All Forum Posts by: Nancy P.

We did own a condo in Park City Utah...our first investment although we did it more for fun...paid for with inherited money.  We never skied over Christmas or during the Sundance Film Festival...which I sort of regret!  Condo management was horrible and we sold.  But I agree with everyone who says better to just vacation where you like, invest where it makes sense!

So many tenants have expected me to buy and install LIGHT BULBS that I had to put in the lease that light bulbs are their responsibility.  Astounding to me that I had to do it...to me it's like toilet paper,  buy your own!

I DO replace furnace filters twice a year,  and walk through the property at the time,  and it's in the lease.  Furnaces will last far longer with filters kept clean,  and I trust no tenant to do it on their own.

I'm in the Chicago area but Guaranteed Rate offers 20% with higher interest rate.  I know that GR is in Indy.  Give them a call.

You say you want to flip,  which is fine.   But if you decided to rent,  just know that Cook County is tough for landlords,  the rules there are far stricter than for the rest of the state...in the tenant's favor.

Shane,  Mel is right.  There IS no perfect deal.  You're losing money on the good deals while you wait for the excellent one.  Jump in!  We were 49 and 48 when we started 8 years ago.  Just bought our 10th property and kicking ourselves for not being more aggressive.  Husband likes his job--we're on assignment in Germany but still buying back home and teaching our kids the business.  Good to know he could retire anytime if he wanted.  We plan to have at least  five more doors before he turns 62 in 2022.  But I'm shooting for ten.

Having bought our first investment property in 2010,  when it seemed everyone's credit score was crap,  we decided early on that it was useless.  Our first tenants were both below 625,  young women who had lost good jobs due to the recession.  Both had moved home,  taken jobs beneath their abilities (college grads,  one was babysitting,  one was a salon receptionist),  and worked their asses off to improve their scores. I do NOT agree that a low score means you are irresponsible.  These two women were never once late on their rent,  both eventually got jobs in their fields again,  and both went on to home ownership.  I've had far more issues with older (30's) renters with good credit who ***** about EVERYTHING,  think we should change light bulbs,  "forget"  that the rent is due,  etc.  We look at income and expenses.  We must see pay stubs.  We check references.  We care about background checks.  We do not care about credit scores.

Thanks for all the replies.  Told husband I'd handle it...he won't ask again,  he's so busy.  Talked to PM and he's offered to pay the $600 over the next six months if that's OK with me....he knows he screwed up.  I'll probably split it with him,  I think it's on me at least a bit to not catch it in ten months.  Jim Shephard,  I like your Idea.  This guy is flaky and will probably say he wants to stay...I'm over it.

He's generally a pain in the ***.  Asking us to touch up paint,  then refusing to let us in to paint at the agreed upon time.   There are some kind of drain flies in his bathroom that he insists is our problem despite not telling us he had them for over a year,  we never saw anything there when we bought the place,  it had been a foreclosure and vacant for some time,  drain flies would have died off so we know he brought them in whether he knows it or not.  Also lease says pest control is his responsibility.  Drives on the grass.  Smokes in the garage even though I'm adamant that no smoking is allowed ANYWHERE on the property. Bitches a fit because we won't have the carpets cleaned until May (it's muddy in the Chicago area in the spring!)   Locks himself out on a regular basis.  Has put holes in three doors "accidentally"  (but has paid $300 each time to repair).  Has gone through 3 roommates and lived alone in the last year.  We can do better.  I have learned a lot about being patient and doing good screening.  I will handle it with the PM.  Husband works insane hours over here (he was brought over to handle a crisis).  I think the PM is also responsible but otherwise like him.  Maybe I will tell H what I want for Mother's Day is for him to let this go.  Not worth the stress and I'm not sure a judge wouldn't agree with the tenant.  Legal fees alone will be more than the $600.

We raised the rent from $1250 to $1300 last July 1 on a property we own.  Tenant has been there for 4 years,  he's always paid a bit less than tenants in identical property because he moved in November,  at the time we had no other qualified applicants.  Should have stayed vacant as 4 years at $100 or more below market value has equaled more than three months rent. (We would have gotten a market rent tenant in January or February.  Relative Newbie error,  we've only been doing this since 2010.)

Current lease ends 6/30.  We moved to Germany for a job in early June last year,  he signed the lease before we left.  We hired a PM to manage our 7 properties.

Turns out our tenant has continued to send $1250 a month to our PM,  who never looked hard enough at the lease to catch the mistake.  (My mistake too,  for not catching it until now.)  He just saw my spreadsheets that said $1250.  Now,  based on my experience with this tenant,  he could be just stupid or trying to pull one over on my PM.  Either is possible.

So we were finally catching up to market rent this year at $1350.  Tenant says he won't renew at that price,  that $100 is too much of a jump.  THIS is where I catch the mistake as it is really only a $50 jump from rent stated on the lease.  

Tenant and I are emailing directly at this point.  He says he "didn't know"  rent was $1300.  I have emails to the contrary.  He complained about the increase but accepted it.

He says fine, he's not renewing,  and he's not going to pay the $50 x 10 months he owes (12 by the time he leaves).  He says since we accepted the rent for ten months without comment,  he has no obligation to pay it now.  Also,  that he will sue me if I take it out of his deposit when he leaves.

My reading of the lease says otherwise,  but I think I'm better off just letting this guy go (he's a PITA anyway) and eating the $600.  My husband is adamant that the tenant pay NOW or get evicted.

Has anyone had similar situation for whatever reason and how did you handle it?

Thanks.