Tenant eviction problems are just that. A problem that nobody wants to face, but if you own investment property, at one time or another this will come up. This can be an easy process with a few simple steps or it can be a very long drawn out process. Either way it must be done.
From day number one when the tenant moves in be nice and very friendly with them. Do not be aggressive and dictator-like. Offer to help them with whatever you can. Be their friend and their neighbor. The old saying goes, that a pound of honey buys more than a jar of lemons. When it comes to evicting tenants, you do not want to run into a long drawn out legal battle.
Why are you evicting the tenant:
First rule of thumb must be for you to document, why the tenant must go. If you have sold the house and merely want the room vacated, it is different from the tenant not paying the rent. Many foreclosure sales have a huge problem with evicting tenants. The tenant realizes the owner is not making payments, so sometimes the tenant refuses to pay also.
The new owner buys the property and the tenant refuses to move. What can be done? Does the new owner go to the legal process or does he simply pay the tenant to move. In many foreclosure cases, the owner will pay the tenant some "pocket money" to vacate the property quietly and without damaging the property.
If a tenant is forcibly evicted, he will leave the property in bad shape many times. If the tenant is being evicted for lack of payment and breaking his lease, then your options are easier.
1. Give the tenant notice in writing to leave the property in thirty days.
2. If he refuses to leave you can get a company or attorney to send him to court and face a judge.
Most companies for a percent of the rent will evict the tenant in 60 days.
3. At the court hearing you must show proof of lack of payment. This is accomplished by showing the lease and bringing records of payments.
4. Record any damage the tenant has done to the property, so you can be compensated for that figure.
Most tenants when served with an eviction notice by a policeman will evict the property right away, but if they do not then it is pretty simple in most states. It is easier to evict tenants who are on a month to month lease. Any tenant with a long term lease, can have a better chance in court to win.
Expect the worse of people. The tenant will cry, scream and yell at the court about everything you ever did wrong and at times even say they do not understand English. Make sure you document everything before going to court. If you have any witnesses to what problems have occurred at the property, then those would be good also.
In the end, the property will be vacated and you will be leery the next time you rent to someone. As a measure of warning on rentals.
1. Always take a credit report on new tenant applications.
2. Always take a full application on all parties occupying the property.
3. Hire a Real Estate company to rent the property and give them a percentage of the first month's rent.
4. Require to see proof of income.
5. Recommendations of previous place of residence.
6. Personal references of friends and neighbors. Look to see the employment of the references.
In the end you have come away from this experience with more knowledge, a better plan for next time and a clean apartment now for renting to the next tenant.
Showing posts with label selling your house online. Show all posts
Showing posts with label selling your house online. Show all posts
The Pros And Cons of Selling Your House Online
For sale by owners have now been given luxury online sites to sell their homes for no money or small fees. It is a new concept that has been developed lately and it is a very smart concept. But, still the problem is, what do you do once you have a buyer who wants to buy your property? With no knowledge of how to write a contract or how to finance a loan, maybe there should be an air of caution here.
Advertise your home here for "FREE" with no fees and no Realtor's commissions. Does this type of advertising grab your attention? It should, as it is an unheard of ideal until recently. Many sellers are actually thinking of advertising at these websites, as evidence by the great numbers of listings that are there. What are the pros and the cons of this kind of transaction?
Pros for selling your home on the web:
1. There is no Realtor's commissions, so that may help you in getting more for your home or reducing the price by the amount you would of paid a Realtor.
2. Independence. You can advertise as you like and hold open house when you like. No more late night showings and no more last minute open homes.
3. First hand knowledge of everything happening in the transaction.
4. Now you must do all the work, but that is okay, cause you are getting all the money, right?
These sites are making their money somehow. Nothing is for free. The majority of the people calling you from this listing will be Realtors and Mortgage Brokers. Both of them looking for business. The odds of you selling your home on-line is small and then after you do get someone to whom you think wants to purchase the home, how do you write up the contract?
Cons against this type of selling without a Realtor:
1. Without a Realtor, no contracts and no help. Realtors are worth their weight in gold. One mistake on a contract can cost you thousands of dollars. Most of the time, the Realtor can get a buyer to pay more for the home and costing you no more in money than if you sold the home yourself and received less money.
2. Who will finance the home? You have no experience in banking and have no clout or knowledge on how to close a deal. Which bank will you use and how will you pressure any bank to help you with the appraisal. Many times the deal will fall through strictly because the loan needs help in closing.
Now the banks are refusing class A buyers. 1 out of 6 qualified buyers are being refuses and especially buyers with income under $50,000, In a recent article, they stated that 25% of all buyers who made less than $50,000 are being turned down for loans. What about the appraisal and how can you fight a low-ball appraisal?
3. Which escrow and title do you choose? A smooth investor could and may take advantage of your inexperience. A ethical escrow company will protect your interest. An unethical company will charge you huge fees and look after the buyer only.
4. One of the major concerns should be, is who is coming to see your home. Realtors will screen buyers and be present with them when they visit you. A person calling up over the Internet could be the "Boston Strangler."
There are many dangers involved in dealing with the internet, sometimes a person will get lucky and find someone who will pay cash and buy your home, but the odds are around 1 percent. In the end 80% of all "For Sale by Owners" end up with a Realtor after he has spent a few thousand dollars on advertising and signs. They are extremely frustrated and usually are thrilled to have anyone help them.
Your alternative could be to hire a Real Estate Attorney that charges $400 an hour. If you really want to do this yourself, then go to the local Board of Realtors and ask for a reputable escrow and title company. Ask them for help in getting some forms. They will be more than glad to sell you some contracts.
You can go to some sites that teach you how to fill out the forms, but you do not know anything about contingencies or necessary clauses that belong in the contract. What about arbitration? Do you agree to arbitrate? Do you want to give a home warranty plan and how much is the net sheet? So many questions, that will make you think long and hard about trying a "For Sale by Owner" sale.
Advertise your home here for "FREE" with no fees and no Realtor's commissions. Does this type of advertising grab your attention? It should, as it is an unheard of ideal until recently. Many sellers are actually thinking of advertising at these websites, as evidence by the great numbers of listings that are there. What are the pros and the cons of this kind of transaction?
Pros for selling your home on the web:
1. There is no Realtor's commissions, so that may help you in getting more for your home or reducing the price by the amount you would of paid a Realtor.
2. Independence. You can advertise as you like and hold open house when you like. No more late night showings and no more last minute open homes.
3. First hand knowledge of everything happening in the transaction.
4. Now you must do all the work, but that is okay, cause you are getting all the money, right?
These sites are making their money somehow. Nothing is for free. The majority of the people calling you from this listing will be Realtors and Mortgage Brokers. Both of them looking for business. The odds of you selling your home on-line is small and then after you do get someone to whom you think wants to purchase the home, how do you write up the contract?
Cons against this type of selling without a Realtor:
1. Without a Realtor, no contracts and no help. Realtors are worth their weight in gold. One mistake on a contract can cost you thousands of dollars. Most of the time, the Realtor can get a buyer to pay more for the home and costing you no more in money than if you sold the home yourself and received less money.
2. Who will finance the home? You have no experience in banking and have no clout or knowledge on how to close a deal. Which bank will you use and how will you pressure any bank to help you with the appraisal. Many times the deal will fall through strictly because the loan needs help in closing.
Now the banks are refusing class A buyers. 1 out of 6 qualified buyers are being refuses and especially buyers with income under $50,000, In a recent article, they stated that 25% of all buyers who made less than $50,000 are being turned down for loans. What about the appraisal and how can you fight a low-ball appraisal?
3. Which escrow and title do you choose? A smooth investor could and may take advantage of your inexperience. A ethical escrow company will protect your interest. An unethical company will charge you huge fees and look after the buyer only.
4. One of the major concerns should be, is who is coming to see your home. Realtors will screen buyers and be present with them when they visit you. A person calling up over the Internet could be the "Boston Strangler."
There are many dangers involved in dealing with the internet, sometimes a person will get lucky and find someone who will pay cash and buy your home, but the odds are around 1 percent. In the end 80% of all "For Sale by Owners" end up with a Realtor after he has spent a few thousand dollars on advertising and signs. They are extremely frustrated and usually are thrilled to have anyone help them.
Your alternative could be to hire a Real Estate Attorney that charges $400 an hour. If you really want to do this yourself, then go to the local Board of Realtors and ask for a reputable escrow and title company. Ask them for help in getting some forms. They will be more than glad to sell you some contracts.
You can go to some sites that teach you how to fill out the forms, but you do not know anything about contingencies or necessary clauses that belong in the contract. What about arbitration? Do you agree to arbitrate? Do you want to give a home warranty plan and how much is the net sheet? So many questions, that will make you think long and hard about trying a "For Sale by Owner" sale.
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