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All Forum Posts by: Karen Johnson

Karen Johnson has started 27 posts and replied 155 times.

Post: Bait and Switch

Karen JohnsonPosted
  • Investor
  • AMBLER, PA
  • Posts 158
  • Votes 98

Thank you all for your input. I went back and read my lease terms more carefully, as well as my post above. Agree that it is not an *early* termination (this was a misstatement in my earlier post).I agree that this is a normal lease expiration. The lease expires 10/31. It states 60 day notice required if they intend to vacate at the end of the lease term, and if notice is not given then they are responsible for 60 days of rent. There is neither an auto-renewal clause nor a month to month one. Rather, tenant is required to vacate at the end of the term. I have historically auto-renewed term but I am using a new lease. Thank you for the direction to re-read it. I further think my lease needs review (both by me and by my lawyer) for future tenancies. I am not sure the 60-day notice to vacate clause would hold up in court if there is no provision for anything other than a lease termination at the end of the term.

Post: Bait and Switch

Karen JohnsonPosted
  • Investor
  • AMBLER, PA
  • Posts 158
  • Votes 98

Tenant lease ends 10/31. On 9/18, tenant advises they wish to go month-to-month via text. Month-to-month lease is sent to tenant but they do not sign. Today, 10/10, tenant advises they will not sign and want to move out at the end of the month (because reasons, doesn't matter). Original lease states 60 day notice is required for lease termination and if they terminate early then they are responsible for 2 months rent. Text saying they were switching to month to month was 43 days before lease term. Since they didn't sign month to month agreement, I consider the existing lease to still be in full effect. Am I correct in this logic? And so I can still require the 60 days of rent if they insist on moving out by 10/31?

Post: Terminating Tenant Lease with 80 Days Notice

Karen JohnsonPosted
  • Investor
  • AMBLER, PA
  • Posts 158
  • Votes 98

Hello!

I have a unit with two tenants who have become an issue for me. They are noisy, have verbal altercations (and there was one physical altercation involving a third party), have smoked in my unit despite it being a non-smoking property and do not maintain the grounds as they should. The police have been called to the property at least twice due to domestic disturbances. Their lease expires 10/31/2023 and I have decided not to renew. They pay their rent on time but they are not worth the headache factor and possible damage to my property. In my state, I am required to give them 15 day notice if their lease is a year or less or 30 days if the lease is over 2 years. They have only lived here for the past year. My lease states I will give them 30 day notice. Is it fine if I give them notice now (80 days in advance) or should I wait until the 30 day mark? In my mind, 80 days gives them enough time to find another place so I should tell them sooner rather than later and maximize the potential for them to actually leave. Some small part of me worries they will go renegade if I give them too much notice but I don't really think they will. I am not planning to evict them (at least not as of right now). I just don't want to deal with them for another year. Any thoughts on this?

Thanks,

Karen.

Post: Lease Violations Reported By Neighbor

Karen JohnsonPosted
  • Investor
  • AMBLER, PA
  • Posts 158
  • Votes 98

Thank you @Ray Hage and @Nathan Gesner. I spoke to the tenant on the phone and am following with a formal written mail.  I will also be scheduling an inspection.

Post: Lease Violations Reported By Neighbor

Karen JohnsonPosted
  • Investor
  • AMBLER, PA
  • Posts 158
  • Votes 98

Hello!

I have an upstairs/downstairs duplex. Downstairs neighbor reports that the couple upstairs is arguing loudly at all hours, and also smoking marijuana in their unit (smell travels). The noise complaint is pretty clear cut. Regarding marijuana usage - can I issue a notice of lease violation if I haven’t actually observed this myself? Perhaps a silly question but I haven’t encountered this issue before. Tenant moved in in November and I have not yet done an inspection this year. Do I need to inspect in order to verify before issuing a violation notice/warning for the marijuana usage? To be clear - it’s a non-smoking property and that is clearly stated in the lease. Tenants both said they are non-smokers. I guess they didn’t think that included marijuana. Lease clearly states they are responsible if their guests smoke on the premises as well. Any input is welcome.

Thanks.
 

When we first met, my realtor (who I have used multiple times) he encouraged me to use a particular lender because he knew the lender would be reliable, timely and could close the deal. He also recommended an inspector and a title company. I used them all. He was not wrong about any of them.  I have used them every time since (even for transactions where my realtor was not involved) and I have not regretted it once. Ultimately, your realtor wants the deal to close because they want to earn their commissions. They also want to make sure you have a good experience so that you continue to use and/or refer them. Use who you are comfortable with (even if it's not who they recommend), but it's likely they are just trying to make sure the deal goes through without a hitch by using someone they have successfully worked with in the past.

Post: Moving to Philly next summer

Karen JohnsonPosted
  • Investor
  • AMBLER, PA
  • Posts 158
  • Votes 98
Quote from @John Smith:

Hi all, 

I'm moving to Philly next summer because of the job I'm planning to buy my first house ever (if the numbers work out). 
After reading 3 books (4th one is halfway done) and listening to 50 of the Biggerpockets podcasts and many Reddit posts (before knowing BP) I'm freaking out more than before.

Things you need to know about my situation:

- I'm within the 1 hour and 30 minutes driving distance of Philly but do not know the city.

- My job is in Ogontz/Belfield, PA which I know is not a good neighborhood yet I'm kind of a safety freak and my highest priority is safety.

- Through my job, I have access to a loan with a 5% downpayment with a 30-year fixed-rate loan of 5.5% interest with no PMI.

- For the downpayment, I can put 50k which is equivalent to a 1m hose (with some room to stretch) and I'm looking for at least a 3:2 house. 

- I'm NOT considering a townhouse at the moment (I like to be distant from my neighbors).

- I highly prefer the house to be within less than 30 minutes of commuting distance to Ogontz by car. 

- I'm planning to stay there for 3-4 years and then move to Baltimore where part of my family is and buy another property there. In that case, I would like to rent the property out, and ideally, I would like to hold on to the property as long as possible. 

Things that you could potentially help me with (and I highly appreciate it):

- I read a lot of posts and analyses here and there that house prices are gonna drop in 2023. I know nobody knows for sure, but what's your take on house prices in 2023? Is mid-2023 a relatively safe time to buy, or should I wait? 

- Should I  consider buying at all? I used the NYTimes rent vs buy calculator that told me unless the rent is higher than $4500, I should consider renting. Is that too high of rent for Philly? No matter how I calculate it, I feel like buying is not a good choice (unless I'm doing my modeling incorrectly). Can you please give me some insight? 

- Can I apply the investment rules on the property I'm buying, e.g. 1% rule, or a property manager cost, even though I'm going to live in it myself so that when I'm leaving I will have some cash flow? 

- Can you please introduce some neighborhoods within 30 minutes of commute distance that are "very safe"?  It's a plus if it's close to public transport which makes it easy to go to NYC every now and then. Based on my research (which could definitely be flawed) areas around Narberth could be an option, what do you think?

- Since this is my first house, I'm going with the rule of thumb of trying to see at least 100 houses before making an offer. Is it a realistic goal in the span of 7-8 months with a 90 minutes driving distance? 

- How can I find a good buyer's agent in Philly? 

Thank you for your time


 Some areas to consider: Ambler, Willow Grove, Abington, Blue Bell, Plymouth Meeting, Jenkintown, Huntingdon Valley, Hatboro, Bala Cynwyd, Narberth is indeed a good choice, Manayunk. There are more, but that is off the top of my head. 

If you're planning to buy residential real estate, buying a property you will later be able to rent out makes sense. Otherwise, I would say don't buy for a short term living situation. In either case, don't try to time the market. Figure out if the house makes sense both as a primary and as an eventual rental and if it does, then buy. Consider what your plan will be for managing the property when you move away and make sure you're setting those wheels in motion. Also, have you considered house hacking?

$4500 seems high for Ogontz/Belfield area; I don't think that's a valid comparison. Also, at that price point, you will have a hard time finding qualified tenants (especially in Ogontz). If you are talking Center City, different story. Philly rents vary depending on neighborhood, and sometimes even block by block. 

Also, tread carefully - Philadelphia is very tenant friendly, and gets more so each year. You may want to consider the suburbs of Philadelphia more than the city itself.

I haven't read all the responses, but I assume others have chimed in on the rest of your questions. Otherwise, I apologize for skipping a few.

If you'd like an amazing realtor, message me for contact details. It's not me, and I get nothing from referring them. I've just had great experiences in the past and use them for all my transactions where I require a realtor.

Best,

Karen.

Post: Eviction in Philadelphia

Karen JohnsonPosted
  • Investor
  • AMBLER, PA
  • Posts 158
  • Votes 98

@Maxim K. Philadelphia is VERY tenant friendly and gets more so every year. It can take a very long time to get a tenant out of your property. I would advise that you join HAPCO if you haven't already. You can network with other Philadelphia area landlords and get some useful information for any issues you encounter there. They also have a lawyer that may be able to assist you with eviction related questions.

Post: How to Handle Tenant Request

Karen JohnsonPosted
  • Investor
  • AMBLER, PA
  • Posts 158
  • Votes 98

@Jaron Walling thanks for the added color. Gives more food for thought.

Post: How to Handle Tenant Request

Karen JohnsonPosted
  • Investor
  • AMBLER, PA
  • Posts 158
  • Votes 98

@Jaron Walling thank you. May I ask why you chose to remove rather than keep? Were they affecting rentability of your unit? We were thinking we would just leave them. May add verbiage that tenant is responsible for cost to restore to original condition. I hope she lives there for a long time, but if she moves in a year, I'd rather know I have some further recourse if indeed they need to come out.

@Jeff Copeland thanks for the link! I've been reading up on this online, including the fair housing guide for the state of PA where the rental is located. Fair-Housing-Guide-to-Reasonable-Accommodations-and-Modifications.pdf (pennsylvaniacoc.org)