All Forum Posts by: Jason Winter

Hello BP Friends,

I have a 3 unit MF property in Philadelphia with all 3 units rented out. All 3 units are paying well below market. Unit 3 will be leaving in September when their lease ends so we will be able to increase the rent on that one.

Both leases for Units 1 and 2 have expired and are now month-to-month. 

Unit 2 was updated 2 years ago and is paying about $200 lower than median rent for the area.

Unit 1 needs work but is currently paying 44% of median rent for the area. (Can be a pain but never any real issues)

Both tenants in Units 1 and 2 are extremely easy. They both pay on time, every time and haven't had a single issue. 

We have 3 options for both units, and was hoping to get some feedback from this great community.

Option 1: Raise rents reasonably, keep the tenants and slowly increase rents over time.

Option 2: Raise rents a significant amount to bridge the gap between current and market rate. 

Option 3: Inform them, we are not going to renew their lease and pursue STR and MTR, which we already have some experience in.

Ideally our goal for these units is to transition to STR and MTR for all of these units.

Thanks,

Jason W

Thanks @Matt N. that's a great tip. I'll keep that in mind for next time.

Thanks all for the feedback. When we purchased the property we did account for water as part of our expenses but last month was excessive. I ended up going to the units and the toilet in one of the units was running so that was an easy fix. 

@Hoi L. Capping monthly water allowance sounds like a good idea. I would assume that would already have to be in the lease which i will add into the next lease renewal.

Hello BP Community,

I have a small MF (triplex) property in Philadelphia PA. The tenants pay their own gas and electric but like most mf properties in the city, the landlord is responsible for water. Recently the water bills have been high and the last months bill is extraordinarily high for 3 units. How do I address this? 

My first response is to reach out to the tenants and inform them of the extremely high water bill and to ask them to check if there are any leaky faucets or running toilets. I assume that wont go anywhere so i'm hoping to get some more experienced advice on this. I appreciate any and all feedback.

Thanks,

Jason W

Thanks all for the feedback. It is very much appreciated. I have informed the prospective tenants that if they would like to move forward they will need to pass a background check and verify income.

Hello BP Community,

I could use a little guidance on this one. I am in the process of renting out my condo on Airbnb for stays of 30+ days. I have an inquiry of someone who would like to stay for 6 months which is great but I want to make sure that I perform my due diligence and make sure the person is a quality tenant. This person doesn't have any reviews so its impossible to determine if they are a good Airbnb guest. They said that they are employed by the local baseball team and have friends in the area. My question is should I have them submit all of the same information you would for a yearly lease, like pay stubs, previous landlords, background checks, etc.? 

Thanks!

Thank you all for your guidance. It was very helpful. We made it clear to the sellers agent that the rent verification was a condition of close and have since received the rent roll. Tenants pay in full and are on time so we are proceeding with the deal.

Hello BP Community,

I am under contract for my first first triplex property which will be used as a house hack. I have toured the house twice now and we have already had the inspection. The property is in great shape and the units are pretty well maintained. We have an Estoppel agreement signed by the 2 occupied units. One unit has a signed year lease that just started in November-21 and the other units lease ends in January and then goes month to month with a 10% increase.

The problem is that we do not yet have a verification of rental payments.  As a first time investor, I do not want to get in a situation where i am purchasing a property where rent is either late or not received. I am not sure if i should make this a sticking point and pass on the deal if they are not provided or based off the solid conditions of the units and the signed estoppel, assume that the tenants are current with their rent. The current owner says they have asked for this info from their property management company but have yet to receive it. Any advice is appreciated.

Thanks,

Jason