All Forum Posts by: Uwe K.

I am thinking about this topic for years. While I do have wording about overages over a certain amount in my lease, I've never charged anything.

The problem I have with it is in a duplex: There will 100% be arguments about who used more, and upstairs they have 4 kids, and I only have my 20 "cousins" here, blahblah. The separate meter thing is just cost prohibitive. Additionally, my tenants know they have to pay x amount to me every month. Understanding a simple late fee is already rocket-science to them, so now they have to budget for a variable amount per month. I see myself explaining and arguing more than it's worth.

Although I kinda like Kyle's idea, that makes it fair and maybe more acceptable to the tenant. Like they can also gain, not just loose. Still, I think it would require separate meters.

I have mostly low-income tenants and currently also use the BP Transunion credit check. Most of them either don't check their email frequently enough (and I don't want to wait 3 days for them...), don't have Internet, or don't know what that thing with the keyboard is.

What I have done before is that I call them, sit at the computer and use a second email address pretending to be the applicant, then over the phone I ask them the security questions.

On the other hand, a credit report has never been a deciding factor, usually the application got killed before, either because of the criminal history or incomplete applications where nothing makes sense.

I think in neighborhoods where having been in jail is not a status symbol the credit report is more important. In my case, I generally expect unpaid phone and energy bills, and a score of 600 would be top-notch. Only if it is really serious I would send them on their way. My last tenant, I didn't even do a credit check (there is also a language issue), and they have been great so far, nearly pushing the money on me.

Dang, didn't know they changed it. A few weeks back it still worked. Now I need the water bill to look up the water bill. I guess it was overdue anyway, quite a privacy concern with the previous method.

I just don't get why you would want your first property to be 2000 miles away, rather than getting a feel for the business in your own area. I understand that numbers may be better elsewhere, but I think it is way easier to gain experience when you are less than a 2-day round trip away from your investment.

Other than that:

Lead based paint: For an old property, you can safely assume that there will be lead based paint somewhere, unless some actual lead abatement has been done. Wouldn't really be a deterrent for me, as then you pretty much have to exclude 95% of the buildings in the city (and from your description I assume your target building is within the city of Milwaukee).

Google Street view does not replace a drive-by. I've looked at so many houses, and Google was always part of the research. But many were crossed off the list once you turn the corner. And one block can be ok, the next can be worse. And in the last 5-6 years since the little Google car came through, a lot can have changed.

You didn't mention the number of bedrooms. Is it 2 down and 1 up? The rents would suggest that. I think there are better deals in the area with better returns (in a similar price range).

You can also check the city web site, the Department of Neighborhood Services has all the info about violations and permits, that often tells a story about the property. Water Works lets you actually look up past water bills, too, gives you a feel for what it will be.

If they are the ones I think you're talking about, those are junk. I used to buy them, but they don't hold up to much, very cheaply made.

And you cannot re-key them if you want three keyed alike.

Alone for the fees I would not accept CCs. Close to 3% just takes too much out for no real benefit. And I think Visa and friends does not allow you to charge extra fees for CC payments. Although you can give a discount for cash (see gas stations).

I pretty much second the other opinions of others about Menards. I buy most my stuff there. No contractors discount "just everyday low price". So I am not sure why I would give them a list of stuff I need... :)

People here often complain about Menards quality (but then still shop there), but I think it's a horse a piece. HD has some cheapo crap tools, too. And you don't have to buy their Tool Shop brand. Although I occasionally buy their hand tools for stuff I don't need much, and with a lifetime warranty I just get it replaced with no questions asked.

If you get the Contractor credit card, be prepared to get a call from the account rep every 3 months asking if you need something. Well, I go in the store for that, I don't think he would stop by with the sheet of drywall I need... Although I think every time he calls he parks in front of my house (which is the business address) - a bit scary...

Paint: I actually buy their Lucite brand for most rentals. Since they are low-income, I typically have the repaint after each tenant anyhow. No point spending big bucks on overprices SW paint. I just bought some SW Pro Classic for some trim in my house: Still needed 3 coats (plus primer) to get good coverage. That's what I call value... But I digress.

Month-to-month for low income. I now even start out with MTM, since in my experience they don't care about (and often don't understand) the lease terms anyway (incl. "due on the first"...). They leave when they want to. For some, the deposit is already seen as "spent and gone" and never expect anything back, based on the condition of the place they leave it in, or live in, for that matter.
So the MTM gives me the opportunity to get rid of them by cancellation if they irritate me, and the lease does not have an advantage for me since most have basically nothing to loose.

People with a more stable and higher income I do leases. Although, if someone had to genuinely move, I would not hold them down, but rather find a new tenant and have them only pay up to that point.

On the other hand:
If they are illegal, they are likely trying to avoid any kind of trouble and pay you rent on time every time.
Just another "stereotype about illegal immigrants" that I would apply :)

Honestly, I think if I had only illegal immigrants as tenants, I would have way less problems than with my current low-income, US born, "I am deserving this"-attitude tenant pool.

For most of my BG checks I don't use SSNs anyway, and the rest is based on other info they give you.
Have them take their shirt off, count the tattoos:
None: Honest guy
1-9: Further investigation needed
10+ = gang member :)

Where is it located?
Unless it is a desirable area, you may have quite some competition with empty lots in Milwaukee (with most of the lots in the Milwaukee city limits probably owned by the city, which tells you how sought after they are...).