All Forum Posts by: John McDermon

Obviously everyone's risk tolerance will be different, but deductible amount are most people using on their single family rental units ($500, $1000, $2000, something else). I'm talking about under $100k mid-west or south-eastern US, C-class, blue collar neighborhood properties being managed by a presumably quality property management company. I carry $500 on my primary residence but I'm thinking there could be a better way to approach rental properties.

Thanks for the good feedback. I have been in contact with the tenant every time he's been late and there's always been an explanation. As I said, their good tenants and he communicates with me whenever he's been late along with his plan to catch up. Im not ready to serve a 3-day notice yet, since compared to a previous tenant that paid on time, but completely trashed the property, these tenets are a dream. I was just hoping to come up with a way to create additional incentive for them to pay on time, or as close as possible to on time.

I have a tenant 1 one year into a 2-yr lease in a 4 BR/3 Ba SFR in SoCal. He's a good tenant as far as taking care of the property and not complaining about the little things. But, recently he's begun to pay late. The rent is $3,000/mo, due on the 15th. There's a 10% late fee ($300) if he doesn't pay before the 20th (5 days). Whenever he's late he pays the late fee without complaint. However, he seems to be getting latter and later and now he's going to be almost a full month late. He's caught up in the past (briefly), so I've got my fingers crossed. My question is: in light of his habit of being later and later, is it legal in CA to have escalating late fees, say an addition $100/wk he's late after the initial 5-day grace period? If so, I assume I would need to renegotiate the lease or wait until his initial 2-year lease is up. Thoughts?

Wow -- thank you all for the great welcome and all the references. Marc C. -- I'll check out the links you provided and will be in touch. Marc and David both picked up on the active vs. passive conflict and that's one of the first things I need to sort out. I have a lot of reading and research to do. Thanks again for all the support.

Thanks Michael

My wife and I have lived in Santa Fe since 1992. Our daughter is grown and fully independent and we are now looking towards retirement. We will both have pensions that should cover the basics and keep us comfortable. But, we'd like to travel, extensively, multiple trips, for months at a time, every year. I've been attracted to the buy and hold approach promoted by Clayton Morris and I'm starting to investigate. I know Clayton promotes reasonable sized homes in mid-west cities at prices that seem amazingly low. At the same time, the vacancy rates, cost of living and employment numbers look pretty good for Albuquerque. I'm interested in learning more about the BRRR approach and I'm looking for a chance to talk with people in the ABQ / SF area who are doing something similar.