All Forum Posts by: Michael Boyer

Neat topic. Hardly any books cover the topic of rather to disclose to co-workers and others your REI activities.

I went sort of yes, no, yes on it...

And it may depend on your context (type of work and the demographic and psychographic of co-workers).

First, if you work for some employers you may have to disclose it. Like my day job with a subdivision of the state, I disclose all business dealings.

So it was not top secret for me anyhow. Never been an problem--just a formality (I just note I do REI on my own time, with my own resources, and it is unrelated to my job duties). There is just a conflict of interest form to sign with my annual contract. Check with your hr dept if you are unsure.

Second, more on the social and psychological level where I think the question aims--it may depend. 

I housed someone that worked in the same organization early on, so word got out. I didn't really mind, but in my context (a college) some folks are not as keen on free market capitalism in general....

With just one mid-level condo housing a professional at market rates--someone called me a "slum lord" and another said I was "a capitalist" (the latter of which I think they meant as derogatory--but I kinda appreciated or preferred to being called socialist or communist). 

So I kept it more low key after that. I sensed it could make me vulnerable, like if you misssed work or something, folks could be like "oh, he must be out showing a rental house or something". Or some may paint you as the greedy villain. 

But the good news, the cat was out of the bag, and once you have been called a slum lord it is rather liberating.... it can't get much worse. 

In fact, it frees you up to not worry about what others think. You see their comments won't be driven by rationality or anything you are doing--but  more about someone's insecurity with your ambition or direction. It's them. Not you.

 And "yes" your extra motivation and business savvy will be a trigger for some folks.  It takes them out of their comfort zone, for with about the same income and time constraints, you acquire and manage a half dozen income producing properties and they binge watch Netflix from an underwater single family or maybe just rent! That an rub some folks the wrong way. But this is much the same as if you do award winning daily work, get a promotion, or author a book....it just makes some folks unhappy. Avoid them.

Finally, you actually may find several folks in your workplace have rentals (be it a vacation rental, an accessory apt or the duplex down the street) or other cool side hustles. And it can even become something of a badge of honor and part of your identity.

 I even took what was at first a possible workplace vulnerability and made it a strength. For example, in my job we are encouraged to do writing, so I did a book for the part time landlord and was honored at an author's reception! 

So you see the transition from some possibly frowned upon side hustle to getting an award!

Best of luck!

At first, it seems counter intuitive to be a landlord and also a tenant.

It felt odd to me (disclosure: I own a home). 

BUT there are some solid reasons (as mentioned by others). 

One of the best rationales I have seen--I think it was from author/educator Jay P. Decima--for being a renter and into REI:

It lets you be all in.... 100% in terms of both time and money committed to real estate investing. 

For example, a no hassle, low cost apartment won't soak up much of your capital (which you need for the next buy and hold rental or flip).

And--just as crucial--it won't burn up much of your valuable time (with home improvement projects, a lawn to mow, leaves to rake, a porch to paint, flooring to replace, etc).

So you can put the extra money and weekends into buying and improving investments properties-- not on a long to-do list for your own place.

Best of luck!

Neat realistic scenario. 

I might really get into their rental history. 

I find renters often have a lot of financial obligations, and while I think it is great if they are keeping up with their consumer loans, student loans, credit cards, car loans, etc.--but what I really, really want to know is how well they pay their rent/housing. 

I prefer the folks that prioritize rent above all the other "stuff" (as they should because their will be no place to park or put their stuff if they get evicted!).

I have 3 past residences (landlords/housing) deep on my application and will actually try and get a hold of them all if possible. 

If one of these applicants had an edge on timely rent payments (for example, one applicant paid late or had trouble making rent), then I would go with them. 

Or if they seem tied on the financial side and had equal ability to pay, I would also make sure to check how they did on following rules, excessive wear and tear, noise, unauthorized occupants/pets, etc. Along with paying the rent, make sure they won't take an unreasonable toll on you or the property.

It may be a case where you can offer the place to the first choice (I open it for 24 hours to accept and sign/pay 1st month and deposit) and if they take it great, but if they decline, you have solid second choice (not a bad place to be in as a landlord).

Best of luck!

It is a tough one. I totally agree--way too much tenant mischief on disabling these. 

At move in, we test them together and note that they work in the lease. I even talk about their importance. 

Still, some folks will unhook them all (I see this sometimes at move out). 

But I like the way my state (AK) has divided out the responsibilities between the parties in the landlord tenant laws. 

It reflected what I did (and then some). For example, I always provided operational detectors .  Then I tell the tenant to let me know if any need batteries or replacements (chirping, malfunction etc, etc). 

So I like how the rule below states that I provide then AND the tenant isn't suppose to disable detectors and "shall" keep them in working condition. Makes sense to me.

As a side note, I also find the detector detaching tenant is commonly the one with the dirty oven (which was sparkling clean at move in)... which then smokes, causing them to unhook the detectors... Vicious cycle. 

Best of luck!

Good news--if you are 20 looking at a house, know your credit profile, and are helping your folks out--you are way ahead of 90% of the 20 year-olds I work with (teaching at a college)! 

I can ask them to raise their hands for something like "who knows what a FICO score is" and get maybe 1 or 2 out of 20 (I know, I know, but I am working on it...).

Rather than any specific recommendation on an action, I would just keep boosting your financial knowledge/foundation and earning power, and I think the exact date of your home purchase or structure of a given loan or qualifications will fall into place.

To that end, the books and personalities (Dave Ramsey) mentioned are a good start. I would keep going in that direction (be it top ranked personal finance podcasts or books) and I think you will be in good shape in your overall journey. 

Best of luck!

I would go gradually with the increases, maybe with 6 month leases, till you hit your target rate. 

Use objective data (show them the comparable rentals) and also show you are improving the place even if minor (so they can mentally match the increase to the market and to visual improvements).

They might sign on a few times and then, if you are still under market, they may stick around when they actually look at market rates (craigslist or online ads) and see they still have a deal.

And the timing might work out. You will have your unit all updated over the year, and if the long term tenant does move, you can move in that side, rent your updated side, and start on that unit that I would guess has not been updated much in 20 years (harder to do a renovation in occupied unit for example). 

Overall, it sounds like a pretty good story if your main issue is getting a tenant in place (like really in place) back up to market.

Best of luck!

Really enjoyed your intro. Lots of great points and experience. I like your point about how some regulations can go too far and cause unintended consequences. I saw this neat story about how you got into it (landlording) and also how you got out of it (at least the day to day) after 17 years!

I think I almost had a similar story...My locality took some cookie cutter landlord tenant regulations (from Seattle, I think) and was entertaining passing them in some sort of housing plan.

 I actually expressed to them the need to exempt Mom and Pop Landlords (4 unit and below) and rental owners due to the onerous nature. Others in town wrote or spoke out.  

I seem to recall there was stuff like a 24 hour on site manager required at all complexes (crazy and would put most small folks out of business) and a no income source rule that would force all but the higher end rentals into Section 8 whether they even understood it or were aiming for it (classic big penalty, stigma and lawsuit for violations).....I mentioned the small time folks may not all be interested in Section 8 or set up to participate and handle that market.

Oddly, the assembly's goal was more housing, better managed housing, more affordable housing. And I mentioned (and others) the same rules could produce unintended consequences--the exact opposite effect. That is, small landlords getting out of the business. Fewer small rentals built, etc. Higher rents. Less incentive to provide housing, etc.

Luckily, they listened. Got a nice note from some of them. The problematic parts did not pass.

Interestingly, I would guess your tenants may lose out in the end not having a focused, hands on owner/landlord able to give great service to 8 units. Property managers can be great but it is hard to beat the guy who owns the place, lives there, etc.... 

The harder and riskier it is to comply with landlord regulations will probably mean fewer owner/operators (especially part time folks). The compliance costs are more than just paying professional managers and may mean more larger, institutionalized ownership (with resources for a law firm to constantly fight and full time professional managers able to keep up with all the rules)... 

Best of luck!

I really like the overall layout of your site. Looks like you are off to a great start.

It is great to have high standards. But you have to be realistic for your market. It may be you are now in the learning phases, finding out about the exact details of your target market and their eligibility and backgrounds. 

The market will tell you so much. For example, if your rent is a bit too high, your email/text box and message box is just crickets. If you are just at or right under market, it rings off the hook. That does not sound like an issue (though shared utilities may be a bit vague for some)...

Same with requirements for tenants. You want someone who will (1) pay the rent and (2) follow the rules & not damage the place. That is it. Don't need them to babysit your kids or loan them a million dollars.

And keep in mind the big picture. It may be someone who has DUI ten years ago can still meet one and two above. Or someone with one bad medical bill that killed their credit could also meet one and two above. But they both may have been scared off by your criteria (which you could even soften with font size or brevity). You do want to sift out those with serious problems (to not waste your time and their's) but not also filter out those who could be potentially good tenants. So I might use this first experience to see if I need to adjust the filter slightly to meet the larger business goals.

Best of luck!

Good news: your screening process has screened them out.....

Check your local rules (or with a professional), but if you did not run credit, I would not give them anything other than a polite "thanks for applying"...

I would not reward this behavior with any more of your time or energy. 

More good news: a good tenant is out there... they may be your next call or showing.

Also, because the application was defective/incomplete (maybe borderline fraudulent) I would say your risk of any later action is low to nil.

Best of luck!

I might diagnose whether it is a people or property problem first. 

There are a good range of ideas on both already.

As a new owner, you might find out (as mentioned) if you really have a thin walled issue with noise easily transferred. 

You could have a tenant next door turn a tv to a reasonable level and see if it is discernible. Alter the volume and see when you can pick it up if at all from next door. Just communicate by cell phone for the experiment. This could tell you if you need soundproofing. If so, search BP on that topic.

But my guess is that if you live in one unit and can't hear any problems (and the tenant on the other side can't either), there may not be a building issue (it may depend some on your layout, however). 

Also, being there, you really get a chance to hear problematic noise. You are there all hours and can even step outside, walk around, work on the place, etc.. 

Can you feel a vibration of thumping base or screams from an action movie? If not, it may be you don't have tenant causing the noise problem but an overly sensitive tenant (or even a tenant conflict that has been brewing and this is just a manifestation of that).

I think I might let the complaining tenant know what you have done and are doing on the issue (with the quiet hours policy, reminders to tenants, and even looking at the walls, etc) but I would also be considering whether the inherited tenant is a good fit. It may be they need a single family or unit with more extensive soundproofing than you can provide (and you may also want to mention that). To that end, you might start preparing to not renew or give the notice if their complaining becomes too incessant or is found to be unreasonable.

Best of luck