All Forum Posts by: Bryan O.

Hi Steve,

Thanks for the comment. They aren't considerably nicer, just a little nicer. I do charge considerably higher for them. Market for the same size in my neighborhood is around $650-750, but I charge $900-1000. The cheap tenant would never even consider my properties because of the cost per sq. ft., but the ones who don't mind paying more for a better package (in-unit laundry, shared yard rather than just parking, etc.) are the ones that will also maintain things. In my space, no one is doing that and it differentiates me, allowing me to charge above the market. Or you could say that I charge market rents for the market I'm in, only I'm the only one in the market.

I've priced my rentals above market. The crappy tenants that are just looking for the cheapest place don't apply. I get the people who are willing to pay more for a nicer place, which means they want to keep it nice because they've made a conscious decision to spend more of their money to have that.

Pass on this guy. If your potential tenant wants to use it as a business location then he can rent the unit as himself as every other tenant does and then claim it as a business expense through his corporation and write it off. He gets the tax benefits, you get a real tenant.

This is a residential property, not a commercial lease. It doesn't matter how his commercial property works because it is not the same. Do not change your process or throw away your screening to make an exception for someone who is already a problem applicant. They'll only become a problem tenant.

In my neighborhood, having in-unit washer/dryer allows me to charge much higher rent and is the difference between tenants who want a place to live vs. a home to live in. Quality of tenant is a primary consideration (I'm in a C+/B- area).

@Jeff L. Hi Jeff. I created a lease template in Colorado. It has been attorney-reviewed and approved (take that for what it's worth). I use it in my properties and I think it's pretty simple to follow and modify.

Hopefully you can get to my files and download it. Let me know if there are problems.

You put in 70%, so you should have 70% equity. Then figure out a fair way to value your time managing. I would say 5% of gross (you are self-managing because it's cheaper than getting a company to do it).

Otherwise, I like @Brian Mathews idea. Get your money back, then it's a 50/50 split, +/- whatever you work out for you as the manager and him as the silent.

Why don't you wait until your contract with the current PM is over, then just not renew? The management company I have in place has a yearly contract with me and it is tied to the tenant lease. I would let them know I won't be renewing their service and they would be out at that time.

If I had a tenant turnover, I would tell the PM that the acceptable new lease will end coinciding with my service contract with them. Then wait until that time is over. You may be able to retain the tenant during the transition and put them in a new lease with your new PM company.

If the current tenant is less than good, then I would be leery of any referral. Otherwise, make sure that the new tenant goes through the screening process just as any other would. One of my tenants did that and it resulted in 0 day vacancy and a 5% rent increase. Perfect turnover. I wish every tenant would replace themselves ;)

This is very defeatist. If that is your mindset then it is no wonder he is walking all over you. YOU are the landlord, not just the guy that knows him from way back. You are already convinced you have lost to a tenant, which means you will. Get your head right and go talk to your tenant. This is your investment and your responsibility. I hate to say it, but "man up."

BiggerPockets has a file download area. There will be at least one sample lease in there you can use. The one I found before was huge but thorough. Otherwise, check around in your state. I used a friend's lease, my property manager's lease, and a BP lease to form the lease I use today.