Phantom Tenant...legalities?
An acquaintance has come to me with an unusual proposal. They are desperate for their child to be in a different school district than where they live. They want to rent a unit just for the lease and a mailbox so they can prove to the school that the child lives in the zip code of the school they desire. But the child will not live at the apartment. In fact the mail will come to a apartment that is already occupied and the tenant is a friend and has agreed to collect the mail. They would pay $100 a month to "live" there.
Would this be illegal? Would you do this?
[ Edited by d_random on Date 07/02/2006 ]
Thank you guys for all info. I know I posted it a while back but none the less I am grateful for your input. I have now purchased our first rental property with the mortgage under our name. after reading you guys input I think it probably would be best to form the LLC in the state we are investing in. again, thanks for all your wisdom, it is well taken.
What do you think?
Da Wiz
[addsig]
eh. I want to help this person, but this seem like not a good idea.
I think there would be easier ways to do this. For instance, alot of schools require that you show one or two utility bills to verify your address. What about calling the phone or gas and electric company, notifying them you are having a problem with your mail, and asking them to send the bills to this other address until you get the matter resolved. Do this, then change the address back once the issue is resolved. Once the child is in school, notify the school of the same issue of having difficulty getting your mail. Provide them with a local post office box or mailboxes etc. mailing addy to use instead.
Thanks for the advice everyone, told them "no" the other day.
This is a question you should take to your attorney. You might also ask this same question of your insurance carrier.
Your risk exposure could too high to trust to the anonymous advice you get in these forums.
You have a negative cash flow and can not afford the fence. It is the same budget logic as if you wanted to buy a new pair of shoes but had no money in the bank.
If the tenants want to put it up for free, then great. I have had tenants put up fences for free and in my lease it says that any installed permant structures remain at the property. If your lease does not, then have them sign something prior to putting up the fence.
>>>>You have a negative cash flow and can not afford the fence. It is the same budget logic as if you wanted to buy a new pair of shoes but had no money in the bank>>>>
Yep, Brenda, That about says it all.
Jim
JIm,
You can easily convert this to a positive cash flow with the same tenant and satisfy the needs of both parties by offering your tenant a couple of options. I will be accused of "thread hijacking" because it involves the use of a land trust, but it will help you achieve your goals and is indeed pertinent to this topic. If this info is of interest to you, just say so in a post. If not, best of luck to you.
Da Wiz
[addsig]
True, I have negative cash flow right now, but the lease is coming up for renewal and I could increase the rent to become +ve (including the cost of the fence) but that would involve a significant (> 25%) increase.
From what I hear, Increasing the rent by the $100 and letting them install the fence does not seem to pose major problems, right?
Apart from the lease addendum, what else should I watch out for in this situation?
Mtnwizard, please post your idea with the land trust. I would like to hear all options and we can take whatver works best. No hijacking when valid options are being presented.
Thanks.
JS
I would see the condition of the fence before they put it in the ground and also explain your quality expectations about the installation.
No offense to the good tenants out there, but most of their repairs/additions look like crap.
have a good lawyer and land surveyor at your side when your neighbor calls and claims the fence is on their property.
does the city/town require a permit and have setback codes.
free can be good it also can be very expensive
Best of luck
KJ
[addsig]
nobody mentioned this, but I would hit up the neighbor to go halves on the fence. You might get nothing, or you might get a fence half price.
Good point kevnhl25!
NOT SURE ABOUT MI. but in mass we are required by law to
have a statement of condition prior to the tennant moving in
when there is a security deposit involved. If there is a document
like that which the prior landlord and your tennant signed then your case is clear. Also the housing authority that administers the section 8 voucher inspects the rental unit to ensure it is up to code . crayon on the walls maybe considered normal wear and tear as would the condition of the rug, the railings are a safety issue wich should have been picked up the inspector
prior to the tennant moving in. Ask to see the original inspection
and the yearly renewal inspection if the tennant has been there more than a year I assume they have been because of the thirty day notice.
Best of luck
KJ
[addsig]
I also purchase in low income neighborhoods. Just remember you can find good tenants in urban neighborhoods. The key is to do an A-1 job at screening and if you are skeptical give the tenant a MTM lease. Also I perform a credit check but I look for evictions and utility collections only.
Best contractors are word of mouth....and they will give free estimate because you are "in the circle". Needed A/C work done on personnel property and called my private PM for a recommendation.
Called the guy and said that the PM works for me and I need you to look at something - he was over early the next day.[ Edited by hoober on Date 06/10/2006 ]
jeez, I was feeling sick to my stomach there for a minute. What happened? Did I post the wrong number? Is my phone not working, or the answering service messed up? I swear I had it on me the whole time, how could I have missed him?
Oh, thank god! I guess there is more than one Chris in the world...
Chris