All Forum Posts by: Pam R.

Yes, space heaters. ASAP. You need to help mitigate the problem.

If they get a motel for the night, are you planning on paying for it?

Well, that worked out great! Glad to hear it.

It's a very creative idea James. I guess I balk at the idea because I generally keep business and home separate, as well as keep my business and my professional work life separate. So I personally wouldn't rent from my employer, nor would I rent to my co-workers. But there are a whole lot of people in the world who don't think like me.

I'd be interested in hearing some of the more experienced BP members voice their thoughts on your proposal.

But the last question: Is there a rental market here aside from the company employees? Could you buy these properties and rent them in general, or do you feel that the core market is these commuters? I am unfamiliar with New Jersey and your town, so you'd best understand the demographics.

Good luck!

Hi James. That's certainly a creative idea. I guess my questions are:

1. Why are all these people commuting so far? (Or, to put it another way, why aren't they already living close to work?)

2. How would your rent compare to the going rents in the area?

3. Why do you think some of the employees would want this type of housing/transportation deal?

I know people who commute an hour to work. I know one person who commutes 1.5 hours EACH way. Myself, I commute 45 minutes. Everyone I know who commutes that far is because they like where they live - and they need to drive that far to get to a job. It's not because we CAN'T live close to our jobs, it's because we don't want to. We have lives and families and friends where we live. Work is...well...work.

I know one person who rents from his boss (a "company store" scenario, which is what you are describing). He knows it's a terrible idea, only did it because he was absolutely desperate, and will get out of it as soon as he can.

It's possible this idea is brilliant. Personally, I don't know why you feel you have to tie this to your dad's company, and his employees.It seems like a bad idea. And asking one of the maintenance guys to be the super? So if there is a water leak is it going to be ok for him to call into work to take care of your property? A van to drive everyone to work? I dunno. It's all too intertwined.

4. Can you do this WITHOUT trying to use the company employees as the tenant base? Is there a rental market there?

I don't know much about the industry you are in, so I could be way off base. Again, maybe the idea is brilliant. You've certainly thought a lot of it through. Is there anything in particular that leads you to believe this is something your target audience wants?

@Account Closed - I actually am 100% in agreement with you. We had long-term tenants that got a cat against the lease and we amicably parted ways because of it. They were surprised, but I was not going to allow a cat to stay in that carpeted apartment.

@Dean Suzuki - I'm curious - with all the feedback, where are you leaning on the cat decision?

@Dustan Marshall - For going to see the property once a month, we have in our lease that we may perform monthly inspection of the smoke alarms. If you did something similar, you would have a pretense for going inside once a month, not necessarily on rent day, just whenever is convenient for you. Of course, with 24-hour notice.

That being said, we've never performed a monthly smoke alarm inspection. I haven't had tenants that have given us any indication that something is amiss and that we need to take a look around. I'm not nosy, and I leave my tenants alone. But it's handy to have that tool in the toolbox in case my well-laid plans and well-screened tenants go awry.

@Lynn McGeein - that allergy idea is clever. I'm on the "no cat" side of the fence too. I have my own cat. and I know the damage they can cause. A couple bladder infections and you're pulling up carpet.

Here's a question: how long do you think they will stay? If you up their rent by $25/month, plus get a deposit, and they stay 2 more years, it will probably cover you financially.

@Shawn M. - yes, it may be the most expensive, but that's not the perception. I'm on propane myself, and that once-a-year $800 bill to fill it is painful. I'm on my 3rd cord of wood this year to ensure that I only have to fill that thing once. When I have to fill it twice a year b/c I'm low on wood - ouch.

@Matthew Paul - I know one person who quit filling their propane tank a few years ago, and reverted to electric space heaters, and thinks it's great. I know another who still buys propane, but uses electric space heaters to reduce their propane usage. I also know a woman who lost her farmhouse rental after 25 years b/c she got sick one winter and couldn't afford the propane to heat the house. She probably couldn't have afforded the electric either - but there are laws about utilities cutting off heat in the winter, so if she was on electric heat, I suspect the utility would have had to work something out.

My point - electric baseboard is a viable option, especially since many people like dealing with a utility they are "comfortable" with. I'm unfamiliar with heating oil, but in the case of propane, if it gets too low you have to pay extra to have it re-pressurized. I could see tenants just letting it run out, and buying a bunch of space heaters.

Not looking forward to my propane purchase in the next couple of weeks...

@Dustin Faeth - I was wondering how things went? Did you work something out with the tenants?

I think your strategy is a smart one. But maybe I think so because it aligns with my strategy. Other people have different strategies - but you are assured a very nice cash flow with 5 paid off properties (plus the accumulation of more potentially). There is nothing wrong with it at all.