All Forum Posts by: Donald M.

I agree with Jon, the 50% rule is not a conservative estimate, it's an accurate estimate. From my reading of the 50% rule, I thought that some of the data that made up the rule included utilities and some did not, so depending if you are in an area in which the tenant pays utilities, you can alter the calculation. 

I am a real estate investor as well as entrepreneur and 2 months ago independently came up with the idea of an online rating website. My thought was not only for property managers, but also for landlords and tenants. This would allow ideal landlords, who may often not be recognized, to demonstrate themselves based on past tenant experiences, by means of the company creating a profile on behalf of the tenant, and also would give good tenants a positive history that they could take with them as they are considering their next place to rent, plus distinguishing themselves from other tenants. Being new to real estate investing, I did not know whether there would be enough interest to justify creating this website/company. Thoughts/opinions?

What would be the downside in letting them move in things early? You have first, last, and security. Even if they actually move in, I don't see the downside.

How much you are allowed to charge depends on state law. 

A membership in Angie's list is super helpful, you can look up a local appliance repair person and see reviews from others. It only lets you look within your local market, though.

I have a tenant I am considering starting the eviction process on for noncompliance with terms of the lease (smoking inside the property). I spoke with the tenant about it and she agreed not to smoke inside but has started again. What are the steps that I need to go through? I understand that I can serve a 30-day notice to vacate for violation of lease terms and if she does not move out within this time then I can begin the eviction process?

Also what happens if she stops smoking this time when threatened with this process, am I still within my rights to enforce the 30-day notice and then eviction even if she stops smoking (to prevent the situation when she starts smoking next month). Thanks!

I have a property that is part residential and part rental. For tax purposes it is treated as 2 independent properties based on square footage. I have taken depreciation, etc on the rental portion. I am thinking of converting the residential portion to a rental as well. Do I continue with the old rental portion on its depreciation schedule and create a new schedule with a new basis starting at 0 years for the new rental? I only realized this issue as I was deciding on repurposing it. Thanks!

I have been renting out rooms using Airbnb for more than 3 years. You will definitely make more than long-term rentals.

Things to consider:

It is illegal in New York state I believe, and you'll want to look into legislation and possible legislation in your state before you make an investment.

As someone pointed out, neighbors will notice. I know that ppl who have been doing it in properties that they do not own, and especially in large managed buildings, have gotten into trouble and had to stop doing it. If the place is yours and/or has a private entrance, it will be much easier.

Much more work for you to clean the place in-between tenants because the turnover is so high. I'm considering buying a place expressly to rent it out using Airbnb (and their competitors), and the plan would be to key the lock with a smartphone that a cleaning person could use to enter at certain times, and to have defined checkin and checkout times for guests. I haven't done any research on locations/markets but would love to buy a place with this plan. 

If you are renting your own place out while traveling, the biggest thing will be to arrange the keys and cleaning when you are not there. Also since ppl are flying in, you have to have a somewhat flexible schedule in case their flight is delayed significantly, etc.

If you get the professional airbnb photos you will get more people interested (probably has more to do with the airbnb algorithms than the professional photos).

Airbnb used to not do any screening of tenants but now they require a photo ID, etc. I still do my own screening and will ask questions of ppl that do not have positive reviews, etc. I have gotten extremely good at screening tenants online and do not even do phone calls/video calls as it is time-consuming and plus anyone can lie to me and some fraudsters are very charismatic.

I would not start with the price too low to get positive reviews. Go with the market rate and create a nice listing and ppl will stay there.

Great, thanks for the info. Does anyone have recommendations for a good MA bank where I can open these accounts? I don't mind if it's online as long as it has a location in MA (required by law). I've had horrible experiences with BoA over the past few years and am in the process of closing all my accounts there. 

This scenario does not sound at all unusual, I wonder why you think this practice is out of the ordinary? Lots of interesting responses above and it depends on the landlord, the tenant, and other factors such as the state. In MA there are limits on the security deposit, so a double deposit cannot be taken. I think it is legal to take first, last and a security deposit but I am not sure.

I have not checked a credit score on anyone (nor background check, etc) in the past several years and have also rented to people without credit. I've gotten very good at screening prospective tenants and only once had a problem with a tenant who did not pay the utilities for 1-2 months, which I learned from. I also tend to turn away the majority of applicants, most of whom would probably be okay. I do plan on adding credit score as a tool in the arsenal. In this case I would need more information to make a decision, but would probably accept her as a tenant. 

Also, based on the information you've given, the tenant was not rejected based on lack of credit, the tenant was rejected due to poor credit (the unpaid bill that went to collections).