All Forum Posts by: Anna M.

I do not charge tenants for any expenses other than those that it has been proved were caused by their own negligence.  I structure my rents to be able to cover for repairs, including unforeseen repairs so really when you look at it, they are in fact paying for it, just not regularly as you state it here.  If no repairs, then good for us, that money is brought forward to the next year.  Gutter cleaning fees?  I skip all that because I got gutter covers which you can get fairly cheap at home depot as I do not have time to be dangling on the roof trying to clean my gutters, because I some things I just prefer DIY, but this one I hated with a passion so I found a solution - gutter covers!

Both parties have to be in agreement to process a change to the initial lease agreement.  In the same way, you as landlord cannot try to implement a new policy mid-lease and expect the tenants to agree.  If they do, good for you, if not, then it is not fair to expect them to agree.  So in this case, if that was your policy at start of lease, I do not see how they expect you to simply go along.  If you want to because you do not want the vacancies then by all means consider it but get the correct documentation to show that these are emotional support dogs.  I think this one is tricky on whether or not to accept them bringing in the animals this late in the game because it may be termed health related so you might as you are doing want to check with your local attorney.  Please keep us posted.

For me, regardless of whether it is a 3rd party entity or a roommate, all parties have to qualify on their own. Meaning should something happen, I would like to know that any one person can cover the rent as I do not have time to be doing the split thing because things happen, people have a falling out and at that time I need to know that my rents will be paid.  So I hold all parties jointly and severally liable and that would mean they also all need to pass my screening criteria, but that's just me. Cheers!

Wow, thank you @Drew Purvis for reminding us of this.  I have got to the point where am actually a little OCD about this, but that's just because I do not want to stress due to being caught off guard when **** hits the fan, which I know it will particularly considering the age of the property.  Still in good shape but I know in due time, I will need to repair some major items.  Just re-did the room on one of my properties, the HVAC systems, so that's good.  Plumbing, I know is going to be knocking on my door in a few years time so planning and prepping for this :)

Your friend wants to use his credit to fund your deals?  How are they then "your deals?" I would at the very least consider that a partnership of some sort.  If you are into doing a partnership, then go for it, if not, then I suggest you look at your own credit score and see if you can go in alone.  Nothing wrong with partnering, just be careful you understand the implications of whatever relationship you have particularly when it comes to money and investment.  Am not the partnering type, but I definitely respect those that find value in it and it has its advantages.  My partnering is limited to learning and sharing knowledge which each other, but not necessarily doing an application together or funding acquisitions together.

I really love the advice given here:

@Brian Schmelzlen, “For example, I know I could never be a wholesaler because I don’t enjoy negotiations or marketing. Know your personality, and that will help guide you to the right strategy.”

@ Jeff Greenberg, “3. What is your personality type? Do you prefer to be more passive or active, more in control or less, hands on with a hammer or not, good with people and negotiating or not, good staring at numbers for hours or not, etc. etc.”

Personally, I do not use business cards and that is because I have yet to find myself in a situation where I would need to pass out a business card and if I do, I still have my W-2 job that is still very much a part of me and actually a job I treasure as it has helped shape me into the person I am today.Should someone need to get a hold of me, I can give them my W-2 business card, or simply swap numbers right there as I hate carrying additional paper on me and in this digital age, you will find that more and more people are using hard copy documentation, less and less.It just seems to me to be an unnecessary expense.I suppose it would matter if you were a wholesaler or into a niche that required it, but for me as a buy and hold, I go cheap and I stick to phones.My market also dictates to some extent what I choose to invest in.I do not have a website and/or business cards because living in Denver and primarily dealing with Gen X and/or Gen Y (Millennials), none of these groups, and especially the later, care to be carry around your business card.Anyway that’s just me on the whole business card deal.

As far as investment strategy, I “ABSOLUTELY” love the way these gentlemen have explained it above.Personally, I love control.I thrive on it and have always wanted to be my own boss.It is for this reason that I actually self-manage all my rentals and plan on doing so for as long as I can.I am also very analytical, organized and a little of a thinker, constantly building systems and tools to make life easier.Because of that, I find that self-managing is something I do fairly easily.It didn’t always used to be like that.It is a skill I have developed and continue to develop over time.I also find that I want to scale quicker so for me the focus is multi-families not single families.Additionally, I prefer smaller not large multi families.So 12 maybe 16 unit max as I am also looking to provide a certain kind of home that the larger type multi families I feel will not be able to get me there.Anyway, great thread and thanks for all the input as it helps the rest of us learn too.Oh, just like Brian, I could never be a wholesaler.My passion is in the active, control, with some hands on DIY, staring at systems kinda thing.Cheers!

@Megan Moody, I regret having allowed tenants with a cat to rent out the basement unit.  Funny when I did inspections, I never caught wind of the smell, but who knows, they may have been spraying some pet de-odorizer (sp) or stuff before I got there.  When doing unit inspections, there was no mistaking this smell and I have since been cautious about allowing pets.  I love pets and I know I am cutting out a huge demographic, but I think I just first need to get over this cat pee thing which the carpet was professionally cleaned but you can still detect that odor.  I have tried vinegar and looking to do another professional carpet cleaning and if that does not do it, then just have to replace.

@Cara Lonsdale does offer good advice. 

You may also benefit from checking out a few existing threads on the topic.See title of the threads below.Cheers!

Threads:

Do You Raise Rents Every Year? Why Or Why Not

Raising rent on existing tenants when buying a new property

@Eric James, I really like your suggestion to change rents sooner rather than later to reflect market rates.  As landlords we get caught up in the fear of raising rents, but hurt ourselves in the process with either very little or no cash flow just to keep a paying tenant.  It then makes it impossible to catch up with the market because it is just ridiculous to then later come in and try to up the rents by $150/$250 just to match market.  Best to implement indication in lease agreement of a 3% to 6% rent raise with every lease renewal so tenants know to expect and also serves to help you as they may want to renew for longer to lock in that rate  You could go lower, maybe just 1 or 2% if they have been nice tenants as a way to reward them.  But communicating this annual or per lease renewal rent raise, further helps you be fair to yourself by keeping rents to market value and covering your expenses with some cash flow after.  This topic could not have come at a better time as I was just reviewing my own leases as I also work on the ones for the new property that I close on the 3rd.  I did realize that I am one of those that is literally $150 to $250 below market value for comparable rental.  I have had to look at my expense and my income side by side and I realize that I am offering way more value than I am charging in rents for comparable 2bed/1bath with 1 car garage in Metro Denver, a mistake made as a newbie landlord.  I took my current property features and entered them in on about 10 different rental sites just to see what the rents would come back as and I just about fell off my chair!  I am definitely, NO DOUBT, raising rents on the new leases and have actually drafted this letter just today and saved to folder to provide to tenants at 45 days prior to their lease end.  In the letter I list all the features that we provide and comparable market rents.  In the end, if you are offering value, you should be recouping it through appropriate cash flow.  Do not make the mistake I made going in low while offering more than market.  I am now forced to correct that mistake and it has to be done sooner rather than later.  Go in Fair, is what I say and use the market to help you know what to charge.  Thanks for this post, very, very useful.  Saved to my resource folder.

The latter. I am in the same situation but have agreed to give them a 5-month lease at only $50/month raise until summer time as I close on the 3rd. Prefer to be looking during summer time vs. now as am already having to try to fill another vacancy that created by me moving out of current unit and into one of the units on the new property after closing, so I need to rent my unit. Winter renting is hard. I am planning on a few upgrades and miscellaneous repairs to the new place which rents were already way below market value but seems the owners left it as such as not much was being done on the property either so I guess they felt it would not warrant rent raises. All that is about to change and in order for me to get a ROI, I need to raise those rents, so for me, I going with option B (final answer). Even without repairs, the place is really below market value. I like to have my units rented, but I also like to positive NOT negative cashflow. Good luck @Niko Crowley