Posted by camgere on March 19, 2008 at 18:33:44:
I don’t think a judge is going to let you collect a weeks rent and forbid occupancy. You can’t “forfeit” a security deposit either.
Judges often favor “renter’s rights”. Every local jurisdiction has tons of case law on rentals. You can’t just make up whatever you like.
“Abusers B Us” has a catchy ring to it, though.
Half Way Houses and Group Homes…Good or Bad??? - Posted by RYan
Posted by RYan on March 18, 2008 at 10:52:24:
I’m thinking of making one of my rental properties a half way house/group home for sober living. Has anyone done this in Floriday and what is your experience with it.
It’s a 3/2 so i’m told i can do 2 per room and give the manager their own room. Charge a weekly rate of $185 per tenant.
What’s the process of kicking them out however if they don’t pay or relapse? Are they protected under the same laws of a regular tenant?
Thanks in advance!!!
Keep these separate… - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on March 18, 2008 at 17:23:50:
It’s important to separate the real estate from the recovery business).
I just had this conversation with a good friend of mine who made an offer on a home in SoCal area that has been used for such a purpose in the past. While she won’t admit it to me, she is fixated with the big monthly potential rent $$. Her boyfriend, also a sober person likeherself, has offered to rehab this run-down rehab operation, which has been turned into more of a special purpose structure.
I’m wondering how their relationship will stand the rigors of this business-packaged-as-a-real-estate-deal.
I’ve known a few people who have done very well in such a business, however they understand that a recovery house is in the spin dry business, not real estate. There are certainly different types of business models, and some are run by charitible, non-profit groups, however it doesn’t sound like that’s your first priority. No one says you ought to do this for free, either.
I think that your best investment will be to talk to other people who are experienced in this type of business, both in your area and outside of your community, and learn everything that you can. THere might even be an association for such types of properties.
In addition to normal tenant issues, you got other things to consider, like:
Sober living problem tenants tend to get the boot en mass, leaving you with lage vacancies very quickly.
How do you handle the legal aspects of people who relapse and bring contraban into the S-L house? What exposure do you have when a tenant begins selling contraban from YOUR house?
What’s the cost of insurance, not just for the house but to protect you and other tenants, from each other?
Who is going to manage, supervise (or babysit) newer tenants? WHat happens when they relapse?
I don’t want to discourage you from pursuing this potentially worthwhile effort, however there should be a lot of questions asked and answered before you go into this endeavor head first.
Hope it works out well for you.
RTPG is right - Posted by Jimmy
Posted by Jimmy on March 20, 2008 at 06:06:48:
operating a HH is a business in itself, and not a passive one. if this is up your alley, great.
if you want to master-lease the property to a person who will operate the HH, great. it removes you from the d2d operations.
I suspect, but do not know, that an HH will experience elevated (a) turnover, and (b) maintenance expenses.
good luck
Re: Keep these separate… - Posted by Ryan
Posted by Ryan on March 19, 2008 at 07:54:48:
First off thanks for your follow up. Certainly some valid points to consider and research. My plan was to sign up at the local recovery center and ask them for referrals of their clients who are ending their treatment and looking for sober living. I would find someone in the program to manage the house in return for a free room and maybe $100-$200/mo pay. I would have the manager do random drug tests and obviously if someone was acting weird they would be tested. If they relapse their gone and lose their last week and security deposit. If they clean up i would let them come back in a week or two. One other question would be how to hold title on the property. I’m thinking an LLC would be the best way to hold title right?
Re: Keep these separate… - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on March 21, 2008 at 22:47:20:
I still would encourage you to do (a lot) more research with people experienced in these matters. Perhaps you also have someone in your life that you run these ideas by before executing them, right?
Anyway, keep coming back.