All Forum Posts by: John Morris

I think regardless of whether you are a licensed agent or not, many states will require you to have it in an interest bearing account. As someone said, it is not your money! It is technically a type of escrow account being held by you, but the ownership of the money is not transferred to you.  Some states also require to show a bank statement to your tenants on a monthly or quarterly basis showing the funds are in an interest bearing account. In NJ they automatically get it from the bank every quarter, when you open a landlord/tenant account. 

Would definitely suggest the mid-west or Arizona and Nevada. Chances are you wont find such prices and the return you are looking for on the coasts. Here in New Jersey you cannot find even a 1BR apartment for that money. The only thing I would suggest is look for more populous areas. Preferably around a freeway, hospital, college. Rural areas could be lucrative due to lower prices, but you may end up having a very tough time finding tenants. 

I had a similar situation a long time ago and decided to get them on a lease. I know it is a bit tricky since they are friends, but if you present it nicely to them as more of a formality than anything, they would understand. I agree with what someone said about the credit check. I don't think this would be necessary, as you already have a good understanding of their character and whether they reliable anyway. 

Hey guys, I am new to BP but picked up this topic while browsing.  I had the same problem with some of my units, where the tenants were chronically late on the rent. So similar to what was discussed here, but instead of providing a monetary discount, I usually upgrade something in the unit. For example, if they pay on time for a year, at the end of the lease I ask them what they want and if reasonable provide it. I have done a new fridge, Nest thermostat, Ring doorbells, microwave, etc.  All are things that other tenants after them would also use and improve the value of the property.