Electronically Signing Eviction Notice Made Easy

Electronically signing eviction notice

what is going on YouTube it's math Faircloth my company is called the DeRosa group and this is our YouTube channel so DeRosa group is a great real estate investing company if you guys wanna hear more about what we do or even join our osa insiders community where you guys can pick my brain on a daily on a daily basis on a private Facebook group and have private Facebook sessions Facebook live sessions with me and my entire real estate apartment building team go to DeRosa group comm that is de r o si gr OUP comm DeRosa group comm and you can join insiders there by going to rose to roast a group forward slash insiders they will read about all the other stuff we have going on today's video is about security deposits what they are what they're used for and what they're not used for and also some crazy controversy that just came out because of this guy Phil Murphy the governor got the governor of New Jersey who just made this awesome executive order about allowing tenants to request their landlords use a security deposit to pay their next month's rent more on that later so watch the watch later in this video when I discussed that because I'll give you my opinion and my thoughts on Phil Murphy's mandate we do own in New Jersey so we are interested in that we're involved in that conversation so stay tuned for my conversation on that let's talk about a security deposit what is it a security deposit is an amount of money that a tenant gives you when they move into a rental property that gets held it's supposed to get held in escrow it's their money you know and it always it always is their money when they give it to you they're really giving it for giving it to you to hold as a almost as like collateral like something that you can take if they do damage to the apartment then you can draw down that collateral you can take from that security deposit and return them what's left so for example you have an apartment that rents for a thousand a month they give you $1,000 security deposit which is one month's rent they take that you put it in an interest-bearing account and that money sits in the interest-bearing account while they're living in the apartment when they move out they don't clean the apartment they leave a sofa in the living room that costs you $100 to remediate so you then take $100 out of the secured deposit you send them nine hundred dollars left again it's always their money it's just there for you to hang on to as just in case money just in case something happens to the apartment they could owe you some rent when they move out whatever it is with your state laws and what you're allowed to charge of a secure deposit but a refundable security deposit gets held in escrow account now see all you landlords out there you need to take that money and put it in an escrow account a separate escrow account they can either be interest-bearing or not an interest-bearing and if it does bear interest that interest belongs to the tenant as a landlord which are not allowed to do is to take that money and put it into your pocket or anything like that you can't do that many landlords do and we are not one of those landlords of the drawer as a group if you're doing this and you're a man watching shame shame shame you can get fine for doing this and you get in a lot of trouble for taking the secure deposit and miss it and misappropriating it so that's what secure deposit is landlords are allowed to access that money when the tenant leaves the unit pretty much that's when the landlord's allowed to touch the money aside from that that money's supposed to sit in an interest-bearing or an unguent interest bearing account over here away from you arm's length for for you as the landlord to access and to give back to the tenant if the if they give you back the unit and don't owe you any money in rent and didn't do any damage the apartment that's their money and you have to return that to them in most states within 30 days of them moving out and if they owe you something or you back rent for damage to the apartment whatever did you're allowed to draw out of it that's it that is when landlords are allowed to touch it I've had many many tenants in my 15 years of business tell me things like we'll just take something out you know take the fee out of the security deposit during their tenancy or commute take this month's rent out of the security deposit legally we're not allowed to do that the contract of the the contract does not allow us to do it unless the tenant allows us to do it in writing and we draw up a written agreement with the tenant because again it's their money leases typically described everything landlords allowed to do with the security deposit but for the most part at state law when when you can and when you can't touch it now a lease agreement is an agreement between a 10 and a landlord it's a private agreement and as long as that agreement abaya abides within the laws of the state the lease can say pretty much whatever whatever it wants and now most leases are gonna reference when the landlord can and can't touch the secured deposit the whole thing about the lease being a contract between a tenant and the landlord is something we'll get to again when I make when I'm commenting from Phil Murphy being able to use their care deposit as rent if your tenant before coronavirus wanted you to use the security posit for rent you could just say no listen I'd rather you keep that there you don't know you're not obligated to do that we have done this when a tenant was in a real bind and they needed us to do it and we trusted that they had the income coming in the future to pay that security deposit money back what we've said to them is ok we'll take one month's rent into the secure deposit you're going to agree to it right here in this letter in writing you know we're both gonna sign it we'll take one months right now to cover this month's rent and here is your payment plan to repay that cash back into the security deposit over the next whatever it is the risk you're taking is the landlord is the tenant could owe you the next month and then you know there's not enough of the secured deposit account to cover it or they could move out sooner than they've paid it all back and do some damage to the apartment or whatever it is you've lost that collateral that's your protection of the tenant damaging your asset the rental property owing you money well on the way out the door that collateral is gone if you take it during the current lease agreement and and at that time use it to pay the rent but you could draw up that agreement which becomes an addendum to the lease and allows you to do it now what Phil Murphy has said is that given coronavirus and I get he's look he's trying to cover a my empathy fulfill is that he's trying to cover tenants and their ability to make to just make their obligations there that is something that's there for them that's their money sitting in the landlord's possession I understand that tenants may be low in income right now they might have lost her job or might be furloughed or laid off or just not working whatever it is I get it that there is a concern for folks being able to meet her rent obligations and that money was sitting there perhaps they can use it to cover the month of May or to cover whatever month is it's all fine I wish she had relinquished the regulations on it or at least encouraged landlords to do it the fact that he mandated it really ties landlords hands number one but the biggest thing that I that my problem is in this regulation that Phil Murphy put out is that it does not have a payment plan about when the tenants will pay the security deposit back what it does say is when the lease renews which could be years from now a year or more from the time the tenant uses that security deposit if the tenant has to replenish this year in the security deposit at the time that their lease renews the security deposit could get used for the next month and then the month after that they're not there they maybe still don't have the money to pay the rent because they maybe didn't do the right thing with their with other income sources that they may have had be that unemployment be that stimulus checks perhaps that's not what happened whatever it is then the landlord stuck down landlord doesn't have any collateral it doesn't have any money date to cover their expenses and landlords have plenty expenses to cover rental properties have a video we just released called why pay rent so watch the head on this channel because almost almost all of rent does not go to landlord's pocket a small fraction of it does so all that said the landlords are put at a major risk which is my concern with this with this bill that a lot of my fellow New Jersey landlords are going to be put at risk here because we're going to be not we're going to be not allowed to have our collateral and there may be a couple months where the tenant may either move out or have to get evicted or whatever it is and a lot collateral is going to be gone so landlords are gonna take a major loss if a tenant uses secured deposit and then ends up not able to then it'll to get themselves caught back up its shame that happened it's a shame that they're at least the rim the the mandate could have said tenant can use it but it needs to be payback when a certain period of time or tenant can use it as long as a repayment period something else on top of that or other services that the state could have offered to tell landlords to aid them in in other expenses that landlords have in maintaining properties including property taxes and all other expenses that the state has control over property tax as a major one fell one more point guys let's just say that the security deposit gets applied to may rent or June rent whatever it is then it goes that month and like I said for the stimulus stimulus check that they got or the unemployment that they got whatever it is doesn't get properly set aside for housing expenses and they can't pay the following month so the courts open back up tenants then get evicted on top of that the tenant maybe does some damage to the apartment again that's what the collateral for the security pattern is there security posit is there for is to compensate landlords for damage that the tenant may do to their apartment while they're in the apartment they don't repair themselves on their way out the door right so their job the tenant is supposed to portray the unit of the landlord in the condition that it was when it was given to them right so if they're not able to do that because they damage the apartment then the security deposits there for that so if a landlord is forced to use the tenant secure deposit to pay a month's rent the GNAT secure deposit is gone so the landlord may be left with a unit that's got a ton of damage to it and rent owed now i've recommend you new jersey landlords do walkthroughs of your apartments but you're entitled to do in your lease you walk throughs every 30 days just to walk through apartments and check them just to make sure that there's not major damage you know work with the tenant call them hey are you ok you know or you know what are we gonna do for the next month can you fix this what can we do to repair these damages whatever it is that you do i've recommend landlords if the 10 if you're forced to use security deposit to cover to cover it month's rent like this keep an eye on damage to the apartment and stay in regular communication with the tenant on what they're going to do to replenish that that's security deposit although the tenant doesn't have to agree to it you can ask that the tenant replenish the secured deposit over a certain period of time and the and you can put something in writing and if you put it in writing then it becomes the route of the lease and that then then that's a mutual agreement that the tenant did now that we also recommend that you guys put something in writing with a repayment plan to the security deposit that you or the tenant can both and if we agree to a win-win situation the tenant can when they get their feet back on the ground use part of their cash flow to replenish that secured deposit again it's not about holding the tenant over a barrel it's about getting your collateral back so that you've got something for the property and like I said walk it every 30 days Lots unpack your guys but again this is something that as our rights as landlords it's being I think impinge de pon a little bit by the state of New Jersey without really covering the other side of the equation which is landlords who provide tons of housing for people and most of its are good people there's not most most New Jersey landlords are good people just try to make a living I know there's a few that are bad ones and give the rest of us a bad name but most of us are good folks just trying to take care of people and provide housing for people that's my two cents please please please I'm sure this will generate lots of entry lots of comments so leave them in the in the comment section below and feel free to like and share this if you've got other New Jersey landlords you think I ought to take a look and hear what they have to say about this this new thing they came down from the state of New Jersey that's what security deposits are those are my takes on foamer just okay Phil I get it hope you're well guys have a great profitable week hey guys thanks for watching make sure you subscribe to this channel if you like what we had to say here's a few other videos you might like so check these out too and if you wanted you on our insiders community and get a big basket of goodies just send a text message to six six eight six six text the word duros DEROS a two six six eight six X you can join insiders you're gonna get a big basket of free goodies sent right to your email so to text that right now to six six eight six x the word duro so thanks for watching