All Forum Posts by: Mike Mocek

Hey @Fahadbin Alam in my opinion, I would raise the rent to $1,000 for the next lease renewal.  Let the tenants know that your end goal is $1,300 and that next lease renewal it will be $1,150 and the one after that $1,300.  UI am not familiar with the water situation in the area of your rental, here in Toledo, a single-family home the tenant is fully responsible for.  Could you do the same on your lease?  I am interested to know how the water is handled there, if you want to PM me and share this with me.  In Toledo, the water bill stays in the name of the owner but the financial responsibility is of the tenants.  However, in a MFH where there is 1 meter and multi units, the owner is financially responsible.

In my opinion, just talk to your tenants.  If they say oh no, we cant afford that, than look to see how good of a tenant they are.  If they are good, than just keep them where they are.  Other things to look at:  If you raise the rent, will they fall behind?  If they say no and move out, what does turning the unit look like?  If you are looking at a $15k renovation, keeping them where they are for the next year while you build your residual may not be that bad.  So many different roads you can travel!

Great article @Rob Bergeron Amazon added a second facility in Toledo and it has done great here.  I am excited to see an area, that once was in despair, vitalizing strongly :) Congrats on the market!

Hey @Jonathan Mulkey I am sure this has been repeated but I am curious, why didn't your agent write in the agreement to transfer pro-rated rent and security deposit to you at closing?  Also, if you are keeping the same terms, why not just keep the current lease in place?  Sounds like a bunch of extra work to me.

When I write an offer for any of my clients, rent is pro-rated and security deposit is transferred to buyer at closing, in check form.  The reason I do this is for accounting purposes.  Some title companies will just give a credit at closing however, at the end of the year you may find difficulty.  Also, in the State of Ohio, security deposits have to be kept in individual interest bearing account.  

If you did not write in the contract for deposit to be transferred to you at closing, I would most certainly get on the phone with the sellers agent, or the seller, and have them write you the check for deposit.  Should be simple and painless as long as they are reachable :)

If you have any other questions I will be more than happy to assist!

Hey There @Fahadbin Alam You are asking some really great questions!  First and foremost, does the current rent make sense to leave it?  The other thing you can do is, have an open conversation with the tenants and let them know that your goal is $1,300.  What is their current rent?  Increase the rent every year until you are at your goal.  Ultimately, if they are solid tenants who have been there for years and never skip a beat, I would not focus too strong on the rental raise.  I have tenants that have been in the same property for 8 years, I raise their rent every 2 years, and they know that so there is complete transparency.  Is your agent an investor themselves or giving you a general opinion?  Not that it is important, more just curious.

As far as adding a bathroom with the tenants in place, this can get a bit sticky and a headache for everyone involved.  Contractors trying to get into the place, tenant availability, tenants complaining that it is taking too long etc.  Unless you want to relocate them temporarily and let the contractors have full access, I would'ntfocus on this.  Does a bathroom raise that much rent?  I have a property that is 3/2 in Akron, OH and it is about $75 more than my 3/1 located two blocks away.  However, my 3/2 in Tampa is $200 more than my 3/1 in Tampa so it really does depend on the market and demand as well.  

Everyone above has some great opinions, I would definitely look at the bigger picture as well :)

Hey @Hai Loc, Amazon is getting ready to open up their second distribution center in the area within the next month.  We also have Jeep, Libey Glass (Next time you go out to eat look at the bottom of the glass for the "Libbey" stamp), and obviously we have Owens Corning and Promedica and Mercy health systems. 

I am sorry that was your first impression, if you are ever in the area I will give you a tour (or just want to chat about Toledo) lets hop on a call and discuss the area.

@Ian Walsh great insight, even with a looming CDC Moratorium?

@Jonathan Swartz amen! Even before Covid, eviction courts made me nervous haha

@Brad Gibson first eviction with a looming CDC Moratorium in limbo, I’m sorry :(

I am here in Ohio, had court today actually. One tenant showed up with money and the remaining balance went into a court ordered payment plan and the others didn’t show

I find when they don’t show it is a piece of cake however, your not out of the woods yet. I had granted evictions and writs, the day we showed up with the bailiff the tenant had a CDC Moratorium and the bailiff left and that’s where it went.

My advice- accept any rent they have and get them on a court ordered payment plan, once that happens the CDC Moratorium tends to be waived by the judge and if they don’t pay they are out.

I would be happy to discuss this with you but also curious how it goes for you!

@Peter Eberhardt haha! This is true, I am from Michigan and moved to Ohio after living in Florida .. am I exempt? LOL when I lived in Florida I bought my Ohio portfolios.

@Hai Loc this is awesome! Glad you have found success!! Where do you invest in?