All Forum Posts by: Nancy P.

Wondering if this latest Milwaukee flood will change any of that.....

We also have elderly tenants (mid 80's) paying $200 below market.  But they were are neighbors who had to sell due to the husband's health, and we love them, so we're OK with it.  I know BP is generally about maximizing income but my H is blessed with a very high paying W-2 job.  We see how hard it is to make ends meet for many of our tenants.  We do increases,  because dues and taxes go up every freaking year,  but we don't jump the rent because the market says we can.  Everyone is different in both what they feel is right and what they can afford.

I assume you mean EXTERNAL monitoring?  I don't know of any state where it's legal to spy on folks.  MAYBE the yard and outside.  Maybe.   Or maybe they agree to that?

Your other factors I agree with.  I agree with (mostly women) saying everyone wants a decent safe clean home.  Provide that and you can make money.  But personally we are on the other end of the scale.  We own in an affluent area and tenants have very high expectations.  

All but one of  our properties are condos.  All of the associations DEMAND one year or longer leases as they want stability in the property.  So we have no choice.  Half of them  also charge move in/move out fees of $200 or $300,  which also discourages having MTM leases.   And I completely disagree with the assertion that it devalues your property come time to sell.  It is possible that the seller did have longer term leases but went MTM to put it on the market.  Buyers are far happier to have a tenant they can almost immediately get rid of or raise the rent on than a tenant they are stuck with for a while.

How many bedrooms? I looked up FMR (Section 8 fair market rents) for Locust Grove. $1150 for two bed, $1500 for three.

So you've heard the axiom in real estate is "location, location, location", right? It applies here in your next decisions, as well. Assuming you have oil production fields around you (central OK), if I were you I'd consider training in electrician or welder. In Illinois, anyway, they actually pay for you to train in welding. Both are in short supply. Those are both critical jobs in the oil business so you'd maximize your income. I do understand that welding doesn't transfer so well to REI, but something to consider, especially if you could train for free. Whatever you do for income, you need there to be jobs in your area. Good luck to you.

I agree to start with the notice,  as I said in my post. Don't lose any time.  But try to avoid the actual court date.  As for the PM,  maybe she's too passive for the OP.  But for all we know, the tenant's name is John Smith or another very common name.  No need to pile on for not recognizing a tenant from the past who CAME WITH THE DUPLEX. 

I agree with the incremental price increases AND the six months lead.  Give them time to fully mull it over and see what is out there.  Like @Terrell Garren,  we have had very good luck running just 5% or so below market.  Allows us to be picky when choosing tenants and our vacancy rate is 3%.

Reading comprehension time!   It is an INHERITED tenant.  OP probably doesn't have the same PM as previous owner of property.  PM is NOT the person who let this tenant into this property.

As to whether it is worth it to pay cash for keys...In Illinois it's at LEAST two months,  usually 3-4,  to evict.  Five day notice,  then wait two weeks for a court date,  where the judge gives them 30 days to find a new place.  ONLY when the 30 days is up can you schedule the sheriff,  which is 2 weeks-2 months wait in normal times,  was twice that in 2010 when eviction rates were very high.  You can get a judgement for the unpaid rent but good luck with that.  So hell yes, I pay for keys.  It all depends on the speed of eviction in your area as to whether or not it's worth it. I start with the five day notice and go from there...usually they pay or agree to leave within a week,  for nothing.  Once they get the court date notice I offer the full deposit back which is usually no big loss,  maybe $300 in damages.  I have done this every time with problem tenants since evicting one guy in 2010 which took six months and cost us over $7000.  I'll take $300 over $7K every single time.  (Yes, nowadays it would be more like $3000 loss but still,  $300 is better!)

The only eviction I've ever done took SIX MONTHS.  Because it was 2010 and the courts were clogged.  Right now it's 2-4,  and that's the norm.  Takes a couple of weeks to go to court, AFTER the 5 day notice is up,  then judge gives them 30 days to find a new place,  and only THEN can you schedule with the sheriff.   Damn straight I pay people to leave now.  Not actual extra money out of my pocket,  but saying things like if they're out within two weeks, they get all of their deposit back (even if there was a couple hundred in cleaning and damages).   FAR less money than eviction, which is time with no rent plus court costs plus sheriff costs plus my time trekking to the other end of the county where the courthouse is.  Use lawyers and it's even more. @Vanessa Gonzalez,  I will say I had to get a thicker skin to be a landlord.  Assume people will lie and be a pain and be pleasantly surprised when they are not rather than think everyone is honest and fair and be upset when they are not.  Good luck!