All Forum Posts by: Lisa Ryan

Thought I'd share my story about my realtor because I find it amusing. I moved from the NE to the SE 4 months ago. I converted by NE primary residence into a rental and bought a new primary residence down here. I've had a few months to settle in and I think I'll be here for a while, so it's time to start looking at rentals.

 I sent an email to the realtor I used for my primary residence asking her if she could take me to see 2 duplexes but I gave her many outs - it's investment properties, it all boils down to numbers so chances are it won't be ask quick a transaction as buying my other house, the housing prices are less so the commission will be less, etc. She said she'd be happy to help, so that's that.

I meet her at the 1st property. I'm sitting there waiting, and she calls me and says she didn't feel safe so she drove to a convenience store and was there. I could walk around outside and go over to the convenience store. I thought it was a little funny - the duplex was tenant occupied with no showings, so it's not like I could go inside anyways. The 2nd duplex was about 15 minutes away and was not occupied. We get there, she unlocks the door, and then just stands there with this deer-in-headlights look. She said "I'm not sure if I should go in...". I'm like "okay...". Something tells me I need a new realtor! The houses are quite a bit different than the 200-300k houses we were looking at for my primary, but jeesh. She should have said no right off the bat, I would have understood. I'd rather her told me "sorry, I don't personally feel comfortable in those neighborhoods. Here's someone who can help you". I have been in all types of neighborhoods - ones where the houses are all 5+ M (got some rich family friends) and ones where they can't give them away. These were lower income neighborhoods, but they weren't scary.  She should have seen some of the places I looked at in south Philly.

The first month no, the second month it was received by the end of the grace period (barely), third month yes, fourth month yes.

I struggle with the cost-benefit analysis portion. I understand if you have many rentals you can't hear people's stories, can't make exceptions. But going to evict when I am fairly confident I will always be paid doesn't seem cost beneficial. I haven't been able to get them on the phone - it's all been through email. I think I'm going to have a phone convo with them and get to the bottom of it.

 @Doug N. that's perfect!

Electronic receipts are fine! Most auditors prefer it (except if you get a real oldie).

Thanks for your advise. They overnighted a check so it should be here tomorrow. Why is paying on time so hard?

If anyone ever wants a debit/credit, basic accounting lesson I'm here to help! I'm a CPA but don't ask me a thing about taxes.

I don't know of any free softwares, but I think excel can handle everything  you need it to.

Bookkeeping 101: assets increase with a debit, liabilities increase with a  credit. Expenses increase with a debit, revenues increase with a credit. Record journal entries for all transactions - treat your rental like a business.

When you receive rent, debit cash, credit revenue. When you pay a repair, debit expense, credit cash or accounts payable.

Probably would be a good idea to read a quick book about journal entries or do some searches on the internet.

At the end of the day, just be sure to keep a record of all expenses so when you're doing your taxes you don't give back unnecessary money.

My tenants are always late. As in they literally have never paid rent on time. They moved in mid-June and paid June (prorated) and July rent, last month's rent, 1 month security. Rent is due on the 1st and late on the 5th. 

On August 4th they sent me an email saying they would put the check in the mail the next day. I explained that I had to physically have the rent in my hand by the EOD on the 4th or it's late, but I'd let it slide this one time. The check came a few days later. The next month (September) I received payment on the 4th (just within the grace period...).  October was a real issue. The story I got was that there was a problem with work's direct deposit yada yada so I ended up not getting payment until the 19th. I explained that this absolutely could never happen again, I feel like I've been very patient and understanding but from now on rent has to be received on time. (They did include the late fee that time). Also with the October situation they told me numerous times that a check would be mailed the next day (when it clearly wasn't) so now I have about zero faith when they tell me a check has been or will be mailed.

Now this month has rolled around and it's now the 5th, no payment. I reached out and they said a check would be mailed on Friday.

I talked to several previous landlords and all of them said that these people were good tenants. I do think I'll get paid, but It seems like every month will be a story. I just don't have the time for it.

I have sent several email explaining very matter-of-factly that rent is due on the 1st and the late fee will be enforced if not physically in my hands by the end of the day on the 4th. I've asked if there are any questions or confusion. I don't know what else I can do.

I'm personally in a situation where if something happened with my work direct deposit I'd still be able to make my mortgage payment no questions asked. It really scares me that missing 1 payment would make someone unable to pay their rent. These people have good income, I just think they live beyond their means (fancy cars, fancy toys). I want to sit them down and give them a lecture about money management (the CPA part of me) but I know that's not my place. Plus I should charge my billing rate for that :)   

Do I threaten a notice to quit? Do I ride out the 7 more months of getting paid 5-15 days late and then not renew?

After they were so late in October I told them that it would never happen again. I didn't specify the consequences, but here we are again with no payment.

Thanks everyone! I think I'll ask them about the green in the living room & see what they say. I think these people will be here for a while (hopefully) so rather than have them wanting to paint a few months in, I can get it done while it's empty. I just don't want to seem like a pushover and if there is something else about the house they don't like (such as the pink ceiling fan in 1 kids bedroom and blue ceiling fan in the other kids bedroom), I don't want them thinking I'll change it to appease them. Paint is one thing, but other than that I'm here to provide a safe living environment, not a personalized interior decorating service.

The standard PA lease recommended and approved for, but not restricted to use by, the members of the PA Association of Realtors has a clause that states:

"the landlord or property owner may have a mortgage on the Property. The rights of the mortgage lender come before the rights of the Tenant. For example, if landlord fails to make mortgage payments, the mortgage lender could take the Property and end this lease. The landlord will notify Tenant immediately if owner or landlord receive a notice of foreclosure."

I'm sure every state is different so they should read their lease as well as research the state law to see if a similar clause is standard in FL.

I'm not a lawyer, but it seems to me that if Florida has a similar clause the tenants could go after the landlord for not providing them notification that the house was going into foreclosure. I'm sure the landlord would have received notice of foreclosure before the bank actually took possession of the property and therefore the landlord would be in violation of the lease.