All Forum Posts by: Terri Pour-Rastegar

I use big yard signs almost exclusively, plus directionals at key intersections. I include a little box with a full-color information sheet, listing the key features of the house, including rent, deposit, etc. My phone rings off the hook.

I also put one of my signs inside the house in a window, just in case my yard sign is stolen. God knows why, but they constantly steal my signs.

Personally, I have very little need for online advertising. I guess I get all the prospective tenants I need from my signs. The last time I used CraigsList and Postlets, my prospects and I were seriously scammed--one prospective tenant almost transferred money to this guy who said he owned MY house and was offering it for rent cheaper than I was. Very bad situation.

But sometimes, you need online adverts, and Craigslist is really good for that. Just be sure not to put the property address or your phone # in the ad.

If everything else looks good, I would probably ignore extensive student loans and medical bills. I do agree you should confront the tenant about it. A good, open-ended statement like, "tell me about these unpaid student loans," will get them talking without putting them on the defensive. Avoid questions with only yes or no answers.

On the front end, I am very stingy with my applications. I keep them out of sight while showing properties. Prospective tenants are handed an info sheet on the property, the flip-side of which has a list of tenant requirements. I explain that, while some of these items are not hard-and-fast rules, and I do look at the bigger picture, they are a guideline. If they seem interested, or ask for an application, I reiterate that prior evictions and certain criminal convictions will be immediate grounds for denial. If they're OK with that, and I like them, I ask, "what sort of things might I find when I run credit, criminal, or eviction reports or run your references?"

I have a strict rule of running credit/background/eviction reports on absolutely every applicant, after I've inspected their application info and confirmed employment and gotten landlord references done. No exceptions.

I hope everything works out for you.

I finished my latest rehab and got a great new family in there. They love the house so much, that the wife cried and hugged my neck when I handed her the key after the pre-move walk-through. Actually, it's a favor for a cousin--not my house. This cousin is a single mom whose husband passed away unexpectedly 2 years ago. She was burning through the small insurance money she got from his life insurance, so I suggested rentals. She is in another state entirely and has no clue regarding real estate. But she entrusted her little nest egg to me, and I feel confident I have done well by her. She had a little less than $100K to invest, and with that I helped her acquire, renovate and fill properties which net her about $1800/month. She is thrilled. So am I.

Also, in just 3 days, I got new tenants into the very first rental house we acquired. We bought this house 12 years ago and renovated it head-to-toe ourselves. It's our baby. My new tenant is madly in love with the house. So am I. ;)

Now I'm taking the week "off"--of rehabs at least--to catch up on accounting and household whatnots.

Next week, I've set up appointments to see more properties--for myself. Got to get re-focused on my early retirement goals!

Joe A, I have all of those clauses--and more--in my leases. My insurance doesn't have any issue with pets, but I do. No pets. Period. And I do believe that if you had a clause stating no pets, but a tenant got a pit bull and it mauled someone, that clause could protect you to some extend.

However, this is why you must keep up regular inspections of your properties. If you find a tenant has acquired a pet without your permission, take action immediately--in writing. COA.

Like others here, I think #8 is weird, but so are insurance companies.

J Scott nailed it. Plus, I think we must be related because I have had the exact same experience. ;)

First, did all the work myself. Needed to find my "dream team" so I could focus on the deals. Tried using glorified handymen for awhile, but you get what you pay for. Then, just like J Scott, I hired a full-blow GC. To me, rehabs are second nature. However, for this seasoned home builder, my simple rehab was a nightmare. He just couldn't rectify how to marry old with new. He always wanted to start from scratch. I spent more time holding his hand on this job than it was worth.

However, one of my "glorified handymen" has turned out to be glorious. He was always eager, reliable, honest, and fair. I decided to keep him in my back pocket, and pulled him out for stuff that didn't require a GC. I made it clear that I knew he didn't know how to do everything, but that I do know a lot. So I told him not to pretend he knows how to do something when he doesn't. For example, he'd never installed new windows. So I taught him how to do the first few, watched him do the rest, checked his work, and it was great.

I pay him a flat fee for a scope of work, and he buys all materials and has all his own tools and a support crew.

So the point to this long story is: all of these folks are right. This handyman needs to be shown the door. You can't teach someone to take initiative. Move on, and find someone else. Remember who is boss. Learn to recognize talent and nurture that.

Please let us know how it turns out. And don't beat yourself up too much--as you can see, we've all made this mistake. :)

I just went through this decision in my latest rehab. I ended up going with double-hungs because the cost difference was only about $300. I went with the double-hungs because of how easy it is for tenants to clean them without getting on a ladder. Tenants love them. I make it a point of showing them how they work, and they're blown away--mostly because the average landlord doesn't install them.

I think that little add-in helped show the prospective tenants that I'm not a slumlord and that they're really getting a good value and a solid home, and that I care about my tenants. Which I do. :)

However, I do agree that $800 is a little steep in my opinion. Try negotiating with your window supplier. It can't hurt--if you don't ask, then the answer is definitely no. Or just put double-hungs in the 2nd floor. ? Maybe that will help.

Kudos to you for considering the extra bonus for your tenants.

I think some clarification might help. I think the original poster was not suggesting that tenants pay throught their own on-line bill pay system, but rather using a service that automatically debits the rent from the tenant's account, depositing it directly into the landlord's account.

I have used such a service, called ClearNow, for about 10 years now, and it's great. My tenants love it too. At the risk of sounding like a commercial for ClearNow, I will describe my system and my experience with this form of payment.

I have the direct-draft arrangement written into my rental agreements as the required form of payment. If rent is received in a form other than through ClearNow, there is a $25 penalty charged. It's never been a problem, because tenants love the system. On the rare occasion when a tenant needs to pay otherwise, it's a one-time deal (like changing bank accounts or such), and they're back on track the next month.

ClearNow lets you draft from many sources: bank/savings accounts, pre-paid debit cards, etc.

I have a tenant who has been struggling lately. He always pays me the rent, but he told me in advance that he's having trouble paying by the 5th because of his pay schedule. I verified this with his boss, and I simply let him mail me a money order. Without penalty. Requiring direct-draft payment doesn't mean you can't be flexible now and then. Afterall, you are the boss.

Tenants really like it because they don't have to think about it. Also, there is a very clear paper trail of how the rent has been paid--that's good for both tenant and landlord. Also, ClearNow can report tenant's rent payments to a national credit agency (I think it's Transunion or something--I forget). The tenants have to opt-in if they want this. Most like it because it's a great way to boost their credit score.

It's very cheap for me: $14.95 for each account, which includes the 1st tenant, and then $2 for each tenant thereafter. I have 2 accounts--one to draft on the 1st of the month, and another to draft on the 5th of the money. Tenants like having this option.

Tenants do not have to have a computer to pay rent this way. They CAN set it up and manage it on their computer, if they want. Otherwise, at lease signing, I have them sign the necessary form and attach a voided check, and then I process it for them. If they need to pay with a debit card or such, they simply make a phone call to ClearNow to get it set up. They're very easy to work with.

I am sure there are other such services out there, but this was the best one I could find for the money at the time, and I'm happy to stay with them. www.clearnow.com to check them out.

If you want to try out clearnow, they will give you a 2-month free trial if you say you were referred by someone. Please be sure to tell them that Terri Pour-Rastegar from Blue Sky Homes referred you.

No, I don't work for them--I've used them a long time and really like them. They've simplified a very important aspect of my business.

I will never place money over my personal safety. And I carry no chip on my shoulder. I come from a family of poor, working-class stiffs, and there's nothing wrong with that.

I currently do buy in a neighborhood that some people consider a warzone. It's not like that anymore, but most people don't know that. I'm the only white girl I've seen there in the 4 years I've worked in this neighborhood, and the neighbors love me. Because I do right by their neighborhood, and I put good tenants in place. My new tenants are always people who have lived in that neighborhood before and want to come back now that it's safe.

Warzone = Danger. That's that.

Mostly I buy and hold. I acquire my properties myself, manage the rehab, screen the tenants and manage the properties til death do us part. If an area is known to be criminally dangerous, I want no part of it. All the money in the world will do me no good if I've been mugged, raped or killed while at one of my properties. I should not need to pack heat or bring along a really big guy to protect me.

Being a slumlord is never an "out" for me. No matter how financially poor a neighborhood might be, I will rehab my rental to the nines, just like all my properties.

Why buy in a warzone anyway? There are great deals in all neighborhoods. I'll pay a few thousand more to be safe--and to help keep my tenant families safe, thank you.

I have bought warzone properties, but I quickly wholesale them to more adventurous, less choosy investors.

Bryan A, I don't suppose your property is in Hidden Valley, is it? Roaches are a known issue there. One of my rentals there was totally roach free. New tenants moved in, and FIVE months later, they call complaining of an "infestation." I personally inspected it, seeing no evidence of an infestation. She did show me one roach she killed and put in a baggie. I reminded her that I'll handle pest control for the first 30 days. Thereafter, it's her responsibility. However, as a gesture of good faith, I paid a company to inspect and treat. He agreed there was no infestation--never saw one roach or evidence of any--so no need to drill the walls. He baited and sprayed. I asked him to put that house on just a one-year maintenance plan for roaches and general pests. After that, she'll have to take care of it herself.

Of course, mine is a SFH. If it's multi-fam, you definitely have to take care of it because who knows which tenant is the one attracting them. Once they're there, they'll "bug" everyone.

How did it go anyway?

PS: I also have one of those old-fashioned business card folios--where you have individual plastic holders for business cards. I stick a key in each pocket, label it with an abbreviated address, and keep it in my truck. I think I'm covered.

I do keep lock boxes inside the crawlspace or some other not-so-obvious spot at some of my properties. Especially the ones farthest from my office. That way, repairmen can get in there easily. Tenants like it too because they can just let themselves in if they're locked out somehow. I don't need to hear about it.