Software for L/O's?? - Posted by MasonNV

Posted by JPiper on November 21, 2000 at 08:45:52:

I doubt that a ?statement? alone would necessarily support a claim of equitable title claim in an eviction court. What?s important here in my opinion would be what the statement SAYS. The fact that someone receives a statement per se meaning nothing.

For example, my statement was constructed in QuickBooks, so it?s an amended type of standard statement there. The top of the statement shows the entity that is the lessor. Another spot shows the tenant/buyer. The body of the statement is in columns. One column is for the date, the next for transaction, amount, balance. At the bottom of the running balance column there is an ?amount due? slot. At the bottom of the statement there is some verbiage that says the payment is due on the first, and who to make checks out to. Pretty straightforward.

?Items? can be entered into the monthly statement. For example, ?monthly rent? is an item. ?Late charges? are an item. ?Option consideration? is an item. I have others but this gives you a feel.

Transactions can be memorized in QuickBooks, so each month when I open QuickBooks 10 days before the first of the following month what happens is that all memorized transactions are automatically entered. ?Monthly rent? therefore is entered for all tenants or tenant/buyers as an example. I can then hit a button to print out selected statements or all the statements. I can also select the time period for the statement?.in other words I could send a statement showing the last years history?or I could send a statement showing last months charges and payments along with this months charges. I generally do the latter.

As it applies to the tenant buyer what is entered into his history are things like ?monthly rent?, ?option consideration?, ?additional rent? (this is a term I use in my lease for things like late charges or other charges for notices so that I can collect them in court as rent?a quirk with the judges locally who won?t award late fees but will award rent).

Note that ?option consideration? is entered when it is received?.that is, typically in the beginning at the outset of the deal. Therefore the tenant/buyer does not receive ongoing statements showing the receipt of option consideration. I send a monthly statement, not a complete history each month.

Nor does the statement show monthly rent credits. I don?t track monthly rent credits since they aren?t ?earned? until the option is exercised. When and if a tenant/buyer exercises an option THEN I calculate the monthly rent credits by looking at the payment history. Payments in the tenant history are obviously shown as of the date received by me.

No where on the statement is anything relating to the price of the house, or the price of the house less the rent credits, or anything of the type. Again, all that shows is monthly rent and the receipt of payments, along with the additional rent that I mentioned above.

The way an eviction is handled here locally is that when you go before the judge he asks me how much the tenant owes. He then asks the tenant, if the tenant is there, whether the tenant agrees with that. The judge does NOT look at the lease, statements, payment histories, or anything else at that time. Obviously if the tenant is not there then the judge enters a judgment in your favor. I have had a tenant show, who disagreed with the amount. He told the judge he didn?t agree with the court costs. The judge told him he could disagree with that?it was automatic?and entered the judgment for the entire amount in my favor. When a tenant claims to have made a payment that you didn?t receive, the judge will ask the tenant if he has proof. They either do or they don?t.

I haven?t had an equitable title claim. But it is something I?ve given considerable thought to. The way my leases are constructed now is with my regular lease. I get a security deposit on this lease equal to the first months rent. The option agreement is separate and is for whatever the option consideration is for. I assume that a tenant/buyer making such a claim would show up with these documents. I?m not sure how a judge would rule, but EVERYTHING in my paperwork shows as a standard lease along with a separate option. My statements and histories don?t conflict with the paperwork.

What I would not include in a statement are some of things you mentioned like price, or rent credits. Again, rent credits aren?t earned until exercise. I show money received from tenants as simply rent?and I pay taxes on it in the year received. Option consideration I don?t pay tax on until the option is either exercised or expires.

JPiper

Software for L/O’s?? - Posted by MasonNV

Posted by MasonNV on November 19, 2000 at 22:22:29:

Hi All –

Does anyone know of a good software to keep track of sandwich L/O’s or any paper I may hold? I think I am looking to bill my tenants/buyers just to remind them when their next payment is due (similar to the way a Credit company bills you). Any good software out there that will keep track of billing for me? I have quick books and quicken, but I’d like something a little more specific to this business. Quicken can keep track of notes both owned and owed, but as far as the billing, unless I’m wrong, I’d have to type these things up manually every month. Not sure what I need for this purpose??? Any thoughts are appreciated.

Take Care

Mason

Re: Software for L/O’s?? - Posted by Jonathan

Posted by Jonathan on November 20, 2000 at 07:48:20:

Try the automatic debit. I am looking into it for payment. I know that there are some people on this site use it.

Re: Software for L/O’s?? - Posted by JPiper

Posted by JPiper on November 20, 2000 at 05:41:23:

I agree with Jim Kennedy, they should know when the rent is due. However, I have started billing my tenants on a monthly basis. I have found that it increases timely payment.

I use Quickbooks for this function. You can create an invoice that you can then “memorize” in the software. Each month it is automatically generated on the day you select (in advance of the due date). You do have to push a button to print the invoices (although you can select all your tenants to print at once).

You could also use NoteSmith Pro for this function.

JPiper

Re: Software for L/O’s?? - Posted by Jim Kennedy - Houston, TX

Posted by Jim Kennedy - Houston, TX on November 20, 2000 at 01:11:10:

I’m sure others will have differing opinions, but I don’t send my tenant/optionees a monthly bill, anymore than I would for my regular tenants. I’m of the opinion that it’s their responsibility to know when the monthly payment is due. I make it abundantly clear at the time the lease is signed. Back in the days when I was a tenant, my landlords never sent me a bill. You can bet that I knew the rent was due on the first of the month.

Besides, I stay busy enough without creating unnecessary paperwork.

Just my 2¢.

Best of Success!!

Jim Kennedy,
Houston, TX

Re: Software for L/O’s?? - Posted by Matt B

Posted by Matt B on November 21, 2000 at 07:44:56:

A few months ago I posted about sending a statement out to my tenant/buyers. I thought that it would be a good idea. Not only would it remind them to pay on time, but it would also make them feel more like home buyers instead of renters.

Many people, including Bill Bronchick advised me not to do this. It was explained to me that in case the tenant/buyers default, they can claim to have some equitable interest in the property, using these statements to support their claim. This could seriously complicate what should be a simple eviction.

I am just curious how you are handling this or what your thoughts on the matter are. Also, what do you put on the statement? Do you mention their rent credits or eventual purchase price?