All Forum Posts by: J. Martin

Also, take into consideration how close your current rent is to market, and what the rental market is like there. The higher above market, the more the concessions are justified. If below market, maybe nothing is justified. If the rental market is tight and rents are up, it might not hurt to remind them of that either.. Some tenants will stay long-term for a fair deal and a good landlord, so don't feel like you have to give up thousands of income on every unit every year just to keep people.. but strike that balance relative to the market...

@Blake C. , I would consider ways to not lose income first.

I considered this when my first leases were coming up. However, I had received 2 month deposits (1 month is market) - so I offered some of the deposit back.. I figured for $50/mo, I might as well take that as income, and I can use it to replace the deposit money if I can't get it from the remaining deposit or tenants. Of course, you still want them to have some skin in the game.

But if you're going to give up $100/mo, or $1200 for the year, why not give back $500ish in deposit, which might help them out after xmas? (if the place is well kept, and you want to keep them). Or why not pay for upgrades instead of just cash out of pocket? Offer to spend some money on an upgrade to the place, or something they want - that will stay attached at the unit. Is the bathroom old? Maybe a new vanity/mirror set? They love to cook? Maybe a nice backsplash, faucet, spice racks.. Fridge too small for their family? Sell the old one on CL and upgrade to a bigger fridge..

I would look at those options first. Shows you care, better bang for your buck, and hopefully should lengthen their tenancy by giving them something they need/want that will also provide benefit for a future tenant, reducing your turnove time in the process..

@Donald Longo , my best recommendation is to keep your expenses low, read lots, and I recommend using an FHA loan to buy a 4plex if you want to really utilize limited capital..

I am considering this now with a habitually late tenant.

But instead, I was thinking about having them enter a new lease at $25/mo higher (they are already near the top of market, or I would do more), with a late fee after 5 days, then daily.

I would NOT convert. Gas is much cheaper to operate. I know prospective tenants who have actually asked me gas or electric because of this. Most people prefer gas also for cooking because it heats up quicker. I am not aware if they are ACTUALLY more dangerous or not, but haven't had any issues (for example, electric burners stay hotter longer, even though they don't look hot - easier to burn a kid accidentally?). Get a carbon monoxide detector for any area with a gas appliance.

To be honest, I've only heard of people wanting to convert from electric to gas, but mostly in owner-occupied houses for cooking purposes..

Some may call me crazy, but with all the boomers retiring and many downsizing, is it crazy to just buy and hold a 2br home? Better rents/ft with smaller homes. Better sale price/ft..

Either way, I would be asking myself what the ROE of the marginal costs of the additions versus the marginal cash flow created by it.. There is also the added value. But I would just add the marginal value as a cash flow way in the future when you plan on selling it.. then discounting back..

Thanks @Ed

@Ed O. undefined ,

I'll take a look. I put some qualifications on the Craigslist posting, which is the most common source of rental listing around here. Then I've been going through VM, calling back to screen from there. I'm going to have my VA at least go through all the voicemails. Maybe have her call them back and "pre-qualify" them also to make sure, plus schedule them during an open house, or private appointment with my handyman. Then get my handyman's take on them and call back best applicants personally.

When you are talking about the website, are you talking about a form on my personal website that they fill in to screen, then call back from the form filled out online?

That would be unusual for the area, and my tenant pool is not the most computer savvy (nor would I be able to quickly troubleshoot any technical issues). But I like the idea in general..

@Adam Hofmann , you inspired me to get a VA..

Any tips on a good virtual phone/VM service? VA in peurto rico.. (not that it really matters! But wanted someone who could speak spanish too..)

I'd like to get a local phone number with a virtual voicemail box, accessible online or by calling in from anywhere, for when I put rental postings up.

I would like my Virtual Assistant (VA) to be able to check the voicemails and record the information for me. So it would need to be accessible from anywhere/anyone with the password. It would be a bonus if the service is free, and if my VA is able to make outgoing calls from that number. Maybe also have calls forwarded from there to a skype address?..

Skype? Google Voice? Some other VOIP service?

@Paul Crowson I have not used them yet, but sparkrent.com allows you to accpet payment for $1 per transaction and is a subsidiary of Intuit - so at least it's not some fly-by-night or under-resourced company presumably..

My tenants use money orders instead of checks though, so I don't know how well this would work for my tenants.. but if they're already paying online, shouldn't be tought at all. You pay the $1 fee..