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As a landlord, we would always prefer for you to call me whenever there is an issue. It is possible they might tell you to handle yourself, but they need to be in on the decision. Botched repairs can cause more headache than the original problem.
As to the specifics of who pays for repairs. It is usually spelled out in the lease.
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This is typically spelled out in the lease. Our leases say that
tenant must call us (the landlords) if something needs to be repaired.
tenants are responsible for the costs associated with damage above and beyond normal wear-and-tear that is not covered by our insurance.
repairs must be done by people we choose rather than people the tenant chooses, ...
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House prices and rents aren't always highly correlated - if rental demand is high then rents and home prices can actually go in opposite directions (but may eventually reach an equilibrium).
So what you should look for is rents for other, equivalent houses. If those are lower, then you might have some bargaining power.
What's the best way to negotiate ...
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Ask your tenant what he wants to get out of this arrangement - NOT the legalese - but:
What end result the tenant wants in plain English (it sounds like free money).
Why does the tenant think he should/must get it? - Note: answering my mum said it was due is not your problem.
Then decide what you should do.
Things not to do:
Engage with his mother - you ...
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Looks like you've already spent all the big $$$ that you're going to need to spend for a while. You should have your property management company go after the previous tenant for all the damage. You're not limited to just their deposit if they caused a lot of damage. Your property management company should have told you that if they're worth what you're ...
16
What does he mean exactly? How the heck does it
make sense for a landlord to "buy" a "lease" from his own tenant?
It sounds like they're hoping you might pay them to vacate/end their lease. It could make sense if you were considering selling the property. It could also make sense if they were about to stop paying rent because they think they cannot be ...
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If you had no expenses related to the property as the owner of a rental property: no interest payment on the mortgage, no real estate tax, no condo fee or HOA fee, and no insurance, and no utilities; then yes the entire rental income minus depreciation would be taxable.
But most people who have rental property aren't in that situation. They do have to pay ...
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If the intent is for the new property to be a primary residence, then 1031 exchange does not apply.
You can convert a 1031 exchange property to a primary residence but to avoid the prior exchange being invalidated you would have to rent it out for part of 2-years and limit personal use, per IRS guidance :
(2) Replacement property. A dwelling unit that a ...
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As D Stanley pointed out, rent and real estate prices are not always correlated. The Brexit vote was a clear example of that with property prices stagnating right after, but rent still increasing in London.
However, that is besides the point - rent is decreasing as well.
Rent negotiations work in the same way as any other negotiation. You need to know the ...
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Financially, it's hard to say, if you don't screen tenants thoroughly enough or just get unlucky then the extra costs/hassle could eat your profits and your sanity. It sounds like you've hit a lot of big ticket items so you might be set to coast for a few years with higher rent which would be especially lucrative if you could do without a property manager (...
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I have been a landlord.
There are two questions in this question:
Who initiates the repair process?
Who pays for the repair?
You as the tenant have to return the rental property back to the owner at the end of the lease in working condition, or you may be responsible for the repair cost. There are of course allowances for normal wear and tear.
So, if you ...
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You should only do this if you can comfortably pay 100% of the mortgage and expenses in case a roommate doesn't pan out. It's much better to treat a renter in your own home as a bonus rather than a necessity in case your situation changes. This also gives you more flexibility when picking a roommate. You should also ensure no complications due to local laws ...
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is it better for the tenant to take care of the plumber bill or call the landlord?
Depends. Tell me how you take care of the damage that you may have caused that are not part of your rented property (i.e. damage to the fall drain when you rent an appartment in the 6th floor). Also the landlord has a right for a professional repair - so "taking care ...
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Let's say that the lease has a year left to run at $100 per month, and he offers to vacate for $500.
Let's also say that you could lease it right now for a year at $200 per month if it were not obligated by the current lease.
In that case, it could make financial sense to take that offer.
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Sarcasm on: not do it. Not now - unless you have a good grip on something in rural areas, I would expect housing prices to be seriously problematic within the next 2-3 years. Problematic like going DOWN HARD. I am quite happy that I managed to sell some of my properties in the last 12 months - right now I would not find a buyer for a decent price. At all.
In ...
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I am not an accountant, and you need one. But I do know that bad debt is not the same as theft. You need an accountant to look at the details of your situation and figure out how to classify your loss.
Also, and this isn’t directly related to your question, but it seems as though you now are co-owner of property with an estate that owes you money. You need ...
answered Aug 25 '20 at 16:34
Ben Miller - Remember Monica
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In most jurisdictions you have quite a bit of latitude in what you and your tenant agree to. Some people like monthly expenses to hit at a time other than the 1st because of the timing of their paychecks and/or other monthly expenses.
I take it as a sign they might be living paycheck to paycheck which is not ideal, but up to you to decide if you're ...
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In your calculation about selling, you need to remember also that it costs 10-11% to sell. If you keep it as a rental, have you checked what other people are charging for rentals in the area for the equal size and condition? I have 5 rentals and keep the rents below the market, so I can pick my tenants from a larger group, and then I am Real Picky! I've ...
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It certainly is an uncommon arrangement, but I don't think it is a scam:
In Germany, he cannot open a bank account without identifying himself (Government-issued ID card or Passport), so the bank account number you have will lead to him, and the police would get him through that (and he would know that). In other words, he has little chance to run with that ...
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You've pretty much nailed it conceptually, but you are implying something which I think should be explicitly called out:
Plus if we actually pay 20% to 50% down payment, and if the mortgage interest per year is $6,500 or more, then in this case, all the rental income is tax free?
Not exactly. You just made the case that there is no rental "profit"...
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"An individual or a property management company makes you jump through hoops and prove income, provide a credit report, undergo a background check etc." for a couple purposes:
Risk assessment: how likely are you going to hold up your end of the lease, leave the property in good shape, not open a meth lab, get arrested, be a nuisance to the ...
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You didn't share your location, but I've had a similar experience in the US. I was renting a house and was in the process of having cable TV service connected. The house only had a single cable TV jack, so I asked the installer to wire a second jack on the other end of the house. The installer said that since I was merely a renter and not the property ...
5
There is a process in rental property colloquially called "cash for keys" where the landlord pays a tenant to terminate a lease.
Usually it comes up as a kind-of win-win for both sides where the tenant has lost their income or the landlord wants them out with less fuss, so instead of a drawn out eviction process with no guarantee of getting paid back rent,...
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You're ignoring the fact that your brother derives value from living in the apartment. Fair to me in your situation would be:
Split costs as before
Split rent on the one unit as before.
And you get the majority of the rent on one of the units, as you used to get that value by living there. I'd say it's less than 100% of the unit's rent because it's likely ...
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After Management fee, you have $19,000.
Tax, Ins, Int, $7500. Call it $11K left.
There seems to be a lot missing, the other line items from the Sch E would help. No grounds maintenance? Snow in winter, grass in summer?
The numbers for the roof, appliance, etc need to be looked at, but over their lifetime. The roof, for example, should last, say, 20 years, ...
answered Aug 19 '20 at 12:56
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When you move in, you’ll become liable to pay the council tax for the remainder of the tax year, but you can arrange to pay in monthly instalments. And when you move out, what you owe will be adjusted to account for the unused period, so you should basically be able to stop paying at that point.
You’ve pretty much taken account of all the property-based ...
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Since each party pays in the same amount, it sounds naturally fair if each party gets to own half of the asset. As a consequence, each should be entitled to half of the proceeds from the asset. The costs to initiate and serve the mortgage should be borne by the party financing this way, out of their portion of the proceeds. One of the parties puts money on ...
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Presumably rent is paid monthly in advance?
Then the first month's rent will be for 1 month + 10 days, and continue monthly thereafter.
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I'd also add the following to your list:
Contents insurance - I assume your landlord is covering building insurance, you need insurance for your possessions.
Increased fuel and travel costs - Living with your parents, you probably car share a lot more than you realise, plus you will also be travelling more to go back and see them.
Food - You don't say what ...
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Due to COVID-19 many places have halted evictions. In some places the emergency laws still may have required the tenant to notify the landlord of their inability to pay. Because you don't have a lease your rights generally are limited, but most states still require a landlord without a lease to still follow some of the eviction processes.
The interesting ...
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