recourse. Tell him that you will be putting in good faith effort to re-rent the property but that he would be liable for rent until the end of the lease if you are not able to re-rent. Tell him to notify you immediately in writing if he is called to active military duty, victim of domestic violence/ stalking, victim of landlord's harassment or if the dwelling is unsafe to live in. In the meantime, start advertising the property for rent. It looks like you have you one of dem professional tenants. Good luck!

@A G.

RCW 59.18.900 talks about severability and does not relate to terminating a lease without recourse. You need to confirm that this is the code of law that your tenant quoted in the notice.

Unless there is a very recent change in the Washington Landlord/Tenant laws, your tenant is bound by the terms of your lease and is liable for rent until end of the lease, except if the tenant is called to active military duty, victim of domestic violence/ stalking, victim of landlord's harassment or if the dwelling is unsafe to live in.
Even though the tenant may still be liable for rent, since he has given notice of early termination, you must mitigate lost rent by putting in good faith effort to re-rent the property at fair market value. Now, if you can't re-rent the place despite your good faith efforts, your tenant is liable for the rent, again unless he/she is called to active military duty, victim of domestic violence/ stalking, victim of landlord's harassment or if the dwelling is unsafe to live in.

Post: What's the best or most useful clause in your lease?

Rob S.Posted
  • Investor
  • Portland, OR
  • Posts 65
  • Votes 46

Yes we have a late fee cap. Flat rate late fees must be reasonable and customary to what other landlords in the market charge. And late fees calculated in percentages are capped by law.

@Will Gaston

Post: What's the best or most useful clause in your lease?

Rob S.Posted
  • Investor
  • Portland, OR
  • Posts 65
  • Votes 46

@Will Gaston Make sure that your lease and all the suggested clauses comply with your local landlord/tenant laws. In Oregon for example, you can't make half deposit refundable and half non-refundable. It's against the law in Oregon to charge tenants certain fees. In fact, the law stipulates fees that landlords are allowed to charge. And, you can't apply rent to late fees in Oregon. So, I'd say, study the law in your state and make sure your lease is compliant. This may not directly answer your question but may be helpful to you when you need it most.

Post: Evict for nonpayment of late fees?

Rob S.Posted
  • Investor
  • Portland, OR
  • Posts 65
  • Votes 46

@Kathy Brasby It depends on what your state law says. In Oregon, you can definitely evict for nonpayment of late fees as it falls under "material violation of rental agreement". First time nonpayment of late fees, the tenant gets a 30 day notice of violation of rental agreement with a right to cure. Second violation within 6 months will get 10 day notice for repeat violation but with the second violation there is no right to cure and you can file for eviction after the 10 days. There are of course other technicalities to follow to successfully evict but all the steps are spelled out in the law. Note that the process above is per Oregon landlord/tenant law.

My advice to every landlord I talk to is this: Learn your state's landlord/tenant laws, make sure your lease complies with the law, follow what the lease and law say, be fair but firm when it comes to performance of the terms of your lease.