All Forum Posts by: Quincy Lockett

@TaRa Mehta

It is your property and YOU are in control of the vetting process regardless of the prospective tenant’s “loan expertise.” If they don’t like my process, DON’T rent from me. I wouldn’t follow through with them. A tenant shouldn’t tell a landlord how to vet. You MUST maintain control over this process from beginning to end. If you relent, he gets an upper hand. This is a red flag in my opinion of the type of tenants they will be.

@Jordan Mandel

Absolutely NOT! In my experience when people pay you up front in their opinion they OWN you. Anytime thereis a problem and it’s not remedied quickly enough they will throw that ‘I paid you $36K!’ in your face. Plus it’s harder to evict if they turn out to be a problem tenant. Having the tenant pay monthly gives you some power over the landlord/tenant relationship. I prefer month to month if I can get it.

@Ryan Camenisch

For most states you don’t need to give a reason not to renew a lease. I NEVER give a reason because: 1)It won’t make the tenant feel better, 2)I Don’t have to AND 3) When you give a reason you could end up running afoul of some discrimination or retaliation law. Don’t take the chance. I just send correspondence stating ‘We have decided not to renew your lease’ When they ask “Why?” I send the exact same message until they stop asking. This way you’re legally covered.

@Pavan Krishna

What @Jill F. said.

@Jay Hinrichs

No. I’m still raising rents but not to the degree that the market is stating. I’m taking into account average incomes and debt to get the most increase that’s feasible for the average tenant in the area. I figure I’ll have lower turnover and still get higher cashflow. Also, by being on average $75 under the competition, I’ll get more applicants which should improve my chance of getting the best tenant available.

@James Brewer

I’ve owned such properties for 21 years now. And I would not recommend them for out of state investors. It takes a nuanced 6th sense or flat out experience to pick and choose the best of the worst in tenant pools. Lower end properties are in my opinion where investors earn their stripes. If you can successfully manage these tenants, EVERY other property class is a breeze. But it takes a toll on you mentally unless you’re a glutton for punishment. The returns are great and lately also appreciation which is my cue to exit stage left. A younger more patient investor can buy my properties and start “Basic Training” all over again. I’m moving on to greener pastures - B Class.

@Jay Hinrichs

Absolutely. The math is not “mathing.” Market Rents have risen to a point where landlords in the C\D asset class HAVE to be approving tenants with incomes consistent with 2X rent. You only have to look at census demographics. So you know what follows…late payments, Evictions and ultimately rent adjustments (in C/D). Most of my properties are in this area so I’m not setting myself up for failure. There is a big difference between what you can ASK for and what you can consistently get over the full term of the lease. I’ll take the latter.

@Jack B.

The answer depends on the class of the investment (A,B,C or D). If it’s a lower C or D class property, you probably should not raise the rent. If you’ve found a good tenant that wants to stay it will pay off in dividends over time with no turnover and a reliable payment history. What I’ve found in lower class investments is you’ll get the additional $500/month but for how long? Consistent lower rent (in my opinion) beats $500 extra for 3 months and then an eviction. But if it’s a solid A, B or C class investment, I’d get the extra $500.

@Claudia Del Leola

It is sometimes desperation on the tenant’s part which Is usually a red flag. I have a standard where I don’t accept applications before a potential tenant walks through the unit and I get to interact with them. And even then, I instruct them that I will contact you IF we will have you apply because I don’t want people wasting their money (application fee) unless they have a great shot at acceptance.

@Amanda Flynn

I agree with @Nathan G. Simple. But this woman doesn’t seem like a “friend” in any form. The level of disrespect she’s shown you suggests otherwise.