All Forum Posts by: Kimberly T.

Not a problem @Jason C., I just thought my answer there would make more sense if you saw the original question, rather than me just copying my answer in here. Good luck with your prospective tenants!

I think I would agree with @Bill S. that a w/d in unit would be more desirable for your tenant base than a half bath. If these tenants are middle- to upper-middle class, then they probably prefer not to share a w/d with strangers.

Also, I'd think a w/d in unit would be more desirable as a condo as well. I couldn't imagine people wanting to buy a home (even if it is a condo) and being ok with using community laundry rooms. People looking to buy a home generally expect to be able to have their own w/d.

Regarding which one to choose, there was a similar question recently that I answered:

http://www.biggerpockets.com/forums/52/topics/123246

As for letting the other applicants know you did not choose them, I'd probably do it this way: You could collect a holding deposit from the one you choose, then you may want to wait until you have a lease signed and all the money in hand to officially decline the others, in which case you could call the others after collecting the holding deposit and say "I have a holding deposit from someone else I chose who was more qualified, but if it doesn't work out, I'll let you know" or something to that effect. Definitely don't decline the others officially until you get money in hand, you don't know if the one you pick may end up choosing a different rental.

Remember, if you decline someone in whole or in part due to their credit report, you have to send them one of those official letters stating such.

Thanks Scott! Glad to hear a local agrees with my assessment.

If you want, you can simply screen all the paper applications first to narrow down the ones that you would need to bother running credit/background checks on. For example, let's say you require 3x rent and don't allow pet dogs or past evictions. If you get 7 apps, and 2 admit to having pet dogs and another admits to a past eviction and yet another states a total income of only 2.5x rent, then you can just reject those without having to run the other checks on them.

Then, you can run the remaining 3 apps that look ok on paper, and pick the "best" one. For example, let's say they all meet your minimum requirements for credit and background. You will need to decide what criteria is most important to you in screening (credit score, total income, etc.). If 2 of the apps have a credit score in the low 600s and the other has a credit score of 750, then you might pick that one (if credit score is your deciding factor). If they all have similar credit scores (say, within 30 points of each other), then maybe you pick the one with the highest income.

You should decide before you take any apps what your criteria will be, and put it in writing so you have something to reference. For example, it may be something like this:

Minimum Requirements:

- Min credit score of 600

- No felonies

- No past evictions

- 3x rent as income

- No pet dogs

- Max of 2 people per bedroom

- Relatively clean car, non-slovenly appearance (no trash in car, no tattered clothes, etc.)

- (you probably have more criteria, etc.)

In the event of 2+ apps meeting the min requirements received within 2 days of each other (you could make this 1 day, or 3 days, or whatever):

- App with the highest credit score gets accepted first, if credit scores are more than XX points apart (20, 30, whatever you decide).

- If the 2 apps with the highest credit scores are within XX points of each other, the app with the highest total income gets accepted.

You could decide income is more important than credit score, or something else entirely, just decide your criteria and write it down. Be careful not to set criteria that could be considered discriminatory. For example, if you get 2 qualifying apps, one from a single person and one from a family with 2 kids, don't just pick the single person because it is "fewer people" because that could be considered discriminating based on familial status. Sure, fewer people means less wear on your unit, but not a risk I'd take.

This is the method I would use if receiving multiple qualifying apps. Some people say to go in the order they were received, but based on my research, that is not a legal requirement, so it's your choice (not that I'm a lawyer - not legal advice).

Wow, I just realized I wrote a freakin' book. Sorry, hope that all makes sense.

I've been having those 522 errors for a few days too. Glad to hear I'm not the only one, and that it's not something I need to fix. I may be a "millennial" but I'm not computer savvy!

Hmm, I'd be hesitant in a small town too. Locals will know what happened there. Even if they logically tell themselves that it would be ok to live in that house now, there's still the "creepiness" factor that might keep some from wanting to live in a murder scene. Only you can assess how much that is likely to be an issue.

Yes, definitely check your state and local laws about disclosure. Here in CA I believe you have to disclose a death for 5 years after the death occurred when renting or selling a residence.

Well congrats @Anthony Gayden and good luck with your first investment! So there are fourplexes in PV? Or is this in an area that's in Phoenix or Scottsdale, but near PV? I have never seen small multifamily in PV, but there are some relatively close to PV in Phoenix and Scottsdale. Just be careful about areas in Phoenix metro, there can be some bad pockets surrounded by areas that are otherwise pretty decent. For example, The Square in northern Phoenix (an area bordered by Bell, Greenway, Cave Creek, and N 32nd St) seems to be a pretty rough area with a not-so-good reputation. Another is the Holiday Park area of southern Scottsdale (bordered approximately by Osborn, Thomas, N 64th St, and N 68th St). Again, a pocket of not-so-good stuff.

Perhaps @Justin S. and @Scott E. and some of these other responders know more about these areas and others in the Phoenix metro since they live there (my knowledge of them is based on online research and driving the areas myself, I've never lived in AZ). Guys, am I correct in my assessment of those areas? Any others?

Yup, the guy who empties the machine pockets some coins, then the intake guy, then the company just lies about how much was collected. What they say you got is always way less than what you really got. This seems to be a pretty universal experience for many landlords, from the ones I have talked to (in addition to my parents).

No, my understanding is that you do not get the key to the coin boxes, only the laundry company has the key, so they get to take their cut.

We bought new since we plan on owning the properties a while, but used may be a good option for many situations.

We have personally bought the coin op machines we put in our apartment buildings. This is based on what we heard from my parents' experiences with leased laundry machines, which was: the lease company will never report the actual amount of money that gets cycled through your machines (it's in quarters, so you can't prove they're lying), the lease company will be next to impossible to contact when you decide you don't want to renew their lease (my parents played hell trying to get one company to accept the certified letter they sent stating they weren't renewing), and the list goes on (just can't remember the rest right now).

From what I've heard from my parents and others, laundry lease companies are about as trustworthy as used car salesmen.

Yes, machines will periodically break down and such, but so will the stove, plumbing, HVAC, and everything else you supply your tenants with. I don't see laundry equipment any differently. I'd much rather have the control over the machines. That said, there's nothing inherently wrong with leasing them, you just have to decide what's important to you.