All Forum Posts by: Andrew Hemminger

Hi Patti, to be clear, I was not implying that my acceptance criteria is in any way referring to source of income.  My criteria is credit score, monthly income level, and no prior evictions.  In fact, I wouldn't mind having a section 8 tenant so long as they meet the income requirement (including their voucher) AND have a decent credit score AND no prior evictions.  Being clear in the ad with these criteria, which aren't solely unique to any demographic, weeds out bad applicants from general population AND gives you the ability to deny a Section 8 tenant you wouldn't want based on their credit score or prior evictions (not source of income).  You can also pick someone with a better credit score, income level, and likely stay out of trouble.

Hi Andy,

You might also consider placing your financial screening criteria directly into your ad.  I place my credit score and income criteria in all of my ads and it has generally cut down on inquiries from ALL candidates who wouldn't qualify.  Whatever you do, don't prohibit any specific demographics (section 8 or otherwise) in your ads.  Keeping it tied generically to financial specs that apply to everyone should avoid discrimination claims.

Hi Michael.  Welcome.  Are you active or former military?  Those locations make me think so.  I hear Memphis is a good cash flow market.

@Matthew Vernam. The $50 application fee is fairly standard but the $50 move-in cost and $2900 deposits are odd. 1 months rent is typical for someone with good credit or about $2500 in your scenario.

How many bed and bath? Would you mind sharing an ad for the home? I actually live in Annapolis and am very familiar with the area.

Not sure why my post got cut off on #2. I pay about $200 per rental for professional photos.

@Matthew Vernam.

Before considering a termination you should look into the following...you can then decide what to do depending on what you find.

1) I would encourage you to look at where your property is being advertised...at a minimum you should be able to find it on sites like Zillow, Realtor.com, HotPads, etc. If it is not on there your property manager isn't doing their job maximizing exposure. You should also encourage your PM to advertise on Facebook.

2) Look at your ad and see if there is something missing. Is the ad description lacking...does it include enough detail? Are there any selling points missing? Are the pictures high quality? You can get professional pictures for as little as $200.

3) Look at the "views" or "saves" your ad is getting on Zillow or other sites from prospective renters. Then compare that data against similar rentals in the market. If your rental is getting significantly less interest than your competition, it is probably priced too high. A good property manager would be tracking all of this and guiding you on any price adjustments that might be needed.

If your PM is failing you on each of these items, I would call them out on it and start looking for someone else if they don't respond accordingly.

Good luck!

Hi Rob,

AirBNB is an option but you have to be careful.  A safer bet is to buy something large enough that can survive as a long term rental if you are later forced to abandon or limit AirBNB use (e.g., small multi-family, or tons of bedrooms...something you can house hack).  The city of Annapolis just passed a new law that placed a fair number of restrictions on AirBNB, including limits on numbers of properties someone can own and operate as an AirBNB, requirements for higher annual fees and inspections, and requirements to pay higher taxes on your profits.  Bottom line, I would review the law in it's entirety and understand the nuances before diving in head first.  Also keep in mind that the legislation will likely change again in the future (for better or worse)...all the more reason why you should analyze the property as a 100% long-term rental (or a majority LTR with a small use on AIRBNB) and be comfortable with that outcome before purchasing.  

I'll be there as well!

Hi Keith,

I live in the same zip code as you and have been contemplating the same with my house.  We have two kids and a dog but rarely use a portion of the house that could easily be separated (and already has a second entrance).  

I have 4 long term rentals and would love to make my primary an income producing property.  Only issue at the moment is convincing my wife!

Me and a few other BP members in the Annapolis area had an informal meetup for coffee last weekend.  We have another planned in Feb...let me know if you'd like to join!

Best of luck!

Andrew

Hi Jacob and others!

Annapolis is tough for long term rentals as the numbers are difficult to make work. STR (AirBNB) and house hack work though. I've found good cash flow in Baltimore but you really need to understand the neighborhoods up there. It varies significantly street-to-street. I also have a rental in Charleston, SC but bought about 10 years ago before the growth started. I'll try to make coffee on 11 Jan...look forward to meeting everyone!

Best,

Andrew