All Forum Posts by: Cameron Schmahl

@Corina Eufinger

Thanks for the feedback!

I am stuck at their current rent for the first month, did a half increase for 2 months and then full rent from there.

It was a win, they told me they don’t want to leave, they know it was cheap rent and signed to stay. They were appreciative of the time to get used to paying more for their budget and were happy that I worked with them.

Other people may have don’t it differently but all parties are happy, I can cover my expenses and they are staying.

Appreciate the feedback!

@Kimberly Frazier

Thanks for the input! Glad to meet another Sheboygan investor.

My current duplex (which I’m house hacking) rents were low but not far off so the sticker shock wasn’t there. This property the gap was so large I was curious as to other thoughts.

@Matthew Irvine

Thank you! I really appreciate the feedback. The landscape being separate from the rent was an idea I never even considered but makes a lot of sense.

My current property (house-hacking duplex) I walked in to below market rents but they were much closer and it wasn’t quite the sticker shock for them.

Hello all,

I am currently under contract for my 2nd investment property and closing at the end of the month. My question is the tenants are long term (19 years & 9 years) They take nice care of the property and the previous owner has had very little issues. I am planning on keeping them and having them sign my lease agreement ( month-to-month) I'm sitting down with them this weekend. They are aware prices are going up 200-300 a month by the previous owner because he knows he was charging to little and has had the property paid of for many years so didn't need as much to cover expenses ( it was more fun and hobby to him) The current tenants have said they do not want to leave.

How would you recommend increasing rents? Market rent is $750 Down ( 2+ bed and 1 bath) $700- Up ( 2 bed, 1 bath) Downstairs take cares of lawn and snow, all downstairs utilities. Upstairs takes care of all upstairs utilities. 

The previous owner has them both paying $475 a month and has only increased it 1 time since they both have lived there ( they started paying $450) 

I am planning on upping to market rents but know I need to give a 30 day notice. So my thought it to accept their payment at $475 for the first month (Oct.) and then up to market rent from there. Is that how you would take care of it or should it be done more incremental? They are both aware of the deal that they have been given for so many years but this is a business for me and I need to cover expenses and make a little. Located in WI, my break even is $1,100 a month.
 

I want to be nice but need to make money, Do I give them the first month at what they are currently paying because I can't give them a full 30day notice and then go full market for the following months. Or do I slowly increase each month up until market, say $100 additional each month, while not making much extra money for a few months?

The market I am in is booming (Sheboygan) and 2bed1bath are anywhere between 650-900 a month. I think 750 & 700 are fair for the property and will still allow them to stay at a deal.

I think I know what the right way to do it is and how I feel best but want to see what some more experienced investors/ landlords have done or experienced.

Thanks in advance!

Ok, it’s an older unit but both units are 100% separate.

The only thing I will have to figure out is outside electrical plugs since previous homeowner liked a lot of outdoor decorations.

So I can easily Bill gas.

Electric I would figure out which outdoor go to which unit.

And water would easily be separate too.

According to previous landlord, water for the tenants runs around $140 (quarterly).

Just curious as to do research it seems like a lot of people either factor it all in rent or just strictly pay water.

As for lease we will officially be starting one in a month under our ownership. I would still give them 3 month warning before things change.

Thanks for all the answers so far. Just trying to get my bearing and do things right.

Hello everybody!

I’m in the process of buying my first duplex (which will be my first rental ever) and have a quick questions about utilities.

I will be living in the upper unit while I am inheriting and trying to keep the downstairs tenants.

Question——

The previous owner gave them quite a deal on their rent which included all utilities. (Gas, water, electric)

While I don’t feel comfortable going the same route in the case they would take advantage of high heat or lights on 24/7.

I want to have them pay for utilities, looking around online and even a few rentals in the area, it seems like it’s common to have the landlord pay for water. The City I live in the water bill includes water/sewer/garbage.

Just curious if this is common for most people here to pay for tenants water, all utilities or none at all?

Thanks!