All Forum Posts by: Warren Lizo

Hi Lee, 
Welcome to Massachusetts! Sorry to hear about the tough eviction. That's always the worst case scenario after the landlord-tenant relationship has broken down. If you have any property management questions, feel free to reach out. I love talking shop!

Hi Yulia,

First, make sure the company is legitimate. If that inquiry is out of the blue, it sounds a little sketchy. 

Second, if you are renting to a company then you need to diligence the company and its ability to pay and abide by the lease terms, just like a residential tenant. This is not always easy though. The foreign company needs to have a EIN or a representative in the US with an TIN so you can look up its credit worthiness. Although you can't look up criminal history, you can get landlord references from other landlords with whom they have worked. Different from a residential tenant, you will need to have an agreement that states their expected conduct, when and how they will remove their tenant, and if you want any screening done in advance for the person(s) staying in the unit.

There are some of the major considerations. It could be a lucrative relationship if it is legitimized. I wish you the best and please keep us updated with how it goes.

@Brian Jasinski

Sit down with them and have a conversation. Explain it is more expensive than you thought to own the house (real estate tax reassessment, etc) and you want to escrow for making future improvements. Immediately, have them sign a month-to-month lease to formalize your relationship and set basic terms. Otherwise, you have nothing to rely on in the worst case of going to court. I agree with @Kyle Spearin - show them other rental comps (zillow) and offer them a step up in rent schedule, increasing every month. You want them to stay because they are good tenants. You can also show them a $ amount that reflects the financial hit to you for the goodwill rent concession to demonstrate your benevolence. Also, you would understand if they cannot afford the step up and you ask them to give you 60 day's notice to vacate. However, you will not delay increasing the rent. Be fair and firm.

Before you sign a long-term lease, _absolutely_ run a credit check on them. Aside from possibly replacing items that upgrade your property value for 3+ years (appliances, countertops, etc) I would not offer any kind of upgrade. This is not a negotiation. It is your property.

Hi BP Community,

I am seeking a referral to someone that has successfully completed an installment sale - either an investor, CPA, or an attorney who facilitated it - who can answer specific questions. NOT a monetized installment sale. The person must be knowledgeable about Massachusetts (Boston). I checked out the BP vendor forum, but I did not identify anyone in my area. Thanks to everyone in advance!

Hi Kevin, This was a good question. Did you ever come up with an answer/solution? And were you successful in completing an installment sale?

@Sara Walters Having you or your spouse (one person) as the sole mortgagor on your primary residence is a good move IMO. It has worked well for us in different ways including DTI for real estate, tax reporting, and liability!

Hi BP Forum:

I'd appreciate some guidance from some of the experienced members here. I have spent most of my life working in roles that would further my education and experience towards working for myself. I worked in commercial bridge lending, for the City of Boston's BRA, residential re-developers, and, currently, for a regional management company overseeing apartment communities (700 units) and office buildings. After trying on these different 'arms' of real estate, I discovered value-add property management fit me best. I've now been doing that for 10 years.

I would love to leverage all my experience to build something for myself. The last 2 years I picked up a few side property management gigs for 1-5 unit bldgs. What I have come to realize though, is that many of the skills I use to create value in large assets are squandered on small buildings. As is the ROI on my time - a 100 unit bldg and a 5 units bldg both have 1 roof! I crush RealPage OneSite, but Buildium seems clunky to me. Negotiating utility contracts or tax abatement does not have same impact. I also increase the ROI of my time through my 20 staff at my job which I do not have with my side gig. Managing the side jobs now takes as much or greater time than the larger corporate stuff.

How may I best leverage my experience? Is there something that mid-large size owners need that I can provide? Should I find a partner to building a management company? Is there a problem I can solve? I am in the Northeast/Boston/Milton/Braintree area, but also manage in Rhode Island/Providence/Newport area for work.

Your advice and guidance is valued. Thanks everyone!  - Warren, 41 yo, Milton, MA

I live and work in the Boston CBD, but it has become way over priced for me as an investor! Can anyone tune me into good resources for the Portland, ME area? I love the city and I think it has great potential. Thanks,

Deana makes excellent points, but you don't even need to prove whether or not the cat was unauthorized. She (her cat) as the tenant caused 'unreasonable wear and tear.'. If she sues for a withheld security deposit, you have a receipt showing costs for the carpet replacement and/or cleaning. It is also at your discretion what you need to do to repair the unit to a 'rentable' standard. Just ask yourself, would she have rented that apartment in the first place in the condition she left it in?

Although my lease states no painting and my Chargeable Maintenance addendum specifies that repainting the apartment after move-out is taken from their security deposit, I have had several households perform real "customized" paint jobs. One person covered an entire wall with a tiger spray-paint mural. Another painted the ENTIRE second floor of the house in black chalkboard paint. The latter required a skim coat to cover up which the security deposit did not even cover.