All Forum Posts by: Marc Winter

Your best bet is to speak with a real estate attorney re: right of first refusal.  I doubt there is such a thing for a tenant, but in MD ya never know!  While you are at it, discuss the eviction process in your area.  If this is your first eviction, hire the attorney.  Learn the process, then keep moving forward.

BTW, whenever I am selling a tenant-occupied property, I always offer it to the tenant first.  Most will never buy, but some become a bit more cooperative about showing after the courtesy of your offer.

Please keep in mind that "D" areas normally:  will take more repair expense; more hands-on management; will have vacancies/no-pays more often; tenants that will let their pitbull tear up the house and crap up the yard.  (I am a dog lover--can't blame the dog for the way they are trained/not-trained).

What I'm saying is that even if the numbers manage to work out on your spreadsheet, that is NOT money-in-the-bank.  If you had a 21 year old daughter, would you want her to live there?  After many years in property management, my experience is that holding a D property as a long-term rental will lose you money, IMHO.

Yup, @Jonathan Greene got it right.  

Ask your contact, "For me to make a final decision on this property I need to know how much will you lend and on what terms?" 

Your response should be "No, no, no!"  You must explain to them that they are "individually and severally" responsible.  That means that if one tenant messes up, the others will have to deal with that mess.

If they don't like that, too bad, DO NOT accept them.  This is from my own personal experience, and what I have learned to do.  It is not legal advice.

It is my understanding of the FCRA that you DO NOT send them a copy of their credit report. Instead, if credit issues are causing the rejection, reference the credit bureau you used, and how to contact them.

Do not reveal their credit score or any derogatory information therein--just state that the rejection was in part based on their credit report from (name of bureau).

Send a personalized letter to both of them.  Do not discuss the exact reasons for rejection; ie: state 'a search of court records' as opposed to 'you were evicted'.   

*FCRA = Fair Credit Reporting Act

Question:  what type of 'payment collection' are you referring to?  If it means a collection account, that will be on the credit/background.  

If you are referring to their rent payments, that's going to be spotty at best.  It would require the landlord to have access to one of the 3 big credit reporting agencies, and pay to have any late payments posted.

@Dante Peduzzi, no way would I buy a new, quality build property for $440k with $3k/month for a rental.  First, the margins are too thin, second, unless the tenant had some serious skin in the game (meaning heavy security deposit), it's pretty risky for the owner.   

Look for a deal from a motivated seller--please don't tell me there are no deals there.  There are ALWAYS deals to be made if you look at enough property.

Good luck!

Hi Kyle,

Welcome to BP!

Wilkes Barre is starting to be 'up and coming', depending on the area you bought.  If you'd like to discuss, dm or call me.

Best,

Marc

Remember that most lenders (banks/mortgage bankers) will discount your rental income, so it may or may not have a benefit for your bottom line as seen with the eyes of the lender.

@Abdul Azeez,

I agree with @John Underwood.  We have the contractor contact the tenant directly for appointments.  If there is a confirmed appointment and the tenant blows off the meeting, they are entitled to be charged.  

We never have a contractor charge us for that type of mess up, or that would be the last work order the contractor will see from us.

More to your point--the management company was correct in billing you and then reimbursing you when the tenant paid.  We bill the tenant for something of this nature as 'added rent'.  But we are not going to chase the tenant for the money--our management contract is with the owner, not the tenant.  If they fail to pay, it is grounds for eviction.

If the contractor did NOT bill for the missed appointment, the management company should NOT bill anyone.  We would send the tenant a lease infraction notice.  Three or more formal infractions are grounds for termination, as per our lease.

Lastly, you might consider installing a lockbox and key on the property so the work can get done--especially with a confirmed appointment.  Just let the tenant know that if they are not at home at the time of appointment, the vendor will use the key and enter to perform the work.

@Abdul Azeez