Getting A Lease For Rental Property
I just purchsed a SFH that I will be renting out and want to know where to obtain a lease. Are the leases at Office Max sufficient, or do I need an attorney to draw one up? Thanks.
I just purchsed a SFH that I will be renting out and want to know where to obtain a lease. Are the leases at Office Max sufficient, or do I need an attorney to draw one up? Thanks.
The landlords legal guide is a must for first time landlords. There is alot of great information in it. When I did my first rental I actually got the lease from my Realtor. Much more detailed and covers alot more. Now I use this lease exclusively from the association of realtors.
How did you arrive at the cash flow? Does this include vacancy and maintenance? Also, were the rents derived from comparisons? Is it rented now? What are they paying?
Watch your way around this deal if probate is involved. in CA, I find it to be a lot of pain, and worst someone can overbid at the confirmation and snag your deal.
Was the death in the home? Do you have to disclose that to renters/buyers?
do a very through inspection as disclosures may not be required.
What about utilities? What are the tenant/landlord laws in Vermont?
In Massachusetts, landlords are responsible for water and sewer.
The two family I own runs me about $75 to $100 month.
[addsig]
Yes, you have to get replacement value. I was forced to do that 2 years ago in a similar situation. However, they allowed me to submit a contractors estimate/bid of what he could rebuild the structure for. It shaved 100k off of the insurance i had to carry...but it was still 100k above what i paid.
But with appreciation and one major claim, I found the the insurer was correct about the replacement cost of this building in my case. I just got a great deal. Good luck
LOL...........
The bank will only bridge 70% of what I paid, not FMV, and the insurance company can only insure for 3x the FMV ?
I guess the truth is somewhere in the middle, if anybody is interested ?
Well, I dont know if replacement cost insurance is a fact for everyone. But I have been forced to get it on all of my properties, I insure with the same company...so maybe you can shop around and find someone.
JS, Its not the lender you need to worry about. Its the insurer, and if the insurers policy is for replacement cost then you really have limited options. As i said before, my insurer forces replacement coverage or i can take a walk. Not much discussion or financial concern to them.
But they did let me submit a lower contracters estimate with the contractors license. It cost me $50 and ten minutes to meet with the contractor for his estimate.
Of course I had to call around town a little to find someone. I just told them over the phone the type of siding and square footage and offered $50 for a service call once he figured my insurers estimate was high. The lower estimate assumed the concrete slab and pilings would still be there after a flood or fire. I think thats where the insurers are going overboard with reconstruction estimates.
Good luck
I think the bottom line answer is find a diffferent insuarnce company. The bank only requires you to have a policy to cover the bank loan, and you the owner only wants a policy to cover your purchase price. Why allow the insurance company to tell you the amount of coverage you should have?
From your profile.. not sure where you are located. But in my neck of the woods we have a company call Michigan Basic. Their name says it all.. the insure the basic amount that you paid for the house and only insure for severe damage to the property.
I use them when I am rehabbing my properties. Most insurance will not insure a property past 30 days vacancy... but MI Basic does. Their rates are a little lower than a replacement Owner Non-Occupied policy, but not much lower. Maybe you have such an insurer in whatever area you are from.
I have been going with Wolverine. They gave the best quote for a NOO policy, and offered replacement cost or any value I choose to insure for. The lender requires that the policy be for at least what I owe. I feel insuring for what I have invested plus liability coverage is sufficient. My only complaint is that they increase my coverage (and my premium) by an inflation factor each year, while my debt and investment is less each year as the renters pay them down.
Chris
Ethics? I think you are doing them a favor with the offer. If they dont like it, then they can hold out for more. If your offer is that outragious, they should just let the bank take the property.
A 75% to 80% profit is "normal" for this business. Sure, sometimes it is more and sometimes a little less. But the profit margin you mention in not abusive as long as your calculations are real.