All Forum Posts by: Ray Reed

@Aaron K. it crossed my mind to help her find something more affordable but thanks for that push because since she does not use a computer i am sure i can help her find something faster and maybe assist with the move    

@Andrew B. good point.  i didnt think about the ageism aspect. I am conditioned to think its the seniors that have a case when you discriminate against them but you are correct. I would not be surprised if the others sued when they found out. they have had it good with the low rent for a long time. 

@Derrick E.  i believe 2-3 of them will either move or get evicted. one guy has been paying $450 including heat and he drives a mercedes.  his lease is for $850 but the prior owner just asked him to clean up property and take garbage out. he doesnt do that and the owner didnt want the hassle of taking him to court. i can sustain the vacancies because of my other properties so if some of them moved, i would welcome it. 

@Marc Winter i will look into charitable organizations. thank you for that idea

@Jennifer S. the prior owners were relaxed. i do not think they adequately screened the applicants. they went by word of mouth.  They owned the house since the 70s so it was more like a hobby than anything..

@Joseph Cacciapaglia i am trying to position myself to refinance in August. rates were good last i checked but i have to the rents up and separating the utilities

Hello BP,

I recently closed on a 5 unit property where all of the units are way below market.  With the current rents I am operating at a $200 monthly deficit. All of the residents are on month to month leases and this is not a rent controlled town.  I consulted with my attorney on the proposed increases for August 1.  He states my increases were 'extremely reasonable'.  Here is my dilemma.  One of the residents is 85 years old  and on a fixed income.  She is paying $800 for a one bedroom apartment where the market rent is $1350 (heat included).  My units include heat but i am in the process of separating them.  The other one bedrooms i was thinking of going from $850 to $1050 with tenants paying heat.  I know she would not be able to afford that increase and still pay her heat and other bills. I believe she said her social security and pension are slightly above $1K.  she informed me that the prior owner told her she most likely would have to move but do i want to be that guy?

Curious to hear your inputs.

Thanks in advance 

@Nzinga Young good pointers but i would suggest pulling credit. i own in newark and started pulling credit in the last 2 years.  the first reason is i like to see what they are delinquent with. if it is a student loan or a CC bill that is one thing but if it is repeated car note issues, i pass. a tenant will choose paying the car before the rent every time. Another thing i find in C/D areas is that the applicants sometimes omits addresses they lived. the credit report may pick that up.  the lease may not of been in the applicants name but you can question them about it,  find the owner's name online and on the njcourts website see if that landlord has prior landlord tenant cases on that address.  i disqualify any applicant that their unit has had issues, even if the apartment wasn't in their name. 

I understand you may not want to raise rents in 4 years but i have seen rents change drastically in the last 4 years. even if its $5, you should get in the habit of increasing the rent. i even put a % of what the increase is with the dollar increase so they see it is not an outrageous amount (ex. $1000  will increase to $1005 (.5%)  )..  what i found is that after going years without any increase, they will question and be upset the first year you do do an increase. 

Place an ad on zillow, craigslist, etc and see what kind of interest you get.  dont put the house number put the street and the cross streets.

agree with @Brian Garlington and @Victor Avelino.  the 6th seems like an odd date. Sect 8 sends out their payment before the 6th, which means the prior landlord will receive the voucher payment. section 8 is desirable in some areas but i would avoid a situation where the tenant is paying 70%. its not worth the bureaucracy and hassle. on top of that, you cannot collect the late fee in court. i typically like if the agency pays the 70%. unless if they just received the voucher,  i would ask how much is their current rent and how much are they responsible for.  that is how i gauge the percentage split. people say 'sect 8 your money is guaranteed', but what good is that if they guarantee $300 out of $1000... just my thoughts.  

@Michael Chiafulio  not only  ' they messed up my check', when you address them about it not being the first time they are late, they try to explain to you how they don't get paid on the 1st.  

Most of the utilities and mortgage statements you can chose the paperless option. goes right to your email account. 

Apartment front and back exit doors need to be self closing.  House front exit door needs to be self closing and self locking.  I believe the house back exit door only has to be self closing. i dont have any self locking back doors

@Ezra N. How did the seller take advantage of you? Where is the property?

@Mohamed Farih yes that is the law i am referring to.  If  this is a 2 family  or below, you have to go to room B09 in city hall (earlier i said 111 by mistake).