All Forum Posts by: John A.

Offer to help in all aspects of his business so you see all sides of it.  You may discover you don't want anything to do with managing properties.  Or you may discover you like dealing with tenants.  You won't know until you experience it.  

If I were you, I would be eager to help in finding properties, overseeing the rehab, marketing and management.  Let him work you to death.  You'll come out of it feeling like you owe him money for the education.

I've been self managing for about 4 years.  I only have two SFRs.  When I am going to be out of reach, I rely on other landlords in my real estate investing network.  They know what a real emergency is and what can wait until I get back.  I return the favor when they go on vacation.  I simply tell my tenants that I'll be out of touch for a week (or two) and if there is an emergency that cannot wait until I return, to call the number I provide.  This is just one more benefit of networking with local investors.

I would never take the late fee out of the deposit.  The deposit is your security that the unit/house will be in good condition when the tenant leaves.  Never apply the deposit to any fees/costs until the tenant moves out.  Otherwise, you may wind up with no security deposit and a trashed unit/house.

If I were in your shoes, this is how I would see it.  There are two options for me to consider.

1.  Enforce the 3 day pay or quit.  If he doesn't pay the full amount with late fee, file for eviction.  Pay a bunch of money for a lawyer.  You'll probably never recover the rent or the lawyer fees.  But the tenant will have an eviction on his record.  If he does pay up, you'll have an angry tenant for the remainder of his stay.

2.  Take the money for the rent, waive the late fee and give him 30 day notice of non-renewal of the lease.  Tell him if he leaves the unit in good condition, you'll give him back his full deposit and a nice referral letter for his next landlord.

I'd probably take option 2.

@Jordann B., thanks for clarifying that.  I've been very satisfied with Cozy and am about to use Cozy for tenant screening.  As a landlord, I don't see when the tenant notification for rent is sent out.  But I'm happy with the notifications of when the tenant pays and when the money is being transfered to my bank.

I think of it this way: if a tenant hands me a check on the last day of the grace period, the rent is paid on time unless the check bounces.  The check might not clear for a day or two, but the tenant paid on time.  I treat online payments the same way.  When cozy tells me the tenant made a payment, I consider rent paid unless the payment is rejected for insufficient funds.   I guess as long as the landlord and the tenant have a clear understanding between themselves of what is considered on-time or late, all is good.

I've been using cozy for several months.  The notice goes out when the rent is due.  So if you set the rent as due on the 24th, that's when the notice is sent.  This does not over ride your lease, it's just a notice from the payment system.  If you pay the extra service charge to cozy, the money will hit your account within a day or two, otherwise it could take up to 5 business days.

I'm not a lawyer, but I would think as long as the tenant has made payment to cozy or dwolla within the grace period, they have met their obligation to pay rent.  It doesn't matter when the money hits your account.  

Hey Tim,

I'm also in Sierra Vista, work for the government and have SF rentals.  We have a facebook group for Sierra Vista investors (Sierra Vista Real Estate Investors).  Welcome to BP!

John

Another thing to keep in mind - the city of Sierra Vista charges a 1% rental tax on gross rent for any professional landlords (more than 2 residential properties or any commercial property).  Some PMs add it on top of the rent, others include it as part of the rent.

I'm in Sierra Vista (resident and investor).  A lot of the housing is tied to the military post and to retirees.  I think Sierra Vista has a lagging economy compared to the rest of the state.  The military is still downsizing, so the local economy is still feeling the pains of that.  

Sierra Vista is still a great place to invest. But things to consider: rent prices have been flat for a couple of years; the privatized housing on post is almost all new and competes against in town rentals; neighborhoods vary a lot in this town; SFH prices have gone up a little - but there are a lot of foreclosures in the area.

If there's anything I can do to help, let me know.  I also have a local facebook group "Sierra Vista Real Estate Investors".

John