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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: No reason to rent to ex-owners. Posted by Ward-CA- on September 27, 2001 at 7:56 AM In Reply to: Would you rent back to foreclosed owner? posted by Albert on September 27, 2001 at 7:26 AM : Ward, : Where do you stand on renting a property bought in foreclosure (or pre-foreclosure) to the former owners rather than evicting them? I figure if one can collect enough rent/security deposit in advance it can make it worth the while. If the new tenant does not pay on time, one can always evict them. : Also, are there any restrictions in CA on how much security deposit a landlord can collect? In Virginia, it seems the landlord is limited to two months. Here's an excerpt from the VA code: : "A landlord may not demand or receive a security deposit, however denominated, in an amount or value in excess of two months' periodic rent. " : And this how security deposit is defined: : "Security deposit" means any deposit of money or property, whether termed security deposit or "prepaid rent," however denominated, which is furnished by a tenant to a landlord to secure the performance of any part of a written or oral rental agreement, as a security for damages to the leased premises, or as a pet deposit. : : Thanks, : ++Albert =•=•=•=•=•=•=•=•=•=•=•=•=• Albert, my usual routine is to have a clean break and not rent back to the previous owner. My only exception is when an IRS lien was wiped off title by the senior foreclosing trust deed that I was the highest bidder on. Until IRS’ right of redemption runs out in 120 days after the foreclosure sale, I really can’t do anything with the property. So instead of evicting the previous owner right away, I will rent to them for 90 days to keep the place occupied so my fire/hazard insurance stays intact. When the 120 day deadline rolls around I now have the property vacant—ready to rehab and then resell. The maximum security deposit on a residence rental in CA is twice the amount of the monthly rent. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : Where do you stand on renting a property bought in foreclosure (or pre-foreclosure) to the former owners rather than evicting them? I figure if one can collect enough rent/security deposit in advance it can make it worth the while. If the new tenant does not pay on time, one can always evict them. : : Also, are there any restrictions in CA on how much security deposit a landlord can collect? In Virginia, it seems the landlord is limited to two months. Here's an excerpt from the VA code: : : "A landlord may not demand or receive a security deposit, however denominated, in an amount or value in excess of two months' periodic rent. " : : And this how security deposit is defined: : : "Security deposit" means any deposit of money or property, whether termed security deposit or "prepaid rent," however denominated, which is furnished by a tenant to a landlord to secure the performance of any part of a written or oral rental agreement, as a security for damages to the leased premises, or as a pet deposit. : : : : Thanks, : : ++Albert : =•=•=•=•=•=•=•=•=•=•=•=•=• : Albert, my usual routine is to have a clean break and not rent back to the previous owner. My only exception is when an IRS lien was wiped off title by the senior foreclosing trust deed that I was the highest bidder on. Until IRS’ right of redemption runs out in 120 days after the foreclosure sale, I really can’t do anything with the property. : So instead of evicting the previous owner right away, I will rent to them for 90 days to keep the place occupied so my fire/hazard insurance stays intact. When the 120 day deadline rolls around I now have the property vacant—ready to rehab and then resell. : The maximum security deposit on a residence rental in CA is twice the amount of the monthly rent. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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