All Forum Posts by: Chris Matthew

@Kelly Beasley it sounds like without the partnership there is no deal. Consider what you get out of venture. There may not be any profits if the numbers don’t work from the beginning, but there is value in the experience. How much is that experience worth? Now, I imagine you have gained enough insight from your time on BP that you will make a wise deal that has potential for a return and a bit of cushion in case things don’t work out as well as projected. A 50/50 split is a no brainer at this point. Too many of us are reluctant to pull the trigger and get our feet wet because we don’t know what the results will be. Don’t plan for the home run, get up there and get a base hit. Take the experience gained and put it to use on the second deal and structure that deal based on this experience and what you have learned about your partnership. If he needs to bring in $$ from family or wherever, have him be responsible for the deal he makes to acquire his portion of the funds and he can work out the detail for repayment of that investment out of his 50 %. Less headache for you and more skin in the game for him so to speak. Best of luck with your partnership and project! So

Much better than going it alone!!

These things happen from time to time even with the best contractors. I have been in both of your positions. If you have a long standing work relationship with the handyman and the quality of work and communication is typically adequate, pay the him what he asks.  Once in a while, you run into complications that require a ton more work without much cost in materials.  

For instance, that floor repair, it may have been a small area, but may have developed into a larger problem down the road.  You could have thrown a bandaid on it and reglazed the tub at your desired cost only to discover that leak that caused the rotted floor would have resulted in the tub coming out next year. possible structure repair and maybe ceiling repair of the floor below with a new tub install and repair cost similar to what you are looking at now. He may have just saved you some money.

That minor floor repair may have been entirely more complicated than you imagine it to be.  Often time it is difficult to cut the multiple layers of flooring out, Ive seen as much as seven layers of flooring under cement board and tile.  Often the new repair needs blocking put in place.  A handyman more than likely has scraps of materials for jobs like this. He may not itemize these extras and scraps in your materials costs along with various fasteners and adhesives.  Even that tub surround you wanted installed, often the stud placement isn’t adequate for a proper install and  requires $10 in materials that’s may result in several hours of work to get a quality install.

More to the point, if the guy does quality work for you and you have no complaints about the end result, pay the man.  Preserve the relationship.  The next guy may charge nearly the same and not take the time to go the extra mile and replace that damaged wood which was outside the project and was obviously going to add to the cost of an already unwanted repair.

If you are truly unhappy with the quality of the work pay him and move on.  There is no upside to not paying him. He will talk to other contractors in the area and it will become harder for you to find good contractors.

As a former contractor, when I walked into a home, I was interviewing the homeowner as much as they were interviewing me.  No one wants to work with unreasonable penny pinchers.  Everyone wants to spend less than a repair is worth,but make waves and your costs will naturally go up on future repairs.  

@Wesley W. This is exactly what we have done in the past. Tenants are asked to deposit the money in the bank account. It gets time stamped and there is no excuses like “I tried to get it to you but you weren’t there”...And having odd dollar amounts for rent eliminates the hesitancy to raise rents annually as well.... I talk to a lot of landlords that leave money on the table and don’t raise rents until they are way behind the market.

I met a guy who had four units, two were long term tenants as in 10-15 yrs, rents had never been raised. He felt badly about raising it because it would jump to nearly double to keep pace with neighboring properties.

@Josh C.

A good compliment to your education would be to contact your local municipality, they often offer lead-safe renovation courses at little or no cost to landlords. If nothing else, you will learn the potential hazards and possible liability you are taking on.

I’ve been lead certified for years and I’ve stopped contractors who clearly weren’t following lead safe guidelines but had up-charged the job due to the age of the home and potential for lead. The more educated you are, the farther your investment dollars will go. No need to get ripped-off.

@Sue K. In my experience being a renter and then a landlord, is that initial communication sets the tone. From the initial inquiry, through the application process, to the return of the security deposit communication is key. Answering or returning calls promptly even if it simply to acknowledge the call was received and that you are too busy to address whatever the need is at the time, goes a long way. People want to know that their voice is heard. They certainly appreciate having a fully functioning home but they will tolerate a holiday weekend without hot water if treated with respect. Ignore them because their concern isn’t convenient, and it doesn’t matter what kind of person they are or were, they are going to be a handful.

Having a proper lease agreement that spells out expectations of all parties is essential and often overlooked. I’ve also had much better success limiting damages by having units spotlessly cleaned and having a walk through with tenants that includes demonstrating proper use of shower curtains, windows and most importantly, undersink plumbing checks with a when to call and report a problem.

We also implemented a policy of a simple $50 fee with our applications, which gets applied to the security upon approval or is refunded if they aren’t selected. In lower income area this is as good if not better than a credit check. If they can’t come up with $50 in a day or two, they aren’t going to be able to pay rent on-time every month. Since implementing the $50 fee several yrs ago, we haven’t seen a no show for lease signing, and evictions are 20% of what they were. Rental applications are down significantly too. Rarely do we get an unqualified applicant, so less headaches there too!

So.... I don’t think the tenants are nearly as much of a factor as the landlord or management. Treat them right, and they will treat your property and you right too.