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All Forum Posts by: Tyler Brown

Tyler Brown has started 20 posts and replied 122 times.

Since he already signed the lease, you've entered into a legally binding agreement to provide him housing starting on whatever date.  He could indeed sue you for costs incurred by him for your inability to hold up your end of the bargin, such as movers, a storage unit, a hotel until they find a new place to live, etc...  Most people probably aren't going to do that, but it is indeed possible.

In the future, don't sign the lease until the first day when they're moving in.  

People threaten to sue all the time, few actually do.  If you're actually served, speak with an attorney to go over your options, but you likely do have at least some liability here.

Basically all of the pertinent landlord/tenant laws you're looking for are going to be set at the state level, which is why you're not finding much.

Post: Selling a property that still has tenants

Tyler BrownPosted
  • New York City, NY
  • Posts 125
  • Votes 48

You can certainly show it while tenants are there, assuming you following the usual notification procedures.

That being said, if you're probably going to be selling to a homeowner, most are going to want it empty and don't want a house where the tenants could potentially refuse to move out, creating a drawn out court process.  It may indeed be better to just wait till its empty.

Post: Out of state buyer has a squatter

Tyler BrownPosted
  • New York City, NY
  • Posts 125
  • Votes 48
Originally posted by @Nathan Gesner:
Quote from @Tyler Brown:
Originally posted by @Precious Thompson:

Thank you for the feedback and to clarify The guy is a squatter. I will advise him to get an attorney @Tyler Brown @Nathan Gesner

 If he's truly a squatter - he has never legally lived there, has no relationship with the owner, was just just walking down the street and said, "oh hey, an empty house!" and broke in and started trying to live there, then simply call the police. That makes things much easier vs if he's a tenant. 

Police do not pull people out of houses without a court order. If you witnessed the break-in, they may do something about it. But once the person is in the property, legally or not, they are considered a legal tenant until proven otherwise.

This is not true as a blanket statement and will depend on the responding officer and whether he wants to write it off as a civil matter or not.  Tenants and squatters are not the same thing, and the misunderstanding between the two is possibly one of the most common misunderstandings in this entire industry.

One has lots of legal protections and rights, the other has almost none.  If a true squatter has tried taking up residence illegaly and the landlord calls the police, and the squatter can't produce a lease, utility bills, any kind of mail, or any other kind of evidence that it's their residence, there's at least an even chance that the officer will remove them and I've been a party to that exact scene more than once.  
 

Post: Out of state buyer has a squatter

Tyler BrownPosted
  • New York City, NY
  • Posts 125
  • Votes 48
Originally posted by @Precious Thompson:

Thank you for the feedback and to clarify The guy is a squatter. I will advise him to get an attorney @Tyler Brown @Nathan Gesner

 If he's truly a squatter - he has never legally lived there, has no relationship with the owner, was just just walking down the street and said, "oh hey, an empty house!" and broke in and started trying to live there, then simply call the police. That makes things much easier vs if he's a tenant. 

Commercial property?  Maybe.  Basic residential with a standard lease?  No, that's kinda weird.

Post: Problem with tenant that is going to sue.

Tyler BrownPosted
  • New York City, NY
  • Posts 125
  • Votes 48

Just to confirm, she has indeed moved out?  You said she's not leaving until January 18th, which was yesterday, and that post was made yesterday...

Anyway, people threaten to sue all day long.  One or two per cent of them actually do.  If they do, just show up with your documentation that she never paid her final rent.  Any complaints about splinters or whatever is irrelevant as it has nothing to do with her security deposit.

Post: Installing EV Charger for Tenant

Tyler BrownPosted
  • New York City, NY
  • Posts 125
  • Votes 48

My usual standing offer to my tenants is that if they want to make any permanent upgrades to the property, I'll split the cost with them 50/50.  This applies to anything that becomes a permanent addition to the house and some examples have included ceiling fans, upgraded garage door openers, and nicer appliances.  I'd have a charging station fall under this.

Note though that now she has a real plug in hybrid vehicle, I'd expect electricity costs to rise fairly significantly.  I'd switch to having her pay for electricity from now on, or if that isn't possible, take a 12 month average of last year's power bills.  Use that to establish a baseline.  Any bills going forward, she'd be responsible for any amount over that baseline.

Post: Out of state buyer has a squatter

Tyler BrownPosted
  • New York City, NY
  • Posts 125
  • Votes 48

You say his has a squatter, then you say tenant.  These are two different legal things.  

I'm assuming this is something like a tenant who hasn't moved out at the end of their lease and isn't paying rent?  If so, offer a cash for keys deal.  Obviously they only get the cash once they're moved out and the unit is empty.  If they don't accept it, call a lawyer and go ahead mentally write off at least $2k on legal fees and the next several months in income.

Post: Trying to wrap my head around tax implications

Tyler BrownPosted
  • New York City, NY
  • Posts 125
  • Votes 48

 It looks like you're correct.  I reached out to the lawyer that set up the trust, and this was his response,

"From a taxable perspective, I can tell you with confidence that [wife], as beneficiary of the trust, will receive a step-up in basis for both properties upon the death of her mother. This is due to the fact that that type of irrevocable trust is a Grantor trust, meaning that it is treated as a disregarded entity by the IRS for tax purposes while the creator is alive, and [wife's] interest in the properties, as beneficiary of the trust, does not vest until the death of her mother."

I'm not sure what you mean by your middle paragraph though.  My understanding is that we only receive that step up in basis upon my mother in law's death.  She's currently alive and well and it could be a decade + before that happens.  If we sold it now without it being a 1031, I believe we'd be on the hook for a massive tax bill based on the low cost basis of the properties.