All Forum Posts by: Michele Fischer

We process applications in the order received, running with the first one until we hit a roadblock, and moving down the line. We use a point system. They have to get 100 points initially or we reject them. Then we start verifying data and they lose or gain points. If they fall below 100 points they are rejected, if they are over 130 they are offered the unit, if they are 100-130 it is our judgement to put them in a holding pattern to see if we can get a higher point candidate. You need established criteria that don't change from the first to last applicant in a cycle, you need to apply it consistently, and don't take into consideration any of the protected classes/discrimination issues.

Welcome from southwest Washington, Suzette! My focus is renting out quality affordable homes (to use your terms) in low income neighborhoods (part mission part profit). I can't fathom 1000 units, we are small potato at 8. We've hit a wall, partially because we're not sure where we want to be living in 5-10 years, and long distance investing doesn't appeal to me.

If it is no longer owner-occupied you will jeopardize your financing, so you'll need to sell, refinance, ask the lender permission, or risk trying to get away with being out of compliance (and having the loan called due).

If you are happy with the shrubs, I would say no. We want to work with tenants to improve the property if it is a win-win, and doesn't sound like this is. I would also not allow daisies. As much as I love them, they can tend to smell like skunks.

We fill out the condition report as we think it to be, go room by room, and hand note anything they notice, have them sign it and initial each page. We take it home, photocopy it, and bring it back the next day as a chance to see how move in is going. Once we had someone contact us to record a missing screen, which we thought was reasonable and noted. This way you are not at their mercy at all.

We have feral cats in our rental community, have some experience with this. Keep monitoring the situation, there is a good chance that the tenant will start feeding again when this has blown over. You can/should walk around the property, looking for habitat for stray cats. If crawlspace is not blocked off with wire, maybe offer to do the neighbors while you are doing yours.

Thanks for the input.

We seem to have a batch of good tenants, then some bad, then good again, and I'm always looking for ways to weed out the bad. In our low income area if we tighten down the criteria too much we don't get applicants. But I think their understanding of peaceful enjoyment for the neighbors are culturally different from mine. Or, putting upholstered furniture outdoors and suddenly the place looks like a dump.

We have complaints from the city on mowing and trash piling up for one (which ended the debate with hubby on when to intervene, lol) and neighbor complaints for the other. We ask the neighbors to phone us at 2am when they are being obnoxious, but they don't, and I think it is overblown, but the neighbors hate them and that's not fun for anyone.

Lawyers here say we cannot ask about smoking and can only ban smoking from the interior, not the entire property. I need to poke at that some more. I think all of our tenants are smokers, though, so guessing we have to live with it regardless. We don't ask, but they volunteer, and we see them smoking on the porch when we drive by.

For those who find their own tenants, maybe particularly for low income units, do you include any lifestyle questions in the application or screening process? For example, info on whether they own a lawnmower, how they tend to interact with neighbors, if they like to have a lot of visitors, housekeeping standards, etc? If so, can you please share? I'm struggling with a few current tenants on these softer issues. Explaining my expectations at agreement signing obviously wasn't enough, trying to figure out how to beef it up on my end or weed out on their end. Asking about smoking is discriminatory, how about these topics? TIA for input!

Chris, this discussion applies to federal income taxes. If your state also has income taxes, that is another complication to investigate. I am a small investor with a financial background, I don't pay a CPA for taxes. The electronic tax programs ask you all the questions, so that and some understanding could get you by while you are small. The main thing is to keep receipts and track all expenses and trips to the properties so you have the info you need, and understanding what is capital improvements vs. expensed repairs. My state doesn't have income taxes, and my federal tax liability has been bigger or smaller with my rentals included, but not enough to swing decisions.

One thing that hasn't been brought up is the compromised ability to get into the property in case of emergency or abandonment. How could you ensure that you have possession of the true security codes? I'd be very hesitant.