All Forum Posts by: Kenny Dahill

Hi Fellow Landlords,

I'm the Product Manager with Burbz and part of our growth success plan is interviewing landlords.  Interviews are an hour and we want to hear about your experiences thus far, any successes or current pains along the way.

The last portion of the interview is providing feedback on our business concept.  Since it's a new category, hearing candid feedback from landlords will provide insights to help us adjust or pivot as need to make this product the best possible for landlords.

BiggerPockets has been a great community and hoping some will happily volunteer.  Plus, who doesn't like to talk about real estate?!

@Justin Heitter, sounds like legally they're all on one lease.  Therefore, this is the Tenants responsibility to figure out but they are all legally on the hook for making full payment.  Here's a few thoughts:

• Amend Lease:  If the tenants wish for the ex-roommate to be off the lease, you need to amend the current lease.  You may keep all the same terms (i.e. rent, end date, etc.) but indicate the removal of roommate.  This only removes the obligation for the ex-roommate but the remaining tenants are still obligated to pay full rent amount.
• Ex-Roommate Pays:  Legally, anybody on the lease is still responsible to satisfy that full rent amount is paid each month.  Regardless where they live.  This might require the ex-roommate continuing to pay rent until they find a replacement.  Ultimately this is the responsibility of the tenants to figure out.
• Remaining Tenants, Re-Qualify:  For the amended lease, it's important to note if the remaining tenants still qualify for the lease.  Let's say you required 3x rent:income but now they fall under that ratio.
• Add Roommate, Qualify:  If they decide to add another roommate to offset the increased rent, that new roommate is required to a) qualify and b) be added to the lease.  They can't just invite any friend, that new roommate needs to go through the proper channels and be screened.
• Assualt / Threat:  If the tenants indicated the ex-roommate was abusive or threatening, do your best to resolve this situation quickly.  Not only might there be risk to you, but it's also the right thing to do.  Some states have laws to protect victims which allows them to move out without penalty.
  
  

@Benjamin Amaral, I can't help but think of George Bush quote here:  fool me once, shame on you.  Fool me - you can't get fooled again.

If there was a previous accident with the tree and they continued to park under it, that's on them!  I assume Renter's Insurance would help cover part of this as well.

I empathize with the tenant as this sucks.  But they knew the possibility that the tree could collapse again.  Definitely trim the tree back to avoid this because if it fell on a person you'd have much larger issues.  If you do decide to help financially, present it in a way that clearly states this isn't your fault but you'd like to support them.  If it's only a windshield, most insurers will replace those free because of the increased risk potential of the glass breaking during an accident.  

I'm in Arizona, land of the pebbles.  Therefore, anybody who drives on the highway has experienced cracked windows.

The best lessons are often the most expensive.

I've rented to friends of friends before and never have an issue.  We always have 'the talk'.  That now we have two relationships: friend and landlord/tenant.  I'm not afraid of charging late fees or evicting, and that it would also not impact our friendship.

My first general rule: no drama.  I've found with tenants and roommates that somebody who moves in with drama will move out with drama.

Sorry to hear about your experience and thanks for sharing.  Always a good reminder to follow the contract to the T and file late notices pronto.

Tuva, love the positivity in your post.  Perfect time to get rich!

Finding a seller finance definitely takes more effort because they're not commonly advertised.  Consider your own marketing with direct mailers.  You'll want to design a 4-7 'drip campaign' that sends these letters out every 3-4 weeks with a different spin each time.

Seller finance often scares most owners if they don't know a lot about finance.  And that's the vast majority of people.  Consider reaching out to different landlord investor groups to see if anybody has a property they'd be willing to do Seller Finance on.  Investors are more open minded and somebody might like the monthly cash with no day-to-day responsibilities of their rentals.

I've also heard a good time to reach out to landlords is during or after their tenants were evicted.  You're catching them at the most frustrated point of being a landlord, some might decide that experience was horrible and want out.

Best of luck!

Hi @Stacey Earl, what does your Management Agreement state?  During the interview/hiring process, they should have declared their renewal fees.

Also, your tenant should be able to proceed without a lease renewal.  Unless you're wanting to lock them up for a year.  If it bothers you enough, you may ask your PM to let the tenant go month-to-month.  There is a risk tho since tenants may leave at any month.

I've seen renewal rates range from $100 to $500, nationally tho.

@Vidyadhar R., ditto what others stated before.  You must honor the lease.

However, leases can always be amended but it needs to be mutually agreed and not threatening.  And if they say no, you cannot retaliate.  If the property needs a lot of work to get the market rates you desire, talk to the current tenant and see if they would be interested in changing the lease based on certain renovations.  Who knows, they may prefer to stay and willing to pay more for a better rental.

If the property is already in prime condition for market rates, this probably will not work.  It can be costly to replace a tenant; definitely ask the current tenant first so you avoid any vacancy.  Consider rent bumps over 3-6 months if they need an adjustment period.

@Pedro C., I found managing a STR significantly more difficult than my long-term rentals. However, they were down the street from me so I was cheap and too hands on.

If you go remote, lock in your system immediately.  Know the contractors/vendors, how/when to schedule them, who is responsible for what and try to automate it to your best ability.  Since you'd be self-managing, you can afford to pay a premium for a better cleaning vendor who goes above and beyond.

@Skip Reath, anything in particular that is important for your next property manager?  Cost, maintenance, contract terms, etc.

@Austin Haynes, congrats on that first house hack!  **insert party siren sound**

Lots of options for you to choose with property management software.  I'm happy to help answer any specific questions you have, I've done quite a bit of market research on them.  For the most part, the vast majority of software solutions offer the same values and services but I always like to ask:

• What's the most important feature to you?
• What's your monthly budget?  Some are monthly memberships, per unit, per transaction.
• How many units do you intend to have within the next 1-2 years?  I'd stick more towards the Landlord software size than professional management software.

As for tenant screening, it's important you come up with your own standards and processes.  Screening reports can be an important part of the process but they're not the only requirement.  I've met successful landlords that never pull reports.  And there have been terrible tenants with great reports.  Think of reports as one part of your entire screening process.