All Forum Posts by: Tony Lago

There is an easement between you and the neighbor permitting the neighbor to park on your property, did I understand that correctly? If that's the case,  I would read into the easement to see if there are any terms specifically mentioned. If that's not the case and I misunderstood, you are in a better position to dictate terms, etc. 

Congrats on the purchase! 

The seller will always have her best interest in mind.  I am not an attorney and I do not know anything about Canadian Law. However, in the USA you can't just go and break a lease just because a sale occurred. What does your attorney think? It seems like your legal council thinks the proper way to do this is by assigning the leases to you, right? You are paying him and your interests should be more aligned than you and the seller. Typically an assignment in the states only involves the seller and buyer, then a notice goes out to all the tenants...it's not that much paperwork. Don't focus to much on appeasing the seller...it's your money at risk. After all, if the 2 page lease she had in place is "bare bones" and you already had the foresight of adding more language you are likely to learn less from her than you think. Don't let the fast talking big wig attitude intimidate you. Stick to what you think is right and listen to the advise given to you by your legal counsel. 

If this is your first property, work with your attorney to make a new lease that is acceptable to local laws. Draft what you have in mind and have him review it/ rewrite anything that isn't enforceable. 

Hope this helps!

I agree with the above regarding looking up local laws and beginning the marketing process. I would also add that this is a good opportunity to build a relationship with local legal counsel. The firm I used in NY didn't charge me for asking some questions. You could probably get a 10 min conversation for free. I think it always minimizes the headaches to run something by legal council before doing it, especially in residential. Just my 2 cents. Hope it helps! 

I state that these things are their responsibility on my lease. We have a couple handymen that work for us so we will send someone out without an issue but at their cost, with some kind of admin fee.  My policy is write a strong lease and operate as you feel is fair. We don't expect them to know how to handle a toilet backing up, etc. We own old houses, if there is a backup and it isn't caused by the tenant doing something like flushing chicken bones (true story) then we will cut them some slack and teach them to avoid it happening again. This is my actual lease language from my tenant responsibilities section: 

B. TENANT MAINTENANCE. Tenant shall at all times be responsible for snow removal for the entire Premises and salting of all entrances, walkways and sidewalks, if and when necessary. Tenant shall maintain the Premises exterior including the entire lawn, front and back free of debris so as to maintain same in a neat appearance. Except as required of Landlord in Subsection 13A hereof, in all other cases Tenant shall be responsible for maintenance of the interior and exterior of the Premises, excepting normal wear and tear, including but not limited to, toilet back up, replacement of light bulbs and repairing of non-structural and other items in the ordinary course of their use. Tenant shall inspect all batteries in the smoke alarms and carbon monoxide detectors on a monthly basis and replace them as often as needed. At the expiration or termination of the Lease term, Tenant shall repair any damage to the Premises or its contents and shall leave the Premises and the contents in a clean and good ordered, undamaged condition with the kitchen and all appliances, bathroom fixtures and building equipment clean and in the same condition as on the first date of the Lease including without limitation all interior and exterior finishes of doors, walls, banisters, closets, cabinets, ceiling, railing, trim, stairs, appliances and equipment it being the intention of the parties that the Premises shall be returned to the Landlord in its original condition.

Tenant shall also:

• Maintain the house and all appliances, such as refrigerator, stove, dryer, washer, alarm, heating and window air conditioning units, if any, and return in the same working order.
• Promptly notify Landlord of any repairs even if some are Tenant’s responsibility.
• Promptly remove all garbage and debris and place at the curb for collection in secure containers respecting all applicable recycling laws.
• Use all plumbing, heating, cooling, gas and electric and other facilities in a safe manner.
• Not flush wads of toilet paper, grease, oils, coffee grounds, fibrous materials, q-tips, sanitary napkins, tampons or condoms in the toilet or down any drains. These must be placed in the garbage to prevent damage to the plumbing system. Tenant shall not use caustic substances such as Drano or Liquid Plumber in the toilets or drains.
• If a drain or toilet does not flush and Tenant cannot unclog it with a plunger then Tenant shall immediately contact Landlord but NOT flush again. Tenant shall be held responsible for water damage caused by overflowing toilets and/or drains.
• Take no action which would cause a cancellation or increase in Landlord’s fire or liability insurance.
• Obey all environmental laws and keep no toxic, inflammable or dangerous substances on the Premises.
• Prevent the accumulation or buildup of mold or mildew throughout the Premises by notifying Landlord immediately if any evidence of water leak or excessive moisture, mold or mildew appears. Tenant shall operate the dehumidifier(s) (if any) in the basement in accordance with Landlord’s operating instructions.
• Tenant must clean the shower and bathtub with bleach.
• Use grounded three prong surge protectors; Extension cords, plug adaptors and halogen lamps/bulbs are prohibited.
• Use microwaves, crockpots, toaster ovens, coffee pots, hot plates and other cooking equipment ONLY in the kitchen and not in the bedrooms or sleeping areas.
• Not permit the use of the laundry machines for any person that is not a Tenant.
• Shall not bring bicycles into the interior of the Premises (other than the basement).
• Tenant shall not hold, conduct or throw any large parties in the Premises.
• Replace batteries in smoke and carbon monoxide detectors alarms, a smoke alarm or carbon monoxide detector without a working battery will result in a fifty-dollar ($50) penalty for each infraction.
• Change out any broken or defective lightbulbs
• Allow Landlord to use Wi-Fi (if applicable) and electric to power smart home devices (if applicable) i.e. smart locks and thermostats.
• Replace batteries for smart locks and thermostats (if applicable).

Hope this helps!

@Casey S. I still think you have a chance to repair the relationship here. Some of the prior suggestions will likely help smooth things over with the tenants and the parents (I tend to take the approach @Will Gaston suggested of asking, "What can I do to make this right?"). Don't let the communication begin to break. Update everyone with the status of the repairs. If you just completed the bathroom, send an email with pictures and let it be known that the bathroom is complete. I would advise you to handle communication with the parents on your own. If you feel you need legal counsel, ask them questions with your concerns prior to a call but I wouldn't have your attorney reach out to them directly, etc. It will likely result in more contemptuous behavior from them. We have all had to deal with unhappy tenants at some point, being genuine and eager to help resolve issues will only help you in the long run. Hope this helps. 

-Tony 

Hey William,

I'm assuming you are going to get a "regular" mortgage/also assuming you qualify for both loan products i.e. 15 and 30 year. If you go down the 15-year route you are removing any optionality you would otherwise have with a 30-year. Conventional loans allow prepayment, therefore you will have the option to pay more each month towards your principal. If you have the discipline and want the flexibility (things happen in life) you could take a 30-year loan and pay about $850 a month and replicate the 15 year loan. I say about $850 because your rate will likely be a couple basis points (BPS) higher, therefore you will likely pay a bit more to amortize the loan within the same 15 years.

Looking at the WSJ as a point of reference, they state rates being 3.9% for a 30-Year and 3.33% for a 15-year. At that point you have to consider whether the difference of .57% is a justified expense to insure you have wiggle room in the event something happens that impacts your cash flow. This cost is equivalent to to .57 cents on $100 borrowed.

Hope this helps. Feel free to PM me if you have questions.