All Forum Posts by: Bob Collett

@Gwen Fyfe Thank you for the great feedback.  It seems that it would be quite simple and inexpensive to remove those extra sub-meters in the properties where it makes sense for you.  A plumber can simply remove the meter and replace it with a T to connect it to the main meter.  Then have the water company pick up their meter... unless there is a bunch of paperwork required.  If you ever wanted to put the meter back... its already plumbed.

@Brian Garlington. I always have self-pay SFR tenants pay water & sewer. I put it in the lease, and have never had it challenged in court.

The problem with removing exterior spigots, is that the city of Cleveland will issue a violation on the annual inspection and make you install working exterior spigots... especially on the west side.

Bob

I am trying to find solutions to the high cost of water and sewer relative to the rent income and other costs of ownership.  My questions are:

1.) How can we reduce tenant water consumption in a 2 family property... especially a section 8 property.

2.) Are there programs where MF landlords can get subsidies to help pay the cost of monthly water/sewer bills.

3.) Has anyone worked with installing separate meters in 2 family properties in the Cleveland area.  What are the costs? Will the water company bill tenants for separate meters? Can we make tenants responsible for water on their lease if we have separatge meters

Thanks

Bob

@Joshua Filkill

People come from all around the country and all around the world to invest in Cleveland. Start on the west side zip codes 44109, 44144, 44135, 44102, 44111, 44134, 44129. These area cover both lower price In Old Brooklyn and higher price in west park, Lakewood and Parma. Lots of 2 fam in 44109.

Getting involved with the neighborhood associations is a good way to learn about the nuances of these neighborhoods. 

Bob

@Jeff Alwine As a property manager in Cleveland area, I will turn down a client property that is 1 hour or more drive.  The main reason is that I can not do a great job if there is 2 or 3 hour drive time to visit the property.  I would tend to want to put it off... and my clients deserve better. 

On the other hand, in time you can establish relationships with local contractors to fix that toilet, paint a room, etc.  You can use local real estate agent to show your home when it becomes available. And you don't have to justify billing your client for 3 hour drive time every time you visit.  It probably comes down to how busy you are, how much maintenance you anticipate, and how much you like driving to the given neighborhood where you house would be.  In Virginia, you may be use to long commutes.  In Cleveland, I can get to any point in the county in 30 to 45 minutes.

Its a tough call.

Good luck

@Blake Thompson

Hi Blake

In my opinion, you do not need to worry about offending an agent with a "low ball" offer.  A good agent will not be offended". The bigger concern should be keeping the agent if he or she is any good.  I will submit any offer that my client wants to write.  However, if the Buyer is consistently unrealistic and wasting everyone's time in a seller's market, I will respectfully ask them to find a different agent. Sometimes a newer, inexperienced or lazy agent will be happy to write endless low ball offers until they gain some experience and insights. They may not be very good at negotiating the deal, but that is another issue. Some agents may even base their business model on working with investors who want to buy at a discount to market... and that's ok too.  

However, In this time of Coronavirus, there may soon be buying opportunities that simply would not have been available prior to March 2020. Keep in mind that a good agent offers you expertise, integrity, trust and time. I have been advising my Buyers to sit on the sidelines until we know how deep this recession will be; and how it will impact real estate. You have to ask, how long can a rental property owner go without rent, before they decide to sell at a discount to market to get out while they can.

No rent strike in Cleveland.  90% of my tenants paid their April rents.  Most of the others have committed their stimulus checks. Why would they wait until May to find out whats going on?  They know they cannot be evicted, so communication before and after the onset of the virus is essential to maintaining a good relationship with the tenants.  Find out if they are working? Find out if they are healthy? Find out if they have applied for unemployment?  Find out their intentions.  Discuss their options if they cannot pay. Communication is essential.

Hi All

I had 90% of my tenants pay April rent, but I have sent them many emails since this started, and outlined options for them.  I also benefited from screening tenants well prior to move in.  On the other hand, most tenants with jobs were working through most of March, so paying April rent is not that big of a deal.  I am more concerned about May rents.

Meanwhile, landlords now appear eligible for SBA assistance as is most other small businesses. We are going to need it.

Still, it seems that this could be a prelude to tremendous buying opportunities the like of which we have never seen in our lifetimes.

It would be wonderful if the media and everyone else would stop telling tenants that they get a rent holiday.

Bob

Aside from considering average neighborhood rental prices, they will deduct for utilities and appliances. For example if the rent is $1000 and expected electric  paid by tenant is $100, the landlord would only get $900

Bob

@Anthony Aviles I have the exact same situation.  A property is under contract to be sold.  The tenant has stated that she does not want the appraiser coming in, because both she (the tenant) and her daughter are feeling sick.  I am concerned that we could go out of contract date if we do not do the appraisal.  But, I am not inclined to do a forced entry considering the current crisis.  I am going to do my best to work with everyone to find a solution.

Stay safe.