All Forum Posts by: LeeAnn Owens

@Brandon Thurman thanks for posting this is a great question! Unpopular opinion- I would have passed up on this property because I wouldn't want to raise the rent on the these tenants. Yes you're running a business and not a charity, but you also want to be able to sleep at night with the business decisions you're making. Assuming they're both on a fixed income, it makes sense that they wouldn't be able to afford a rent increase. I think the best win-win option is helping them identify a program to subsidize their rent. Maybe there's a program through HUD. I'm in MD and I know we have a program like that here.

@Jessica Larson don’t hesitate, start the eviction process now! If they didn’t want to get evicted during the holidays they should have paid rent. 

I would keep looking for another tenant. If you’re dead set on renting to him, make him have a co-signer. 

@Amy Lee is there any language at all in the lease about utilities and who is responsible for paying them? 

@Daniel Suarez if you’re having 60% of the tenants breaking leases I wonder if it’s the quality of tenants that are there? Meaning are people leaving because they feel unsafe with their neighbors? Do you have tenants who are loud and inconsiderate forcing others out? I’m also curious about what type of employment the people have who are breaking their leases. Try to rent to people who have jobs that keep them local and who have been with their company for a while if you can. That should help your durations. 

Also- I’m for adding the laundry room. I wonder if you could lease the machines so you’re not responsible for maintenance? 

I totally agree with Arn, great response!

Once you drill down your search a bit and can ask a more specific question you’ll get much more from a forum post. 

Hey James, 

I currently have a property in NY so I feel you’re pain.

1) Make sure you’re familiar with the laws. Have a good lawyer on standby for any questions. Have them either write or review your lease.

2) High quality properties attract high quality tenants. Have a property that people want to stay in. 

3) Tenant screening is key. If they seem even a little bit problematic during the screening process they will be 10x worse once they’re in. 

4) Look at their rental history and employment history (to the extent that you’re allowed to). You probably wouldn’t hire someone who has had 4 jobs in 4 years, so don’t take on a tenant who moves every year. The credit check I run verifies income for the last 3 years. If they’re having to call 3+ employers that tells me a person may be problematic/ can’t hold a job long. I’m not renting to them. 

5) I had my rental inspected twice and had the fire department come out to make sure everything was up to code. I had a problematic tenant who was late on rent threaten to call code enforcement on me, to which I was able to say “please do if you have any concerns”. You want to be able to be confident that you’re in compliance with local laws, codes, regulations, etc. 

6) Be proactive about tenant issues. If tenants feel heard and well taken care of, they’re going to return the favor and be good tenants by taking care of your property and not starting problems for you. (hopefully, there is always the exception) 

Talking to an investor friendly realtor would be a great place to start!

Do you live near your investment properties? I'm pro-multi family for a few reasons. My multi family is 6 hours away from where I live, and I would have no idea what was going on there if it was an SFR, but I have 3 families there who will all tell me if something is going on. When (good) tenants share a space with other families/renters they are more likely to keep up on exterior maintenance (which is the tenants responsibility per my lease). I can also have 2/3 units empty and still cover most of the mortgage.

I think that for you investing in a multifamily would be a great idea, but you should maintain the diversity in your portfolio. Pull equity out of a few properties if you can, buy a 3-4 family to get your feet wet rather than jumping right into a 9-unit.