[Tim Myers]

Tim Myers

I am currently signing up some performance leases.

In the state of North Carolina, I can charge a non refundable pet fee. If I did charge a non refundable pet fee who would actually get that in a master lease position, myself or the owner? If me, do I need to inform the seller about this or what should I say to the seller. He does know that the subtenant has a small pet, but nothing was said about a fee for that.

Also, how should I negotiate this situation in a master lease position. My sub tenant asked me if I would be interested in selling down the road. I told him that my company controls the home and we would consider after about 3 years. Could I go back to the owner 3 years from now and negotiate a price with him for an option at lets say $100,000. Then talk to sub tenant and see if he wants to purchase for $110,000. Then do a double close and make 10k just for being in the middle.Would this be ethical to do this? Would this be fair to the owner? If so, you could do this on every master lease situation that you are in, making a spread on the price down the road. Plus I could tell the seller he would be avoiding paying any real estate commissions by allowing me to purchase it.

Question for Jackie: When setting up a deposit only account for rents to be deposited in how do you determine who paid the rent if you have two homes with the exact same rent?
For example, I have 3 tenants depositing the money into the same account but they pay different amounts so I know who paid and who didn’t. How do you distinguish them if they pay the exact same rent?

thanks for the help

[jimi hendricks]

jimi hendricks

In both cases it comes down to the specific language in each contract/lease. In general, you want the contract language between you and the owner to be very loose/pro-tenant and the language in the contract between you and the subtenant to be very tight/pro-landlord.

So, in the contract with the owner you may have:

Pets: Permission has been granted by the owner for any animals to be allowed on the premises.

But in your contract with the sub-tenant:

Pets: Permission must be obtained, in writing, in advance from the manager for any animals to be allowed on the premises. If tenants have pets, they must be listed and by listing them Tenant agrees to be fully liable for damages and injuries they might cause to both people and property.
Permission has been given for the pets listed below:
Name: Kiko Type: Dog

A non-refundable pet deposit of $x has been received. Additional monthly rent of $Y will be charged

As for potentially selling the house to the tenant and keeping a spread, we use a First Right of Refual clause in our contract with the Owner:

Landlord, as an inducement for Master Tenant to lease the property, hereby grants to Master Tenant a first right of refusla option to purchase the leased property for x% of any sales price the Landlord agrees to with any current or prior Occupant Tenant. This first right of refusal option shall extend for 90 days after this lease is terminated. Master Tenant may either elect to close on the transaction or sell the option back to the landlord for x% of the sales price realized. Landlord further agrees to exclude Master Tenant and or assigns from any listing contract entered into while this lease is in effect or within 90 days of its termination.