All Forum Posts by: Kevin Harrison

I would move people over to the RUBS (ratio utility billing system) as you start new leases and I would not put in the hook ups until there was a lease in place where they pay the water bill. I would also try and put the electric on the same system is individual metering is not possible.

Typically if all you do is provide hook ups then you wont really be able to charge a whole lot more than what you are charging now. but it will allow you to fill vacancies quicker.

Just to add to some of the excellent points that have already been made (AC, grow OP, Etc) you might want to go with LED lighting throughout the home if you are going to continue to pay the utilities and as @Colleen F. said get a digital thermostat that you can set minimum and maximum temperatures on. The LED lights are a little more expensive up front but they produce minimal heat, use much less electricity, and last a very long time.

Other things to consider is maybe going to the RUBS (Ratio Utility Billing System) system if that is legal in your state. This puts the payment of utilities back onto the tenant. Of course this wouldn't be able to be implemented until you start new leases.

I would also do a unit inspection, there is no need to give a reason as long as you give them your states mandatory warning ahead of time.

I know the LED's and Thermostat are a big hit at one time but they are both durable items that will save you enough money in the long run to pay for themselves many times over.

This is a PITA problem. You cannot tell your tenant that she cannot have her guest over, especially her son. But they should not be living there either.

 I would first bring this up to the section 8 Rep. I would also post no trespassing signs as well as no loitering signs. Then I would call the non-emergency number for the police Dept and ask that if they have time they send some people by there, particularly at night. Tell them you have people squatting in your common areas, drinking and urinating on your building. If you give them permission they may even be willing to walk your common areas on slower nights.

I would also suggest you tell your tenant to file an anonymous complaint whenever she sees the girlfriend around by herself. Why is the girlfriend squatting there? is the son also squatting there? Does your tenant know that this is going on as she is elderly and ay not be aware of what going on outside. It also might not hurt to send a letter to both your tenants (so as not to seem biased)  warning them that anyone found squatting will have the cops called on them by the management and that if the squatters are found to be connected to a particular unit that it can be ground for eviction (I assume that you have a no unauthorized persons living there clause in your lease) 

I would also look into an attic fan. We recently installed these on our primary since they were not there before and have see a noticeable difference, not necessarily a huge change on our bills (maybe 8-12 dollars a month) but definitely makes the interior of the home and the upstairs in particular FEEL much cooler.  

While high utility bills suck, tenants are a lot less likely to complain if the house at least feels nice and cool. If they are paying high bills and still not getting a cool home then I can see where they would be upset.

Its a one time expense, I would go ahead and get the insulation and an attic fan done. Then you will never have to worry about it again.

With a refinance you are basically rolling what you currently owe on your mortgage plus what ever you take out from the equity into a new mortgage for a higher amount than what you currently owe. You will have to make monthly payments on this since it is a mortgage and you will be wired whatever you took out above you equity in one lump sum.

With a HELOC it is exactly what it says. It is a line of credit that you only have to pay interest on what you use similar to a credit card. This allows you to have access to a huge amount of money but not have any payments on it until you use it. This is great for things like rehabs etc where the final cost is not certain until the job is done. If you are buying a home that needs no rehab and you know you fixed cost then a 30 yr mortgage is preferable since it will give you longer amortization. HELOCs tend to be interest only for a period of less than 10 years then either have a pay back period or a lump sum due.

Don't forget that you can use both of these to your advantage by buying and rehabbing with a HELOC then getting a fixed mortgage on it later.

personally if you are cash flow positive and want to sell I would not do it until the unit was vacant, you could offer the current tenants an early out on their lease of you want to sell sooner. Or you could just re-finance and pull the equity out of the property and not sell it.

When you speak to them on the phone don't just ask the questions, preface it with the fact that you are going to verify these things and if they are not true then you will not rent to them and they would be wasting their time and yours. something like "Thank you for your interest but before we go any further I need to ask you a couple of questions. These will all be verified when you submit your application, but if an effort to save your time and mine I would like to know if you (your questions here)?" This way they know they you are going to double check their answers and that you will still not rent to them even if they lied.

Many people believe that once they get there and you have taken the time to show them the unit, you will accept them even if they don't really meet your criteria. Make it clear up front that you will not be changing your mind. Some will still lie but hopefully this will cut down on the number of people that do.

if it were me I would give change of ownership notice and a notice of a walk through (for documentation), do this for both units so no one feels singled out. Then I would do the walk through on his unit with picture of the current state of it and date, when the walk through is over you can then give him the lease termination paperwork. I would personally give them 60 days since they have been a long time tenant, finding a new place and moving all your stuff can certainly take more than 20 days. But let them know you have documented the state of the unit and any more damage, especially intentional, will be sought from them via small claims court.

You can also incentivize them by offering them their entire deposit back if they remove all their trash and leave the place broom clean. This is an easy deal for you since you most likely cant keep any of their deposit anyway since they have been there so long and you have no idea of the state of the unit when they started out renting. This will also incentivize them to not do any more damage to the unit out of spite knowing they have some money on the line.

Because eventually the developer will get tired of trying to buy your property and will just build around you. then your unit is worth nothing. or very little unless you convert it to commercial.