All Forum Posts by: Frank S.

Finally, we found great tenants, with reliable jobs and credit scores over 700.  This was hard work.  I  am not raising rents this year and I hope all other tenants stay put.

 Good for you! I'm glad to hear is not a widespread thing. 

 Yeah, I guess is a D. 

Chicago, sub $1,000 rents. C to C- class area. Clean and rehabbed units

Are you seeing a drop in the quality of tenants drop this year in Chicago for the above-referenced market?  Where did the good and qualified tenants go?

I'm getting plenty of people with bankruptcies, collections, criminal records, shady information, "cash on hand" applicants, and a few scammers.  I'm flexible, but this year seems tougher. 

I'm starting to wonder if the good tenants decided to stay put in light of the pandemic.

Thanks for the feedback.  

I don't ever reject tenants. I simply ask questions and request documentation needed.  This typically discourages them.  The questions are legit, becuase they force me to look deeper into their fiances.  

I handled the request differently.  The applicant was in the service industry. As we know COVID-19 affected this sector drastically.  At $6/$9 hour income, the applicant did not make enough to cover the rent.   The income did not include tips, so I couldn't verify that.   Also, I never received unemployment benefits documentation, so income was not verified. I can reject based on income, but I don't reject tenants. I asked for more info and never received it. 

Unemployment benefits are for the unemployed and people need a job to pay bills, but the law seems confusing. I read that unemployment can be protected if that is due to a health issue. Also, some people are getting unemployment and still working limited hours. 

What happens when their benefits expire? How much will they have available?  I am paying more attention to their job and if they faced layoffs.  The virus may return this winter and we may see shutdowns again. 

The quality of sub $1,000 rent applicants is lower this year.   I'm not raising rents. 

Hello, 

COVID-19 is affecting may people.  What are you doing when tenants applying for a unit use unemployment as source of income?  Is this a protected class ?  It seems many are working and still collecting unemployment.

Thanks, 

I own units in the area. I would buy more if it wasn't ridiculously overpriced,  see below 

Not gentrifying. Strong Mexican culture makes it unnecessary. 

Not Pilsen, it will never be.

Rent caps at $800/$900 because competition is against $500s/$600s

Currently grossly overpriced. 

Cap rates are too low

Capex are absurdly high. Deferred maintenance is ubiquitous.

Wait until people buying now foreclose in  4 years. 

Gangs are very strong. You need to know the area very well.

There may be some nuggets in the market,   but you will face fierce competition. 

Everything is hot now.  Buying the cheapest options doesn't mean they are good options. 

Good luck 

...from outside...  :)

 RE

I can’t take umbrella for my rental property since my auto and home are in Chicago.

Who told you that? Talk to your agent.  

After certain number of properties,  you will need commercial insurance. 

Buy lead tests. If it changes to red, it's lead.  White paint has 50 times more lead.

Take it seriously.  You need to do research.

Isolation, wet work,  respirators, PPE, block vents, etc. 

It can still affect you.  The body confuses lead with iron, it is stored in your bones.

It's not hard,  just be careful, research,  think,  be smart.  Read about lead encapsulation (paint). EPA allows you to remove lead up to a certain SF without permits.  

In IL, if you test,  you must disclose . It's up to you what documentation and paper trail you want to have.  I wouldn't reach out to inspectors. 

Call a few contractors for quotes and get ideas