All Forum Posts by: Warren Lance Barber

Thank you all for the additional input.

@ Bill Brandt - My leases have a requirement of 60 days notice from either party.

@ Cory J Thornton - That's the thing that disappoints me.  I went eight years or so before increasing rents at all.  I gradually increased them once rents (and property taxes/insurance) started exploding in Raleigh, but remained below market the entire time.  Once she decided to move, that was it.  Left without cleaning the inside, left a bunch of trash outside around the foundation, filthy appliances, etc.  Nowhere near condition for someone else to move in, which is what I communicated needed to be in terms of cleanliness. 

On the other hand, I paid this house off during this time thanks in part to her tenancy.   

@ Nathan Gesner - Thanks Nathan.  I am definitely going for market rates this time.

North Carolina

I just had a tenant move out. This tenant was in my home for 13.5 years. Paid rent on time. Took pretty good care of the place. I would appreciate some input regarding assessment of expenses so I can make sure my reasoning is okay.

1. Genuine oak hardwood floors were newly sanded/refinished less than a month before tenant moved in. She damaged specific areas through to wood will require sanding and blending at an estimated cost of $450 (per flooring company). Overall recoat to house to rid other gouges/scratches and bring uniformity at an extra cost, but thinking I should deem that wear-and-tear.

2. Tenant completely clogged main sewage drain last December (2022). Due to urgency as the entire house had no drainage, I took care of it immediately. Rooter service wrote nothing wrong with my sewer lines, and he removed (his words) 50+ "flushable wipes" via the cleanout. Had to make three additional trips in subsequent weeks @ $375 each, not charging me for final trip in January 2023. I'm out $750.  I did not indicate to tenant I would cover this, but I failed to bill. Should I charge the tenant, or has too much time passed?

3. Tenant replaced all of my blinds with bamboo roll-up blinds that provide zero privacy. Did not have approval and cannot tell me what she did with mine. I'm looking at about $400 in materials to replace. Charge her?

4. Tenant gave 27 days notice, where lease requires 60. Charge her the month and few days rent due, or let it go?  

I appreciate any input on what to charge and what to let go. There are plenty of things I'm waiving because of the longevity of this tenant, but I also don't want to nickel-and-dime myself. I'm thinking about keeping the security deposit for rent and letting everything else go.   Security deposit only covers one month's rent.

Thank you,

wlb

New landlord? Is it that obvious? :-) Yes, this is my first property. I know I've made mistakes. I rarely repeat them. Jon, I originally had someone who wanted it in September. I would not have been able to do the floors at that time because of this. Made the mistake of not collecting a holding fee because of their glowing reference. They bailed at the last minute. Lesson learned. Now I have someone holding it, with a fee, and a signed agreement that I keep it if they do not sign my lease and provide a security deposit. Flooring contractor is scheduled to start this week, which will have it ready in time for the new tenant.

As for photographing everything, I have photos from before the tenant moved, photos from November when I bought the property, and photos plus video I shot when I did my final walk-through. They support my claims very well. Plus the property was completely rehabbed right before they moved in, with the floors having been refinished at that time, which I can document.

Again, thank you for all the great information.

Thank you for the response Jon. Both the lease and NC statute say 30 days written notice is required. Neither say anything about verbal notice. When he called, he said he had an offer on a house and was hoping to close sometime by the end of August. He asked me what would happen if it did not close in time. I told him I would then allow it to be a month-to-month lease if necessary. I did not mention the 30 days written notice. Honestly, I just didn't think about it during the conversation. That's why I mailed the intent to vacate after that.

I realize he acted in good faith, which is why I don't really intend to collect that rent. I just thought it might be a way to bargain for the payment of damages if he's faced with paying the rent, too. He's coming up with all kinds of great excuses for why he is not liable for the damage to my floors.

One other question. He has declined twice to do a walk-through of the property with me. I have had three professional flooring companies to look at the floors and provide estimates. He now wants to come look at the floors with his own contractor, now a month after moving out. Should I let him? It's a major inconvenience for me as I now live an hour from the property, and I think I've done my part with the existing estimates and previous walk-through offers.

State: North Carolina

I have a tenant that just moved out ending a year long fixed lease. The lease itself ended 8/31. The tenant called me 7/29 to tell me he put an offer on a house and was hoping to close during the end of August with no specific date given. I sent him move out documents days after that, including an intent to vacate letter. I received that letter back on 8/16, two weeks prior to his moving out. By law, I am supposed to receive written notice 30 days prior to him moving, which is also specified in the lease. Legally he owes me for 16 days of rent in September to make up the balance of the 30 days.

For me, since he has been a great tenant, the verbal notice was good enough and I do not intend to seek additional rent. However, as I prepare to send the settlement statement to the tenant, I wonder if I should put the extra 16 days rent charge in. The reason is, if I am going to charge anything, it has to be in that settlement statement which is due within 30 days of move out. He is already giving me trouble over an estimate I have shown him for damages to my hardwood floors caused by dogs and furniture moving. I have three separate estimates coming in at $1400 to refinish. I would like to use the additional month's rent as leverage against going to small claims court. In other words, I won't sue him for damages *plus* rent if he will pay my totally valid and reasonable damage charges. Does this sound reasonable and ethical? I think it is, but I find it best to run these things by others. Again, my only interest is in recouping the damage to the property and at the same time not having to go to court to do so.

One other problem. He still has not returned my keys! He is supposed to mail them to me this week. I specified in the move-out letter that keys would be turned in during the final walk-through. He could not be available for the final walk-through. I offered him another opportunity to meet me at the house and he could not make that, either. So, I have provided the opportunity. Legally, is he still a holdover tenant? It is my understanding possession of the property has not been returned until the keys have.

Thank you for any responses.

I can't find a clear answer to this. I am in NC. I have 30 days to return my tenant's security deposit or itemized list of deductions. In this case, I won't be returning any due to damaged hardwood floors. I have had two estimates, waiting on a third, but all are more than the deposit.

My question is, how long do I have to actually do the repairs? NC law says nothing that I have found, just to provide the list and either receipts or estimates. The contractors I have spoken with can't start for 2 to 3 weeks. Then the work itself is several days. The polyurethane doesn't even fully cure for 30 days and you have to be very careful on them during that time. I have people interested in renting now and I don't want to lose more rent. I fully intend to have the repairs done. It would be great if I could wait until the next tenants are out and I can get the flooring people in as soon as they move out.

Thank you for any responses.

Once you have an actively running business, you can deduct education expenses such as these. If they are incurred prior to your start date, you deduct or amortize them as startup expenses. You can deduct up to $5000 in startup expenses (with exceptions if startup expenses exceed $50K) in the year you start your business and amortize the remainder. Since you have not done any deals, your business would not have started yet and you will have to wait on the deduction. However, if for tax purposes you are considered an investor once you do start, you cannot deduct educational expenses at all according to my understanding. Investors (as defined by the IRS) are not considered actively running a business and do not get the same deductions as business owners (as defined by the IRS). Education deductions are just one. Again, you and I may consider ourselves "investors", but we do not want the IRS to classify us as investors. I am no accountant, but I do have a rental business. "Every Landlord's Tax Deduction Guide" gave me an excellent start and understanding of taxes related to real estate. There are other books out there. You may want to read up, even if you have someone do your taxes. It can be enlightening and help you determine the tax consequences of what you do.

Hope this helps!