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Is there some sort of course or book that teaches someone how to
be a (good) landlord? (Location: Dallas, Texas). A friend's husband
inherited a multi-unit apartment formerly occupied by several related
families, (and owned by one of them, so these weren't rental units)
who have now either died or left, and he wants to rent most or all
of the units. Maybe he'll live in one.
It's obvious from the questions he has been asking me (why he's
asking me, I don't know, I'm a computer nerd, not a lawyer) that
he has little idea how to run any business or be a landlord, but
he thinks he's got a gold mine that doesn't need work to dig the
gold out. He doesn't even know what it's like to be a tenant,
either. Is there something (hopefully not "Landlording for Dummies")
that will at least point out that he needs to learn a LOT before
he attempts this. He's not hearing what I'm saying.
Some of his questions were (this will probably horrify the lawyers):
Why bother with a written lease? (Yikes!)
What's a business license?
He's gone from "what good is a damage deposit?" to "I'll charge
200% of the value (not monthly rent) of the unit as a damage deposit
and use it to pay off the mortgage". What does it mean to "return"
a damage deposit? I think he'd like to sell the units as long as
they keep paying rent also.
What do you mean I can't refuse to rent to <insert racial epithet
here>? He also wants to keep the <insert racial epithet here>
friends of tenants from visiting tenants at their apartment.
He wants to rent out a unit for a few months, THEN fix the toilets
and the air conditioning (note: this is Texas, for people who
consider Hell too cold). He doesn't have much money to put towards
repairs, hiring a lawyer and accountant, advertising, or insurance,
and he needs all of these, badly.
How can he get a credit check on a tenant?
How can he accept rent payments by credit card, debit card, or EFT?
"Why do I need insurance? The tenants can get their own!"
Is rent taxable income?
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On Apr 18, 8:13 am, gordonb.yt...@burditt.org (Gordon Burditt) wrote:
Is there some sort of course or book that teaches someone how to
be a (good) landlord? (Location: Dallas, Texas).
I'm sure there are many of both (courses, and books). A visit to the
local public library and chat with the reference librarian can point
him in the right direction on one, and joining the local landlord's
association (In a town the size of Dallas, I have no doubt there is an
active one) can clue him in to availabale local seminars, etc. as well
as provide other useful resources.
A friend's husband
inherited a multi-unit apartment formerly occupied by several related
families, (and owned by one of them, so these weren't rental units)
who have now either died or left, and he wants to rent most or all
of the units. Maybe he'll live in one.
It's obvious from the questions he has been asking me (why he's
asking me, I don't know, I'm a computer nerd, not a lawyer) that
he has little idea how to run any business or be a landlord, but
he thinks he's got a gold mine that doesn't need work to dig the
gold out.
He does know that even a literal gold mine needs work to dig it out,
right? Or not.
Managing a rental property is a job -- full time or part time,
depending on the size of the place and the quality he puts into it.
If he does a crappy job all he will get are crappy tenants, who trash
the place, fail to pay rent on time, and make annoying neighbors if
he's planning to live there.
He doesn't even know what it's like to be a tenant,
either.
A babe in the woods, he is.
Is there something (hopefully not "Landlording for Dummies")
Maybe. They have just about everything else in that series (and in
its competing "Idiot's Guide to...." series)
that will at least point out that he needs to learn a LOT before
he attempts this. He's not hearing what I'm saying.
You're smart. He ignores you. So......, why do you think he'll
listen to US?
If he hates smart people, or does contrariwise "just because" anytime
someone challenges his unrealistic view of life, he probably reserves
a special place in his vision of hell, for us lawyers.
He may think we are all just a bunch of BS artists, spreading our
manure through lies and pettifoggery, but "BS Busters" is a better job
description, especially of trial attorneys who can only win if they
can convince a skeptical jury where the truth lies. Cutting the
Gordian knot and getting down to brass tacks is our stock in trade.
There's only so much any of us can do, though, when the thirsty horse
we have carefully guided to the edge of the pool of knowledge refuses
to taste the waters.
Some of his questions were (this will probably horrify the lawyers):
Why bother with a written lease? (Yikes!)
Some people don't. That makes it a month-to-month or week-to-week
tenancy, by default, in most states. If what he wants to do is
attract short-term transients and thinks the defauilt provisions of
local landlord-tenant law (that apply in the absence of a clause on
point in a written lease) will adequately protect his interests, that
is the way to go. BTW, he _does_ know what those provisions of local
law _are_, so he can make an informed decision in that regard,
right? (snicker)
What's a business license?
He will soon find out, when he gets a ticket and has to go to court
for not having one (if they're required in your area). Hey, at least
he's ASKING about it, a step in the right direction -- or is that only
because you asked _him_ if he had one and he had no clue what you were
talking about?
He's gone from "what good is a damage deposit?" to "I'll charge
200% of the value (not monthly rent) of the unit as a damage deposit
and use it to pay off the mortgage".
I'm sure you've told him that local law places limits on how much he
can charge up front as a deposit, and the requirement that he hold
those funds (which are, after all, "other people's money") in trust,
in a separate escrow account, which (per local law) may or may not
need to bear interest accruing to the tenants, not him.
What does it mean to "return" a damage deposit?
Another thing he'll soon find out, by being haled into court if he
doesn't.
I think he'd like to sell the units as long as
they keep paying rent also.
You mean, as in committing fraud? That's also going to get the
attention of the authorities.
What do you mean I can't refuse to rent to <insert racial epithet
here>? He also wants to keep the <insert racial epithet here>
friends of tenants from visiting tenants at their apartment.
Fair Housing Laws? What are those? Your acquaintance sounds like a
walking Full Employment for Lawyers feast. He's going to get into
trouble nine ways from Sunday.
He wants to rent out a unit for a few months, THEN fix the toilets
and the air conditioning (note: this is Texas, for people who
consider Hell too cold). He doesn't have much money to put towards
repairs, hiring a lawyer and accountant, advertising, or insurance,
and he needs all of these, badly.
Maybe he should just sell the place and let someone who knows what he
is doing take it from there; simply cashing it out may give him the
work-free goldmine he is looking for.
<rest of questions snipped>
So, share our pearls of wisdom with your pal, but don't be surprised
if they have zero effect. And don't be upset if they don't; even
among hte compassionate and helpfully inclined, there is a certain
fascination to watching a train wreck in progress.
--
This posting is for discussion purposes, not professional advice.
Anything you post on this Newsgroup is public information.
I am not your lawyer, and you are not my client in any specific legal
matter.
For confidential professional advice, consult your own lawyer in a
private communication.
Mike Jacobs
LAW OFFICE OF W. MICHAEL JACOBS
10440 Little Patuxent Pkwy #300
Columbia, MD 21044
(tel) 410-740-5685 (fax) 410-740-4300
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Gordon,
Greetings.
Is there some sort of course or book that teaches someone how to
be a (good) landlord?
A good place is to go to the Landlord Protection Agency at
http://www.thelpa.com
They have a bunch of forms (some are free) and a message board with
lots of helpful advice.
Lighthope
Pearls of Wisdom - If you can smile when things go wrong, you probably
have someone in mind to blame.
--== TIGERS' QUEST - http://www.tigersquest.com
--== THE DOCTOR WHO AUDIO DRAMAS - http://www.dwad.net
--== A CHRISTMAS SPECIAL - http://christmas.dwad.net
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Gordon,
You want to know if there is a course or other source of information
designed to help new landlords. I recall that our local community college
offered such a course so I'd check there.
Landlording is a business so part of the rent is taxable income usually.
Good luck,
Dave M.
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On 2008-04-18 05:13:40 -0700, gordonb.ytbke@burditt.org (Gordon Burditt) said:
Is there some sort of course or book that teaches someone how to
be a (good) landlord? (Location: Dallas, Texas). A friend's husband
inherited a multi-unit apartment formerly occupied by several related
families, (and owned by one of them, so these weren't rental units)
who have now either died or left, and he wants to rent most or all
of the units. Maybe he'll live in one.
It's obvious from the questions he has been asking me (why he's
asking me, I don't know, I'm a computer nerd, not a lawyer) that
he has little idea how to run any business or be a landlord, but
he thinks he's got a gold mine that doesn't need work to dig the
gold out. He doesn't even know what it's like to be a tenant,
either. Is there something (hopefully not "Landlording for Dummies")
Don't knock the "Dummies" series! Those books usually give useful
information about the topics they cover.
He needs instruction and advice for sure, but despite that fact he
could be right about the property being a gold mine, or at the least, a
good investment. He should research the question of the value of the
building and its future prospects as well as the question of how to be
a landlord. It would be a mistake for him to just give up in dispair
and sell the property at a loss to anyone willing to take it off his
hands. He should find a good management company to handle the property,
possibly permanently, or a least during the time it takes for him to
learn more about what he actually has.
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Fri, 18 Apr 2008 08:13:40 -0400 from Gordon Burditt
<gordonb.ytbke@burditt.org>:
Is there some sort of course or book that teaches someone how to
be a (good) landlord? (Location: Dallas, Texas). A friend's husband
inherited a multi-unit apartment formerly occupied by several related
families, (and owned by one of them, so these weren't rental units)
who have now either died or left, and he wants to rent most or all
of the units. Maybe he'll live in one.
It's obvious from the questions he has been asking
I wouldn't worry about it -- very soon he won't own the building any
more because he'll have to sell it to pay off the lawsuit. One racial
epithet in the hearing of a tenant or prospective tenant, and he'll
be in the soup.
But seriously, I think he is a perfect client for a management
company. They will do exactly what he wants: find tenants and handle
everything, then send him monthly checks.
If he doesn't want to let the management company skim off its profit,
he can educate himself and eventually take over. His local city hall
will be able to acquaint him with the regulations, and his city or
state almost certainly has some plain-language materials. But until
he knows what he's doing he is liable to get himself in big trouble
if he tries to go it alone.
In my opinion, it is a mistake to answer basic legal questions for
someone who is already in legal trouble -- the only answer should be
"you need to get your own lawyer now". In the same way, I think it
is a mistake to answer any of his questions, which are *very* basic:
he needs to get competent professional help in managing his income
property.
--
If you e-mail me from a fake address, your fingers will drop off.
I am not a lawyer; this is not legal advice. When you read anything
legal on the net, always verify it on your own, in light of your
particular circumstances. You may also need to consult a lawyer.
Stan Brown, Oak Road Systems, Tompkins County, New York, USA
http://OakRoadSystems.com
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Gordon,
I joined this group a couple of years ago because I needed some
landlording questions answered. I had purchased a duplex and my
father-in-law purchased the one next door, and it became my
responsibility to manage both properties. Since then, I learned all
about being a landlord and property manager as a matter of urgency and
necessity. This is in Austin, TX, so many of the same rules and laws
will apply.
I have never posted a reply here, but I feel well qualified to answer
some of the questions you've posed. More importantly, I want to
emphatically encourage you to help this friend of yours (even though
he sounds like a bonehead and a bigot). He is very close to making
some very serious mistakes. What he believes will be a windfall could
EASILY become a SERIOUS liability.
On Apr 18, 7:13=A0am, gordonb.yt...@burditt.org (Gordon Burditt) wrote:
Is there some sort of course or book that teaches someone how to
be a (good) landlord? =A0(Location: Dallas, Texas).
An excellent resource is the Texas Apartment Association. http://www.taa.or=
g/
They can offer answers to every question you've asked plus many you
haven't thought of yet. Of equal importance, they can provide legal
forms that have been written by their lawyers and are kept current and
pertinent to the laws in your area. There is a small yearly fee to
become a member -- it was the best money I spent.
Why bother with a written lease? =A0(Yikes!)
Make no mistake -- a written lease is in the landlord's best
interest. It can, of course, provide both tenant and landlord with
legal "protections," but it is the landlord's number one tool when a
tenant decides to stop paying rent. Common sense might lead your
friend to believe that he can simply call the police and kick a
deadbeat tenant out on his ear. Common sense will not prevail. The
law will, and he will find himself in court without even a simple
contract stating the agreement between landlord and tenant.
Baaaaad.... Evicting a tenant without a lease agreement to refer to
can get very sticky.
He's gone from "what good is a damage deposit?"
A damage deposit is good because you will have at least some amount to
offset the damage that a tenant may leave behind. Without it, your
only recourse is to go to court...
"I'll charge
200% of the value (not monthly rent) of the unit as a damage deposit
and use it to pay off the mortgage". =A0What does it mean to "return"
a damage deposit? =A0
It is a very common mistake for a new landlord to "pocket" the money
from a security deposit. If a tenant doesn't receive a security
deposit refund, he/she may contest it in court. The judge will decide
who owes who what. Your friend doesn't sound particularly well
equipped to win that argument.... Also, state law in Texas has a
punitive fee of $500 if a security deposit remainder is not returned
within 30 days from the end of tenancy.
I think he'd like to sell the units as long as
they keep paying rent also.
Ummmm -- what? You can't charge rent on a property you don't own.
That's -- just -- ridiculous...
What do you mean I can't refuse to rent to <insert racial epithet
here>? =A0He also wants to keep the <insert racial epithet here>
friends of tenants from visiting tenants at their apartment.
Obviously problematic. Your friend is going to spend a lot of time in
court.
He wants to rent out a unit for a few months, THEN fix the toilets
and the air conditioning (note: =A0this is Texas, for people who
consider Hell too cold). =A0
A LOT of time in court... Like, a lot.
He doesn't have much money to put towards
repairs, hiring a lawyer and accountant, advertising, or insurance,
and he needs all of these, badly.
This is exactly why what might seem to be a windfall will likely
become a liability. If he still has a mortgage that needs to be paid
on this property and he doesn't have any money, then the first month
that he doesn't collect rent from a deadbeat tenant will sink him.
How can he get a credit check on a tenant?
There are companies online that will gladly provide a new landlord
with this service, for a fee. The Texas Apartment Association will
explain it all in detail and even give you a few organizations to
contact.
How can he accept rent payments by credit card, debit card, or EFT?
What form the rent comes in should be the last concern at this
point...just be glad that it came at all (and hopefully only a few
days late).
"Why do I need insurance? =A0The tenants can get their own!"
He needs insurance to offset some of the cost of all the lawsuits he
faces.
Is rent taxable income?
He needs an accountant, a lawyer, and a shoulder to cry on.
Good luck! :)
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