All Forum Posts by: Kyle Meyers

I will work with tenants if the contact me before the due date and let me know what the problem is. If it is a one-time issue, I will consider waiving late fees or setting up a payment plan. If there is a continuous problem, I can change the due date or payment frequency in the lease. I try to fix the problem in a way that works for me and the tenant. If they continue to pay late, I enforce the late fees and pay or quit policies. Sometimes, just enforcing the late fees will force a tenant to take a look at their finances and find a way to make it work.

Tod R. - I learned about a company offering a way for you to get discounts for your tenants. It is called Purqz, they offer discounts at lots of places nationwide. I haven't signed up, but it may be worth checking into.

In Indiana, it is 45 days and the clock starts once the tenant has moved out AND provided a forwarding address. Check the law to see if your state's laws have anything about when the clock starts on the return.

I like positive cash flow from the beginning. With the 50% rule you would have NOI of $850/month. Your 15 year loan would have a $910 payment, so you would lose money each month.

If you chose to take the 30 year loan, your payment would be $646 and your cash flow would be $264. That will give you an 11.7% cash on cash return on your $27k investment. Not a deal I would do, but it may meet your investment goals.

In Indiana, I send with delivery confirmation. I don't need them to sign for the notice, I get the proof of delivery from a third party (the USPS). My lease is actually set up so I don't need to send a pay or quit. If they don't pay on the 1st, I can file eviction on the 2nd.

The link Jeff Thompson shared has some great information, I actually just heard Al Aiello speak this week and he really knows what he is talking about. The most important part of cost segregation is reducing the value of the land as much as you reasonably can since land doesn't get depreciated. At a minimum, you can apply the percentages from the appraiser to your purchase price to determine the starting values of land and improvements and then add all of your improvements to the improvements portion, no reason to use the percentage on your after repair value. To be even better set up to take advantage of depreciation benefits, read the information in the link above and research more about cost segregation.

I suppose it depends on how "best" is defined. Providing quality housing at fair rates and treating tenant professionally is one thing, not enforcing late fees and letting tenants violate the lease is another. I try to be fair to my tenants, but I don't waive late fees and I send pay or quit notices promptly.

I want my tenants to consider me the best landlord they have ever had. I provide quality housing at slightly below market rents, I am very clear with my tenant on what I expect from them, I try to make reasonable accommodations for the various situations my tenants are in, and I respond to maintenance requests quickly.

As for converting this into cash, I think if my tenants regard me as the "best landlord" they will likely stay longer in my properties and potentially refer others to me as well. The savings from reduced turnover and filling vacancies faster is where I will see the financial return.

I agree with the point above about landlords often having a different take on customer service than other businesses. I think it is because the landlord business is a longer term and more involved customer relationship. Also, landlords must always keep in mind to potential losses from a tenant who stops paying and/or damages the property. These concerns are what cause landlords to think too often of tenants as enemies instead of allies in this business.

I think you are probably responsible for pest control. But, that does not change that she can't decide on her own to condemn your property and stop paying rent without giving notice of a maintenance issue. I would have an pest control service go out today and send the pay or quit notice. As others have said, you have to consider whether or not this will be worth your time and frustration.

Just saw the code enforcement car in Indy yesterday, they drove past my property, but stopped at another one down the street to write them up for something.