Landlord Liability : ezLandlordForms

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John C

started a topic almost 12 years ago

I have a mulit-unit building in Chicago, Il. Recently a pipe broke in the ceiling of a 1st floor unit and caused major water damage. I have had the repairs completed but the tenant is expecting me to pay for his stereo and furniture that were damaged. Am I liable?

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John C

said almost 12 years ago

Dawn, I believe I do understand that statement and that you do as well. As you point out in your closing, "and business owners like everyone else (non-business owners), contributed taxes to the government to make that happen." We did and continue to pay tolls and taxes for those roads and bridges, just like everyone else so what was his point? We owe government? This is the part I don't understand. I presume that you have income producing property. Were you aware of and are you OK with this 3.8% tax on your net rental income? Is this fair? Is this what was promised us? I don't make $250,000 net let alone the $400,000 threshold that was legislated; yet, my net income will take a 3.8% hit this year and so will yours. I am curious. What are your thoughts? Any and all are welcome to comment on this. If anyone more familiar with these forums think we should move this thread to another topic forum, please feel free to direct us accordingly.

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Dawn A

said almost 12 years ago

To clarify -- the 3.8% Medicare tax will be imposed on investment and rental income earned by higher income taxpayers. And it only applies to the NET rental income, not the gross rental income. That means that this is AFTER all the deductible expenses used in operating the rental property. How am I to say what is fair? The government spends money on things I don't agree with but other people do. The government spends money on things I do agree with and other people don't. I don't spend the money; my power is to cast votes to elect people to do what I want. But if more people agree to vote in people that don't agree with me, then I am overruled. I either accept it or choose to move to a different state or country. This country affords me the freedom to vote, or to move.

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John C

said almost 12 years ago

Well said. But I don't quite see the portability that you espouse as a choice. I am heavily invested here and I can't just pick up my bricks and go somewhere else. I do my best to be a good landlord and my tenants appreciate everything except the rent increases. I know that we have to accept this but why have we been so deceived? Obamacare was packaged this way with these little known caveats only now surfacing (remember, no one in congress read it before it was signed). Where is the transparency we were promised four years ago? And what else has been conveniently tucked into the (un)affordable health care act that we still don't know about? And Dawn, if you are thinking about cashing in by selling, good luck! Even if you get a good price, where are you going to put all of those worthless dollars? What will be your hedge against inflation when the market doesn't keep up and it takes a wheelbarrow of them to buy a loaf of bread? Worse yet, the country goes bankrupt and those dollars are worth less than the toilet paper they can buy. With what will you barter for to get the basics like food? Shelter is always in need ... so battered as we may be or become, it is still the best investment in my portfolio ... and possibly, probably yours too. So my end analysis is that there is absolutely no use or utility in my complaining. Thank you for helping me reach this conclusion. I truly hope that someone in DC gets a grip; more like a choke-hold on this tax and spend binge with salutes and glasses clinking before the band marches us all into national bankruptcy.

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John C

said almost 12 years ago

Dawn, I believe I do understand that statement and that you do as well. As you point out in your closing, "and business owners like everyone else (non-business owners), contributed taxes to the government to make that happen." We did and continue to pay tolls and taxes for those roads and bridges, just like everyone else so what was his point? We owe government? This is the part I don't understand. I presume that you have income producing property. Were you aware of and are you OK with this 3.8% tax on your net rental income? Is this fair? Is this what was promised us? I don't make $250,000 net let alone the $400,000 threshold that was legislated; yet, my net income will take a 3.8% hit this year and so will yours. I am curious. What are your thoughts? Any and all are welcome to comment on this. If anyone more familiar with these forums think we should move this thread to another topic forum, please feel free to direct us accordingly.

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Marcello M

said over 11 years ago

Do what you would want to happen if the tenant's property damaged your pipe. Would you want him to be responsible?

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Scott S

said over 9 years ago

We are in MA and our 2 family had major leaks due to snow on roof and huge icicles. One side is bad other side is pretty bad as well. We have been talking to our insurance Co but we are curious if we are responsible for any of their items that might have been damaged. Is this where Renters Insurance should take over. What are we liable for. Thank you so very much.. Joni