Just Closed On Occupied Rental....Contract is WAY OFF (property, deposit, states)
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I doubt the tenant will agree to pay extra rent for no reason if they have a lease. I know I wouldn't Do you have the rent amount in writing? If not I think you are out of luck.
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I AGREE .i refuse to pass the cost on to the tenant. i want the seller to cover the difference. i will absorb the cost before i would think about penalizing the tenant. they played no part in the miscommunication
Well lesson #1 is to always make offers contingent upon approval of the lease and other rental documents.
Lesson #2 you about to learn is in misrepresentation. So right now you are short $30 a month (assuming your $805 figure) for 18 months or so. I am assuming that the $50 a month is income you weren't expecting on top of the $765?
Sounds to me like the seller or agent owes you $540. I think the question is since this is an investment property, can you at that future date command the rent you thought you were going to be able to get? You may have some long term damages as a result of the misrepresentation.
well there is 20 months left in the lease... so technically they owe me $835-$765 x 20months = $1400. the lease shows rent at $765 instead of the $835 which they have it listed. the $805 includes a $50 storage rental, which i dont even own. weird. not to mention the storage is month-to-month. so they could at any time decide not to rent the condo, and i would be back to $765. i purchased the unit for $835 income monthly.
they offered to cover the difference between $805-$765 x20 months but that doesnt make it right.i declined their offer and told them i would take a new leasing agreement where the tenant still pays only $765/month (as per initial agreement) and the seller will cover the 70/month difference. I do not want the storage and condo joined under 1 agreement- unless they are for a combined $885 and under contract.
they said "that's a stretch" but I informed them that they would easily spend that in legal fees. they told me to expect a call from the boss tomm morning.
I AGREE .i refuse to pass the cost on to the tenant. i want the seller to cover the difference. i will absorb the cost before i would think about penalizing the tenant. they played no part in the miscommunication
The seller may have been wrong but I see you being 50% at fault for not demanding to see the lease before you closed.
How did you come to learn of the original lease terms?
i was delivered them after all the papers were signed and cashiers check was presented.
you guys are a wealth of knowedge and support. I just wish I had done more to protect myself. Ignorance is no excuse though, and I won't make the same mistakes again.
well there is 20 months left in the lease... so technically they owe me $835-$765 x 20months = $1400. the lease shows rent at $765 instead of the $835 which they have it listed. the $805 includes a $50 storage rental, which i dont even own. weird. not to mention the storage is month-to-month. so they could at any time decide not to rent the condo, and i would be back to $765. i purchased the unit for $835 income monthly.
they offered to cover the difference between $805-$765 x20 months but that doesnt make it right.i declined their offer and told them i would take a new leasing agreement where the tenant still pays only $765/month (as per initial agreement) and the seller will cover the 70/month difference. I do not want the storage and condo joined under 1 agreement- unless they are for a combined $885 and under contract.
they said "that's a stretch" but I informed them that they would easily spend that in legal fees. they told me to expect a call from the boss tomm morning.
Thanks for the clarification. I was a bit confused by that additional storage thing that you didn't own, but they were including in there somehow. That's weird.
Out here that would be an easy trip down to the small claims court to file for damages. It's only like $80 to file here.
You didn't have the correct facts the first time when you were making your decision. Before making a second decision, make sure you have all of the facts...... for ex: why is someone paying you $50 per month for a storage unit you don't own?
Finally resolved. they came back with an offer of $840 which i took once i found out that every prospective buyer had the opportunity to view all leasing agreements on a certain date. no one told me, but i suppose that is just my ignorance. this means that the seller is not completely at fault.and they will even move the tenant to my storage unit so that i get the $50 for that. i will be grateful that the seller was willnig to at least work with me, and i will budget accordingly to make the difference. this was my first real estate purchase, certainly not last and i will be more informed for the next time(and using my own agent).
thanks for the support guys, this is a great website
Here are a couple of random thoughts since this is your first investment property. Look at the lease to see what the security deposit is, and make sure you received that amount (plus some states require interest on security deposit money). Ask the owner or management company for the move-in checklist to see if there were any damages when the tenant moved in. This will reduce any issues that come up when the tenant is moving out, because you weren't there during move-in so you don't have any idea of the condition of the property when the tenant moved in. Also, you want to find out what's yours and what's the tenants... for ex: furniture, washer, dryer, etc.
Gauge, I am glad it worked out for you. Now cancel that lease, rewrite it at 25% higher or get rid of the bum.
Just kidding...I like tenants with long leases. Now that the money is square, I think you have a good situation there.
i sure hope it works out too. thanks for the support
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