How to Avoid the Professional Tenant

A “Professional Tenant” is a tenant who “knows how to work the system” by taking advantage of select protections in the law to live rent free.  Being able to spot and avoid a “Professional Tenant” is one key to  being a successful and profitable landlord.  This “Professional Tenant” usually follows certain behavior patterns that should raise a red flag for the Landlord.  A common scenario we encounter with clients follows a sequence like this:  First, the prospective tenant  has a story to explain why he/she can only pay first month’s rent and will promise to pay the last month’s rent or security deposit once he or she moves in the apartment.  Second, he or she will start complaining about living conditions within a few months of moving in to your property.  Third, the tenant will then complain to the Board of Health and request an inspection, which inevitably leads to the issuance of a violation/citation by the City or Town to the landlord requiring that the landlord make repairs within a short period of time.  Fourth, the tenant, knowing the landlord only has a certain period of time to make repairs, will refuse to allow the landlord access to the apartment in order to make the required repairs.   Fifth, the tenant will then withhold rent because the repairs were not timely made.  The landlord, now needing to evict the tenant, ends up losing several months of rent until the eviction is complete.  The professional tenant has successfully lived rent free for several months and at the same time caused substantial  loss of income and emotional grief to the landlord.   How do you avoid the Professional Tenant? The landlord’s only protection is to do a thorough screening of a prospective tenant upfront by checking credit reports, speaking to prior landlords, etc.  Here is an excellent article from a colleague:

Attorney Richard D. Vetstein | Avoid The Professional Tenant

Using best practices to screen and select good tenants is the most important thing a Massachusetts landlord can do to avoid costly non-payment and eviction problems down the road. As the saying goes, an ounce of prevention is worth a pound of cure.

I have come across a sub-set of tenants which are extremely dangerous to Massachusetts landlords. They should be avoided like the Plague. I like to call them Professional Tenants. [Read more...]

Some states now allow you to ‘win’ a will contest … while you’re still alive

People are sometimes concerned that after they die, a beneficiary (or more likely a non-beneficiary) will go to court to contest their will. Typically, a disgruntled would-be heir might claim that the person who made the will wasn’t mentally competent, or was under undue influence from some other person. These types of will contests can be very expensive, and they can cause a lot of emotional hardship within a family.

Recently, a handful of states have allowed people who make a will to go to court while they’re still alive and have a judge rule that the will is valid – thus preventing a will contest.

These states include Alaska, Arkansas, Nevada, North Dakota and Ohio. Similar legislation is pending in Delaware.

Even if you don’t live in one of those states, you might be able to obtain a court ruling there, such as by putting your assets into a revocable trust and hiring a trustee in that state.

[Read more...]

Common Misconceptions about Offers to Purchase

There are a number of misconceptions regarding offers to purchase property. For example, some people may think that an offer is a written expression of an intent to enter into a purchase contract and not an actual contract.   To the contrary,  in Massachusetts, it is well settled law that an Offer, by the buyer in writing, accepted by the seller in writing, is a legally binding document.  The Seller can be forced to sell the home to the buyer based on the terms of the Offer.  Here are a few common misconceptions regarding offers to purchase:

 Posted by Rona Fischman on Boston.com Legal Issues

Sam Schneiderman, Broker-owner of Greater Boston Home Team is our Monday guy. Today he discusses what to expect when making or receiving a real estate offer.

Whether it is a short sale, lender owned property (REO) or market sale; there seem to be many different ideas about how buyers should submit offers and how sellers should respond to offers. Today, I want to clarify some of the rules of engagement for buyers and sellers in the Greater Boston market.

Here are the most common misconceptions that I hear from buyers, sellers and agents:

[Read more...]

Will my credit be ruined if I file Chapter 7 Bankruptcy?

More information: I live in Everett and have been considering filing for a Chapter 7 Bankruptcy because I cannot afford my credit card payments.  Someday I would like to buy a new home and I am concerned about my credit score after I file the Bankruptcy.  Will my credit be ruined?

Answer: That is a very good question. Actually, it’s one that most people ask during the initial consultation. Here is a well written article directly on point:

By Douglas Jacobs, California Bankruptcy Attorney

Not really.  The greatest effect on your Credit Score (Fico score) Is the number of late payments on your accounts.  More late payments – worse scores.  Certainly there are other factors, and filing bankruptcy may have the immediate effect of lowering the score.

But why do you care?  That’s the truly important question.

First of all, if you have months of missing credit card or house payments, your  credit score is none too good at the moment. Filing bankruptcy won’t hurt it that much.  And it will give you a fresh start – a clean slate to build your credit back from where it is and in far less time than it takes struggling to pay off those credit cards. [Read more...]

New disability access requirements will take effect in early 2012

The Americans With Disabilities Act was passed 20 years ago and required retail and other commercial business owners to renovate their properties to make them accessible to the disabled. For the first time since then, the U.S. government has comprehensively revised the requirements. The new requirements will go into effect on March 15, 2012.

The changes include new rules for the following: van-accessible parking, maximum height and “reach ranges” for certain objects, service animals, communication devices for the hearing-impaired, seating requirements in theaters and other assembly areas (including access to stages), pool access, hotel reservations, wheelchair accessibility for employees, the use of mobility devices other than wheelchairs (such as Segways), and more.

In addition, the U.S. Justice Department has updated its list of modifications that all building owners are expected to consider, including ramps, curb cuts, access to vending machines, widening doors, accessible door hardware, rearranging toilet partitions, grab bars and raised toilet seats, and insulating pipes under sinks to prevent burns.

Higher standards are required for new construction and for older properties that are undergoing substantial renovations.

Exactly what is required varies and depends on the nature of the property and the expense involved in making it more accessible, but all commercial property owners need to be aware that new requirements are taking effect soon.

The Massachusetts real estate attorneys concentrate in Massachusetts real estate law and serve the entire Greater Boston North Shore region including the communities of Everett, Revere, Chelsea, Somerville, Cambridge, Medford, Arlington, Winchester, Woburn, Burlington, Stoneham, Melrose, Wakefield, Saugus, Lynn, Peabody, Salem, Marblehead, and Swampscott. Our real estate lawyers speak and provide legal services in Spanish and Italian.

Buying or selling real estate at an auction can be complicated

A small but growing percentage of real estate is being sold at auction. The advantage of an auction for a seller is that the property will definitely be sold quickly, although usually at a lower price. So auctions often attract sellers who simply want to unload a property, such as a lender that has foreclosed on it, or an executor whose heirs want cash and not real estate.

Auctions often attract buyers who are looking for a deal – although auctioned properties are usually sold “as is” with no guarantees, so unless you’ve done careful homework and had everything inspected thoroughly, the property might not be as good a deal as you first thought.

Auctions require special contracts and agreements that aren’t part of a traditional real estate transaction.

Because auctions are unusual and require special contracts and agreements, a seller will definitely want to work with an attorney as well as an auctioneer.

[Read more...]

Many estates can save money by filing tax returns – even if they don’t have to

And people with older wills should have them reviewed now, due to a new law from Congress

A federal estate tax return doesn’t have to be filed every time someone dies. In fact, most estates never have to file one. In 2011 and 2012, a return has to be filed only if the person’s estate (including property, life insurance, taxable gifts, etc.) is worth $5 million or more.

However, even if a return isn’t required, a recent change in the law means there could be big tax savings for many families if they file one anyway.

The change applies to estates of people who die in 2011 or 2012 and are survived by a spouse.

There are strict time limits for filing a return, so if you know of someone whose family could take advantage of these savings, you or they should speak with an attorney right away.

Also, if you have an older will that includes a trust designed to reduce taxes when a surviving spouse later dies, you should have the will reviewed, because under the new law there might now be better alternatives.

[Read more...]

How Long After Filing Bankruptcy Can You Buy A Home?

A very common question that most potential bankruptcy clients ask during the initial meeting with a bankruptcy attorney is “After I file for bankruptcy, when can I buy a new home?”    Below is an excellent article that gives you  some tips to save some money and quickly improve your credit after a bankruptcy.

How Long After Filing Bankruptcy Can You Buy A Home?
by Jay Fleischman, New York Bankruptcy Lawyer

Buy a home after bankruptcy?  Seems like a stretch for all but those who win the lottery once the discharge is issued.  But play your cards right and you could be worrying about scheduling a closing date sooner than you ever thought possible.

After filing bankruptcy, you’re debt free.  No more calls, no more lawsuits.  Suddenly, the world feels a bit brighter and filled with possibilities.  You start looking around your rental and thinking you might want to buy a home.

In order to buy a home after filing bankruptcy, you’re going to need to worry about two things.  They are:

  1. Your level of savings; and
  2. Your credit score.

Your Savings Account (The Downpayment)

In order to buy a home, you must have a downpayment.  Though the land of $0 down mortgages was wonderful for a time, it’s gone now.  And if there’s a broker willing to do the deal for you, run the other way.  When you don’t have a downpayment, you run the risk of going upside down on your mortgage the first time the Federal Reserve Bank chairman catches the sniffles.  Definitely bad idea. [Read more...]