All Forum Posts by: Sean Witherspoon

@Sean Witherspoon hopefully you have looked into the specifics of what restrictions there may be on STR in your area before you put money into it.Also set up processes for turnover and such. If you can't find a handyman now to repair moldings and paint, it will be a crisis when something goes wrong in a STR. In any case though time is your enemy in a turnover. The more time you take the more you lose.

Collen, yes the short-term rental is managed by a company. They handle all maintenance requests, cleaning, and everything associated with the property. It's my job to buy the furniture and such. They handle the setup and everything. They manage the property next door to mine. I was told that in peek season, the house next door brings in $10,000 / month. My house is very similar to that house. That's why my tenants abandoning the property may be a very good thing for me long term.

0 Votes

Originally posted by @Colleen F.:

@Sean Witherspoon I see by trashed you mean literally full of trash. Itemize your expenses against the security deposit and send a letter to the forwarding address in a timely way for your state. This is to cover you even though they said oh keep our security deposit. If it is alot more it also helps if you want to go to court. If it is less itemize projected rent until new tenant for the difference or trash disposal if you haven't completed it. Its extra paperwork but it covers you better then the text.

Since you have a duty to mitigate damages in most states that 5 year lease really does nothing for you in residential. I never do more then about 18 months on a lease. People leave when they want to leave. People asking for longer leases are often just shouting pick me, pick me. Don't be swayed.

Thanks for the reply Colleen. And thanks for the advise. Got a quote to get all of the junk and trash picked up for around $400. Still have to find a contractor to fix holes in the wall, broken trim, and painting. I plan on turning the property into a STR. So the tenants leaving isn't a huge problem. Its just a major inconvenience because I have to rehab the property before turning it into a STR. Which has to be fully furnished. But I think in the long run, the STR will at least double the rent from the tenants. So this may be a good thing 2 years from now.

0 Votes

Bjorn, yes they did propose the long term lease. This was my first rental. I will definitely learn from this situation. I required renters insurance but didn’t verify if they had it. I will definitely take your advice. Thanks for taking the time to comment!

Originally posted by @Bjorn Ahlblad:

Originally posted by @Sean Witherspoon:

Bjorn, would insurance cover anything? I will look into small claims. At least they paid this month's rent even though they were not living in the property. It just sucks because of the short notice. If they would have told me 60 days ago, I would have been fine.

Originally posted by @Bjorn Ahlblad:

@Sean Witherspoon Sorry to hear about your troubles. I had one of those a couple of years ago-fired the PM.

You have a couple of ways to go .........you can take them to small claims court and attempt to get money for vandalism and back rent. Also call your insurance company and have them send an adjuster out. Take some pics and have some showing the condition prior to move in.

When the smoke clears and the adjuster is gone get it cleaned up and rented. Inspect every 6 months for new tenants. More frequently if you are nervous about anything. All the best!

Insurance can cover lost rent and damages to property minus wear and tear. There is generally a deductible but they will pursue the tenant's insurance if you required the tenant to have that. In the future always insist and have them include you as an 'additional interest' that way you get notified in case of default. These are the experiences we learn from.

Like @Steve Vaughan said check your screening process. If the tenant proposed the long lease term that should have been a red flag-always be on the lookout for anything unconventional.

Change the locks even if they left you the keys.

0 Votes

Angel, yes this is similar. They gave me permission to keep the security deposit. I actually don’t live in the area anymore. But had a friend go and check the place out for me. He sent over 100 pictures. So I think I have a pretty good understanding. The tenants left a lot of their belongings. But a massive clean will be the bulk of the expenses. In addition to a few dry wall patches and door frame fixes.

Originally posted by @Angel Ginnett:

I'm sorry you are in the middle of that. I had that happen with my first rental and it was gross. They left rotten food in the kitchen trash for weeks. Im in the Phoenix area and it does not take much time at all to find a new tenant. So I did not seek any legal action against these tenants for breaking their lease. They texted and gave permission to keep the deposit, so I used that to pay for the clean up and got a new tenant in there within two weeks. How long do you think it will take to get it cleaned up and get a new tenant in there?

0 Votes

Steve, no they were just vvery messy people. They had a dog, but they also had a pet rent. I don;t think the dog did too much damage. They problem is they left their junk in the house, Every room has stuff in it. They even bought an extra refrigerator. The garage is full of garbage. Probably like 30+ trash bags. Not sure why they didn't throw away on trash days.

Originally posted by @Steve Vaughan:

Originally posted by @Sean Witherspoon:

I had a tenant text me this morning telling me that they moved out of the property last month. There was no prior communication of the tenant vacating. The lease was a 5 year lease and each year was guaranteed unless both parties agreed to part ways 90 days before the new lease year started. The first lease year ends on November 30th and I was contacted today (Novermber 9th) and informed that the tenants already moved. The place is completely trashed with garbage and flies everywhere. Do I have any legal footing here?

I usually don't get a text, just discover it vacant.

At least they left and you have possession. Bjorn gave great ideas for next steps.

What was missed with your screening criteria? Smokers? Animals? Roommates?

0 Votes

Originally posted by @Bjorn Ahlblad:

@Sean Witherspoon Sorry to hear about your troubles. I had one of those a couple of years ago-fired the PM.

When the smoke clears and the adjuster is gone get it cleaned up and rented. Inspect every 6 months for new tenants. More frequently if you are nervous about anything. All the best!

1 Vote

Originally posted by @Mitchlyn D.:

@Sean Witherspoon Are you trying to refinance it in a LLC or you own name?

I wanted to refinance in the LLC. I've read in a few places that it's possible to get a mortgage in the LLC's name when using small banks or credit unions. I was just wondering if anyone in the Jacksonville area found that statement to be true.

0 Votes

I just moved to St Augustine and just closed on my first BRRRR in Jacksonville. Is there any local banks or credit unions that I would be able to refinance my hard money loan with? I am trying to avoid having a ton of mortgages in my name. Thanks!

0 Votes

Yes, it may just be a matter of personal preference. I've read a ton about the LLC vs no LLC debate. It it's more of an OCD thing for everything to line up. The Title will be held in the LLC. I was thinking I would change the LLC's name prior to refinancing (Using the BRRRR method). @Adrian Potter, you have 40+ individual houses in 1 LLC? Or do you have a multi family property? It seems the biggest reason for having individual LLCs is asset protection.

0 Votes

All Forum Posts by: Sean Witherspoon

Sean Witherspoon has started 7 posts and replied 26 times.

Post: Tenants Broke the lease, trashed, and vacated the Property | WTD

Post: Tenants Broke the lease, trashed, and vacated the Property | WTD

Post: Tenants Broke the lease, trashed, and vacated the Property | WTD

Post: Tenants Broke the lease, trashed, and vacated the Property | WTD

Post: Tenants Broke the lease, trashed, and vacated the Property | WTD

Post: Tenants Broke the lease, trashed, and vacated the Property | WTD

Post: Tenants Broke the lease, trashed, and vacated the Property | WTD

Post: Any banks or credit unions that lend to LLC in Jacksonville, FL?

Post: Any banks or credit unions that lend to LLC in Jacksonville, FL?

Post: Created wrong LLC name. I close on Monday