All Forum Posts by: Marcia Maynard

If you supply the appliances and hook them up, you will benefit in a few ways... proper appliance to fit the space, proper hook up, less potential of property damage when moved in and out, and safety (no frayed cords, overheated motors, water leaking appliances, etc.)

We always supply the range and range hood. It makes a difference if the appliance is electric or natural gas for the type of range hood required.

We provide refrigerators, but allow tenants to provide their own refrigerator if they wish and oversee the moving in and out of the appliance. Unfortunately some refrigerators don't fit the space property. My sister once took a saws-all to a cabinet above the fridge to make a big fridge fit into her place! We don't supply water lines to refrigerators, so none of our refrigerators have ice makers (note we do not live in a hot climate, so it hasn't been an issue).

If we provide a dishwasher, it is built in.

If we provide a microwave, it is built in.

In some places we provide washer/dryer and some just hook-ups. We oversee the move in/move out of these and double check the installation, to prevent damage.

Never found the cost of appliances to be prohibitive to our providing them. We do regular inspections to make sure the tenants are using the appliances appropriately and taking care of them according to manufacturer instructions. We also maintain a relationship with a good appliance repair company when needed.

Also, since we specialize in affordable housing, our tenant pool tends not to have their own appliances. Our local market is such that we need to provide them to be competitive.

@Robert Steele I hear ya. My parents put a small amount of money in the stock market in the 1940s, lost it and were forever leery, never investing in stocks again.

I've done pretty well in my stock market investments over the years. When the market dips, I go shopping and buy more. Then when it rises, I take some of the profit out and invest it in RE which is tangible and secure. But I don't take out of the 403(b) and 401(k) or IRAs. Like you, I keep a fair amount of cash reserves for emergencies.

When my husband and I got mad at the Wall Street shenanigans and the government role in it, we stopped our contributions for awhile and invested more in RE. Unfortunately, we missed out on some bargain prices on some stocks we could have bought that later performed quite well.

Luckily, I'm fairly relaxed about all my investments, so I'm able to roll with the downturns. We live fairly simply and are ready to live off the land if need be, our own home is paid off and we have no personal debt. So that helps. Do love the real estate investments!

Quick true story.... my grandparents were dairy farmers in southern Wisconsin. One day my grandmother took out half of the money in their savings account and bought a sofa. The very next day (the start of the great depression) the banks closed and they lost the other half of their savings. Grandmother would sit on that sofa and say, "At least this half of my money I can sit on!" We still have that sofa in our family and the lesson has not been lost on us.

@Robert Steele For me, diversification is important. I prefer having a variety of retirement investment vehicles. I don't see it as an either/or.

When an employer provides a match with a retirement plan, that is free money and something I would not pass up. If an employer doesn't match, then it is not as attractive, and I will usually put the money to use in my own REI. But it still has some merit for the automatic saving aspect - a discipline which is a benefit for many people, especially the young. Contributions to a 401(k) or 403(b) can also be invested in an REIT.

The beauty of a Roth IRA is that the money invested is post tax money, but grows tax free. Direct contributions to a Roth IRA may be withdrawn tax and penalty free at any time, so it can double as an emergency fund. Real estate is not so liquid.

Our rental agreement is in two parts.

The first part is the "Rental Agreement" and it has all of the essential information. In the event we needed to do an eviction for non-payment of rent or a violation of a core term, this is the only part of the rental agreement that would be needed in court. Our most important procedures, such as how to pay rent and how to place a service request are covered in the core rental agreement.

The second part is an addendum to the rental agreement and titled "Property Rules." We list our property rules in alphabetical order so it becomes an easy reference document for the tenant. This document has become longer over the years as I update it every time something happens that demonstrates to me that common sense is not common. We repeat some key points from the core rental agreement in the property rules as well, for emphasis and for ease of finding.

Successful tenancies usually start with clear expectations communicated in writing and explained verbally. Ongoing reinforcement of the rental agreement and rules is important as well.

I too would be glad to share with you the exact wording we use regarding maintenance and repair (landlord responsibilities, tenant responsibilities and service requests)... message me if you would like such.

All the best!

I use a star system tied to rent payments. If a tenant pays rent on the first of the month or prior, they get a star in my rent register. After 12 consecutive stars they get a gift. When doing property updates, my "All Star Tenants" get first priority for improvements to their units.

My "All Star Tenants" also are rewarded with things such as complimentary professional carpet cleaning of their traffic areas, opportunity to paint a wall or room a different color or another enhancement to their unit

It doesn't matter whether you are age five, fifteen, thirty, or sixty.... seems everyone likes to get a star!

We have our business and properties in an LLC. One of the reasons I like doing so is to use the LLC name on all of our official documents. In the the event of an eviction, I much prefer our LLC named as the plaintiff than our personal names in the court records.

Many good observations and tips! Wow. I wish I had not rented to the single mom with the three year old who created a bit of pencil artwork on the kitchen floor during the showing. I too now look at how the parents interact with their children. I've been burned too many times by tenants who lacked parenting skills and were not responsible in other ways, which led to damaged properties and unpaid rent.

I encourage prospective tenants to bring along a friend or family member for a look. If they do, it points to having a good support system and the tenant is likely to be more responsible. I suggest that they also take a walk through the neighborhood to get a feel for the area. I want them to consider carefully whether or not the place will meet their needs. If it is a good match, the chances of a longer term tenancy are greater.

When showing a place, I invite the prospective tenant to walk in and take a look on their own and explore. I stay close by to answer any questions. I watch to where they go first as it gives me an idea about what is most important to them. Is it the kitchen, bathroom, bedrooms, closets, garage, back yard?

If the place passes their first impression and they decide to apply, then I hope they will look a little deeper, open and close things, turn knobs on and off, ask lots of questions. It is a good sign for me if they do. The interaction and conversation I have with them at this time also gives me a chance to learn more about them.

My worst tenants were the ones who didn't care and moved too quickly to rent.

Sure wish my father had been with my sister and I when we naively and unsuspectingly gave a $50 holding deposit to a shyster property manager on our first attempt of looking for an apartment. Luckily my father came to our rescue and checked the place out before we committed to a rental agreement. The refrigerator was plugged into an extension cord that went around the corner to a living room outlet. The bathtub faucet actually came off in my father's hand when turned it. And the list of other deficiencies was long. Losing the $50 holding deposit was the price of our lesson.

Some of my best tenants are ones that cared enough to make sure the place was safe and comfortable. I can't imagine someone bringing along their own home inspector, but if they did I would not object. I want to know of any deficiencies in my properties and to have a chance to address those before anyone moves in, especially before anyone were to get hurt.

Pay off your credit card debt. Make it a priority. Then use your credit card responsibly and pay it off each month. Consumer debt is the type of debt you need to avoid. Read about the debt snowball and debt avalanche approaches to paying off debt.

A car loan is also consumer debt. Get cracking on paying that off as well. If you can do without a car, do so. If you can't, then save your money until you can buy one with out financing. If you need to finance an auto purchase, make it no more than a three year loan. Absolutely keep up with loan payments. The easiest way to do that is to set up automatic payments from your bank account.

Set up a repayment plan for your student loans too. The ones with the worst terms first (usually this means pay off private student loans before government student loans) and always pay at least the minimum, preferably more to the extent that you can.

This is the time to build your credit worthiness. Learn as much as you can about money management. Google "credit score tips" and look for advice on reputable sites only. Aim for a credit score of 740 or above so you can get the best terms when you need to get a loan for real estate purchases. A high credit score will help open up other opportunities for you as well.

Bookmark ftc.gov and refer to it often - great information for consumer protection and how to avoid scams. You can check your credit report up to three times a year for free through annualcreditreport.com (that's once a year for each of the three credit bureaus). If you type that website wrong, you will be erroneously led to bogus sites. So be careful. I always access it through the ftc.gov website as it's safer. Be careful not to respond to the pop ups that will charge you a fee to get your credit score.

Fund your retirement account. The sooner you start, the better. If your employer offers a 401(k) or 403(b) and matches it, start there. Also, contribute to a Roth IRA. Let your money grow tax free.

Establish a personal emergency fund as well (equal to at least 6 months of expenses, 8 months by Suze Orman standards, or 10 months by my standards).

While you are doing all you can to establish a solid financial foundation, keep reading and talking to successful investors to learn the business. Set S.M.A.R.T. goals... google that.

Lastly, you will learn from reading the BP posts that it is essential to have sufficient cash reserves when investing in real estate. There are always unexpected expenses. RE investing can be a great way to achieve wealth. You will also be embracing a lifestyle, with its own rewards.... not all of which are monetary.

Happy and Safe Investing!

@Mark Kindy Hey Mark! Highly unusual situation it this day and age! However, when I was living in Seattle in the early 1980s I joined a house share situation with friends. There was no written rental agreement in place when I moved in. So I found one at an office supply store, filled it out, and asked the landlord to sign it. He did and it was beneficial for both of us. So if the landlord doesn't present you with a lease/rental agreement, then be proactive and present him with one!

Some people renting properties haven't learned yet how to be a landlord. Best for you to be familiar with landlord-tenant laws for your state, so at least you know. Whatever your verbal agreement is, write it down and date it. For sure, get yourself a move-in checklist, fill it out at take date stamped photos of the condition of the property as close to your move-in date as possible. Then see if you can get the landlord to read, acknowledge and sign these.

I would nix the sending a registered letter idea. Instead make a face to face appointment with your landlord. Keep on friendly terms. Ask him, "What would it take for us to get a written rental agreement in place?" Listen and negotiate.

Good luck!