All Forum Posts by: Julie O.

I have recently leased several SFH in the north part of the metro Denver area. Our rental market has been hot, but I'm noticing a slowdown lately, especially up here in my part of town. There are a lot of newer MFH developments going in and owners of older buildings are remodeling, I think this is cutting into the SFH market. I'm not getting nearly the number of applicants I did just 6 months ago, and those I do get have more choices. Lots of younger applicants, too. I have had to remodel all of these homes to stay competitive with the new apartments for rent around here. They're all shiny, new, and modern. So I've redone three kitchens with stainless and granite, lots of new paint, carpet, and hardwood floors. Not to get higher rent, but to attract more tenants and compete with the apartments. Based on feedback from showings, it's the new kitchens and finishes that have rented the places. So my bottom line for you? SFH is always a good investment, always appreciates better than the alternative. But be prepared to spend a bit more on your renovations, be prepared to compete favorably with shiny, new homes.

Thanks everyone for sharing with me how you all do things!  Just to answer a few questions, I have had him do a W9, he's not an employee.  Also, I pay him $12 because that's what he asked for, that's what the other property owner he works for pays him.  Based on all of your responses, I think I'll go ahead and buy him this policy, just to be safe.

Fellow landlords, I'm wondering if you all worry about hiring "handyman" type help around your properties?  Do you worry about hiring someone that doesn't carry liability insurance?  In addition to the 4 rental properties that I own, I've somehow ended up managing 6 more homes for other investors.  In the past, my licensed and insured GC has helped out with small jobs for me, but our market here in the Denver area has gotten so busy that he just doesn't have the time for this any more.  I'm considering paying the $800 per year premium for my new handyman, I'd welcome thoughts about this.  Handyman charges $12/hour, my GC is $75.  Do you all think it's worth it?  Do you hire uninsured help to work on your properties and just rely on your own homeowner's policy for coverage?

@Susan Pompea  Perhaps the market is different in Colorado Springs, but up here north of Denver, 1 bedroom homes easily go for over $1000.  I currently have one rented to a great long-term tenant that pays $950/month, and I'm having the same conversation myself about raising her rent.  Though mine has a job…  And this condo isn't in a great neighborhood in Thornton, either.  @Jeff L. I guess I would do the math on the rehab, see how long it would take to get my money back at market rent, decide based on that.  I think I would raise the rent gradually if you let these tenants stay.  Good luck!

@Ryan KingThanks, Ryan, I'm glad this worked out for you!  I like the idea of terminating the lease and resigning all of them.  I should clarify that I'm still getting top rents and had over 65 applicants in three days last time I had a vacancy.  So yeah, I'm missing out on a lot of potential applicants, but it hasn't been a problem yet.  Our market here in metro Denver is just insane.  However, my daughter is starting college in a year, I was thing of investing in that town and renting to students.  I have no idea how to rent to roommates, your advice has been very helpful!

@Ryan King I've always avoided renting any of my properties to roommates or even unmarried couples for this reason unless one of the tenants is able to qualify for the entire rent amount and willing to be responsible in the event the roommate situation changes.  As you can probably guess, these applicants usually move on to a different property.  I'm curious how you were able to resolve this situation if you'd like to post an update?  I feel like I've been missing out on a large share of the available tenant pool with my policy, especially as rents have skyrocketed in my market, wondering if I should start doing things differently.  

I regularly tip my Realtor, and not on the HUD. After closing, if I she's had to do more than usual, I'll give her a thank-you card with cash inside. She can split it with her broker if she likes, but that's up to her. My properties have been so inexpensive, her commissions are always low. Also, if I find an off-market deal, she'll handle it all for a small fee. I send her all of the referrals I can and tip her at every closing. It's hard to find an agent that will submit as many low-ball offers as she has!

I agree with Doug and Scott, it doesn't really sound like you need a partner.  Keep him as your GC and add in the bonus if earned.  Though it sounds like he's wanting to do what you do…  You could wholesale him a deal and introduce him to your hard money lender, let him try one on his own.  Offer to mentor him through the process if needed.  He gets to try flipping and you don't have to take on his risk.

I would never take on a partner I didn't absolutely NEED, someone I couldn't do a deal without.

I use a combination of some of the above strategies:  Thoroughly pre-screen on the phone before setting a showing.  Potential tenants seem to like knowing if they'll qualify based on income, pets, etc before either of us waste time with a showing.  Then as another commenter said, I like to do group showings.  I call them "open houses", having multiple people looking at once heightens the appeal and makes the property seem more desirable.  At these showings, I give out hard-copies of my application and will take an application fee at this time if the tenant looks qualified.  Bring pens and clipboards, you'll have people all over the place trying to get done first!  But the most important thing to remember is BE PATIENT.  It's more than worth it to wait for the right tenant.  Renting to the wrong people because you just want to fill your place is MUCH more expensive in the long-term than waiting that extra month for a well-qualified tenant with good references.  Good luck!

I tore a kitchen like this out of a flip once.  Yikes.  The whole thing was attached directly to studs and joists, no drywall behind or above the cabinets.  New cabinets didn't cover the holes, and new drywall  didn't match depth.  Instead of redoing all of the ceiling drywall, my kitchen guy got creative and built lots of interesting trim to hide this.  Extra time and expense, but still easier than a new ceiling.  Maybe your house isn't as bad, being built in the 70's, mine was from the early 60's.  But it was a tough tear-out, the dang thing was almost part of the structure holding up the house.  If you can do doors, your husband will thank you.  I like the granite idea if you can get a bargain, I think it helps the house sell faster.  Good luck!