All Forum Posts by: Ben Feder

How local are real estate markets? Basically, how similar is a market in one neighborhood versus a city in general versus nationally, etc.? If the national real estate market is a hot sellerr's market, how likely would it be, for example, that the Philadelphia market would be similar, or a neighborhood within Philly? This is just an example, but you can get the point.

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I am looking to purchase my first home to live in one room and rent out the rest. Also, it is a hot market and hard to buy. What are your best suggestions on financing or purchasing a first-time home, and additionally, how do you do that in a hot seller's market? Any help would be appreciated. For further info, I am looking in the greater Philadelphia area. Thanks!

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Originally posted by @Forrest Williams:

@Ben Feder keep utilities in their name. If you have the electricity in yours and they don't pay you, you're on the hook for the lights. If you stop paying it, they could use that against you in court, creating an uninhabitable apartment.

If you have a three bedroom situation, it can be a little tricky. If they are all friends, it can be easier to coordinate that and have them split it amongst the three of them, keeping it in their name. If you've done a boarding house situation where you are renting each room individually, I would suggest just paying the utilities yourself. It can create tense situations if someone is using way more water or electricity.

Again, it depends on your lease, but if you don't currently have it in the tenant's name, consider changing your lease next turnover.

I guess then if I am paying the bills myself, charge a higher rent for the tenants and just tell them utilities are included?

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Originally posted by @Forrest Williams:

It's the tenant's responsibility to set up their utilities, if that's what you have written in your lease. Utility companies won't let you set it up for them. However, make sure to call them when a tenant is moving out to transfer the utilities to your name, otherwise the unit won't have any power when you're showing it to the next potential tenant.

Would it ever make sense to just bill the tenants directly from me or is it always best to have them switch the utilities into their names? Also what if I have a rental property single family home with 3 bedrooms where a different tenant lives in each bedroom?

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Originally posted by @Mary Smith:

Hey @Ben Feder First thing you would need to do is ensure there is a clause in your lease agreement that directly addresses this and places the responsibility of all utilities on the tenant. Our lease agreement specifies not just how the utilities will be managed and who will pay for them, but we also include the date by which we expect our tenants to have transferred the utilities into their names and what will happen if they fail to make the transfer on-time. Once they place all utilities in their name, it's their responsibility.

We deal in student rentals mostly, so we usually have multiple tenants at one unit. We ask them to split these up among themselves and we've not had any issues so far.

Thanks! Still curious though how that would happen. How would you specifically get the utilities in their name? How would that transfer happen?

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If you do NOT have a management company managing tenants and rent, etc.:

1) How do you have a proper lease for your tenants and 2) how do you get them to pay the rent every month? Also, 3) how do you keep maintenance on your house without management company taking care of it?

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How do you get tenants to pay for the utilities? Do they get a bill from the utility companies directly, and if so, how do you set that up? If not, do you personally bill them for the cost each month in addition to rent? How do you get them to pay up, and how do you get them to share the utilities if there are multiple tenants in your property?

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How do you do a credit check on a potential tenant you are trying to screen? Where do you go? And can you do it for cheap or free?

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As a new investor, I am looking to make deals and learn as much as I can while I invest, while continually learning from those I network with, from books, webinars, podcasts, etc.

I want to know if anybody has heard of real estate investing courses or school for real estate investing. I am interested in an education that specifically covers the types of activities and dealings real estate investors deal with, as opposed to, for example, an agent course that teaches someone to be an agent, and then can pivot course to become a real estate investor. I want something that directly leads to the abilities a real estate investor has.

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I am not talking about legal entities that should be set-up when you go to buy a property and you structure an entity for the purchase or transaction of that property; I am wondering if you should form a business structure as a general holding company or just to operate your regular real estate functions, hiring people, hiring contractors, and going about your general REI business. I am also thinking about personal brand, and if creating a legal entity with a company name would help with that as well. Thoughts? Thank you in advance.

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All Forum Posts by: Ben Feder

Ben Feder has started 51 posts and replied 170 times.

Post: How local are real estate markets?

Post: How to Buy Property in Seller's Housing Market

Post: How to get tenants to pay for utilities?

Post: How to get tenants to pay for utilities?

Post: How to get tenants to pay for utilities?

Post: How to manage property without using a management company?

Post: How to get tenants to pay for utilities?

Post: Credit Check on Potential Tenant

Post: Are there REI classes/school for REI?

Post: Should I create a legal entity for my REI business?