All Forum Posts by: Account Closed

Thanks for your thoughts @Chris Martin.  Sometimes the students and particularly the guarantors are not in town for lease signing; they are signing online and do not visit the property until move-in, if at all.  They are backing out after application approval when the lease is sent for digital signature.  

I didn't have a problem getting the primary student and guarantor to sign and write the security deposit/1st month's rent.  It's the other housemates that are the issue.  

Hi guys:

I recently purchased my first larger student rental SFH. Each housemate and guarantor, if needed, signed the lease with joint and several responsibility for the whole property.

But during the lease signing period before move-in, there was a lot of switching around.  The first student and parent approached me, were qualified and signed a lease.  At that time two other students and parents applied and verbally stated that they were signing so the lease listed three tenants and three guarantors.  Students #2 and #3 then changed their minds so signed Student #1 found a replacement Student #2a and Student #3a.  Student #2a and guarantor signed a lease with Student #1, #2a and #3a and guarantors listed.  Then Student #3a dropped out.  On and on...

In the end every tenant and guarantor signed a lease but only the very last tenant and guarantor to sign have the correct people listed as tenants and guarantors.  So my questions-

1) What do you all do in this situation?  Do you have everyone signed an addendum with the updated tenants and guarantors?  

2) Do you have any suggestions for how to make this housemate selection process go more smoothly around lease signing?  There is only about six weeks in my area before the lease signing period for 2018-2019 school year starts and I want to be prepared.

Thanks for your help!

The pictures are terrible- blurry, overly fish-bowled, poor pow. Redoing the pictures may help a lot.  

I had someone send this to me today:

http://www.dailymail.co.uk/news/article-4769444/Sa...

What do you all think is the best way they should capitalize on their investment?  

Personally I would replace in this order with more changes for higher end markets-

1) Replace the old fluorescent kitchen light that screams early 90s that makes everything look terrible and pop in a few recessed LEDs.  I would do this even if it was rent neutral because it's cheap, easy to do and makes the place more rentable.  (surprised no one mentioned this yet)

2) Paint the cabinets white and white subway tile/grey grout- details laid out by @Justin Fox

3) Depending on market, switch out the laminate for either formica calcatta marble laminate, whichever cheapest granite remnant or quartz.

4) Replace faucet; replace sink with porcelain.

5) Appliances.

http://dividendcapital.com/uploaded-files/financia...

So, I was wondering what folks thoughts are on the dividend capital forecast report for Q2 is now that the quarter has started.  

One comment from the introduction that stands out for me and lines up with some of my thoughts about the current cycle:

"One conclusion is that the current cycle is a longer cycle than its two predecessor cycles and also a more moderate cycle."

My markets are not mentioned directly (pg. 5) as I do not invest in large cities but the general tone lines up with my experience in my areas and their closest listed metros- slowing to negative rent growth, lots of new inventory coming online that may be difficult to fill (and giddy inexperienced investors that don't appear to realize that the music may stop soon and they could be the one without a chair).  

Data prettified by zillow from the census bureau on vacancy rate changes yoy:

https://www.zillow.com/research/rental-vacancy-rat...

@Sean Ploskina  I manage my own in town but I've heard good things about Nest Realty from both renters and owners.  

I was once told by a top 10 business school recruiter off the record to never consider getting a MBA unless it's from a top 25 (preferable 10) school AND your employer pays for it.  FWIW

@John Semanchuk Best to you on the Ansonborough home!  I have one in that neighborhood and have been very happy with it- high rents, easy tenants and great appreciation.

I would be perfectly happy to have my instincts on the market there proved wrong. Another couple years of strong appreciation would be great for the balance sheet. But at the same time, the rents for the top of the market properties are falling slightly and the Mueller model, which I use and trust, tells us that rental market softening is a leading indicator for a slowdown in the sales market. 

There does appear to be an overall softening of the market for high end properties in status locations in the US. I see it in Charleston and Aspen. I have contacts whose opinions I trust report the same in the Hamptons. Is it just a blip and we'll be back to a strong growth market in a few months?  Maybe. Maybe not. 

As far as Charleston goes, as I detailed above, I was referencing the best streets- the eastern side of SOB, French Quarter and Ansonborough mostly.  For sales- there have been quite a few to sell at 10-15% below list this year in those areas.  And I've noticed the shift in the market for rentals for this area and was notified of that by my management company as early as January of 2016. 

Bringing in some charts that include the periphery of Upper King just below crosstown is comparing apples and oranges. Longitude Lane =/= America St.