All Forum Posts by: Robert Wodogaza

@Melissa N.; I would start to change things as leases are up.  Either charge a pet fee and increase the rent or give them notice to vacate if your state allows.  I do not want pets in my units and we have a No Pet Policy in place, however we will consider it if someone wants to move in with a pet, but it has to be a pet that is not on the Insurance list of breeds not insurable and they have to agree to our Pet Addendum which I have attached below.  In my state we cannot charge an additional security deposit over and above the equivalent to 1 months rent, but we can charge fees such as a non-refundable "Pet Fee" which is what we do.  We also increase the rent $25.00/Month Per Pet as stated in the Addendum below.

One think to caution you on.  I believe it is illegal to turn away or deny people with "Service Animals" or "Companion Pets" for medical reasons.  Unfortunately you can get a doctor anywhere that will sign off on the need for a "Companion Pet" and a lot of tenants know this.  Hence why your seeing them more and more on flights now.  But despite the law requiring you to accept these pets, my state allows me to charge the same fees as I would anyone else.  They also fall under the same Lease requirements as every other tenant.  So if they are causing a disturbance, damaging property, leaving waste all over the property, etc..  I can warn them and ultimately evict them should it continue. 

 Lease Addendum

Additional Lease Provision for Residents with Pets

This signed addendum shall constitute written permission from the Landlord for the undersigned to have a pet at the location below. No animal of any kind, not provided for and described on this Lease Addendum shall be allowed on the property without the full written consent of the Landlord. Tenant understands and acknowledges that should any local ordinance or rental agreement violations that can be attributed directly or indirectly to these animal(s) will require the Tenant to immediately remove all animal(s) involved from the property within 5 days of receiving notice from Landlord.

Agent, Owner, Landlord, and Tenant further agree that Agent, Owner and Landlord will not be held liable for any damages or losses to persons or property caused by Tenant’s animal(s).

• There is a $25.00 per month charge that will be added to the Rental Agreement for each pet under this Lease Addendum Pet Provision.

• There is a one time (1X) Non-refundable Animal Fee of $500.00 per approved pet which is due upon the signing of this Lease Addendum. The payment of this fee shall not limit, offset or be deemed to compensate Landlord for any pet related damages that may occur during the term of the Lease. Total Amount Due:$ ___________________
• Tenant MUST obtain a Renter's Policy of Insurance that provides liability coverage with minimum liability coverage limits of $300,000 each occurrence specifically for these pet(s), with an endorsement naming Modern Properties, LLC as an additional insured and provide the Landlord with a yearly up to date copy of the policy. Rental Insurance Policy# ___________________, Insurance Co. ___________________.

FORBIDDEN BREEDS Per US Insurance Industry:

Pitbull Terriers, Staffordshire Terriers, Rottweilders, German Shephards, Presa Canarios, Chow Chows, Doberman Pinchers. Akitas, Wolf-hybrids, Mastiffs, Cane Corsos, Great Danes, Alaskan Malamutes, Siberian Huskies, St. Bernards.

RULES:

• 1.Dogs must be leashed at all times. No resident may allow a dog to run free on the grounds under any circumstances.
• 2.All residents must clean up after their pet(s) at all times. Please bring your pet into the appropriate areas and NOT into any common areas, when they need to go to the bathroom.
• 3.Tenants with dog(s) shall not allow any disturbances to neighboring tenants form barking or excessive noise. If a complaint is received the offending Tenant shall immediately make the disturbance stop.
• 4.All Tenants with any kind of pet(s) will be responsible for any damage caused by their pet and will be charged damages.

This agreement applies only to the address and unit written here; __________________________________________.

Animal Type:____________________________ Sex: _____ Weight: _________ Color: ________ Pic Rec. Y / N

Animal Type:____________________________ Sex: _____ Weight: _________ Color: ________ Pic Rec. Y / N

Animal Type:____________________________ Sex: _____ Weight: _________ Color: ________ Pic Rec. Y / N

Tenant: ________________________________ Date: _______________________

Landlord: ______________________________ Date: ________________________

@Stephen Quesinberry ; Thanks for the analysis and pointers, always appreciated on BP.  I have been considering doing my fist flip to raise additional capital for a larger multi-family purchase. Have a good general knowledge of construction and work needed, but nervous about forgetting something in the analysis, so everything I can get my hands on to read helps.  

Will pull the trigger very soon as I am not one to get "Analysis Paralysis" as I call it and not make the leap.  Have already been an investor for 3.5 years and have 2 properties (12 rental units) thus far.  In the process of adding another 15-25 units in the next 10-12 months.  The flip would be to add to our initial capital for the purchase.

Thanks again for posting your experience.

@Jahan Habib, sorry forget to tell you that Smithfield is in RI.

@Jahan Habib, Granites Of America in Smithfield has proven to be very good and reliable with a large selection of granite from very cheap up to very expensive.  

@Robert Smith, you need to join the RIREIG (Rhode Island Real Estate Investors Group).  We are several hundred strong and meet the third Thursday of every month in Warwick at The Hilton Garden Inn.  The group is made up of all like minded real estate investors, flippers, agents, attorneys, wholesalers, mentors, etc..  It is a fantastic resource for anyone in the area interested in real estate investing of any kind and landlord/property management.

@Maria S., I use this web site;  www.zilpy.com

I also use Zillow, Craigslist and other rental sites to see what the going market rates are in my area.

@Thomas S. Just curious if you have something written in your lease regarding the increases?  I know some Landlords that do and some that do not.  I would like to see how the ones that do have it stated in their lease.  

Thanks!

@Alexander Zurn, one more thing. The new rule, or at least the new rule in the last 2 years is that if you don't put 20% down and have to take on the PMI you cannot get it off the mortgage down the road like you used to be able to do once your loan was paid down to where there was only 80% of the value left. So it is best to try and put the 20% down up front. I don't know if this rule would apply on the FTHB Plan, but it's worth fining out.

@Alexander Zurn, the housing stock in RI right now is VERY thin and what is out there is overpriced.  My properties have seen an astonishing 28% increase in equity in just 3.5 years.  Hang in there though and keep looking daily using multiple sources.  There are still deals to be had, but you need to move quickly while doing thorough Due Diligence.

I personally would stick with 3-5 families depending on what you can swing for a down payment.  The 203K program has 2 levels, either a Standard 203K or a Streamline 203K.  The Streamline is for minor cosmetic repairs up to $35,000 where the Std is for $35,000 and up.  You do have to live in the house and you can do the 203K on 1-4 unit homes.  It can be a Condo, but the criteria is different.  

As far as whether to use your First Time Home Buyer benefit, that's a tough call. I guess it all depends on what you want to do down the road and how you see your future in real estate investments going. If you do well you may not need to worry about the FTHB plan as you will have substantial cash flow and be able to put a hefty down payment on your personal residence some day and possibly have enough income from rents to pay your mortgage. You really need to think it through.