All Forum Posts by: Austin Lukes

Quote from @Ed O.:

Before you do anything, you'd be well served to have an occupancy inspection to see what your municipality will force you to do, before allowing a new person to move in. Often, windows must open and close, especially in bedrooms (egress). 

As far as upgrades, it's going to depend on who your target market is. 

 Genuine question regarding the windows/egress aspect. 

If a bedroom has two (or more) separate windows; one functions as intended but the other does not... the functionality/egress requirement is achieved via the functioning window, correct? Of course if it is a sole window in the room, then I would absolutely agree it needs to be replaced.

Quote from @Jill F.:

You didn't talk about condition of the property. I have found that making property improvements does more to increase the rental pool than lowering standards. post a picture of the kitchen.

I know request was only for kitchen/bathroom... figured I would share some of the "key photos" for the primary areas of the house for a general idea. Thank you to all for taking the time.



It's not luxury by any means, but for the properties I have seen in the neighborhood, I truly do believe it is in better shape than 90% in the specific neighborhood at least - 1960s neighborhood, covers whole sq mile. 

3b1b 850sqft, "normal sized front yard" (for the area) 1,000sqft front yard and largest backyard in the neighborhood at 5000sqft. 

Interior - Recently redone black granite countertops in kitchen, but original cabinetry was simply painted white by previous owner with black accented handles. Stainless steel kitchen appliances. White marble-ish tile in kitchen/bathroom. Bathroom updated granite countertops and tiled shower with built-in tile shelving. LVP in living area and hallway. Bedrooms are carpet. 

We personally lived here for 3yrs. After moving out, we re-stained the front porch posts with a darker stain (photo is pre-stain), replaced the front door, did touch-up painting on walls and trim, installed new keyed-alike locks on front/back door, and installed a vented bathroom exhaust fan that wasn't there prior. 

While it is most common for SFH lawns to be tenant-responsibility, we are offering a weekly mowing service for $100/mo due to being such a large lot, if applicant/tenant so chooses. 

Quote from @John Mason:

From another post from this forum

Class C Properties:
Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.
Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability

This looks familiar. I think I may have read it - but honestly somewhat of a blur because I've read so many different blogs/articles on the various classes of property to help me not only gauge where it is, but also in setting expectations. 

I think the only thing that particularly is an issue is the "no evictions in the last 2yrs." As a novice manager and ultimately new to the processes as a whole, any history of eviction that is recent enough to be on-record (last 7yrs) is scary enough based on precedence alone... 

Obviously there won't be any 100% "safe" tenants, no matter how much vetting you do, a job loss etc. could always happen to anybody... but I feel like having one at all simply shows that they didn't prioritize keeping a roof over their head for one reason or another, among other issues.

Everything else from that post, if I am referencing the same one, seems fine to me. I am no longer auto-declining people due to the sub-600 scores, rather allotting a lower "point value" based on the lower ranges in our objective screening process. 

The part that seems to continuously get people (unfortunately, and for lack of better words) is the "no evictions, no bankruptcy, and no more than 6 non-medical collections." 

Hello all, 

I've got a class C property that has not provided me much in the way of qualified tenants. I was curious if I am being too stringent on my criteria... I have a background in consumer lending in a nicer area of town - typical clientele are 750+ FICO with cumulative DTI (with new debt) of <35%... I know this is not typical for a renter though, particular in a relatively lower income area where my class C property is located.

It is a first-time dive into the rental space, as it is a starter home my wife and I purchased and have been fortunate to be in a place that we don't particularly need to sell. The primary motivators in retaining it and dipping our toes into the rental space are: 2.50% APR and sufficient margin to cover maintenance/capex/vacancy based on "recommended percentages of gross rent." The 2.50% APR is the major kicker though, for sure.

The issue is getting that first tenant in. 

Some of our initial baseline, no-go, criteria when we first listed were: 600+ credit score, no evictions, no bankruptcy, and income 3x rent... however, after finding that very few interested parties were eligible to even "enter a review phase" of landlord verifications etc, we loosened up a bit and went to an objective scoring model that I tweaked from a few ideas obtained after speaking to both rental professionals in my local area and some on this forum. 

Our current criteria are: no evictions, no bankruptcy, income 2.5x rent, max of 5 non-medical related collection items, and no collections related to unpaid rent or other past rental related obligations. The objecting scoring matrix that we created allows for somebody with a sub-600 score to still be eligible, they just don't gain as many points for being below that threshold... however, still, individuals still seem to be frequently getting denied based on bankruptcy or 6+ non-medical collections...... I have some auto-denials in the "review phase" based on landlord reference such as numerous late pays on rent, numerous documented lease violations, and move-out damages exceeded collected deposit... but still have yet to enter the "landlord reference/review phase" of my screening process due to the details on their CBR's as noted above.

Am I still being too strict for class C tenants with the above-underlined criteria??? 

Quote from @Drew Sygit:

There are several online doc signing options. Just do some research.

You're only other real option is to meet appicants in person to get their signature(s).

 Understandable. I looked at a small handful, primarily DocuSign due to familiarity with it in my W2 job. My only concern is that the introductory/basic plan has a 5 envelope limit - assuming this is a monthly limitation - and I may have 5+ applicants that are duds before landing on one that I am comfortable with based on screening criteria etc... What happens on these platforms, such as the "Personal" plan for DocuSign, when/if you exceed the included options? Is it a hard-stop wall, no more, or just each additional over the 5 would incur some per-envelope fee? 

I truly did intend on just having them complete the Apartments(dot)com application, since it appears to utilize the TU SmartMove screening details that many here boast about... so the only thing that I am concerned on getting signatures for is the Authorization to Release Information when reaching out to current/previous landlords and employer for various verifications. I didn't mind meeting them to sign these in person, considering I am doing showings myself as well, but am just limited on availability to mostly weekends due to aforementioned W2 job - figured an esignature option would be convenient to quickly send something out during working hours "in a pinch."

Quote from @Drago Stanimirovic:

Hi Austin,

As a new landlord exploring self-management, your concern about obtaining signed authorizations for verifying applicant information without a physical signature is valid. Many landlords now use online platforms that integrate electronic signature capabilities to handle this legally and efficiently. These platforms, like DocuSign, streamline the process but can be costly if you exceed the monthly limits.

However, alternatives exist. Services such as HelloSign or even more comprehensive property management software like Cozy or TurboTenant offer electronic signing as part of their application processing tools, sometimes without the same limits as DocuSign. These platforms ensure that you obtain legally binding electronic signatures for the release of information forms as part of the application process.

In practice, while some landlords might accept pay stubs at face value, your approach to verifying employment directly is prudent, especially given the ease of falsifying documents with today's technology. Using electronic signatures obtained via reputable software ensures compliance and authenticity, allowing you to contact employers directly for confirmation, which aligns with best practices in tenant screening.

If you have any specific questions about setting up your application process or need further recommendations on property management tools, feel free to ask. 

Best regards,

Drago

Thanks for taking the time.

Regarding the Cozy reference, I am using Apartments(dot)com as an introductory free platform that seems to check most of the boxes and then determining where my pain-points are, if any, to help me pick from the plethora of more inclusive available options at a later time (such as TurboTenant, TenantPro, LandlordStudio, etc). I presume Apartments(dot)com to be the current equivalent to Cozy. Unless Cozy has started back up or another entity using the name with a similar product suite? 

I knew it would allow me to esign my own lease, but honestly just have not tried to use it for "other" documents. I'll check into it and see what happens attempting to send non-lease documents to applicants via the platform!

Hello all, 

As a newer landlord looking into self-managing my current singular property, I have come to a crossroads with regards to receiving applications to process. This question primarily pertains to the signed release of information form. 

For those of you that do an online application or furthermore just a simple "form" that is completed online, how do you go about acquiring and subsequently providing proof of obtaining such authorization without a signature? I am leery of signing up for DocuSign considering they limit the documents on a per-month basis and I don't know how many individuals may express interest... I could very easily hit the threshold for a month in one weekend without a qualified applicant and no way to proceed in sending out these forms for a signature. 

Is this a non-issue? Are most landlords/PMs not contacting employers and instead simply trusting the paystubs provided? If contacting the employer and asked for a signed authorization, but never truly obtained signatures due to an "online form" (or similar Zillow/Apartments(dot)com application), what is being done in this instance? 

Upon initially listing within both the Zillow and Apartments(dot)com networks, I left the application feature on to see what would be received... Zillow was severely lacking and Apartments(dot)com seemed somewhat cumbersome to navigate their CBR, although it at least had good/complete details.

I have my own application that I began as the BP one for my state and made various tweaks based on a few samples provided by other local landlords in my area. Most importantly, the final page has an "authorization to release information" form that is signed by the applicant, authorizing various entities (primarily landlord/employer) to speak to me and confirm various details. I have primarily experienced this with employers that want a written consent before releasing any details about an employee, understandably so. 

My primary goal is to verify current employment, wages, and outlook (if they will go this far). Due to my background in consumer lending, I am highly skeptical of paystubs and other address verification due to the widely available websites that are out there to generate forms relatively easily... so I like to verify the information by contacting the listed employer using their listed number on Google to avoid possibly calling a friend etc.