All Forum Posts by: Jonathan Taylor Smith

Hello @Evan Thomas Andriola - I only have one property that does not have separately metered water for each unit (a Triplex with 2BR units). And I've considered sub-metering it. But to date, I've just set my rents at a rate that accounts for me having to pay the water bill - and informed the residents that each year I'll increase the rent based upon my expenses (including water), so keeping the bill down helps me to help them.

But one problem this could cause is if increasing the rent to cover the water bill then places your rent above the market rate. In that case, having it accounted for as a separate fee might attract more initial interest in renting the property - with the total cost being revealed later. If so, just make sure the fee does not exceed what a given unit might consume if they are good on their water usage.

Well, the latest "clarification" of the vague memo is that "rental assistance programs" are exempt from the pause - so I am expecting payments to arrive as usual.

YES, I've also had that occur with some tenants. But I think it has more to do with how different individuals handle what is technically an invasion of their space and privacy. Some people are more disturbed by that than others (even if they have nothing to hide) - and following you around may give them a greater sense of control and therefore comfort. This can also be triggered if they have kids or what they perceive to be valuables in the home that have not been secured.

It can also relate to how you conduct the inspection. For example, at the start, do you confirm if all persons in the house are aware of your presence, and do you ask if it is OK for you to open bedroom, bathroom and closet doors? Showing them that you are aware that this is their space and that you are an intruder (landlord or not), can set them at ease by showing such signs of respect.

Congrats @Emily Pena - I'm also an agent (working mostly with investors), property manager and an investor myself (currently owning 26 rental units). "Houseboat community"... Hmmm, such a thing has never even occurred to me. Until now I've focused on distressed single-family and small multi-family properties for rehab into rentals (BRRRR). But @Garrett White and I are shifting our focus to larger unit count properties. We're also seeking to buy a local (Raleigh / Durham) property management company to expand that business more rapidly.

YES, I do provide a bonus / penalty structure to my contractors. I have them tell me how long a project will take to complete, and then I add buffer days or maybe up to 2 weeks, depending on how long / complex of a project it is and potentially accounting for weather if it is outside work. Then if they are done by that deadline, I offer a bonus. But for each day / week beyond that deadline, I impose a penalty. The numbers vary per project, but it helps to get things done on time. I do not worry much about "hurried or sloppy work" because it is also in my contract that all work must pass inspection, which may include the city / county (for permitted projects), lender and myself. I handle payments by draws and I must always be ahead and work versus payments. The final payment is always the largest. I also buy my own materials.

Hello @Jeanette Land - (Great last name by the way to be into Real Estate)... What out of state areas have you considered? If you're at all interested in North Carolina, consider the Triangle (Raleigh / Durham) and Triad (Greensboro / Winston-Salem) areas, which are my focus for both clients and myself.

Congrats! Occupied with inherited tenants or vacant?

Hi @Will Newmiller - I bought my first 3 properties with conventional 20% down loans, using funds from my business and loans from my wife's TSP. But then I was tapped out on access to funds, so I switched to creative means, obtaining the next 3 properties via lease-options. And thankfully, by the time I needed to execute on those options and actually complete the purchase of the leased properties, I had developed some private lender relationships that allowed me to complete those 3 transactions and several more thereafter. Now private lenders are my main purchase method, along with seller financing and BRRRR.

Actually, the HAP contract does say that we can charge the HA a late fee after the first two months of occupancy if reasonable and otherwise accounted for in the lease. So, I will be imposing a 5% late fee on HACW.

So much for "Guaranteed Rent" by accepting Section 8 Vouchers... I'm still awaiting receipt of November's rent from Wake County Housing Authority for a property in Raleigh, NC - that I manage on behalf of a client, who I aided in buying the property as his Realtor. After multiple calls and emails about the matter (even involving the local HUD office), I finally get a response that says "Unfortunately, HACW is experiencing a temporary shortfall of funding and will be unable to pay the HAP amount for this month..." (HACW being "Housing Authority County Wake"; and HAP being "Housing Assistance Program"). The concept of the Housing Authority running out of money never even occurred to me! One of the main benefits of participating in the Section 8 program is knowing that the rent will be paid each month (or at least the Housing Authority portion of it) - Now that's gone.