↓Skip to main content

First rental property for investment

·2 mins
  • Ask lawyer:
    • Do they help with creating LLC?
  • Property management:
    • https://www.ziprent.com/seattle-property-management charges flat fees.
    • https://www.mapleleafmgt.com/ - local one from earlier.
    • Apart from plumbing, handyman and appliances (which I’ll anyway order from Costco), what is their value add?
      • Deal with HOA if there is any complaint.
      • For vetting tenants before starting lease, we can use Darshan or Sanjay Lakkad.
    • Tenant screening (but even Zillow makes this easy).

Notes from lawyer:

  • What to look for:
    • Notice requirement.
      • If you don’t include some required language (“timeliness”?), then could be bad.
        • Redmond:
          • Rent increase: depending on %age of rent increase, more severe than Washington (WA RLTA?).
            • Washington is the floor.
        • Washington:
          • Termination of tenancy: month-to-month used to be 20 days earlier. Now, need good cause to terminate.
            • Terminating month-to-month is harder now. Best is long term.
        • Incorporated municipal:
          • County doesn’t come into play, such as Seattle.
        • Unincorporated municipality, such as Vashon Island.
      • Rent increase:
        • Seattle:
          • 180 days.
          • If increase is too much and tenants doesn’t have money, you may need to pay 3k to them.
    • Leases:
      • Seattle:
        • “Renter’s handbook”: needs to be given for every new/renewed lease.
      • Disclosure to give out: mold, lead paint etc.
    • During a lease:
      • Repairs to be made etc. - there are deadlines for “severe”, “major appliances” and “everything else”.
    • Security deposits:
      • Seattle has a cap. Plus, need to sign a checklist by both parties upfront.
      • Need justification if you want to withhold after lease expires.
    • Right to re-entry: 24 hours if you are showing to someone else, 48 hours or so otherwise.
      • No matter what, you can’t enter without tenant’s consent.
    • Damages:
      • If anything goes out of code, important to fix it quickly. If house becomes unhabitable for any reason, you may be liable for relocation.
      • Seattle: likely need to be certified by the city.
    • Avoiding eviction is critical:
      • Pretty difficult just about anywhere now. (Almost illegal in Seattle.)
      • Never do it on your own, change the lock etc.
  • Areas:
    • Seattle is hardest.