All Forum Posts by: Lucas Bennett

@Mike Nuss thanks for your response. Do you have a link to anything that can be used as a template for this type of letter? I just want to make sure I got all the key points. Thanks again!

Lucas 

@Mike Nuss what do you say in your letters? Since it isn't a blanket mailing, rather directed at specific properties you have already identified, are you more specific? More general? Handwritten? I'm working on getting the language down on a property I've identified nearby. Thanks!

Hey Chris,

I'm not sure how popular this opinion is on this site, but I think talking to your tenants and being honest is the best way to go. 

I bought a 7-plex in Portland earlier this year in a similar type of situation (rents way below market, MTM leases, needed lots of work, unsure about the tenants etc etc.)

We talked to each tenant individually, and found out that many were planning on moving out already in the upcoming months. We basically made a renovation schedule, based on when they were planning on moving, and everything went smoothly. 

When we did need to get into a unit to renovate it, and the tenant was not planning on moving, we talked with them and came to an agreement that worked for everybody. 

I think having a good lawyer on your side is definitely essential in doing real estate, but it is time consuming, messy, and can be expensive, so should be used as more of a last resort in these type of situations. On top of that, you are dealing with someone's home. 

I think talking with the tenants will save you time, money, and maybe most importantly, your peace of mind. 

Congrats on the 4-plex, that is very exciting. If you ever wanna meet up and talk shop, give me call. I promise I'm not always such a softie. 

@Bill S. @Account Closed

Thank you all for your responses. 

Kyle, thank you for taking the time for that long response. I will look into installing the meters myself and see which option makes sense.

I wasn't ever planning to shut the water off on my tenants, I was just referring to the fact that if they didn't pay a utility that was individually metered to them, that utility would be shut off by the city. That's an 'incentive' I couldn't hold over their head.

I like the idea of adding the terms into the lease. The tenants are currently on MTM leases, and we have been meaning to update them. They will of course get the proper notice.

I'll be sure to check with the city before I move forward with anything. Thanks again. 

Dear BP Family, 

I know this isn't the most flashy of topics, but here is the situation I am in: 

My company recently purchased a 7-unit property in Portland, OR (Keyword alert: 'Portland' is being discussed on biggerpockets  :)  ), and due to the fact that the building is older, the water utility is master-metered. Anyone familiar with Portland knows that the water/sewer system is a mess, and we just received our first water/sewer bill, which was quite large, to say the least. 

I recently found out about sub-metering, and I would like to ask the investors/landlords on the site a couple questions.

1. I understand that we will still receive/pay the master-metered water bill from the city, and that the sub-metering company will bill the units directly and mail us the money (sans their cut), BUT how do you enforce the new water utility bill with the individual tenants. If one unit doesn't pay the bill we can't shut the water off JUST to their unit, obviously. Should we write a new lease contract, including the sub-metered water utility, so if they don't pay it then we can start the eviction process, like it works with rent? Have you all had good success with this process? Are there better options?

2. Anyone have any good suggestions for Sub-metering companies? I spoke at length with a company called Guardian Water & Power, and they seemed very legitimate with what I would consider decent prices, but I'd love to hear who you all are using. 

Also, if anyone on the site has other alternatives to sub-metering I would love to hear them!  

Thank you all in advance

Lucas

Hi @Tom Walther ,

First off, Unfortunately I don't have any Subject to success stories in Portland, Or. Sorry.

That being said, I am also living and investing in Portland, OR. Right now I own two rental properties, but really want to get into 'Subject to', and other innovative investing strategies.  The legal aspect of it does seem daunting, so it is very impressive that you are taking the time to thoroughly read through the laws. 

I would be very interested in meeting with you to talk more about 'Subject to', and general investing in Portland. Maybe with our powers combined we could both start putting some deals together. Let me know if you ever wanna grab coffee. Good luck with everything. 

@J Scott That is a great graphic. When you say "Rough Inspections" is that done by yourself, do you hire a third-party to do it, or is it someone on your team that you trust with it?

I thought 'rough inspections' would be simple for me, but I put too much trust in the contractor during those initial rough plumbing/hvac/electric stages on our first renovation, and it came back to bite me in the butt.

@Roy N. I like that policy as well. Seems like there are so many different ways to go about it. Now just to choose which one!

Thank you all for your responses!

@Colleen F. as of today it is 1 day late. We did switch the address of where the rent needed to be sent, but we wrote that all out in an introductory letter, and then went over there last weekend to meet with each tenant and make sure they understood that change, along with all the others.

@Samson Kay I do like your style! Very law and order.

@Kimberly T. I'm leaning towards doing it this way, it shows them that you have a heart, and then when the hammer comes down on month #2, they really have nothing they can say.

Hello All,

My business partner and I recently Purchased a multi-family property in the Portland, OR area, inherited 7 tenants, and have just gone through our first round of rent payments...and you won't believe it...one of the tenants was late on their payment! Unheard of, I know.

So here is my question: Do we charge them their late fee, which is spelled out very clearly in the leases they signed when they moved in (with the previous owner) or do we give them a written warning that clearly states this is their first, last and only warning about late rent, and then start strictly enforcing the late fee next month.

On the one hand, I want to be strict. On the other hand I want to give them a break since it is the first month, and we have been enacting a lot of new rules (the previous management was all but non-existent).

I'm sure many, if not all of you, have gone through a similar situation. So...what did/do you do?!

Thanks!

Lucas