All Forum Posts by: Sam G.

Hi Guys,

I'm working on updating my leases for future tenants. I learned from on landlord on BP that charges a break lease fee that is almost close to the rent amount, thus allowing him to legally keep the security deposit in the case that the tenant breaks the lease. I understand that if this option was used, then the landlord couldn't try and collect any further damages for breaking the lease. I figured that collecting lost rent is an uphill battle, so I'd rather opt for the 1st option. Do any Chicago landlords see any issues with this?

I've also considered adding on a penalty for every day the tenant refuses to show the unit beyond 48 hours notice. I want something that will protect me from tenants that will just ignore requests for inspections and showings and I feel that a penalty will motivate them to be serious about working with me to be able to come see the unit. I'd really like to avoid unnecessary vacancies and would like to at least have the option of showing a unit as soon as I know the tenant won't be renewing. Whether they keep is tidy is another topic! Any thoughts on if this kind of penalty would be ok in Chicago?

This def helps thank you! 

I've worked while taking a few classes before but never with the responsibility of having tenants and a mortgage. As a somewhat new landlord, I'm still getting accustomed to repairs and the possibility of non paying tenants. This has led me to question whether I can carry the property in the case of major unexpected repairs or vacancies. The program is an accelerated full time program with most students not working. It would be a total career change for me as  never completed school. 

Thanks guys, I think I have to plan to rough it out and budget like crazy. 

Well, it cash flows about $800 month. That's good advice, to take it 1 semester at a time. I think my biggest issue is not having the security of a stable income while holding on to the property when in school. 

I've read a lot about landlords investing in student rentals but haven't found much about landlords that become students. 

I have a 3 unit that cash flows very well for me with great tenants and minimum maintenance. I'm strongly considering going back to school for a career change in order to increase my future income and buy more real estate. I have some money saved up in the event of evictions/repairs/turnovers but I'm unsure if it's enough to rely on the property to pay for itself through cashflow and a small savings. 

I won't be working while in school so this has led me to contemplate selling a cash flowing property., which I hadn't planned on doing. 

What do you guys think? How much savings would you need to have in order to feel safe? What are some factors to keep in mind? 

 It recently passed Berwyn inspection (July) and is compliant. But of course Berwyn requires an inspection with every sale and the seller will be responsible for any required repairs since it is a regular sale. I don't see anything coming up since it was recently inspected and passed with flying colors. 

Also got exact sq footage:

1st: 930

2nd: 868

3rd: 390

zip code 60402 not 60625

Easy to manage 3 unit in HOT south Berwyn! Great option for a house hack. Location can't be beat and always rented with yard sign only. Tenants are on yearly leases with one ending in May, which can be great for owner occupied. Great and CLEAN tenants that are easy to work with. Coin laundry bringing in additional income as well! Can provide all income details and willing to work with the right buyer before considering going with an agent. Property is currently only for sale on BP. aAssumable FHA loan option available at low interest rate! Cash flow from day one or live for free! Recently won lower tax appeal so taxes will be considerably lower than now! Will cash flow even more starting from this fall.

Berwyn, specifically south berwyn is rapidly appreciating due to its proximity to the city, easy metra accessibility, housing stock, and affordability. 

I can send tons of pictures and details on the property.

This reply is perfect!

There wasn't any insulation there before but they WILL put it up. This plumber was referred to me by a family member actually. The shower water was just pouring down in the basement every time it was used and because it was in a rental I didn't want to delay the repairs so didn't have the chance to shop around. Also had a frozen pipe in a laundry room as well (among other things that kept going wrong that day!)

I've read a lot about not hiring a tenant to do any work and am definitely against it. I guess my issue was more so dealing with an angry tenant that's having work done on their unit. Btw tenant requested we stop work until Friday because she had enough of the debris/disruption. I smoothed things over by offering to pay for dinner one night. 

For  a new landlord it can be intimidating to deal with a tenant during repairs, especially when they get family members involved. But I'm trying to get through it with the help of BP!

Currently I'm having a new shower put in because the old one failed and is leaking down to the basement. Also some rotted wood framing in that area being replaced. Tenant's brother called me saying he was told they would not be putting insulation in the shower walls because it's already insulated from the other side. Siding exterior btw. He questioned how much I trusted these guys and that he does this for a living and that's not how you do things and that he felt bad for his sister having to go through this and dust everywhere. 

I told them it will be a 3 day job. This surprised me as well but I'm trying to take care of it. I don't know how to answer the insulation thing. Tell her they think I don't need it so it won't be put up? I don't want to tell him I'm remotely thinking of hiring him for future stuff. I could see a tenant breaking stuff just to hire her brother. Does anybody know if I need insulation there and just insist they put it in?

Also do you go into a tenant's property for repairs when they are not there for an emergency repair?