All Forum Posts by: Bob H.

@Jason H., what is your minimum credit score? I have been using 700 and income of 3X rent, but each time there is a vacancy I wonder if 700 is too high.

@Bill Lockhart No doubt that's true, but how do you know the premium listing made any difference?

Zillow suggests that I spend $29.99 for a premium listing, promising that renters will see the listing more often because it appears higher in search results. I find this vague. I'd like to know what I'm getting for my money.

First, I tend to look for listings on a computer and focus on the map, not the search results alongside the map. I suppose, though, that most people search on phones and the search results are more important on those devices. But how much more viewing would I get for the Zillow fee? I once paid for a premium listing, a few years ago, and did not notice any difference, but how could I tell? To really know the result, I'd need to be advertising two identical properties -- one with a premium listing and another with a regular listing.

Does anyone have experience that clearly shows a result from using a premium listing?

 @Theresa Harris is right. A typical sink drain is made of 1-1/4" diameter pipe. A toothpaste cap is maybe 1/2" wide. How would that clog the drain? And if the cap did go down the drain, in most cases it would be a simple matter of putting a bucket under the trap, unscrewing the trap, emptying it out and screwing it back in. The tenant could do that. 

I have never dealt with a propane-fueled water heater, but I find the explanation by the plumber questionable. I have personally replaced the pilot assembly in a gas-fired water heater. I don't see why a problem with soot on one part would require replacing a 2-year-old unit. I think you want to know what caused the soot to build up. I also don't understand why running out of propane would ruin the water heater. Wouldn't it just turn off?

First of all, you're in Chicago. It's way too cold in the winter. Make your leases end in February or March and go spend some time in Scottsdale before it gets too hot. Take care of anything that needs to be done to your condo while you're advertising the vacancy and showing the unit to prospective tenants.

If you get a good, tidy tenant -- which you can verify if you have an opportunity to visit after the tenant has moved in -- you may be able to advertise the unit near the end of the tenant's term and get the tenant to show the unit. Offer $50 or $75 for each showing, possibly with a bonus if you rent to the prospect. Don't do this, of course, if the tenant has safety concerns or if you think the tenant will not have the unit in good condition for a showing. If this works, you can minimize your vacancy and make a short trip to Scottsdale to inspect the unit when the current tenant moves out and to do a walk-through inspection when the new tenant moves in.

There are many companies that offer screening services. I have been happy with RentPrep. Don't rely on your screening service for everything, though. It's important to personally speak with prospects by phone or video call when they inquire about the property. A credit check should come at the end of this process.

My suggestion: 1. Advertise the property through Zillow and TurboTenant. 2. Speak to prospects by phone. Politely decline those with poor credit or insufficient income. Send a rental application and a list of acceptance criteria to the others. 3. Show the property to prospects who seem well-qualified after they have reviewed the acceptance criteria. 4. For prospects who are interested in renting, get an application from each adult and carefully verify everything on it. You'll need to call previous landlords and employers. 5. If everything checks out, send a lease to the prospect. Collect a security deposit when the lease is signed and require payment of the first month's rent at move-in. (There are many payment processors; I use ZRent, which has free payments if you have an account at a member bank.)

@Chris Marshall I also am interested in that. 

I have no experience with squatters, but it seems to me that your risk varies a lot by location. If you invest in an area with local officials who think criminals are victims of society, you can't expect much help from the government. Having good processes in place is particularly important for tenant screening, move-ins and move-outs and the handling of security deposits, but I don't know how you can have processes to guard against criminals and unfair government policies like those in place in some areas during the pandemic.

I agree that the bankruptcy is the larger concern, but consider two things:

First, if this special assessment is related to the HOA's part of repair costs in an insurance claim, check to see if your own insurance has a loss assessment endorsement, which is supposed to protect you from the costs passed along by the HOA. The timing would be important; if the assessment actually became due at the end of that 90-day approval period, it might be on your insurer's watch.

Second, the title company is not blameless here. Its job is to be sure you receive clear title, meaning other parties don't have unpaid claims against the property. Your title insurance probably has lots of disclaimers that let the company avoid responsibility, but it's worth checking. Here in Texas, and probably in various forms in other states, lenders require that buyers get a "resale certificate" from the HOA. That's just a routine billing statement, which most companies would provide readily at no charge, but HOAs and especially HOA management companies use it as an extortion racket. They typically charge a buyer hundreds of dollars just because they can get away with it. The title companies enable this extortion by requiring a resale certificate even in a cash purchase, when there is no lender. So if you or the seller had to pay for a document that tells what the property owes to the HOA, then see what it says. If it says money was owed, then not charging the seller seems to be an error by the title company. If it says no money was owed, then maybe someone was lying. But, again, timing is everything. I find it hard to believe that neither the seller nor the title company had any idea that this assessment was coming.

If you do come up with solid evidence of someone being at fault, and if the cost of having attorney seems too much for this $2,000 case, don't be afraid to use small claims court. That's what it's for. 

I own a rental property in a new neighborhood where the developer is starting to turn over the homeowners association to an elected board. Because of complaints about the relatively few rental properties in the neighborhood, the developer sent homeowners an anti-rental amendment to the neighborhood covenants. It would ban buyers from renting out homes for a year, would require that all leases be submitted to the HOA and would prohibit lease terms of less than a year. It was poorly worded and inadvertently, I think, prohibited buyers from having foster children or live-in nannies and caregivers or from buying a home to be occupied by elderly parents. Fortunately, no vote was taken at a meeting last week, and there is an 80% approval threshold that would make any change in the covenants difficult. Still, I expect that a modified anti-rental proposal will be coming in the future.

Do you have suggestions on how to combat this kind of discrimination against landlords and tenants? The main complaint is about "big companies" (the biggest in this subdivision owns 10 homes) that are unresponsive to complaints from the HOA. I think the HOA has a point: If a lawn never gets mowed or a smashed mailbox never is repaired, sending a letter to a company's mailing address often gets no results. Fines and liens are possible but not likely to work. The problem, of course, is that the HOA is trying to penalize all landlords for the failings of a few.

What do you suggest that the HOA do instead of going after all investors? Fines and liens are possible but not likely to work.