All Forum Posts by: Account Closed

I'm very interested in replies here for this "equity/ labor partnership".

I'd throw some other ideas and considerations into the bag. To recap here, the "labor" partner could provide management services which means everything from advertising property, finding tenant, leasing, daily management, pay for eviction if needed, guarantee to repair/ maintain property up to certain dollar amount per year, turnover, problems, etc. But does that warrant a 50/50 split on rent? Property management' s value is 10% of gross rent but what else.

But how much is that really worth? What is a fair percentage split and how is the property deeded?

Also, what if the "equity" partner stops paying mortgage or some other calamity?

One owner of multiple properties we manage had us draft a lease addendum that required the tenants to pay repairs that were under a $100.00

Guess what happened? All the repairs were magically over $100.00.

My point is that if you make a rule for a tenant, then you must really think it through. Tenants are clever getting around the rules. A consideration is quality of work. If a tenant makes a repair will it be safe and high quality repair? Some repairs require a skilled trade trade such as HVAC and electrical. Check your state real estate commission to see if you could include it in the lease.

Remember that just because you put it in the lease agreement does not mean that they will comply.

Good luck.

All that might be true but here is what I have learned after years of managing residential properties:

#1 There are just as many difficult, unreasonable and problematic landlords as there are tenants.

#2 Everybody is different and there are many different personalities and characters in the rental game. Just because I think someone is weird, or smells, or is rude it their business not mine. Unless the property is unsafe or unsanitary then I stay far away. If I need to see the property I do so discreetly.

#3 Everybody exaggerates and stretches the truth.

Sounds like drama, be prepared for anything. We've had multiple parties living in a SFR and it worked well for one group and failed for another.

John Cava's idea above is very appealing. Maybe they could pay an extra amount in the event one of them bolts.

Don't reinvent the wheel, I vote for the idea above.

I work in property management.

You could send him to collections. There are many collection agencies out there and some specialize in residential real estate.

I agree with long-term leases as Jon said above. We stick to 12 months because anything beyond seems to fall apart. Sometimes we'll push for the lease expiration in a warm month, so its easier to rent when demand is higher.

When it comes to lease agreements and legal stuff there are two paths you can take. First, you can lawyer up and try to go strictly by the book. This is expensive, time consuming and stressful.(trust me, everybody loses) Second, you can enforce the rules and regulations to the best of your ability but sometimes you just got to go with an alternative. I mean if a tenant wants to leave he is just going to leave. This does not mean I'm lax or a pushover, it comes from years of dealing with tenant psychology. Cut your losses man.

And just because you have a bonafide lease agreement and get a judgement does not mean you will collect. A judge could find a flaw with your lease, etc. It is always a gamble with the courts. He could just refuse to pay.

As far a qualifying a tenant, we do the following check. Credit (transunion), criminal (state and national), eviction (state), phone calls to verify employment and rental history, and request paycheck stubs.

In addition, there are a few other FREE online methods. Much of the stuff is public record.

1. Local sheriff's department has a way to search for PENDING LITIGATION, such as DUI, criminal or whatever
2. Sex Offender registry is in every state
3. Google search with name just to see what happens
4. If they claim to have a professional license of some sort, I'll even check the state registry just to see.
5. If you really want to dig around, you can find other stuff too.

You don't want to go crazy and cyber-stalk your prospective tenant but it has worked for me.

Will Bockoven

Little experience here in MF, so my opinion is limited. Common areas were a big headache. Tenants banded together and their gripe lists were long. Barking dogs, loud music, slamming doors- we got a phone call.

Benefits and drawbacks to both.