Renttropolis Online Property Management

Real estate investment can happen for various reasons. You may invest in real estate because you need a house for yourself (that house of your dreams that you so badly want). You can use real estate as a means for supplementing your income either by buying at a lower price and selling at a higher price or by letting it out.  Sometimes you might buy a property for the purpose of resale but might want to wait for a few years before you actually sell it. In such a case, again it would make sense to rent out the property and earn some money till you actually decide to sell it off.

Whatever the reason, letting out real estate demands real estate management and real estate management is not an easy job for everyone. In fact, a lot of people find it so much of a hassle that they prefer keeping their property vacant instead of renting it. Real estate management demands time, which you will rarely have. Real estate management is not just about finding tenants and collecting rent from them. Real estate management is also about ensuring that you do all the duties that a landlord/landlady is required to do.

Real estate management is about verifying the credentials of the tenants before you actually let out your property to them. Real estate management is about ensuring that all the paper work is complete and correct i.e. the tenancy agreement etc are properly done. Real estate management also requires you to do repairs as and when required. Real estate management activities also include maintenance, painting, polishing etc of the house when the tenants move out and before the new tenants get in.

Real estate management is not that easy a job for someone who is in a full time job. However, there are two solutions to this problem. 

The first is hiring a real estate management firm to do all these activities on your behalf.  This will mean that your income will be significantly reduced due to the commission/ fee charged by the real estate management firm.  A small price for the convenience that a real estate management firm brings to you?  However, it’s important that you choose the real estate management firm carefully. There are all kinds of real estate management firms out there (good and bad). You must check the references of the real estate management firm before you actually hire them for the job. A good real estate management firm will not only keep your property occupied at all times but will also ensure that you always receive the rent in time and without any hassle.

The second is to use an online property management system.  Online property management software will keep all your records in one place, automating your records and paperwork.  You can verify a prospective tenant’s credit, list your property when it becomes vacant, keep all financial information up to date and give you easy access to all tenant and vendor contact information – some online property management systems will even offer you the freedom of receiving online rental payments.  These systems are usually available for a small monthly fee, thereby decreasing your expenses, increasing your cash flow and maximizing your time.

The Safe Homes – Safe Streets Initiative is a partnership between landlords, tenants, homeowners, and law enforcement to eliminate the criminal element that conducts its illegal activities within private dwellings through an aggressive use of the power of eviction. It consists of three elements:

• Landlord Training
• Trespass Affidavit Program
• Narcotics Eviction Program

The Safe Homes – Safe Streets Initiative has:

• Trained more than 450 Landlords
• Registered 422 Homes in the Trespass Affidavit Program
• Evicted 25 Problem Tenants
• Been asked to apply for the Innovations Award, heralded as the premier public-sector honor in the nation given annually to programs that serve as examples of creative and effective government at its best. The Award is administered by the Ash Institute for Democratic Governance and Innovation at Harvard University’s John F. Kennedy School of Government.

Why is this program necessary?

When a criminal decides to do his business in an apartment building, he deprives the existing tenants of their right to the peaceful enjoyment of their own homes. Drug dealers create loud foot traffic at all times of the day and night and can be physically intimidating. The result is that honest peace-loving tenants move out, leaving the landlord with reduced incomes and the tenants searching for new homes.

Who’s Involved?

The Safe Homes – Safe Streets Initiative involves a coalition of tenants, landlords, and law enforcement.
Specific participants include:

• The Office of the District Attorney
• The Albany Police Department
• United Tenants
• Albany Housing Authority
• Albany County Department of Social Services

Looking for documentation you can get it here

http://www.albanycountyda.com/initiatives/safe_homes.html

How to Make Money Investing in Real Estate Today

Buy smart. Research your market so you know how to find a bargain investment property. It’s difficult to understand your investment location if it’s too far from home, so choose an area that you enjoy visiting or one near your work or home. Study the area, watch the trends, and learn as much as possible about your location.

Finance smart. Check your credit and put yourself in position to qualify for the best interest rates, lowest mortgage costs, and avoid pre-payment penalties. You can buy investment property with poor credit, but you will pay much more for the financing.

Rent smart. Many investors purchased homes in other states believing that the property would pay for itself. You must understand local rental markets or be in the position to pay any negative monthly expense. Can you afford the difference between the mortgage payment and the rental income? What about vacancies? Don’t put yourself in financial jeopardy to purchase investment property.

Improve your property. Raise your profit potential by making improvements. You can raise the rent or sell for top dollar when tenants and home buyers fall in love with your unique offer. Learn about the latest interior design ideas that pay you a higher profit.

Sell smart. Home staging methods can increase your profit potential. Create a buyer’s dream with interior design strategies. Use new Marketing Psychology to sell your property. Sell the benefits to the buyer (just like Internet marketing). Avoid common pitfalls in the sale of your property, such as appraisals that don’t measure up to the sales price. Understand the sales process and watch over your pending sale.

You can profit in any real estate market, bubble or not, when you do your research, understand your location, buy smart, improve the property, and sell with Marketing Psychology strategies.

© 2005 Jeanette J. Fisher. All rights reserved.

(You may republish this article in its entirety with the following author’s information with live links only.)

In today’s volatile market house prices are taking a beating. Real estate experts state house values have dropped ten percent nationally, with some areas reporting decreases as high as seventeen percent. Add in the massive amounts of foreclosures and it can appear as if now would be the worst time to invest.

In reality, this bleak situation makes for a buyer’s market. Interest rates are lower than they have been in nearly five decades. Coupled with decreased market prices, many investors are seizing the opportunity to purchase distressed properties. However, unless you plan to keep the property long-term, investing in houses now may not be the best investment strategy.

Industry experts predict it may take two to three years for housing prices to rebound. In order to become successful investing in houses, the proper set of circumstances must be present before you become a player in the real estate game.

There are many housing markets which you can invest in. Currently foreclosure and bank owned houses are in abundance and oftentimes can be bought significantly under market value. However, these types of distressed properties usually come with their fair share of headaches and challenges. Although there are close to three million vacant homes, very few are great deals.

The majority of foreclosure houses require considerable repair. Some have been sitting vacant for several years, leaving them exposed to vagrants and vandalism. Prior to investing in foreclosed or bank owned houses, invest in a professional inspection and conduct comparable market research. Real estate market analysis can be obtained online or through a Realtor.

The main objective in purchasing investment houses is to buy them significantly below market value. If you aren’t able to purchase the home for 25- to 30-percent under value, it’s probably best to pass on the property.

Investing in real estate owned (REO) houses is usually less risky than investing in foreclosure homes. When houses aren’t sold through auction they are returned to the bank. Once the bank takes over ownership they negotiate to have creditor or tax liens removed, if applicable. Therefore, REO houses generally have a clean title and do not require as much work.

Oftentimes, the bank will make necessary repairs and prepare the house for sale. Other times, the properties are sold “as is”. In order to obtain the best deal, you’ll need to visit the properties and assess the advantages and disadvantages. Take along a notepad, digital or video camera and make note of structural damage, plumbing or electrical problems, and common problems such as broken windows, outdated appliances, flooring issues, etc.

Bank foreclosure houses usually have a higher price tag than foreclosure homes sold through auction. However, they are generally a better deal because you do not have to engage in the process of having liens removed, evict the previous homeowner, or invest time making repairs or hiring others to do the repairs for you.

Although investing in houses in the current market can be risky business, doing so can potentially net massive profits in the long-term. By investing now, you can take advantage of lower prices and interest rates. Additionally, you can choose from an abundance of distressed houses. If you decide to wait until the market turns upward, those deals might not be as sweet as they are today.

Only you can determine if investing in houses in today’s shaky market is the best option for you. If you plan to invest in houses for rental property and cannot afford to make the mortgage payment without tenants, you’re probably not in a position to invest at this time. However, if you’re looking for a phenomenal deal for your primary residence or a pro at house-flipping, there couldn’t be a better time to take the plunge.

The reason I am breaking my own rules here is because I get asked, way too often, in the lull following an after-dinner speech what is it exactly that makes me choose to focus on multi-family dwellings as opposed to single-family ones.

I know that the person who asks that question is usually a potential real estate investor themselves and I also know that at the forefront of their minds are all the big negatives associated with multi-family dwellings: costly maintenance, irate tenants, absconding rent payers and the usual nightmare associated with running a large property with many difficult issues.

The fact is that when you sit down and really analyze the scene you begin to realize that the trouble involved in closing a deal with a multi-family dwelling is not that much more than what you have to go through for a single-family one. In a single-family dwelling you may think you are in control more but that is an illusion. It takes just a month or two of the property being vacant and you having to run around to advertise it, screen the new tenant and get them in, to wipe out your profit for the year, or as good as.

In a multi-family dwelling the risk of that happening is spread amongst many tenants as opposed to one. An apartment can run up a large repair bill, or remain empty for four months and you can still show up a profit at the end of the year because you have spread the income stream you expect to several tenants rather than just one.

It was exactly this ability to spread risks and achieve greater savings through an economy of sale that led me to focus on multi-family dwellings as a powerful real estate investment tool. In addition the larger scale of owning more than just one apartment or housing block has allowed me to put in place a professional management company that deals with all tenants and manages the properties on my behalf.

This way I am free to focus on the important aspects of my career like my next real estate move and where I will go on holidays, which is what life in the real estate investment business should be all about in the first place.

Once you have found the property then you need to put together a pro forma in order to see what the numbers look like. The quickest way to do that is to request a pro forma from the seller or the seller’s agent. Obviously the seller is going to try and paint the prettiest picture that they can for you so don’t be surprised by how good the numbers look up front. Once we have the property under contract we will request the real numbers on the property also know as financials, which should consist of at least two years of rent rolls and two years of tax returns.

Keep in mind that the pro forma is to paint a rosy picture and the tax returns are designed to paint a terrible picture (to pay the government the least amount possible if anything at all). So reality should fit nicely somewhere between these two pictures. What we are looking for is to be as accurate with the numbers as we can so as not to miss anything and make mistakes.

To help us not forget anything here is a checklist that you need to do before purchasing a property. You may use all of these suggestion, you may have to do a few more or you may not use hardly any of them depending on the deal you are working on.

Commercial Property Check list

Move forward only on green lights

1. Why is the seller selling their property?

a. This is a critical bit of knowledge that most people overlook. The seller will teach you how to sell them on your deal.

2. www.ofheo.gov to take a look at statistics in the area

3. www.bestplaces.net to check the statistics and demographics of the area

4. www.uschamber.org to find the local chamber of commerce and see what the future holds for the area and specifically this property.

5. Go to the city planning department and find out if the area is pro-growth

6. Check with the local police department for calls to the property over the last year

7. Call the local fire department for fire code violations and regulations that need to be in place for safety issues

8. Check with the local planning department to see what plans are for the area

9. Get a one page appraisal by licensed appraiser

10. Personally inspect the property

11. Order a phase one environmental report

12. Have a property Inspector inspect the entire property for foundation, termites, pests, roof, CO, radon, mold etc. problems

13. Get a full appraisal

14. Review the Rent Rolls for the past two years

15. Review the Financials for the past three years

16. What is the normal lease term?

17. What is the physical occupancy level last year:_____%

18. What is the property condition: ____ Excellent____ Good____ Fair____ Poor

19. Property value as of the last appraisal: $_________

20. Date of last appraisal: _________

21. Current lease rates at the property are: ____ Above____ At____ Below market rates.

22. What percentage of the property is occupied by Students?: _____%Military?: ______%Seniors: ______%

23. List any tenants or entities that occupy or control more than 20% of the space:________________________

24. What percentage of the income is attributable to retail tenants?: _____%

25. Do any units have…

a. Aluminum wiring?:____

b. Less than 60 amp electrical service?: ____

c. Well water?:____

d. Septic system?:____

e. Balconies?:____

f. Do any units require space heaters?:____

g. Furniture that is included with the rent?:____

h. Deferred maintenance (interior or exterior):____

i. Is the property in a flood zone?____

j. Is the property in an earthquake zone?:____

k. Is the property / leasing manager located on-site?:____

l. Are there any ground leases? (attach detailed terms of the lease if Yes):____>

m. Is the property dependent on a single industry or school for tenancy? (attach details if, Yes):____

n. Do any tenants receive government subsidies? (attach details if Yes and not on the rent roll).____

o. Has the property benefited from tax exempt bond financing or government subsidies?:____

Once you now better understand the overall picture of what is taking place then don’t be afraid to renegotiate the original contract using the new information that you have found. You will have much better leverage after having dug up all the secrets about the property then before. On the other hand somewhere along this process you may find some yellow or red lights so let me explain what those are.

A yellow light isn’t something that will kill the deal but can and should be resolved before moving forward. If you can’t get it resolved then you need to be willing to walk away. So for example you find out that the roof has not been replace in the past 30 years and it leaks. Here you would renegotiate with the seller to either have them replace it or have them lower the purchase price accordingly.

A red light is an item that will stop you right in you tracks and you immediately back out of the deal. For example you find out that the property is sitting on a toxic waste dump. You wouldn’t renegotiate with the seller (unless you specialize in this kind of clean up) you would just back out of the deal.

Property analysis or due diligence is one of the most important steps that you will take and you will quickly realize that this is where your money is made and lost as an investor.

Three Keys

There are three key reasons for buying income-producing investment real estate; cash flow, appreciation, and the tax benefits.

A word of caution here, if the deal does not work without the tax benefits, do not let them be the deciding factor. Tax benefits are purely a deal sweetener and should never be relied upon to make the difference.

Cash Flow is defined as the positive income stream generated from rentals paid by the tenants, less any operating expenses incurred in the operation and ownership of the property, including debt service. In general, investors look for a positive cash flow, where the income exceeds the expenses at an annual rate of return commensurate with the risk. The higher the risk, the higher the expected return to the investor. In some cases, investors see opportunities even if there is negative and/or little cash flow. In this case the investor sees a clear trend that will create a “value added” opportunity.

Appreciation – defined as the increase in value of the property during the period of ownership. Typically, the investor anticipates that the property will increase in value, and the debt owed on the property will decrease, thus the investor’s equity in the property, as well as their net worth, also increases. The beauty of investment property is that the tenant is doing all of the work and is paying down the debt. I like to think about that on days when I am on the beach and my property is working for me.

Tax Benefits can be defined in several ways but the two most often cited are mortgage interest deduction and property depreciation. A second word of caution is that this is a very technical area, and a qualified tax professional should always be consulted prior to making any decisions. You are allowed to deduct any interest paid on the debt used to acquire the property. In the early years, this can be a significant amount. Later on, as the interest on the loan is reduced and you are paying down more on the principle, you may wish to look at selling and trading into another property. The other benefit typically taken is depreciation or cost recovery. The IRS provides for several different means of determining the amount of depreciation an investor can take on a property. Some of the keys to how large your write off is to determine the investor “basis” in the property, whether they are engaged in the business of real estate, and the adjusted gross income of the investor. A second consideration is whether or not the property is acquired through a 1031 exchange. While cost recovery deductions increase an investor’s after-tax cash flow, a Section 1031 Exchange allows for an investor to continually “trade up” to higher value properties while deferring the capital gains taxes due on the appreciation.

Who invests in real estate?

Private real estate investors are a wide cross-section of people: a fireman, a lawyer, a retired businessman, a regional manager for a Fortune 200 company. I’ve worked with all ages, creeds and points of view and they all have a couple of common interests. They enjoy making money, they feel good about investing for their retirement and they love the tax benefits. Most use the tax-deferred exchange method on a regular basis to upgrade their portfolio and defer the tax until later. Some investors start young while others wait until their kids have completed school and they have some extra money each month. All of the investors I have worked with believe strongly in the wisdom of real estate investing, have a good sense of value, and are great with “the numbers.”

How do I get started?

You can do it the old fashioned way and drive around taking note of the income-producing properties you see. They’re everywhere. You probably won’t see “for sale” signs on many of these properties, but that doesn’t mean that they can’t be bought. You will have to visit the Courthouse and check the ownership records. In some counties, you will be able to access the property ownership on-line through the assessor’s office.

As the saying goes, “everything is for sale, at the right price.”

Poking around and doing it yourself is time consuming and unless you have the right skill set, it will be frustrating and not very fruitful. I would recommend you retain the services of an experienced investment property broker, to help you investigate, analyze, and acquire property.

The final means of acquiring investment property is to investigate acquiring a Tenant In Common interest in a stabilized property. The advantages of a TIC investment are: they are tailor made to the exact amount you are investing (because it is a fractional interest);higher leverage (pre-arranged by the sponsor); institutional properties with credit-worthy tenants; predictable cash-flow;easy tax reporting; no management obligations; and all of the due diligence has been completed and ready for your review. The primary disadvantages include high loads; the potential lack of liquidity; some unscrupulous sponsors, primarily lacking in experience; risk of partnership treatment; and the nature of the TIC itself (it can be burdensome). Further, TIC investors generally must be accredited investors, meaning they must meet certain income or net worth thresholds. Nevertheless, for passive investors, the advantages of TIC’s clearly outweigh the burdens.

I always recommend that you work with a professional adviser, be it a CPA, a lawyer or a real estate broker to determine a target price for an acquisition. Other professionals can include a property manager, a commercial insurance broker, a commercial appraiser, and a commercial lender. The lender can play an important role in qualifying the buyer prior to an acquisition, or in pre-qualifying a property for financing before acquisition.

Overall, an investment in income-producing real estate is a great long term investment, realizing that it is not as liquid as stocks and bonds; it should be approached with a healthy dose of estate planning first. The TIC industry has made investing even easier and deserves a good hard look into the possibilities.

Here comes my own disclaimer

IRS Circular 230 Disclosure: Exchange Equity, LLC and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with Exchange Equity, LLC, of any of the matters addressed herein, or for the purpose of avoiding U.S. tax-related penalties. You should always seek the advice of a tax adviser, lawyer, or real estate broker when investing.

So, these requirements, they don’t seem so outrageous, and they’re not. But, you’d be surprised to find that it’s not always to easy to decide on who will be most likely to fulfill these requirements, and on a regular month to month basis. Here are some tips to help you along with your hunt for the perfect tenant/s.

TAKE CARE OF YOUR HOUSE AND OTHERS WILL AS WELL:

Consider that before you advertise you may want to invest in some repairs and updates to your property. If you want to attract renters who’ll respect your place and treat it with care, as if it were they’re own, then you need to present it in a well kept, well-loved state. Likewise, you are going to want to know what is in need of repair, and what has recently been repaired before anyone moves in. This aspect is also about competition. Really, you want your rental property to shine in comparison to other properties that prospective tenants are considering. If your tenants think they’re getting a great deal, on a great home, they’ll stay.

BE A DILIGENT SCOUT:

First of all, you want to source out a good pool of folks to choose from. This means some grunt work on your side and some creative approaches to marketing your property. Think about it like a real estate sale. Your marketing and staging should appeal to whatever niche you think your particular property will draw. If it is a real family home in a great family neighborhood, advertise in and around the area, at shops and stores and businesses. There might be a local family orientated magazine or paper. If so, make sure to put in an add there. Obviously, have a sign on your front lawn for those driving through the neighborhood. If you’re advertising on a website and can place some images, definitely do so. Make sure the images are appealing, of high quality and really show off your home and the assets you are marketing. Slip “for rent” signs in other rental building in surrounding areas. You might consider offering a bonus to listing agents, friends or neighbors for successful referrals. Think outside of the box to find as many legitimate spots to advertise your rental property, and in such a way that you feel you’ll draw the crowd you are aiming to rent to.

HOLD AN OPEN HOUSE:

Hold an open house on a weekend. This is a great way to just focus in on your search. You’ll have a chance to see people coming through the home and reacting to it. ( you might get some ideas on what you could do to improve its marketability if you listen in on some hush-hush conversations!) Likewise, open houses for renters, as with real estate open houses can create a bit of pressure on people- such that, if they are interested, they’ll most likely sit down and fill out an application right then and there. Your are adding a healthy dose of competition into the mix. This is also a good way to reign in a captive audience in a more condensed time period. You can then focus on the applications you have and narrow down the options. So, during your open house, have a table set up with pens and applications ready.

APPLICATIONS: COVER THE BASICS

Make sure that on your initial applications you request at least the past five years of the applicants work experience/history. You want to get an idea as to what they’ve been up to, where they’ve been living, how long they seem to stay at each job, what line of work they’re into and how stable that work force is. Check in on personal and professional references. Three of each should be a minimum, and I would highly recommend actually following up with a phone call or e-mail to check in on them. You’ll find out a lot from others.

You application should also request information on their current/ongoing expenses. Do they have monthly car payments? Other loan payments? You’ll need to assess whether or not they can truly and comfortably afford your rental property. An ideal tenant will be able to afford rent, and have room to spare for any emergencies that may arise. After all, in most cases you’re looking for someone who has the stability to stay on for the full term of your contract and beyond.]

You application should inquire about where they are moving from and why they left. Obtain information/contact from their last landlord and follow up with a phone call.

When reviewing applications, know that an incomplete application can be a bad sign. Unless they’ve indicated that they’ll get back to you asap with the particular information, well, it’s best to look to those who’ve followed instructions and given you the information you need to move forward with the selection process. An incomplete application, can be a tell tale sign of unreliability.

MAKE THE PHONE CALLS:

In your conversations with the referees from prospective tenants, the kinds of questions you might ask are:”Are they reliable?”, “Do they regularly show up on time at work?”, “As a landlord, were you sad to see them go?” Remember you can’t really ask personal questions, nor can referees say straight out that someone is a bad tenant, employee or person. But if you ask some indirect, albeit pertinent questions, you’ll most certainly find the information you need to make an informed decision.

THE RENTAL AGREEMENT: ARRIVE ON THE SAME PAGE

When you do decide on a tenant/s, try to schedule a time to go through the rental agreement with them. Clarify areas where there may be some confusion and be specific with expectations, on both ends.

Now, although this may seem like a lot to consider, it’s better to spend the time up front to find solid tenants rather than deal with the numerous issues, and legal problems that can arise with tenants who do not fit the bill.

There are questions that you need to ask yourself if you are going to fit into this category. The first question that you need to ask yourself is are you handy around the house? This is needed because under this category you need to be able to fix most small problems that will come up in your rental house. Sometimes for example you might be asked to fix a small thing when you are collecting the rent.

The type of house you buy will be a big factor in how much work you will be able to do on the property. For example you might want to look for a ranch house if you are afraid of heights. You never know when you may need to go onto the roof and fix something. Personally I thought that I am not afraid of heights until it came time to step off the ladder and get on the roof. When you look down 2 stories that first step is very intimidating. But with that being said I have worked with people who think that it is no big deal. So that determination has to be made by the individual.

The next question that you need to ask yourself is are you very good at keeping up with things? By this I mean are you going to be there every time a problem arises? This is important because this helps build a good relationship between you and your tenants. If you are not available there may be a build up of resentment towards the you as the landlord. This resentment no matter how little it may be is very hard to mend once it gets rolling.

This problem can be minimized if you posses good people skills and are able to smooth things over easily. I have seen small disagreements work there way into big problems usually leading to the tenant leaving the house.

Strengths of this type of the hands on landlord.

You do not have to rely on anyone to get a job done.

This aspect is a great advantage to you as the landlord in all aspects. You could take a small problem and eliminate it quickly before you could even get a hold of someone to do the job. For example you could stop by on the way home from work and take care of the situation. I will generally carry a tool box stocked with many different supplies that I may need to fix small problems. This strength really helps in the landlord tenant relationship.

Provides a great way to keep track of your property.

Doing everything yourself gives you a great opportunity to see inside your house. This way you can keep close tabs on the way a particular tenant is taking care of your property. I have used the act of collecting the rent as a way to see the house. I don’t do this with all houses that I rent. It would take me to long and I would always be tracking down tenants to collect the rent. I usually have the tenants mail the rent in these situation. This is usually determined after about 6 months of really keeping the house well maintained. Other houses that I see as a potential problem, I always collected the rent in person. But that is determined on a case by case basis.

Develop a personal relationship with your tenants.

Being there personally as the home owner will give the tenants a good feeling about you and put a personal feel to the whole situation. Hopefully this will translate into a better landlord tenant relationship, which in turn means that you get your money on time etc…

Weaknesses of this type of landlord.

Requires a lot of your time.

Obviously the physical act of driving to a rental house takes a lot of your time. If you don’t have a lot of free time then this could be a big problem down the road. Of course buying a house close to where you live could help greatly in reducing this problem. And how much time you have to devote to fixing potential problems will factor into how well you do them.

Develop a personal relationship with your tenants.

I realize that I listed this as a strength of this type of landlord type. But I found that it can also be a weakness in a way because of the fact that you may be taken advantage of by the tenant. A good way to reduce this risk is to try and always keep a business like relationship and avoid getting to close. I found that this problem does not really show up if you keep the relationship very much tenant to landlord.