All Forum Posts by: Dan King

If you are not used to dealing with pets you have much to learn if you accept their request.  It usually turns out to be an expensive education!  But if you decide to go with it I recommend: No dogs less than one year old (chewing and bladder control problems), $500 -750 pet deposit, $25-40 per month pet rent and depending on the breed a pet bite rider in their renter's policy.    Replacing carpet is about $600 per room so do the math on how much it could cost and how much security deposit you have.  Remember most tenants are lousy pet owners and allow their pets to trash your property because 1. they are irresponsible pet owners and 2. It's not their property.  It's usually best not to allow pets but depending on your market it may be necessary to attract good tenants.  Good luck! 

Hello Marc,

I did something similar and stopped with 5 mortgages once the market here in Portland rose so high it no longer penciled for SFH's. But the 5 houses I did purchase all cash flow well. With rates so low I recommend you buy with the least amount down (20%) so you leverage with cheap money and do not pay PMI (private mortgage insurance). Shop hard for each loan as it is very competitive. As long as each purchase cash flows you are making a great long term investment. Remember too that landlording is a serious issue and you must manage your business like a business. Join your local Landlord group and start attending ALL the classes. Remember too that other than cash flow the depreciation expense creates a huge tax savings each year on the cash flow. Good luck!

I agree with the prior threads about using both photos and videos.  The main thing is to always do something!  I especially let the new tenants know when they move in that I have made a video of the entire property so they know they cannot use the famous, "it was like that when we moved in."  Personally, I use video and walk slowly to scan slowly to cover any surfaces or items that could be damaged.  If needed, I can then save still shots of any video parts to show a judge before and after.  Sounds like you are on the right track and getting some good advice from this forum.  Good luck! 

It all depends on the tenants tolerance level.  My experience is that getting the tenants out before the sale provides me the best level of options.  I can stage it exactly how I want with no tenant schedules or "mess" issues to work around.  Additionally, buyers might feel nervous knowing tenants will be displaced and there could always be a problem getting the tenants out on time.  I expect they are month to month right?  If they are on a lease that runs beyond your sale date that offers additional unique challenges.  I understand getting that extra rent is nice but for me I like the tenants out first so I can properly maintain and clean the property and then stage it for maximum exposure.  This provides the realtors the best chance to properly "show" the home with the least amount of potential challenges.  This process will enhance your sales price potential that will more than make up for the lost month or two of rent.  Good luck! 

Hello Fellow BP Members, I am looking for other strong profile investors, developers, and builders who have experience in the apartment building arena and would be interested in building a few projects in and around the Portland, OR market. Ideally, I would want to partner with at least two other investors and a builder where we would find the appropriate land and accomplish the process from start to finish on anywhere from a 20 to 200+ unit build. I currently own many commercial and residential rental properties and now want to diversify into apartment building units and would like to accomplish this with a few other partners with similar interests. Let me know if interested and we can go from there! 

The more of your requirements you advertise, the higher quality of tenant you will get.  The downside is you will get fewer applicants and it will take longer to fill your rental property.  But the price is well worth it.  Advertise EVERYTHING to scare away potentially problem tenants and you will get a better renter who you will want to stay long-term in your property.  

Remember to follow the rule to treat your rentals as a business.  If you owned a business you would want to "walk through" your offices, buildings, etc right on a consistent basis right?  Also, treat your tenants like employees.  If an employee were damaging your property you would address it quickly and in a forthright manner.  If they were a good employee (renter) you would expect them to stop the behavior in question (pet using your property as a toilet) and you would warn them that any damage would come out of their paycheck (security deposit).  Make sure to put this all in writing so when they move out and you charge their deposit it was documented they were warned to "fix it pay up." Personally, I would make them replace the carpet asap on their dime vs. dealing with the deposit.  Remember you can buy a pet urine stain light that shows location of stains.  Good luck!  

Take it from the deposit.  If they don't like it they can take you to court.  Based on the latest judgement against them it is highly unlikely they will make such an effort.  

I agree.  I have been requiring 2 month's security deposit almost exclusively on all my properties and it's rare that someone cannot pay it - especially if I allow them to make a few payments on the second month.  When they agree to paying a larger security deposit it shows they have a stronger financial position (vs. living paycheck to paycheck) and it provides them extra motivation to take care of my property.  In the end it is a win-win situation.  

Congrats on your first rental!  You will learn much over the next year.  Smart for asking those experienced landlords as you maneuver.  Screen, screen, screen and don't ever compromise just to get the rent checks rolling in.  I have learned with over 10 years of landlording that it ALWAYS pays to wait until you find the right fit.  Concerning your situation, I would ask for a double security deposit to cover the credit scores and allow them a few months to pay it.  This provides extra protection for non-payment and potential damage. Personally, I never allow more than a 1 year lease up front because I may not like them and can get rid of them after one year for any reason.  If I like them after the first year lease I roll out the red carpet to get them to lock in for a 3-5 year lease.  Good luck!