All Forum Posts by: Craig S.

Hi Guys,

I am screening tenants now for one of my rental units, and as a fairly new landlord, I have a few questions.

1) SPOUSE NOT ON LEASE: Someone called me recently and said they are interested in the unit, but he wanted to know if his wife had to be on the lease. I said that anyone over age 18 is required to be on the lease. He said that he and his wife recently got married, and his wife has a prior eviction on her record--but it was not her fault. The wife was living with her mom and was required to be on the lease because she was over 18, but her mom defaulted and held her responsible even though it wasn't her fault. I said that I am sorry, but everyone over age 18 is required to be on the lease per our policy, and that we also decline for any evictions within the last 10 years. Does this sound reasonable? Should I have considered this any more? Would would some of the more experienced landlords do?

2) CHILDREN ON LEASE: When it comes to children, should I indeed require EVERYONE over age 18 to be on the lease? What if there are 2 parents and 2 kids (say age 12 and age 18 for example). Even if the kid is a senior in high school, should I still require him to be on the lease? What should I do regarding children over age 18?

3) INCOME REQUIREMENT: I have two applicants who have extremely good credit scores (800+) and all the references check out, etc. However, they aren't able to show proof for 3X the monthly income compared to asking rent. The husband has verifiable income, but the wife is a substitute teacher. Income is pretty regular, but isn't guaranteed. The same goes for waitresses, hairstylists, etc. What do you do for people with these professions where there is no guaranteed income, but you believe they can afford the rent? Require previous tax returns?

Any help would be appreciated, thanks!

Josiah, I am from the Northeast OH area as well. As James mentioned, what type(s) of property are you interested in?

James is a great realtor and guy to network with!

I would recommend a vinyl plank. It comes in vinyl strips that stick to each other, but don't stick to the floor, hence it's name "floating floor". Super easy to lay down and comes in many varieties. I used a version that looks like hardwood flooring. I bought it at Home Depot for $1.78 per sq ft I believe. Resists water well and is also durable.

Bryan H., I agree with what you say for a few properties, however when I start to get more and more tenants, I don't want to be in the business of sending invoices to tenants for their actual utility bill for that month. If I had 20 tenants, that means I would have to receive 60 bills each month for utilities (water, electric, and sewer) then have to invoice my tenants for those items including rent. This seems like a hassle??

Is this how you handle it?

Hello,

I just purchased a duplex recently as a rental property, I live in half.

Everything is separately metered and all so I believe it is best to have the tenant pay all of their own utilities. However, I am aware that if the tenant does not pay their city utilities (water/sewer/trash) that these will be added to my property taxes at the end of the year.

How would I be aware if the tenant wasn't paying their utilities until the end of year?

Would it be smart in this type of case to pay the utilities myself and just increase the rent?

When I start acquiring more and more rental properties, I don't want to have to worry about checking in with all of my tenants to make sure they are keeping up on payments.

What is the best way to handle this?

Thanks Ali Boone, Sam W., and Dawn A.. This is good feedback. I own an insurance agency where my name is in the business title and that actually sometimes seems to help people with trust, expertise, etc. But with real estate rentals, that doesn't seem to matter quite as much.

I do have to admit, I like to be known as the one who started the company, especially when it grows large, however I don't want to do so if it involves additional added risk...

At this time I am thinking the best route to go is to name my company something generic, however call myself the owner of the company until I either grow larger or see a problem with it sooner. I can also call myself a "Part Owner" if I want to still have the authority as a decision maker, yet still retain some room for "blame" if I need it.

Hello,

I am wrestling with the idea on what to name by rental business, and what title to give myself in my newly formed company for rental property.

My goal is to build many rental properties and manage them myself. I have only 1 now.

I have seen many threads and posts about people designating themself as the "Property Manager" instead of calling themself the "Owner" to their tenants. I have went back and fourth on both methods. Here are some thoughts:

1) Property Manager Designation
If I call myself this, I feel that I will be deceiving my tenants. I like to speak the truth and while it may be easier and less confrontational to call myself just the Property Manager if a problem arises, I feel it will be not the truth.

I also want the tenant in most cases to know I am the decision maker whether it is for a problem/issue or not. I want the tenant to know that I mean business when I tell them something (like a rule, violation, etc). I don't mind telling a tenant how it is and being confrontational if I need to be. I like things done right and not playing the blame game.

2) Owner Designation
I like all things about calling myself the owner, and my tenants will know I am the decision maker. However, there are a few potential drawbacks. 1... I don't want any crazy tenants getting pissed at me and trying to come after me personally--coming to my personal home mad because I evicted them, charged a late rent fee, etc. 2... I also don't want them thinking that I am the wealthy owner and trying to take advantage of me by suing me, or anything else.

Also, what do you guys think about naming my company with my personal name, like if my name was John Smith -- calling my company "Smith Properties"? Do you think it would be best to have a totally separate business name, but still label myself as the owner?

I guess my main concern is privacy, and more importantly safety. I don't plan on buying war zone properties or having crazy tenants, but you never know what can happen. I just don't want a tenant getting mad at me because I have to evict them or something, then trying to come after me personally.

I would like to name my company after my last name like "Smith Properties" but this is a dead giveaway that I am the owner. If I name my business something like "Golden Properties" then it will appear more like a separate business and I can say that I am only part owner or that I need to check with my partner for decisions if I need to, that way all the blame wouldn't be on "me" in a tough situation.

What do you think?

So you already have more than 4 properties you own already financed by Fannie Mae?

Hi Luke,

1) You can get FHA loan with about 3.5% down and 3.5% interest.
2) Be careful in choosing tenants, especially living next door.
3) If you are looking at this as an investment, make sure you run the numbers as if you weren't living there. Make sure you have at least $200 per month cashflow after all expenses are paid. Use the 50% rule as a start.

Hope that helps.

Hi Timothy Aing, welcome to BiggerPockets! Great to see more young individuals join the forum! I am under contract on my first duplex and I also went FHA loan. I will live on one half and rent the other, with the goal to build many rental properties and apartments over the future, providing me passive income to live on! Great goals, keep pushing forward.