All Forum Posts by: Steve Rozenberg

I agree with @Account Closed careful what battle you pick, especially if you do not know the law and you can back up your claim with factual data. You could piss off the judge and it may cost you more if you go in and ask for more then your entitled to.

Sometimes you have to remember your business has expenses, think of it like having a car and having to change the tires or the oil. It just goes with owning a car, same for owning a rental. Some of these things are the cost of doing business as long as it is wear and tear and not something maliciously done to your property to damage it.

Just my opinion

I agree, normal wear and tear is the what you would normally want to deduct. Anything more you want to deduct you want to make sure you had this agreement in writing. We have our tenants sign a 2 page itemization of exactly what we will deduct for and what each specific cost will be and they have to sign it when they move into the property. 

Then when they vacate we go back and per the itemziation list we deduct the price accordingly.. 

If you would like this list please PM me and I will be happy to send it.

you always have to remember you are running a business. If you called your mortgage company and told them that story would they give you a late grace period. Absolutely not, they would say sorry and maybe send you a card but you would still be obligated to hold up your end of the contract.

What do you do when they can't pay at all? Is that your threshold?? The problem is if you do not charge and enforce your Late fees etc you are the first person to breach the contract and you are the one that could potentially be putting yourself in legal risk by violating it and not adhering to a legally binding agreement. 

Follow your policies and procedures, take the emotions out of it. 

Sounds mean but it's hownit needs to be, don't let their problems soon become yours.

You have to remember why you hired a PM in the first place. Normally it is in hopes of leveraging your time with paying for their service and expertise. There are a-lot of things that one may do differently but I can tell you there is no right way or wrong way, It is just a way.

I know that when I was running my portfolio of homes there was a lot of things that I had no idea that I was breaking many laws and regulations. Not intentionally but just because I did not know they even existed. You have to remember you own a business, IRS, Fair Housing and Discrimination, and state property code all say that you are a business. Normally the person that does not think they have a business is people like I used to be and come very close to getting sued and lose everything. Sometimes spending your money is not always for them to make a profit but to do things right. For example we no long use the guy in the truck like we used to with our own properties. We make sure everyone has insurance if the walk into an owners house. Why? Because if that guy in the truck slips and falls off a ladder and cant work guess who gets sued, basically anyone and everyone including the owner. So did we really do the owner a favor saving them some money but potentially getting them sued? Its a tough call, we manage over 400 homes and that means we have over 400 personalities and 400 tenants. That is a lot of people, the only thing as a PM can do to keep it straight and legal is do it correctly.

Again just my opinion, I am an investor just like everyone else and understand cashflow is important, but making sure not to get sued is more important in my eyes to make sure it runs like a true business.

Do you have things you don't charge the tenants for with maintenance issues?

@Fred Conway  good questions.  I don't know the answer. Just what we were told by a veteran attorney answer to speak at our annual NARPM convention. 

I'm sure all those questions were asked and obviously it didn't matter. 

Make sure you get a full lease and application during your option period. Make sure the lease is current and look to see the financials on the property to see the tenants register to see how they have paid since moving In

You can even go so far to get a new credit background on the tenant. 

I was at an event where a real estate attorney was telling us about a tenant that had a pitbull and a young child was walking by outside and the dog got loose and mauled the child. End result even though the owner had no idea the parents won a $6.5 million claim and the insurance did not cover it and it got passed to the owner and everything he owned to a large extent was liened up and the owner lost everything essentially. 

I don't know much more about the situation, just what was said at the event. 

Do you verify if your tenant's dog is on the dangerous breed list and do you have them provide proof of picture to keep in their file?

I know one thing you can gain and learn, similar to what I have seen a few investors do recently. 

You can learn how to violate a fair housing, discrimination or possible property code law. Nothing wrong with doing something yourself, but make not mistake if you do not take the time to educate yourself and make sure you know all the current laws and regulations the cost of an experienced PM could cost you everything you own by getting sued. Tenants are very smart and it is very easy for them to learn the law. 

They have been tenants their whole lives, you have been a landlord for maybe a few years if you are just starting out, Who do you think knows more about their rights.

Make sure you know and be educated or you will get a different education.