SD Acctg between LL's (by GKARL [PA]) Apr 13, 2018 7:00 PM|
SD Acctg between LL's (by Still Learning [NH]) Apr 13, 2018 7:20 PM
SD Acctg between LL's (by Vee [OH]) Apr 14, 2018 4:16 AM
SD Acctg between LL's (by Sisco [MO]) Apr 14, 2018 5:00 AM
SD Acctg between LL's (by RathdrumGal [ID]) Apr 14, 2018 6:31 AM
SD Acctg between LL's (by AllyM [NJ]) Apr 14, 2018 7:11 AM
SD Acctg between LL's (by NC INVESTOR [NC]) Apr 14, 2018 12:38 PM
SD Acctg between LL's (by GKARL [PA]) Posted on: Apr 13, 2018 7:00 PM
I'll be closing on my 6 unit in the next few weeks. I had an inspection done this past week and noted a few issues here and there in the apartments and the question came up in my mind whether of these damages occurred since the tenants began occupancy. These are all long time tenants paying under market rent who've been there 5-7 years. One lady has a bunch of parakeets and a couple of parrots while the others have no pets at all. The birdlady has a 3 bedroom townhouse with her own washer and dryer. The problem with the washer and dryer is that they placed under the stairs by cutting out a wall and there's no drainage pan under the washer. That means an overflow will immediately ruin the commercial area below her. This is something I would never allow and I'll probably insist on her installing a drain pain beneath the washer to prevent that. The seller hasn't really been managing this place well so I'm going to have to tighten up a few things.
Anyway, I have a question about the SD accounting. It seems to me that I need to demand that the seller do one now so I know what was damaged so I'm not stuck with both paying out the SD on the turnover and dealing with the repairs. Basically what I'm looking for is a snapshot of damages that the tenants are responsible for so I don't get played by them saying that this was "already there". How would you handle?
SD Acctg between LL's (by Still Learning [NH]) Posted on: Apr 13, 2018 7:20 PM
I do a walkthrough with the tenant after purchase and do an inspection report then. I have them sign my lease at that time or a notice to vacate if they prefer due to not liking my changes in rules/lease. I tie the security deposit return to the condition at purchase since I have no proof of what it looked like at move in. --24.61.xxx.xx
SD Acctg between LL's (by Vee [OH]) Posted on: Apr 14, 2018 4:16 AM
Estoppel is the form you need each tenant and owner to sign, who owns what, how much and where is parking - storage and utility payments. --76.188.xxx.xx
SD Acctg between LL's (by Sisco [MO]) Posted on: Apr 14, 2018 5:00 AM
Be sure to get a check from seller at closing for amount of deposits being held.
Estoppel letter templates can be found. --72.172.xxx.xx
SD Acctg between LL's (by RathdrumGal [ID]) Posted on: Apr 14, 2018 6:31 AM
More than an accounting of the SD, I believe GKarl is looking for the move-in condition reports (with photos) of the units. This is so he can appropriately charge his inherited tenants for damages that they did during their tenancy.
Hopefully, the seller has this information and will pass it on to you. We never got this when we purchased our building (never thought to ask). We heard "it was like this when we moved in" excuse -- but most of the sleazy tenants we inherited quite paying their last month's rent as soon as we gave notice, so it was a moot point.
Glad those days are over! The tenants in the building we purchased were AWFUL -- we were just too stupid to know any better. We should have gotten the bad tenant discount! --98.146.xxx.xxx
SD Acctg between LL's (by AllyM [NJ]) Posted on: Apr 14, 2018 7:11 AM
When I sold the two fourplexes I had a lazy fat lawyer who had turned into an "artist". The tiny little lady in his office did all the work. Unfortunately she didn't notice how bad the estoppel form was in the sale contract. It had me paying for damages the tenants did going forward for a couple years. I found it and got some other legal opinions, although a lot of them knew the bad lawyer and didn't want to interfere. Watch the last names for similarity if you want to get a lawyer to comment on what another one messed up. I told them no deal unless that letter came out and it did. A normal estoppel was found and the tenants filled them out and all was OK. Read your contract. Don't assume that your lawyer has read it. Might be some poor overworked woman in his office while he plays golf or is an "artist". --69.141.xxx.xxx
SD Acctg between LL's (by NC INVESTOR [NC]) Posted on: Apr 14, 2018 12:38 PM
"I have them sign my lease at that time or a notice to vacate if they prefer due to not liking my changes in rules/lease".
If you buy a property with an existing lease that lease cannot be changed until it expires..in the majority of cities and states.
SD when buying a rental. You need him t give you a list of the tenants and the amount of the SD's for each tenant. He will give you a check for the SD at closing. Once you have the Sd's you need to send a notice to each tenant telling them the funds are held.
As for damages, you should get copies of pre move in pix. If they do not exist then have the current owner go through the property while the tenant is there and show you was was pre-existing. The reason for the tenant being present is let the current owner and tenant hash out the differences. --71.75.xx.xx