All Forum Posts by: David Roberts

you are psyching yourself out for sure.  First step is the scariest.  Get in gear, my man.  No better way to get up to speed than to surround yourself with experience. 

Ps. You can start with no money.  :)

Thanks Bill. The improvement costs I factored in prior to the deal. This was one of those ARV x 0.75 - improvements = max offer deals that worked out for me. So, the improvements were factored in and I'll recover them when I refinance. They may continue to rent at 900 with no improvements but they also want no commitment .

Update:  My partner went to the tenants to talk to them again today and she got them to sign on for the 1,000/month.   So, YAY!  Now everything calms down.  I'm very happy.  I'm still giving them the upgrades, just because it's what I wanted to do that for them anyway, and it should add value to the house.  And I can just tell that they will be very appreciative of having Central Air.  They called me and thanked me for working with them  as well and allowing them to stay on Month to Month instead of sign on yearly, and said that they would continue to take really good care of the house and such.  

I really didn't want to lose the tenants.  So it's a win-win and looks like it's going to work out.  We get what we needed for rent, and they are going to get upgrades and good landlords.  I try to be very attentive and 'johnny on the spot' for my tenants.  They call, I'm there that day or the next. 

Very relieved.  Very happy. 

and i agree,  trying to do things in a reasonable way.  In ordered them a dishwasher saturday night and already started calling contractors for quotes on ac.

i know my market and i don't think the house will take 30 days to rent at 1k Judging by comps.  i will be in this same boat even asking for small adjustments so from that point they are unreasonable.  I figured better to establish things at the start.

Thanks for the advice

 Yep they didn't have a dishwasher and no central air.  Im giving both of those to them along with repairing all the little things.  I hear what you are saying but at the same time at some point something has to give.  They weren't interested in even a cost of living increase. 

thanks for the info guys.

Yes i have their old lease and all their deposit money.  It was transferred over.  I think the tenants are used to no increases and are unaware of the current market and may change their tune when they start looking.  What i wanted to bring it to us low end of market.  Right now they are stealing it.  The human side of me understands it sucks to see a bill go up like that,  but I'm trying not to fall into that sob story trap and stick to my guns.

no,  trying not to leave alot of money on the table

i will also write a letter terminating their month to month then at end of April.  i guess no real need to sign Another  with me since theirs is good through April  and they expect to move out April 30.    ill get their notice in writing.  Ill word it that the month to month rent is going to x amount fir a month to month,  or y amount if they wish to sign a year lease but i need 30 days notice if they wish to stay on,  otherwise its assumed they must vacate april 30.

yep if it was a year lease i know id have to honor.  This is month to month that they had. 

Honestly i don't think i can fairly raise the rent in them. It doesn't seem right for April.  Beyond that though, i could and would.  They plan to vacate april 30.

1k is bottom range of fair.  Not middle,  not high. Having his tenants fir less rent is good but leaving alot of money on the table sucks as well. 

I think these are good tenants.  Ill hate to see them go,  but its a business. 

Still stewing over hiring a pm. I kind of want to go through the process though

I'm 36 years old.   I don't know or remember a time Detroit wasn't declining.  Sure it could turn around, but this is speculation.  When you speculate you get yourself in trouble.

Just curious:

If I buy a rental and close on it in the middle of March for example, and there are current tenants with a month to month lease from the previous owner, which are all paid up through March, can I as the new owner raise the rent starting in April with a new lease?  

I am honoring the March month to month lease, but in my opinion that lease dies with the transfer of ownership, so I need to create a new lease between myself and the tenants.  If it's march 15, and I meet with the tenants and say "hey your rent is going to go up 100 a month starting April because I am the new owner and you are just so far under market", can I do that without 30 days notice given that their current contract is month to month and I'm coming in mid month as the new owner?

By the way, they decided to move as they said they're on a budget and can't afford it.  I said they have lived there 3 years with no rent increase and are way below market.

I just want to be fair.  They said they will be leaving at the end of April.  I asked them to write me a formal letter stating they are vacating by April 30.

Thanks for the help.