All Forum Posts by: Carley M.

@Thomas S. - As I stated earlier, there isn't a discrimination issue here, nor is there a potential for one. There are other factors here that you simply aren't aware of that makes that a non-issue. My consideration of this is purely financial. I have an opportunity to make more money by offering the unit with utilities - and have the ability to build in enough of a cushion to cover even the highest utility estimates. As a forensic CPA working as the financial monitor for low income housing in Buffalo, I have the professional experience necessary to be able to analyze the numbers so I am very comfortable with making the assessment.  My question wasn't "do you think this is a good idea" because I have already considered the options and have determined that if the pricing is done correctly, then this is a valid financial decision. My question was whether or not anyone had looked at pricing models for this or, more generally, if other owners (with experience in this model) agreed that pricing of 150% of utilities was sufficient.  

@Jim Adrian they already are sub-metered.

@Kevin Siedlecki This apartment has 150 sq ft more than the other unit I just rented at $700, so yes, I could explain some of the difference in market rate.

Regarding fair housing complaints, I don't think that will be an issue in this situation (there are other factors here) but I appreciate you looking out for me @Mike Cumbie

@Mike Cumbie The average electric bill during the past 2 years was $45 and the average gas bill for the same period is $35.  The highest gas (heating) bill was $60.  I think I would be comfortable with $850/$875 to include utilities (where rent without is $700). I also need to be able to justify the pricing difference between this unit and the other units in case someone questions it, so I don't want to be unreasonable and ask for $900.

I have a 4-unit building in Buffalo, NY. I am in the process of renting one of the units. The applicant is in a program where she receives a rent stipend up to $960.  Rent on the unit is only $700. The stipend doesn't cover her utilities but the stipend will pay a higher rent amount (up to the $960) if the rent includes utilities. The apartment is only 850 square feet and is well insulated, gas heat.  My thought was to get the average of the bills for that apartment, up it 50% for usage/cushion/profit.

I understand why this is not an ideal model for the other units, but in this case I think I can cover the costs easily with a cushion and even profit because her stipend is higher.

Has anyone worked with pricing models for this? How would you determine the rent amount? Would you be comfortable charging 150% of the average bills if this was your unit?

Thanks in advance!

I think under normal circumstances, I wouldn't hesitate to follow this through, including Housing Court. However, with unpacking, the upcoming holidays, and the added stress of doing my first round of tenant selection, I think taking her to court right now isn't worth the added stress to me. The purchase of the property was incredibly stressful and with nightmare sellers (5 closing dates between July and November).  I haven't even had a chance to breathe and now I have to decide if getting a judgment for the money is worth the negative energy and the stress. I don't think it is.

I am certain I can re-rent the unit without much delay, so the lease balance/re-rent offset is probably moot and I'm willing to forego it. I'm comfortable waiving the re-renting expenses and repairs if she agrees to patch/paint the apartment (it's in really good condition so this is probably unnecessary), and I'm willing to meet her halfway on the re-renting fee (half a month rent instead of 1 month, which the lease says I can take out of any security deposit due back to her) - but I won't offer to use the security deposit to pay it.  I don't want to tell her I'm taking it from the deposit, because then she has no incentive to try to get her security deposit back.

If she's not agreeable to those terms, then I will move forward with full enforcement of the lease and any negative credit reporting that is applicable.  I think that's the fairest way to handle this particular situation at this particular time.

I recently purchased a 4-unit property (like a week ago). While I was moving in, one of the tenants gave me notice that she would be moving out in 45 days. I reviewed her lease and it has significant penalties for early termination: 1) The remaining rent due and payable (offset by re-renting of course - pretty standard), 2) A fee of 1 month rent to compensate me for my time/efforts to re-rent the unit, 3) Tenant is responsible for all expenses to re-rent including repairs, painting, advertising, legal fees, etc.

The tenant has made it clear that she has no intention of paying the penalties and wants me to just treat this as if her lease normally terminated. She has 8 months remaining on her lease. She stated her reason for moving out is because I'm having another tenant's bathroom gutted and she feels that the noise from the construction will make her unit uninhabitable for her because she's a grad student and studies at home.

I know I can legally pursue the full amount of the lease and penalties. Collecting it is another story. I'm not sure that it's worth the aggravation.  On the other hand, she has put me in a bad position where I not only have to juggle moving and the upcoming holidays, but now I also have to interview applicants and show the apartment.

There has to be some middle ground between total aggravation (housing court) and doormat (waiving the penalties) but I'm not seeing it.  Any advice for a brand new landlord?

@Justin Steward I would like information about the BP meetings as well.

My name is Carley and I very recently purchased a 4-unit property in Buffalo's Westside/Bryant neighborhood. I've owned single family homes before, but this is my first owner-occupied investment property. I'm not from the area originally, so I'm looking to network with other owners and build a team of reliable professionals and vendors to support me in this endeavor.  A special shout-out to any other female property owners who are looking to network. None of my friends understand or can offer advice, so I would love to meet someone else local to share a hot beverage and kvetch occasionally. I'm looking forward to this next great adventure!