|Landlord Newsletter - Settlement Charges Guide|
The LPA Newsletter August 2006Dear Fellow Landlord,
I hope this month finds you healthy, wealthy and wise, as Benjamin Franklin might say. You have to be with all the rental activity we're having at this time of year!
As you know, an important part of the post rental process is being able to support your deductions and settlement charges against the tenant's security deposit. In addition to the Property Condition Report and the Security Settlement Statement, the Settlement Charges Guide helps you do that. If you don't already have it, you can Download it Free in this newsletter.
I'd like to thank Real Estate Attorney Bill Bronchick for supplying us with his article on Lease Options, a great approach on the topic of creative investing and leasing of real estate.
Have you ever had a tenant not return a signed lease renewal, Rent Increase Letter or Intention to Vacate Form? Well, now you won't need to get a signed copy back from the tenant. Find out how in this newsletter.
Please e-mail us if you have any questions or would like to add or share any material / information. Thanks again for all your input and especially for sharing all those funny tenant excuses. Have a great month!
The lease/option strategy is a great way to leverage your real estate investments because it requires very little cash. The lease/option is more of a financing alternative than a financing strategy because you don’t own the property.
The basic lease/option strategy involves two legal documents, a lease agreement and an option. A lease gives you the right to possess the property, or, as an investor, to have someone else occupy it. If you can obtain a lease on a property at below market rent, you can profit by subleasing it at market rent.
An option is the right to buy a property. It is a unilateral (“one–way”) agreement wherein the seller obligates himself to sell you the property, but you are not obligated to buy. By obtaining the right to buy, you control the property. You can market the property and sell it for a profit. The longer you can control the property in an appreciating market, the more value you create for yourself. By combining a lease and an option, you create a lease/option.Financing Alternative
The two primary objectives of the real estate investor are cash flow and appreciation. You don’t need to own a property to make cash flow or benefit from appreciation. A lease entitles you to possession, which allows you to make cash flow. An option gives you the right to buy at a set price, which allows you to benefit from future appreciation.Lease – The Right to Possession
Under a lease agreement, the lessor (landlord) gives the lessee (tenant) the right to possess and enjoy the property, which is one of the most important benefits of real estate ownership. The lessee is usually not responsible for property taxes and major repairs. Once you have the right to obtain possession of property, you can profit by subletting or assigning your right to possession .....
Have you ever been frustrated because a tenant failed to return a signed copy of your notice of:
Here is the clause to insert into your LPA Notice of Rent Increase, Lease Update - Change of Terms Notice or Lease Renewal so that when you issue a notice, it will still be enforceable even if the tenants don't return a signed copy to you.
Just copy and paste the above to the bottom of your notice.
Disclaimer: State and local rental contract laws may vary, so The LPA recommends you consult a local attorney to make sure legal notice of this type is enforceable in your local court.
"We adopted a homeless dog. He is a beautiful fully trained showdog, but he was very sick and we had to take him to the vet to save his life. He's fine now, but we spent so much on the vet and other dog stuff that we don't have anything left for the rent now."
YOU GOT A DOG?! YOUR LEASE SAYS NO DOGS! YOU AND YOUR NEW DOG WILL ALL BE HOMELESS IF YOU DON'T PAY THE RENT TO MY LAWYER along with the attorneys fee. - Big Bad Steve, NY
"Sorry I don't have the rent this month because I had to buy diesel fuel for my truck to get to work."
Well I hope you like living in your truck after you get evicted. - Sandy Jamison, California
"I spent days cleaning up sewage in the basement and you have the nerve to ask for the rent?"
Don't act like it is my responsibility to clean up your sewage. After all who clogged the line with non-flushables? Pay or leave. - Stefan G., ME
"I have a TOOTHACHE. GET OUT OF HERE NOW!!!"
He scared the heck out of me. He looks like Danny Devito and sounds like Arnold. Luckily he apologized to me the next day and paid the rent. - Morgan W., PA
"Quality work doesn't cost more - it pays." - Louis C.
"Tenants show their true colors in pressure situations." - John Nuzzolese
"The man who scrimps, spends the most." - Rob Salamida
"Donít confuse activity with accomplishment." - Submitted by Dale Kelsey
"How much did your last tenant problem cost you?"
- John Nuzzolese
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