All Forum Posts by: Tricia Laux

Greg, 

  Great advice- she is checking the language and is planning on asking the buyer for the amount of the deposit as a term since the buyer won't be giving the deposit amount to the landlord.  Thanks!

 Thanks Cason, 

   The lease is in her business's name- it was redone when she bought the business several years ago (5 year lease).  The landlord wants to redo the lease with the new business owner- he did the same thing when my SIL took over the business.  Thanks!

Hello all, my SIL is exiting a retail business and selling it to a new owner.  She currently rents her retail space in a strip mall in NJ.  She connected the buyer to her commercial landlord, and he gave my SIL a lease surrender (her initial lease was set to expire in April 2023) for an end date of Aug 31, 22.  Is a lease surrender a common practice?  I am in residential and do not have any experience with this.  Also, he added in the lease surrender that he will keep her security deposit and apply it to the business's new buyer's lease.  Is this common practice? Should she ask for compensation from the buyer since it seems they will not be giving a security deposit to the landlord?  Any information is appreciated!

I agree with Matthew Jones on the areas he listed.  I would also look close to the hospitals (MCV, St Mary's) and you could get medical students or traveling nurses.  I haven't house hacked- but wish I did.  I would add Lakeside to the list as well- closer to Brook Rd than Staples Mill.  Also, get a good inspection for any of the areas so you know what repairs you will have- lots of older houses/ aging systems in these areas.  Good luck!  

I agree with all of the responses- hard pass on this idea.  You are the landlord, not the bank.  A major sticking point for me is the tenant finding the contractor.  I only like those I have vetted in the rentals- for a number of reasons.  If the tenant selects a fly by night company or a "friend" who does a crap job- you are now left paying twice to fox their shoddy work.  I currently have tenants I love; if flooring was being replaced while they were in there, I would potentially select a few in my budget and get their opinion (opinion only, I may still pick what is best for the rental) to give them a voice, but it would be clear I am making the final decision.  At the end of the day they will leave, and you are left with a product that needs to be durable, look good, and be neutral enough to go with a new tenant's taste.  This is a business with small margins, and blowing a budget (not to mention while they are there and using the material- so not new for next tenant) can lead to financial issues.

I agree with a previous comment that her paying 6 months in advance is not really helpful, especially since she is a good tenant who pays on time.  I would have her split the water bill- so you are less out of pocket for that, but retain the tenant (no vacancy/ renovation costs coming out of your pocket).  You know this tenant, so you know what you have- because you are only a small amount from being at market value, this would make up that difference for me for the time being.

Hello, 

When we purchased our first SFR last year, out realtor gifted us a home warranty through Cinch. We have used them 2 times ($150 deductible per call). First time was plumbing- they had to replace the main shut off valve in the house. The plumbing company was local and great, and there were no tenants in the house yet. Overall, good experience. The 2nd time, the tenants were moved in and the dryer belt snapped. I told them the dryer belt was snapped (I knew from experience). Not even remotely a good experience (took over a week, 3 visits, no communication from any of the companies involved), I knew then and there I would not extend the contract for another year with them. My question is, as its expiration is nearing, should I even go through getting another HW? I have 2 different handymen that are both great price-wise and work-wise. Most of the main systems in the home are relatively new (hot water heater- 3 yo, HVAC/ heat pump 1.5 yo, roof 5 yo, new toilets, new garbage disposal), and the house is 33 yo. I more like the HW for the appliances and potential for replacement (washer/ dryer/ dishwasher/ refrigerator/ oven). Should I increase my cap ex savings instead of getting another HW? Does anyone recommend a HW company? Thanks for any input!

I actually do pay for pest control in the SFH for my tenants. We are in a wooded planned community, and termites are always an issue. By paying for termite and pest control, I can control the company who they are using, and since I now have multiple contracts, I do get a slight discount from the company. For me, protecting the investment is worth the money at this point. I do not, however, pay for yard treatment (tick/ mosquito treatments). It is in the lease that the tenant can obtain that from the contracted company, but on their dime.

Thanks so much!  I really appreciate it.  I could not find a clear cut answer to that anywhere.