All Forum Posts by: Michell P.

I'd go for option 1 for a short period of time because money now lets you do more later.

Or live your life now because you might be dead later.

Conundrum.  

Nope, we don't accept prepaid rent unless a current tenant knows they'll be traveling or some such reason.  

What if they violate your lease and you want them gone but they've prepaid for a year?  

It seems like every story I hear where someone accepted prepaid rent for a year, the tenant turns out to be involved in drugs or criminal activity.

Yep, check your local laws first, but $1,000 for a security deposit when the monthly rent is $950 seems reasonable.  I've seen $1,500 for similar rent.  Keep in mind if you have to evict and your security deposit is less than 1 month's rent, you won't have enough cushion to cover the lost income.

@Ernie Cruz

I would think that the neighborhood and demand dictates whether you want newer appliances. A hot neighborhood may need updated SS appliances regardless of the size but a market that is capped to lower - middle income doesn't care, those should just be clean and functioning.  Or if you want to "lure" a better quality tenant you might want to upgrade even though you may not be able to raise the rent.  You'll get more applicants and may be able to be more picky.  

@Pete Perez

Hey Pete, 

Yeah, often multifamily rents for less - but keep in mind SFR often don't include utilities while MFR do. You also want to look at apartment complexes in your neighborhood and see what services they offer vs what you offer.

So, if all utilities are included you can raise the rents a little. 

W/D included? that's worth more. 

Yard? Privacy? worth more. 

Pool / gym? worth more. 

Next to school? worth more. 

Next to a crack house? uh, lower your rent.

It might help you to make a list of standard services and average prices and see if your unit is above or below the average.

@Eddy Dumire

I agree with others to check out your insurance first.  

We also have a pet addendum that requires both cats & dogs to be spayed / neutered and that the tenant agrees there will be no breeding of animals in the units.  Animals have to have updated registration as well and have their vaccinations.  

Our pet policy says we have to meet the animal.  Regardless of breed, the dog should be calm and friendly.  They may be overwhelmed and a little ADD, which is fine, but when you put out your hand and say their name, they should acknowledge you and sniff in your direction even if they're too ADD to come to you.  

A dog who immediately starts barking uncontrollably, or desperately pulling at the leash, or running off ignoring both you and the owner is a dog that still needs training and maybe isn't what you want in your home. 

I wouldn't decline a german shepherd that was calm and older, but might decline a young one if I felt the owner didn't have a good handle of it.  Young dogs can be brutal on a rental.  They've been known to eat the floors, eat the walls, chew the doors, bust through doors, tear out screen doors / windows, dig up your garden...

@Alex M.

I am in a similar state - with 4 residential tenants I'm working on keeping when the black & white answer is to just evict, and I'm not ready to evict yet.  

Personally, I think you can make your 2 residential tenants work, but they'll continue to take up your time in making sure they're paying in full by the end of the month.  As long as you're willing to stay on them then its fine.  But don't be afraid to give them a 72 hour notice if they start slipping beyond what you're willing to deal with - the threat of eviction shows them you're serious and so far my experience has shown they'll usually pay immediately to stop an eviction.

The commercial tenant seems a little tricky - I would suggest meeting with her and explaining why the paint job is bad, how it will affect her business and why you need it to be fixed.  When you sit down and explain that "for both our protection" you need a security deposit and that it's 100% refundable if she does no damage, she may come around.  I like to have these "heart-to-hearts" in person instead of paper but stick to your decisions.  Firm, but compassionate, and at the end, she signs the paperwork.  And I agree maybe a 2 year lease is too long if she's being so unreasonable.  Maybe a shorter lease can be something you "give" her to help her feel like she won something.  

People always think landlords are just out to milk the place, and maybe she just needs confirmation that you really do care but you have to protect yourself.  

But after, if she's still a PITA, you may have to bite that bullet. 

I know that's pretty frustrating, but at least they're honest in how they manage their units upfront so you know to avoid them.  Definitely sounds like an opportunity for someone to speak to the owners about selling or taking over management.  

Hey Jen, welcome to BP!  I'd recommend you start by looking at towns that are within a 2 hour drive of your home.  Everyone says its so easy to invest out of state, but without the right team in place it can be financially dangerous.  

To start off with, you probably want to contact both a realtor & a PM.  And don't be afraid to shop around for realtors.  

Contractors should probably be brought in only when you've narrowed down what you're looking for and you need help estimating pricing.  

Goodluck! 

Wow, lots of changes! Sounds exciting and so cool that you have someone helping you through your first steps. Goodluck and welcome to BP!