All Forum Posts by: Matt Slease

Hey Matt. I used Brad Yert at dry insurance in Akron for all my canton props until I got a commercial product. Highly recommend. Most of my single families were around 35 a month.
Steve

Thank you! I'll look him up for sure.

Do you/did you have a separate umbrella policy to reduce yourself from any liabilities?

0 Votes

About to close on my first rental property (SFH)! Do I need any special insurance other than homeowner's insurance to cover my rental? Should I look into a separate umbrella policy to protect myself as it will not be in an LLC?

Also, if anyone knows of a good insurance agent in the Canton, Ohio area let me know!

1 Vote

Originally posted by @Max T.:

What is the current lease? Term or month to month? The lease comes with the property. You can't just change terms unless it is up for renewal.

Appreciate this tip! I'm getting a copy of the current lease sent to me to read over...

1 Vote

@Anthony Vander Meer

Appreciate that! What app do you use? I know there’s a few different ones out there

0 Votes

@Joshua R.

Thank you! It’s a single family home so just the 1 tenant. That sounds like a good idea, I’ll give it a few months to make a judgement.

What’s the best way to bump the rent? Wait a few months and then send a nice letter? I’ve seen the one floating around with 3 different lease options that I like.

0 Votes

So it looks like my offer was accepted on my first rental property!

The property already has a tenant in place that’s been there for 8 years and pays on time, keeps the place decent.

I’d like to keep the tenant and he’d like to stay... I guess I’m not sure where I start with this?

Do I go month to month for the first few months to see how it goes and then go for the 1 or 2 year lease?

The rent is probably slightly under market value for the neighborhood and condition, but it still cash flows alright for what I need.

What would you guys (and gals) do?

1 Vote

Originally posted by @Joe Splitrock:

Originally posted by @Matt Slease:

Looking at a property with a tenant already in place, has been there for 8 years. They're paying $700/month currently, market rent looks more like $900-950, possible more if it's fixed up nicer.

Would you consider keeping the tenant?

Cash flow doesn't really work at the current rent, but would it be smart to say this is what the new rent will be if you want to stay?

I probably would keep the tenant and push a moderate rent increase. It depends on the numbers, so do the math. Let's say it costs you $3000 to rehab the unit and get $900 per month. Let's assume the rehab means three months of vacancy @$700 that is $2400 plus $300 for utilities. So the total cost to increase rents to $900 in this example is $5700. Divide that by $200 and it will take you 28.5 months to break even on the rehab. Another option is raise rent $50 or $100. If the tenant moves out, you can still rehab and raise to $900 or $950. I have done similar comparisons over time and gone both ways. Just think through what is best financially for you. That $5700 rehab money may be better spent on acquiring another property.

Thank you for the input, that's an excellent, logical way to think of it.

If I can get it for the right price to where it cashflows with a $50-100/month increase, that might be a win-win as the tenant wants to stay.

0 Votes

Originally posted by @Chris Davidson:

@Matt Slease I would checkBP episode 448 and the end of it has a really good idea on how to get the tenant to raise the rents. However, if you want new tenants I would just get them to move out, fix the place up, and bring the rents to market rate

Funny enough I just listened to this episode yesterday and got to thinking about that! I plan to use that method if I go this route.

0 Votes

All Forum Posts by: Matt Slease

Matt Slease has started 12 posts and replied 71 times.

Post: Inheriting a tenant

Post: Inheriting a tenant

Post: Insurance for rental property

Post: Insurance for rental property

Post: Inheriting a tenant

Post: Inheriting a tenant

Post: Inheriting a tenant

Post: Inheriting a tenant

Post: Would you keep a tenant when buying a property?

Post: Would you keep a tenant when buying a property?