All Forum Posts by: Nate Smoyer

Big. Really Big. 

But, in some ways, I think there will be some positives outside of "nows the time to scoop up properties on the cheap!"

I think how we look at the world, societal interactions, and living will be dramatically altered.

Work from home expanding so rapidly will begin to reshape daily traffic patterns in cities, which will alter the make up of neighborhoods and local businesses.

CRE is in for a lot of shakeups, especially office space. Office space is continuing on a trend of becoming an active business vs. passive investment.

More will adopt protective insurances like rent default insurance. Reduction in debt exposure for most. Many will panic and sell to cash out. 

I say stay calm, plan ahead, and make thoughtful decisions moving forward.

If you haven't considered getting rent default insurance, then it may be time to give that some thought.

I know it's not widely known about, but it's an insurance that will cover loss of rent. So it can be in the case of eviction, tenant gets sick or dies, natural disaster, etc. 

I can't say with 100% confidence if it pays out if the government shuts off rent payments, but it's worth your time looking into. 

I want to avoid posting any links that seem promotional, but if you look up "what is rent default insurance" on YouTube, I have a short video, as well as a few others that explain what it is and how it works.

Hope this helps! 

@Onye Chukwuma - welcome to the club! You're started down the right path by asking for help.

A few people said some great things.

• @Stace Caseria - mentioned know your why.
• @Rod F. - mentioned automation. Definitely use a rent collection tool (Avail is one to consider) and you can automate your late fees.
• @Account Closed's book on Managing Rentals is UH-MAY-ZING. Buy it immediately and read it cover to cover.

  Best of luck. Cheers to your new adventure!

If you use printed fliers to promote your property, at open houses, by a sign, or to hand out, can you share if these are successful in helping finding new tenants?

I'm curious of different designs, methods or techniques used here. 

Conversely, if you think these are a waste of time, why?

Thanks!

Hey @Michael King,

These are both good solutions, but if I may, I recommend taking a look at Avail. Including the credit, background, and eviction checks, Avail will ask the tenants to provide references and then work to get confirmation from those previous landlords the tenant is who they say they are. Avail is listed on the Landlord Resources page - https://www.biggerpockets.com/tools/landlord-resources

Hope thats helpful. Cheers!

**Disclosure, I work for Avail, but also use the product myself.

Hey @Elliot Terekhin, as mentioned already, unfortunately you can not charge pet rent. You might be able to take an additional deposit, but please check with a legal advisor on that. 

Here's a summary page to help with some of Washington State landlord & tenant laws that may help. https://www.avail.co/education/laws/washington-landlord-tenant-law#are-there-pet-laws 

My very first tenants pulled on this on me in Bellingham. While my tenant had a doctors note and everything, the dog did not behave in any way that resembled a service animal. That was enough for me to start allowing pets and to raise the rent. What I've found is pet owners are far more willing to pay more, plus pet rent, and have more to lose if things go sour as I charge additional pet deposit and a non-refundable pet fee. 

Best of luck to you. Cheers!

I had used Cozy previously. I found it good for rent collection, but was not satisfied with still having to have separate solutions for leases. It makes sense to me to have a solution that handles my needs end to end. 

I’ve no experience using Hunt and know little about their product.

Ultimately there’s 100 different solutions or ways to do it yourself. I’d start from a point of what do you need done(literally create a detailed checklist), and then choose the tool that best meets your needs.

Best of luck!

hey @Katy Schlake! Making the decision is part of that first step. 

A few basic items that helped me in the past may help you as well.

• Conserve all cash possible
• Leverage down payment programs if you can to offset the initial investment
• If you're able to, get roommates lined up to further reduce the upfront cost
• Getting roommates can improve cashflow and the ability to re-invest in the property in the near term
• Make sure your credit is in good shape--a great score makes a difference on interest rates and that make a difference on your monthly cost
• Shop your title & escrow companies--they don't all cost the same
• Shop your mortgage--don't let anyone tell you they can't give a quote of their fixed costs and associated costs
• Research credit cards that you can easily get AFTER you close on your house so you can take advantage of cashback programs or points programs from your new expenses
• Take advantage of opening a new savings & check account at a new bank--a pain in the butt, but the easiest way to find an extra $400-600 usually

Hope this is helpful to you. Obviously, listen to the BP podcast episodes talking about House Hacking. 

Best of luck!

hey @Ethan Kramer, congrats! That's awesome!

Here's my full stack of tools.

For Insurance, shop around. I recommend you find a broker. I ended up with Liberty Mutual. One thing to consider, you'll want insurance specifically for a rental property coverage and not standard homeowners insurance. Additionally, shop around an umbrella coverage.

Speaking of insurance, have your lease mandate tenants also carry renters insurance and provide evidence of the renters insurance prior to move in.

Probably obvious, but I use Avail for customizing applications, tenant screenings (background, credit, eviction check), creating a lease, and collecting payment. One thing really nice is Avail by default requires renters insurance and makes it EXTREMELY easy for tenants to get and upload renters insurance. 

Make sure to invest a little time and or money into high-quality photos of your place for marketing purposes. Yes, this is good for documenting condition, but photos can make ALL the difference in marketing your property.

Absolutely, positively, be sure to review and learn landlord tenant laws for your area. Found this resource on a quick Google search. http://www.marylandattorneygeneral.gov/Pages/CPD/landlords.aspx. Other pages to reference include BiggerPockets blogs and education materials and Avail local laws pages. Also the BiggerPockets Tenants Screening guide is great. https://assets1.biggerpockets.com/uploads/user_file/file_object/1740/Ultimate-Guide-to-Tenant-Screening-Ebook.pdf

Way to make it happen, Ethan. Post an update when you get you unit filled!

I'm concerned the discussion of who to rent to is based on gender. This is a very obvious and basic off-limits form of discrimination.

If you know you're going to have an influx of travelers, then adjust pricing. 

If you expect an influx of utility expense, then adjust pricing.

If you're concerned about property usage, then establish clear rules and boundaries, with a method to enforce (without encroaching) and have penalties clearly defined.

Best of luck to you. Hope you make the right (legal and moral) decision.