All Forum Posts by: Randy E.

I never thought about putting a pest control line in my leases.  I've mentioned it verbally before, but I think I'll add such a line now.  A few months ago, some dirty tenants moved out and I had to have the house treated for roaches after they moved out.  No previous tenant had ever complained about pests, and I'd never seen any pests prior to those dirty tenants.  The dirty tenants began complaining about bugs, but when I told them it was their responsibility to pay for extermination because they were keeping a dirty house, they didn't complain any more.  Now the house is rented to a single man and so far he's doing great.

Don't know if this was mentioned yet, but I get very wary when prospective tenants start complaining about current/former rentals and/or landlords.  Someone who has been very unhappy at multiple rentals will probably not be very happy at your rental.  The last thing I want is a chronic complainer for a tenant.

 I agree, Michelle.  However, when it comes to detector batteries, if the tenant asks, I have no problem going over to change it, or sending someone to do that.  I might be wrong, but I think the landlord has ultimate responsibility for ensuring the detectors are working properly.  I don't want to be held liable (financially or morally) if a tenant dies because a smoke  detector had dead batteries.

Bingo!  My 2 cents added to yours makes 4 cents.

No disrespect intended, Toyin, but it sounds like you and your assistant investor didn't make very good decisions when it came to buying and renting homes.  Many people are very successful and happy investing via the buy-and-hold strategy.  And many people are very happy and successful investing via the buy-and-flip strategy.  The key, for either method, is to make wise decisions.

Great idea, Joshua! I am also very interested in prefab cottages. Do you have a source for these? I was looking at a SFH a few weeks ago that was sitting on a lot big enough for one or two additional buildings. It would be great to know exactly how much those small prefab buildings cost.

In the 90s after my grandfather died, I took over the management of his rental property that my grandmother inherited.  When I went to collect the rent for the first time from a long-time tenant (she had lived there at least 15-20 years and raised her children in the house,) she said she had a business proposition to discuss with me.  She'd heard about this new thing called "rent to own" and wanted to know if she could do it with the house she was renting from us.  I said that I wasn't sure about my grandmother's intentions, but anything was possible for the right price.  

The tenant was ecstatic.  She repeatedly said how much she'd always dreamed of being a homeowner.  I asked what her plan was.  She said she'd spend some time figuring out her offer, write it on paper, and present it to me when I picked up the rent the following month.

The next month, she gave me a sheet of paper with very neat writing.  It stated that she'd been there X years, paying $X per month.  There were two options from which she expected me to choose.  The first was that she could give me no money down, keep paying her rent in the same amount as always, and we'd sign the house over to her in a few years.  The second was that maybe she'd already paid for the house by paying the rent for so many years, and maybe we even owed her a little refund back for overpayment.  She was completely serious about it all, and honestly didn't understand why neither option was realistic.

I laughed all day and night.

 I agree with K Marie.  I've picked up rent before, but I don't mind.  There are two benefits.  The first is getting paid in cash.  The second is I get at least a monthly look at the property.  Usually, the tenants invite me in while they are paying me, so I get to see the inside of the home.

I understand that some landlords might not want to pick up rent payments, but I don't think it's fair to insist existing long-term tenants conform to your new payment plan.   Making the tenants aware that you are making other options available is a good idea, but I would give them options, not demands.   If a pickup is out of the question, I would say you have to deal with the two or three-day delay in having the rent mailed to you.

However, I know some landlords will insist it's their way or the highway.  It's your property, so the bottom line is you get to run your business however you see fit.

Keith, I'm in Durham and I wish I could find a duplex like that around here.  Our markets are fairly similar, so I figure it's just a matter of time before I do.  Consider your location objections carefully, but if those numbers hold up I'm sure I would do it.

Good luck,

Randy

 Hi Barbara,

I once rented property in a small town for a long time.  Heating systems for older lower-income properties in a small town aren't always the same as a heating system in a more expensive location.  A couple of houses had a natural gas stove heater in the living room that was used to heat the entire unit.  When one died, it cost about $300 to replace it.  That was easily affordable, even with the lower rent.  A roof can last a long time, not to mention that the roofs on my small-town homes were relatively small.  The one time I had to replace one, I ended up hiring the small-town laborers who worked for a roofing company (in a larger town 45 minutes away) to do the job.  I paid them a little more than their hourly wage and they completed the job professionally and quickly.  Besides the material, I think I paid less than $1000 for labor.

Things are just different in low-income areas of small towns.  I don't know about Thomas' situation, but I never had any problem with the cost of repairs and such.  And though it was a small town, I never had any trouble keeping the places rented.  Heck, usually, prospective tenants would call me before I even knew the current tenants were planning on moving out.  Their friends knew before me that the tenants were moving, and they had heard from the current tenant that I ran well-kept homes and charged fair rent.  Often, one tenant moved out on Friday, and the next moved in on Saturday, without me having to do anything but change the locks.