All Forum Posts by: Tony H.

Hi @Thomas S. I appreciate your feedback. As I mentioned in my other posts, these are very nice people. I know business is business. But, they have lived there for years and have helped protect and maintain the property. 

There have been instances of robbery and they have helped ward off the bad guys, and got a guard dog as well. 

I have raise their rents about 20% in total. It's a big jump, but not big enough to bring it to market. I plan to raise again next year. 

Thanks,

Hi BP!

Some of you may have already know, I just recently close a duplex that came with a tenant (the other unit is empty, thank goodness!).

Anyhow, the current tenant is on M2M lease. They have paid their July rent, and had asked where they can send their August rent. 

Now, their rent is WAY below market rent. I have structured a lease for them, that I think they should accept. The deal is still much better than them going out there and find a new place.

I had almost mailed the new lease and a letter explaining why the increase (and back up paperworks showing where I got my numbers), until it dawned on me that I needed to go over this with them.

Now here is my question, is it okay to go over the lease terms over the phone with them? is it legal? or do I need to do this in person?

I can't seem to find this info anywhere. 

Thank you in advance!

Hi BP! Rather than starting a new thread, I thought of asking for some inputs here. So, I just closed on my first duplex on Monday. I spoke to my agent about meeting the current tenant on Wednesday 7/5. Long story short, he restated his opinion again on the current tenant. He said he has helped placing tenants in the past for his clients, this current tenant is super nice. He really recommends to keep them. He said the tenant helps to keep the property clean and safe. They own a german shepherd to guard the backyard on both units because of occasional random people doing drugs behind the property. This dog is not on their lease. I just spoke to the tenant's wife who is also on the lease. She sounds very polite and well mannered. In summary, they are paying $875/month and maintains the yard on both units. Landlord pays water, garbage, and sewer. As I mentioned previously, market rent price is $1200. How should I structure their lease with me without causing problems? I initially wanted to: 1. raise their rent to $950/month 2. Have them pay $50/month for water, garbage, sewer 3. They continue to maintain the yard for their own unit. 4. Charge them $250 non refundable pet cleaning fee for the dog. 5. Increase their security deposit to $950 (from $850) Is this going too much of a shock for them? I know I have not meet them yet, but I want to have an idea if this will become a problem. Thanks.

Ron Flatt whew that was a mouthful lol! Thanks for your input. Overall I agree with you on raising rents. My current situation is indeed special. Their rents are $875 only vs $1200 market price. I just received the estoppel and it says they are also getting $75 credit a month for them to maintain the lawns on both units. Now whether the $875 is after the credit or not is questionable. However, I dont see this as a problem. They can continue getting the credit but rent will increase to make up for it. I signed the docs while on vacation. I'll go see them next week when im back

Update to all. I just got the signed estoppel from the tenant. Title forgot to include it at closing. All terms are within the lease that I have reviewed except that they also get $75 credit to maintain the lawn for both units.

Leah Lindon this reply may not just be for you. I just signed the loan documents today. Again I was pushing to get the estoppel, but I didnt get one. Here is what happened and why decided to sign anyway. 1. The seller sent me a copy of the tenant's lease. The lease start date is 30 days after the seller purchased the duplex 3 years ago. I reviewed the lease and everything looks fine except the rent price that is way below market. 2. I received a signed addendum from the seller stating the amount of tenant's deposit and rent paid through end of june. The amounts matches whats on the lease. 3. Tenant asked my agent where to send their July rent. Gave them my po box address. They were mailing early because they will be out of town for the july 4 weekend. I thought this was nice of them. Although the snail mail has not deliver the check to me yet. I know some of you may not agree with me. But somehow I feel comfortable signing the docs anyway. Mainly, i think it is because the tenant is on month to month and even if they have verbal agreement with the previous landlord, how is it that it will stand if I dont agree with it? Its not written anywhere. In this case, isnt the estoppel really to protect tenant's interest too?? If they have verbal agreement they should have do the estoppel and have he previous landlord sign it, then give to me.

Thomas S. do you think it is okay if I mail the estoppel to the tenant directly? Have them fill out and sign then return to me? I suppose the seller needs to sign as well correct? I was thinking if at least tenant signs it, i can forward a copy to my agent and tell him to get it signed by the seller.

@Ceril S. yep, i know what it supposed to say or covers. I'll bring myself a template of what I want it to say. 

I'll compare that to the one escrow have at closing. If all looks good, then its all good.

@Ceril S. Their lease is only month-to-month. I have a copy of that and have reviewed it. 

Everything looks okay other than the rent is so low, deposit is also very low, plus they now have a dog that is not mentioned in the lease.

I am okay with the dog. But, when they sign my lease, I will have them pay extra deposit for the dog. Plus increased rent.

The only thing that seller mentioned before I got into contract was that I should keep the tenant. I was like.. why? but it never got answered. 

However, I was not worried about that since they are on month-to-month. If they have a verbal agreement with the seller, Am I bound to honor that verbal agreement? I dont believe so. there is no proofs for it, correct?

@Mitch Messer @Anthony Hurlburt

Thanks for the replies. I just talked to my agent about getting the estoppel signed. He said it will get signed at closing. Escrow will make sure that happens. 

I guess I will look out for that at closing. If I dont see it, I wont sign anything.