Leasing

Reminder: Section 8 Seminar Tonight

Just a reminder that we have our Investment Property 201 seminar tonight called:
Section 8 Tenants”  Every you want to know about Section 8, but were afraid to ask.”
Tonight in Burnsville at 6:30.
Register here.

Just a reminder that we have our Investment Property 201 seminar tonight called:

Section 8 Tenants”  Every you want to know about Section 8, but were afraid to ask.”

Tonight in Burnsville at 6:30.

Register here.

Renting to Friends

I know it is very common for people to rent this homes or apartments to friends.  I suspect that like most things in life, 80% of those rental relationships do just fine. I probably just here about the 20% that do not.  Here are some tips to making sure that you as the landlord (not [...]

I know it is very common for people to rent this homes or apartments to friends.  I suspect that like most things in life, 80% of those rental relationships do just fine. I probably just here about the 20% that do not.  Here are some tips to making sure that you as the landlord (not as the friend) is protected if this friendship goes south and your “friend” becomes the bane of your existence!

• Many “friend” landlords simply let the tenant “friend” move in and just pay them some verbally agreed on amount of rent.  WRONG!  You need a standard written lease.  This may seem formal, but this really protects both of you.  With a written lease there is no opportunity for one party to remember the conversation differently.  Plus, as the landlord, if the friend stops paying you or does something you disagree with, it will be difficult (but not impossible) to evict them.  One example is a couple that let a brother rent this old house in the country.  After about 6 months, the brother started paying parts of the rent every couple weeks when they would hound him.  He then started to remodel the house, plus he moved in a couple other roommates and they all had parties every weekend.  Without a lease in place, these landlords had a terrible time getting this guy out.
• Keep a key to this home and install a 2nd one in a lock box that only you have the combination to.  You can give out this lock box code to repair guys that need access to the property for repairs without bothering your friend.
• Do not allow your friend to be late on the rent.  This will be worse than letting the average stranger tenant be late on their rent.  You will get into this strange situation where you want to hang out with your friend, but will be frustrated when he is buying a round of drinks for the bar, all the time you know he owes you back rent.
• Consider putting your friend on a month to month lease.  Then you can simply give him 60 days notice to move out if the relationship starts to sour.  Then there doesn’t need to be an eviction involved (unless he doesn’t leave).  You just part company from a housing standpoint and go your separate ways.

Renting to friends can be a great way to have a quick and most likely wonderful tenant.  Just don’t leave all your landlord experience and common sense behind!

Craigslist Rental Scam Targets the Area

There is a rental scam using Craigslist that has targeted some properties listed for sale on NorthstarMLS. Property information and photos are taken by criminals from public broker/agent Web sites and then listed as a rental home through a Craigslist classified ad at an unbelievably low rate. The landlord-who had to leave the country [...]

There is a rental scam using Craigslist that has targeted some properties listed for sale on NorthstarMLS. Property information and photos are taken by criminals from public broker/agent Web sites and then listed as a rental home through a Craigslist classified ad at an unbelievably low rate. The landlord-who had to leave the country and travel to Nigeria-asks that you wire him two months’ worth of rent. You arrive at the home on the agreed-upon date, but there’s just one small problem-the house is not actually for rent and its owners know nothing about your agreement. This latest scam being perpetrated by Nigerian criminals located halfway around the world has been seen in a number of U.S. states, perhaps in response to the current housing market-with fewer people buying, more people are renting.

What to do if your listing is a victim of this scam

Email the details to abuse [at] craigslist [dot] org. Be sure to include the URL (or 10-digit post ID number) in your message. For further recommendations, check out the Craigslist page on who to notify about fraud attempts. You may also report it to the FBI’s Internet Crime Complaint Center to help them determine the extent of the problem.

Investment Property 201 Seminar: Rent to Own Deals

[ October 21, 2009; 6:30 pm to 8:00 pm. ] Rent to own contracts go by many names (and take many forms):  rent to own, contract for dead, lease option, etc.  These are creative ways that landlords and tenants/buyers have put together to allow someone with marginal credit (tenant) to buy the house they want.  Depending upon how the relationship is constructed and documented, it [...]

Rent to own contracts go by many names (and take many forms):  rent to own, contract for dead, lease option, etc.  These are creative ways that landlords and tenants/buyers have put together to allow someone with marginal credit (tenant) to buy the house they want.  Depending upon how the relationship is constructed and documented, it can be a win/win or a lose/lose for both parties.

On Wednesday, October 21, the Minnesota Real Estate Team will be holding is next Investment Property 201 seminar.  We will have Attorney, Matt Engel discussing how to best architect these relationships.  He will demonstrate the pitfalls and common mistakes that many landlords make and how to avoid them.  Matt will explain the best design for these relationships to minimize the legal ramifications if the relationship goes poorly.

Join us on October 21 at 6:30 pm if you have previously written these deals or have always had an interest in them.  Contact us now by filling out the registration form or call me at 612-281-5419 for more information.

Beautiful Posts on Craigslist

I have written several posts about how to write “For Rent” ads in Craigslist.  Although I was previously the Director of Information services at Caribou Coffee, sometimes technology improvements can sneak by me.  This might be such old news that you are going to send me hate mail telling me I need to get rid [...]

I have written several posts about how to write “For Rent” ads in Craigslist.  Although I was previously the Director of Information services at Caribou Coffee, sometimes technology improvements can sneak by me.  This might be such old news that you are going to send me hate mail telling me I need to get rid of my Pentium 1 computer!

Here goes…As most of you know, Craigslist ads are quite dry and simply text in a white background.  You can add HTML to the ad, but that is time consuming and not for the average non-geek.  A customer of mine recently posted a “For Rent” ad on Craigslist.  He wasn’t getting many calls so I told him to send over the ad.

What he sent over floored me.  It was a colorful, well-formatted web page inside of Craigslist.  This customer happens to be a geek so I figured he wrote the entire thing in HTML and posted it.  When I mentioned it, he said he found a website called Postlets.com.  This free service allows you to create a beautiful page for your rental ad or your “home for sale” ad and then simply cut and paste the HTML into Craigslist.  You can add up to 18 pictures and even a virtual tour!  If you upgrade to the paid service you can have a single property website.

See a sample here:  http://www.postlets.com/rem/2172858

Now, no more boring Craiglist ads.  Start using this today!

Renting to Handicapped Tenants

This is a question that does not come up much, but I thought I should address it:  “Do I need to make any special accommodations for a handicapped tenant/applicant”.
First, who is considered handicapped under the law?  The federal Fair Housing Act and Fair Housing Amendments Act (42 U.S. Code §§ 3601-3619, 3631) prohibits discrimination against [...]

This is a question that does not come up much, but I thought I should address it:  “Do I need to make any special accommodations for a handicapped tenant/applicant”.

First, who is considered handicapped under the law?  The federal Fair Housing Act and Fair Housing Amendments Act (42 U.S. Code §§ 3601-3619, 3631) prohibits discrimination against people who:

• Have a physical or mental disability that substantially limits one or more major life activities — including, but not limited to:
  • mobility impairments
  • hearing impairments
  • visual impairments
  • chronic alcoholism (if it is being addressed through a recovery program)
  • mental illness
  • HIV, AIDS, and AIDS-Related Complex, or
  • mental retardation
• have a history of such a disability, or
• are regarded by others as though they have such a disability.

Here are the general rules that you must follow as a landlord (if you have further questions, I recommend you contact an attorney or a special interest group):

• As a landlord, you may not ask an applicant about any handicaps.
• You must base your decisions to rent to (or continue to rent to) a person solely on the basis on credit, criminal, and rental history.  You may not deny them solely because of their handicap.
• Even if it is obvious that they are disabled — for example, they use a wheelchair or wear a hearing aid — it is nevertheless illegal to inquire how severely they are disabled. In practice, if there are units available on the ground floor and 2nd floor in the same complex, you must offer both units to a person in a wheelchair, even if you believe they would not be interested in the 2nd floor unit.
• Landlords must reasonably accommodate, at the landlord’s expense, the needs of a disabled tenant such as (but not limited to):  rules, procedures, services to give the disabled tenant an equal opportunity to enjoy the common elements and his/her unit.  Designating the front parking space would be an example of this.
• Alternatively, landlords must allow a disabled tenant to make reasonable modifications to their units or common areas at their expense in order to allow the tenant to live comfortably or safely in their unit.  These modifications may not interfere with current or future tenants ability to use the property.  Typical modifications that can be done (and paid for) by a disabled tenant can include:  installing a ramp to allow wheelchair access, installing special faucets or door handles to allow for tenants with limited hand mobility.  The landlord can require that they changes are removed once the tenant leaves the property and can only be done with prior approval.
• If the need for the modification to the property is not obvious (such as a wheelchair ramp), the landlord may request a doctor’s letter prior to approving the change.  This is especially common in mental illness disability and/or phobias.

While this is not an exhaustive list, you need to be aware that you must give a handicapped tenant or applicant every opportunity to rent your apartment.