All Forum Posts by: Account Closed

Thank you all for the feedback. I ended up taking a cue from Jeffrey, Mike, and Justin and just went over there and talked to him about it. He seemed receptive and was polite.

Landlord-tenant relationships are shaky here right now with the tenant's union fighting hard for rent control from local and state politicians. I don't want to give my tenants any reason to radicalize against me ... wait a sec ... what do you know, it's midnight and the smoke alarm just went off again next door, like it has been almost every day since they moved in ... maybe I'll write up that warning after all ...

Pets should not be tied up. It makes them afraid and aggressive and is cruel. If this had been a good tenant and they asked to keep a pet responsibly, then maybe I'd have extended the privilege. But this tenant deserves eviction, or at the very least, non renewal.

@Andrew Acuna @Account Closed this is my first lease ever in my 5 years as a landlord.  Previously were all m2m agreements.  But there's relatively new local legislation that forces landlords to pay a $4500 relocation fee if they fail to renew an agreement of any term--whether monthly or yearly--so the benefit to the landlord of m2m is largely gone.  May as well have a year lease that at least comes up for renewal during the busy season.  

For unauthorized smoking and pets and for tampering with smoke/CO alarms, the state allows a fee of up to $250 for a second and subsequent occurrence after a written warning has been given for a first occurrence (within a year of the second occurrence).  So after reading these comments above, and for the sake of maintaining my boundaries yet also the relationship, maybe I'll issue a written warning, explaining the $250 fine for a second offense.  I just hope they don't then bring it inside.  

The other part of this equation is, he lied on his application about being a smoker.  That bothers me because if he does that, what else does he lie about and how do I trust him in general?  I spent 8 days on my hands and knees scrubbing cove base with a toothbrush and caked-on soap scum from the tub, scrubbing and painting walls, and taking 11 passes to the kitchen floor with a mop to strip/seal/polish it etc. to deliver a pristine perfect unit to these people.  

My online ad for a unit that was recently available to rent stipulated that there is no smoking of any kind allowed anywhere on the premises (including the porch stoop, back yard, and driveway).  When asked during the phone interview and again on the rental application whether he was a smoker, the tenant responded no. 

My bad for renting to him because he smelled like smoke at the showing, but I figured it was a one-off thing and that he wouldn't smoke on the premises.  Well of course he's a smoker and has been smoking on the stoop.  I know this because I live in the duplex unit next door and with my front door open, the smell is overpowering.  When I walk outside to see who is smoking, no one is anywhere, except the tenant is on his stoop with a ceramic mug next to him.  No cigarette in hand, because as soon as he sees my screen door open, he stubs out his cig.

When they (the smoker guy and his girlfriend) signed the lease, I reiterated to them very strongly that there is no smoking allowed anywhere on the premises, and they initialed that page of the lease that includes the no smoking clause, in italics.  

Whether or not you agree that it's reasonable not to allow tenants to smoke on the stoop is not the question.  The question is, he's only been living there a week and there are already lease violations (this is not the first time I've smelled smoke and seen him on the stoop--the last time, I asked him to walk down the street).  I am also concerned that they have an unauthorized tenant, as I've seen someone not on the lease enter with a key.  

Lesson for me is not to rent to someone who smells like smoke, but if they say on the application that they don't smoke, and they tell me they don't smoke, and they meet all my other requirements, it's a gray area for charges of discrimination.  

Anyway, now I could use advice about how to proceed.  I don't think I'll ever catch him in the act.  My concern if I tell him not to smoke on the stoop is that he'll just smoke inside, which is worse.  And come the winter, he'll probably smoke inside.  

Do I give a written warning?  A formal notice stating that he violated the lease?  I already did an inspection 2 days ago, having given 24 hours' notice, because I "needed to change out the shower arm" (which I did).  I saw a lighter on his bed and a bong in the other bedroom but no cigarette butts.  I should have checked the trash.  

The unit is a diligently restored and very nice midcentury-modern 3/1 in a duplex with their own fenced yard and garage for about $2k.  They have a 1 year lease and have put down a $2250 security deposit.  @Marcia Maynard or anyone else, any ideas?  

I ended up FedExing the seller a "love letter" with a pic of me and my dogs etc. At hour zero, we negotiated a $3k price increase, and I purchased the property. 

Melissa is talking about the self sufficiency rule, which applies to triplexes and 4-plexes but not duplexes and SFRs.  

http://biggerpockets.com/forums/311/topics/267037-...

It's based on APPRAISED rents, not market rents, so you're pretty much at the mercy of whatever the RE appraiser decides rents are. And appraisers aren't experts in rents. And rents are highly localized. And appraisers are sent wherever they're sent, not where they know. 

So unless you find a unicorn appraiser who knows market rents in the neighborhood, it's going to be nearly impossible to qualify for FHA on a 3-4 plex in Portland unless you put down a substantial amount, which defeats the purpose of FHA.

My partner had a situation on a 4 plex where he was putting $100k down on $650. One of the units' rents had just been raised to $1100/month, and all units were identical. 

Though market was probably closer to $1200, $1100 would have made it qualify under self sufficiency. But the appraiser said rents should be $1000 and that was that. Deal killed. 

There are other details to this story, but the bottom line is, unless you find a killer off market deal where the seller is willing to wait for your FHA loan to underwrite and perhaps fall through, you may have better luck with a duplex.

What @Derrick Aragon said makes sense.  I looked up RH and density is actually based on a 2 to 1 FAR, so a 3750sf lot allows a 7500sf building at 85% lot coverage up to 65 feet tall.  Without taking any common area into consideration, divide 7500 by 19 units (20 units triggers inclusionary zoning/below-market rents) and you get an average of about 395sf per unit.  

Smaller micro-apartments make sense in this location IMO because near MAX but right next to the freeway would probably attract single people without kids.  I haven't developed anything in Portland yet, but based on what I've heard, it can take years for permitting and design review, so having a tenant in there at market rent makes sense in the interim.  

Looks like you scored a great property!  

Short notice but @Chelsea Mays, @John Sheldon, @Jill Chen @Taj T.

I inherited a Section 8 tenant. It was just supposed to be a grandmother and her granddaughter but it turned out that her adult daughter was also living in the basement. After I told the tenant that I was planning on adding an egress window in the basement, thus making a two bedroom into a three-bedroom apartment, the tenant gave her notice and moved out.

A 3 bedroom would have increased her rent, and she knew this. 

After they moved out, all 4 of my tires were slashed. Twice. They knew where I lived because I was their neighbor in the duplex. 

You can't discriminate based on source of income, but you can require a monthly income of rent amount plus, say, $1000 and a credit score of 700. If you do this, you must be consistent with all tenants. 

Your proforma should be based on market rents for all units, not on cashflow minus your personal residence.