All Forum Posts by: Richard F.

If you have a multi-unit property, check into coin operated laundry equipment. Depending on your locale, you can probably find a company that will provide them, maintain them, even give you a cash "decorating" allowance to set up the laundry area, and still split the income 50/50. Of course you pay for the utilities to operate, but the income adds up.

Same goes for other vending machines, especially soda, and if you have sufficient traffic (for example an on-site office) a candy/snack machine too. Everyone has change to drop in, and the kids are right there pestering mom and dad to cough it up! Again, YMMV, but I have had name brand distributors put in a machine at no cost, I set the sales price, they stock it, and send a check every month. Sweet (pun intended).

I sometimes let a tenant paint interior rooms on lower end properties. I reimburse them for the paint after inspecting to see the job was done reasonably well. I advise them not to get paint on the floor or woodwork, and limit their paint choices to pastels so they can be easily covered if need be, but usually they turn out good enough to just re-rent as is once the current tenant moves out. The current tenant now has some "sweat equity" and typically is an excellent tenant, and I save the high cost of a contractor paint job (or the time and effort of doing it myself) on a property where appearance is not a priority.

If you are providing the utilities, meter ac's or other high use circuits, then bill the tenant for excess over a predetermined average cost which has been included in the lease document. Along those lines, put electric water heaters on a timer so they are off several hours a day when not normally needed.

Probably the single best thing you can do to increase cash flow over the life of your investment, is perform simple, routine, preventative maintenance and inspections. Be proactive not reactive. Run your business, do not let the business run YOU.

If you don't want to re-finish it, why not throw down some $4 a yard carpet? Painted floors look like crap after beds and sofas and Big Wheels slide around on them for six months. I don't usually look at carpet, but if there is a chance you (or a prospective buyer) have any thoughts of re-finishing, I'd rather not have paint on it too. Better yet, if the existing surface is flat, and there is no compelling reason to ever want the wood floors, install vinyl commercial tile. Trouble free, 20 year life (properly installed) and nearly indestructible. Pretty inexpensive and easy for the diy guy/gal.

I'm a Property Manager in Honolulu, currently managing approximately 300 units, mostly residential although some commercial strips. Originally I am from the midwest, where I managed closer to 800 units, and actually started out working on, and later running, a maintenance crew. I have an active Broker's license, and am a member of the NAR and NARPM.

This forum looks pretty interesting, I've been lurking awhile and recently started posting some (hopefully) helpful information.

Thanks for the quality site!

Although I haven't kept up with new techniques or products, here's some food for thought-

The winter/summer freeze/thaw cycles are a major problem (I am talking about in-ground, concrete, permanent pools). There is moisture in the ground, there is moisture IN the concrete, and, depending on your preference, the pool itself may be left full (or nearly) over winter. As a result, all this moisture ALSO freezes/thaws, which is not a good thing. Originally, my pool had a "marbelite" coating, with a ceramic tile band at the waterline. I can't even tell you how many times the tile popped off in different areas. then, eventually, the marbelite started popping off. Of course, these both led to more moisture getting directly at the concrete, and eventually (in spite of numerous recoating and retiling projects over the years) the rebar within the concrete began corroding, and spalled the concrete severely. About every three or four years we spent a lot of time and money repairing. As time went by, we settled for no tile, hydraulic cement repairs and a troweled on finish coat which we kept scrupulously painted with a two part epoxy based product called "Mira-plate". this was done the first time after having sandblasted the entire pool. Man, it is hot at the bottom of a white pool in a sandblast suit, and shoveling 6 tons of sand back up OUT of the pool when you are done is no fun either. Then the only problems we had were not getting the pipes cleared out for winter completely (because they "settled" with low spots over the years) and freezing/bursting the the lines causing large suction leaks when we fired it up in the spring. Then all I had to do was tear up the apron and repipe the whole thing with pvc, install drain tiles and a wider apron (after a little additional landscaping). Let me tell you, pouring 18 yards of concrete will prove who your friends are. Believe me, you will find you have MANY more friends when the work is done, and the pool is clear and cool with some frosty drinks at hand.

If I were to do it over, I would only go with a one-piece fiberglass unit. then all you have to worry about is the water table rising and your pool pops out of the ground (although that happens to concrete pools too).

In spite of all that, if you love poolside life, and like to entertain, it makes for a great summer. Except, I could never relax when there were children around. Parents NEVER watch them close enough. I saved two, thankfully.

You can get a chemical, I forget the name, and put it in the pool so when the kids (or adults) pee it will turn BLUE and they are SOOO busted!

Enjoy!

On the flip side, unless you are talking about a high end unit, or vacation rental (and that's iffy), I consider it foolish to rent something sight unseen. It is easy to take photos that make a place look bigger, or nicer, than it truly is. You have no idea of the neighborhood, or the landlord for that matter. Are there dogS barking right outside your window? Does the shower have enough water pressure? You show up, take the keys, walk in....and the nightmare begins! And now YOU are stuck with a year lease.

Personally, I do not allow pets. Not dogs, not cats, not iquanas, not snakes...In spite of the fact I have run into numerous pets with bad attitudes or manners, I have NEVER met a pet owner that was aware of those traits.

First off, you MUST check your local landlord and tenant codes. Some jurisdictions do not allow you to charge additional rent and/or deposit for pets. Make a mistake here, and it will cost you dearly.

Second, if the lease says no pets, IMMEDIATELY take the first step required legally by your locale- usually along the lines of the 10 or 14 day Notice of Lease Breach. Then just follow through with the process.

Finally, if you really want to allow pets, the Humane Society usually has a ready to use Pet Addendum, Pet Registration, and Pet Tips available on line ready to print, and covers most of the bases.

You need to look at the big picture. If it is an old house, with little or no insulation, and an inefficient furnace, what is the expected life of the structure? Does it make more sense to modernize the windows with thermopanes, blow in some insulation, and put in an efficient furnace? What is the expected payback period? Are there incentives from the local energy suppliers or govt. agencies? Or will you be lucky to have the house keep standing another 10 years, and/or have no possible way to make the previous improvements? If that is the case, then simply installing new aluminum combination storm windows is probably the best answer. Throw away the old storm windows and seperate screens that you have to swap out each season for these relatively inexpensive combo units that install on the outside of the window frame in about 5 minutes each (once you have measured for proper size, and had them either custom made or are able to fit standard sizes where possible).

It really depends on your actual skill level, and what the alternative use of your time is. If you do poor quality repairs that you have to redo every six months, not a good idea. If you are clueless about what materials provide the most value, not a good idea. If you ARE skilled and knowledgeable, it becomes more a question of where are you the most productive. If you are just starting out, you can save hundreds or thousands of dollars by doing basic work that contractors make big profits on--like painting. You have to be able to perform the work in a timely manner, and do it right or you end up hiring a contractor to fix your fups, at usually twice the price! Of course, once you have several properties you will not have the time to do it all yourself. At that point, you need to decide if you want to establish a crew, or let the contractors keep another 10-20% of the profits.

Bill the tenant for the service call. If the tenant agreed to be there at a certain time and day, charge'em for the extra (NOT the basic service call and actual repair charge, just the extra time/trip) costs. Of course you documented the service call request, and the fact the tenant requested to be present (rather than allowing you or the tech to access with your spare key), right? Just be sure the tech includes the details of the missed appointment and return trip ON the third party (read independent witness) invoice.

You DO need to make the repair, but the tenant has responsibilities too.

They may choose not to pay, but depending on how your lease is written, you can either pay the oldest charges first (when next months rent rolls in) and start charging the late fee on the unpaid balance, or just wait until move-out and deduct the charge from the security deposit.

Learning some handyman skills while saving up the money to jump in is a most excellent idea. Your single largest expense as a landlord is maintenance and repairs. If you understand what needs to be done, and how it is done, you can save yourself a lot of money, whether or not you actually do the work yourself.

Also, working for a PM company will DEFINITELY give you some insight!

Getting a RE license has pros and cons. Yes, as another poster alluded, you are REQUIRED to disclose the fact that you are licensed in any and all RE dealings, whether as an agent or a principal. Some people may question your motives as a principal, but if you don't make a big deal out of it, they won't be overly suspicious. The timing and method of disclosing is key.

On the "pro" side, you do have generally better access to facts and figures, and if you associate with the right people, deals will come your way. And, you can always make a good steady income (and benefits) working in the business. In my case, my day job is as a Property Manager, and I use my free time to look for properties my clients might be interested in buying (through me, for a nice commission), that I will manage for them (for a fee), and usually once a year I'll find a nice prospect for flipping. I may partner with some of my vendors or employees, or if it really needs a minimum, I'll do the painting and cleaning myself and sell it for a commission on the purchase AND the sale plus my net profit. All pretty low risk/high reward IF you do your homework BEFORE you write the offer.