All Forum Posts by: Julia Hagen

@Andrew Syrios Yes, I agree that a replacement right now would be ideal. However, in the last two years, we've replaced two air conditioning systems, added a window unit to another property, and have two furnace replacements coming up. We are currently working on how we are going to budget for these additional replacements.

*I am providing these details because the question of our abilities as landlords has been raised.  I hope this answers all the questions. If anyone has advice, I would welcome it!

@Glen Wiley, @Kevin Sobilo, @Andrew Syrios
We finally figured out what the problem was and solved it. Now we are making sure it doesn't happen again!

It’s a complicated property. It’s in a rural location in the Napa Valley and we are, literally, the cheapest rent in town! It’s a large, remodeled home with an attached studio and a granny unit. We also walled off the master suite and turned it into a studio (because it has its own bathroom, entrance, and parking), resulting in 4 individual units. We didn't get a single complaint - from anyone until the furnace completely stopped working. That’s because everyone who lives there pays a fraction of the rent they would otherwise in Napa Valley. So, no one complains, until things are desperate.

As soon as we heard what was happening we filed a claim with our home warranty company and paid cash to have the furnace inspected by two companies we have already done business with. (It took 3 months for the home warranty company to find someone because of the rural location!) But no one could figure out what was wrong. Half said just replace it, half said there wasn’t a problem (the furnace was completely disassembled and the interior portions were scoped with a camera). Finally, one of the guys checked the filter, it had never been changed. It had to be at least 4 yrs old and went through all the wildfires in the Napa Valley, without being changed!

This is how we found out that the tenant wasn't changing the air filter, which is his responsibility (we supply the filters) and he also couldn't figure out how to properly use the new thermostat.

The filter was so clogged it almost broke the furnace! Our PG&E bill is 102% higher this year than last! Once the filter was replaced and we hired a handyman to teach the tenant how to use the thermostat all problems were resolved. We paid over $1,000 cash, just to find out the tenant was not complying with the lease.

(Two of our tenants have been with us for over 10 yrs. We undercut market rent and keep our tenants very happy in order to avoid vacancies)

@Sean O'Keefe I sent you my email. Thank you!

@Account Closed. Well, my tenants has been without a heater for over 6 months now, and one couple has a baby! I've got 6 different tenants. Something's gotta change and for now, I think it's gonna have to be me ; ((

@Jonathan Bock Oh, I know, and believe me, I've spent over $200,000 in remodels, maintenance, mold remediation, flood remediation etc.. since 2004 and I only own 3 homes!! (10 doors total). I do have savings but was hoping to give us some financial breathing room while we deal w/the $120,000 tuition bill. Good lesson learned. Thx!

@Nathan Gesner Wow, you could not have more succinctly summed up exactly what happens with home warranty companies if you were your own PR manager! That was the perfect description!! Thx!

@Kevin Sobilo True true. I just thought that while we are dealing with the $120,000 tuition bill it could help things financially. I've got money saved though. It's tuition or maintaining the rentals. I think we'll take out private loans for tuition. Don't qualify for enough FASFA subsidized loans

@Glen Wiley Haha, very true. Good lesson learned then, I guess

@Brian Halstead well, it almost did. I didn’t know I’d caught the stomach flu until it hit me half way through the meeting! Then I ended up in bed with the bowl and a roll of paper towels! Oh well, I will try again, haha

@Sam Yin well…they are mostly permitted 😜Just kidding. Everything is permitted except my garage studio. I also subdivided the master bedroom suite off from the main house in my biggest SFR and it rents as a studio. So, that's legal and definitely qualifies as a good, cash flowing unit.
Thanks!!