All Forum Posts by: Account Closed

Thanks everyone for great responses. It’s really helpful to get the perspectives of others. @Account Closed   I agree that closing the gap to 7 or 8% makes sense and is along the lines of what I was thinking, so it’s nice to hear that affirmed as in the ballpark of what is reasonable.

Relatives in Pittsburgh? Not that I know of. O’Mahoney is my married name, but it seems like that Irish family tree has some broad reaching branches!  

I have kept rent very low on one of my units because it needed work. I'm getting work done now and would like to bring it closer to market. I'd love feedback on the following:

Tenant has been great for 15 years. His rent is now $270 below what nearly identical units are paying. In this area, same square footage, amenities, etc. is upward of $1900/month.

Is $270 too big a gap? If so, how much would you raise? Would you increase one increment, or over time?

@Tyler Mallard

Wow! Impressive. I'm in Santa Barbara and I think it was very wise for you to get your investing feet wet in Bakersfield where prices are not as steep. Best of luck in SB. It's a rough market, but not impossible. Rents are high right now and rentals are in great demand. Best of luck to you!

PS, If you get something in SB, feel free to PM me. I can recommend a reasonable, reliable painting crew, and may have a couple other connections that could be helpful.

Absolute pass. Shoplifting = dishonest. I would not accept a past eviction either. And full rent should be paid BEFORE move in. I agree with other posters, it will cost you less in money, stress, and time to wait for the right tenant. I speak from experience on that. Good luck and you were smart to ask for input on this. 

Congratulations!  I won't speak to every issue, but here's my two cents on a few things. The smell of cigarette smoke can be hard to eradicate after your tenants leave. I have a no smoking policy. 

My worst experience with a pet involved a dog who was left outside several hours a day and barked the whole time. I got complaints from neighbors and ended up way too involved with my tenants.  I also felt bad for the dog. I screened pretty well, but still got burned on this one. Was not worth the hassle or extra pet deposit. 

Enforce late fees first time, every time. If you've got multiple rentals, you can be accused of discrimination if you're not consistent across all rentals. 

Good luck!

We don't have much of a winter where I am, but that seems ridiculous. Is it all electric? No gas? I'd definitely check the insulation and maybe ask around the neighborhood to see if anyone can tell you what a typical electricity bill is in the dead of winter. Good luck!

Hi Chris, and welcome. I'm someone who likes to have options. Right now, it seems like you definitely have options.  When looking at your cash flow, be sure to factor in repairs, capital expenses and any maintenance you might provide. 

If I were in your position, I think I'd rent it out if at all possible.  If you don't like landlording, you could always sell, although there would be tax consequences - you should consult someone knowledgable in that area.  

I think that with a little research here on BP, you could easily handle screening tenants and setting up a lease. The info is all here.  

And keep in mind that if you end up liking landlording, having equity in 2 properties can help you get financing for another.  Best of luck to you.  

Welcome to the site, Toni. You're smart to check in at BP. I'm sure you'll get lots of great info here.  I totally understand your nerves, but you're in a good position. So many people want to get started and have $0 saved up.  I wish you all the best and thank you for your service.

My rentals are about a 30 minute drive door-to-door.  I agree with @Eric McCully  If you know driving to and from will be an irritation, pass. For me the drive occasionally is not too much of a problem, beyond just typical scheduling issues for a busy person.

That said, you should expect to be traveling back and forth more at first, and more whenever you have a vacancy.  Obviously, you want to do meticulous tenant screening (which should result in fewer trips), something I wish I'd started long ago.  Keep track of your mileage for tax purposes.

Ventura's a great place. I have family there, but no rental properties. Median home prices is lower than my hometown of Santa Barbara. If I had the opportunity, I'd definitely invest there and enjoy the tax write off of a nice lunch in one of their charming downtown eateries once a month!  

Concerning your tax question about a second home, it sounds to me like someone gave you bogus info, but you definitely want to be sure. You may want to post it in a different forum, like Tax, Legal issues...

Best of luck to you!

I agree with other's here, losing a steady paying tenant may not be worth the loss you'll take with a vacancy and turn-over costs. I would definitely take the $25 she offered and keep her.  Then re-evaluate in a year. 

I recently raised a rent on a good tenant by only $10 because she wanted to sign a new yearlong  lease. I think that even a small increase sends the message that you're running a business.  Seems like in a year, the barista daughter could maybe kick in another $10 or $15 a month? 

I understand where you're coming from. I was in a similar situation that I would  handle differently if I had to do it over. I kept a tenant's rent artificially low for way too long. As other's have stated, there's a difference between somewhat below market as a sort of "bonus' for  a good tenant, and ridiculously below market.  

I have one tenant who is substantially below market right now, because a) she's been there almost 20 years, and is low-maintenance, and pays on time, and b) because her unit really needs some substantial updates that I just haven't been able to make happen. When they do, the rent will go up, but as @Marcia Maynard said, a repair/replacement like your oil tank situation really shouldn't factor into an increase, but I do understand how painful that can be when the tenant is enjoying a particularly low rent. 

Whenever I send a letter to raise someone's rent, I include the date of their last increase along with a line saying that "due to increased costs of utilities, insurance, and other costs," they should expect a small increase annually. Some years I raise it, some years I don't. 

Best of luck!