All Forum Posts by: Account Closed

@Account Closed

I have a few questions just to clarify things. 

Have they been paying rent up to this time?  
Are they still there?  
Do you have a property manager and what have they done so far?
If I receive a complaint it needs to be responded to in a timely manner.  I’m not saying you did not.  A leak can cause mold, but if addressed properly it might be ok. It’s not an automatic because you have a leak you also have mold.  Address the water issue and conduct the repair.  If the leak was ongoing and the tenant did not notify you properly that should be a violation of there lease.  Check your lease.

Evanston has a very strong licensing program for rental property.  The last thing you need is them complaining to the city.

I am familiar with Evanston.  Are they Northwestern students?

@Account Closed

I have a few questions just to clarify things. 

Have they been paying rent up to this time?  
Are they still there?  
Do you have a property manager and what have they done so far?
If I receive a complaint it needs to be responded to in a timely manner.  I’m not saying you did not.  A leak can cause mold, but if addressed properly it might be ok. It’s not an automatic because you have a leak you also have mold.  Address the water issue and conduct the repair.  If the leak was ongoing and the tenant did not notify you properly that should be a violation of there lease.  Check your lease.

Evanston has a very strong licensing program for rental property.  The last thing you need is them complaining to the city.

I am familiar with Evanston.  Are they Northwestern students?

Hey Kenneth, 

There's a lot going on here...first, if you don't hear back from tenants, there's a reason for it.  And, the reason was they weren't staying there. I don't know what clause you have but they do have the right to come and go - and even be gone for periods of time as long as they're paying the rent.  You also have to know the law in that state regarding mold claims and remedies available to tenants:

https://www.nolo.com/legal-encyclopedia/illinois-rules-regarding-mold-rental-properties.html

This has turned into a spitting contest for no good reason. If it were me, I would order the mold test of the areas affected by the leak - not the entire property.  It most likely will come back negative or can be easily treated/removed. That will remove cause for breaking the lease and/or withholding rent.

If they break the lease early, your remedies are defined by that state's laws:

https://www.nolo.com/legal-encyclopedia/tenants-right-break-rental-lease-illinois.html#:~:text=So%20you%20may%20not%20have,mitigate%20damages%E2%80%9D%20in%20legal%20terms.

Bottom line: Know what you need to know about the Tenant/Landlord Laws in that state.  Once I looked it up/read it, it told me that the laws are more tenant friendly and that your remedies are limited if they break the lease.  Gotta know what you gotta know...

@Account Closed it is only 60k if you are unable to fill the place. Order the report and have a talk with the tenants. You have an obligation to provide safe housing and they have an obligation to the lease. 

@Account Closed Are the tenants staying or leaving? Do the test regardless-if it is positive-you are thinking about actually not telling the tenants?? Whether the students stay or go, as a PM or LL you need to know the state of the mold issue. If it were me I would share the information and fix the problem. Mold cleaner usually solves it if you nip it in the bud. Mold generally only becomes serious if it is ignored.

I was a building contractor/developer in 2008 when the bottom fell out of the market. We had several million dollars in spec residential construction underway. Not a pretty picture. The current "crisis" has the same look and feel. I have now rebuilt my portfolio as well as I could and am facing foreclosure on a short-term mortgage if I can't find a refi. I am only leveraged at about 25% on the portfolio which I will eventually lose if I can't find a refi. These properties cash flow very well and if and when we lose them, my wife and I will have lost our main source of income and could potentially become homeless. That is just the reality. Can anyone provide a link on the extended forbearance programs? And, by all means, if anyone can refer me to a lender who can help, I will be forever grateful. Thanks.

I’ve been doing a lot of research lately and I wanted to share with you guys what I have found about the correlation between unemployment, delinquencies and housing prices. During the 2008 housing crisis the housing market bottomed about 2 years after the peak in delinquencies. Note that delinquencies are very much so correlated with unemployment rates (see graph on link below). Unemployment is already about twice the peak in 2008 so it is very likely that delinquencies will follow, which will lead to increased supply of housing.

See data here, gathered by stanford researches: https://web.stanford.edu/~pavelkr/jmp_slides.pdf

Conclusion: You have about 6 months to sell off your assets until the market will be flooded with fire sales and forclosures.

How old is the roof? Might just be the flashing along the wall.