All Forum Posts by: Rich N.

@Jonathan Beemer

What is that line?  What's mine is mine !

During an inspection, I found a tenant "fixed" the leaking faucet... by putting a towel over it. Another time, I had a tenant "fix" a hole by putting tape over it.

I do unclog toilets, but I know other LL/PM will bill a tenant for it.

@Christopher Dunson

Not sure what your two posts above meant?  Was it for OP or was it new for you ?  If its your post, please repost to a new one and not into this one (if you haven't already done so).

@John Calafato

Welcome. 

Some folks may say writing off little stuff is a waste of time, I see it as for everything I can deduct it reduces the profit side where you have to pay taxes on it.

@Grant Francke

Congrats on the multiple properties.  So you can weather the storm of a empty unit right after purchase.  In that case, I would look to raise the rent to market rate.  If they accept it, then improve/upgrade it. If they don't....you got your wish and you know what to do !

@Grant Francke

by the way, did you check the local rent amounts to see what others are charging?

I have had people freak out over 25 dollar increases.

I have had a tenants stay even though we increased the rent by 100-300 a month.

Just know what the market prices are for your place.

Of course, you decide if you need their money for now and take their complaints OR don't need it and could get better tenants or more money!

@John Calafato

some of the things you could think about in your calculations.

1. Legal expenses - fed/state taxes, corporations, court, travel, annual taxes (cpa, turbo tax)
2. Operating expenses - lawn, snow, repairs/replace for bulbs, detectors, window/screen, paint...etc
3. Capital expenses - roof, windows, appliances, furnace/boilers, water heaters

Check your laws, especially when they are in there 70s.

If the rent has not been raised in 9 years, are you sure it can only be increased by only 100-150?

If you are willing to keep them and willing to spend the cash, then you have choices.  Explain to them that to upgrade the items they mentioned, the rent will increase to $$ effective 30-60 days (not when it is all done).  Another option is to do one item a year and increase annually.

Most important... it is upgrades.  Do not say its repairs or say its broken as they can use this in their mind to withhold rent or possibly board of health complaints.

@John Barry

good - you can protect your property somewhat with funds from damages. but really only works if you take the last month's rent upfront too.

bad - sooo many law requirements to follow. About 5 or so steps need to be followed "perfectly"

ugly - do it wrong and the tenant can sue for treble damages (up to 3 times what you held)

I think you need to first start out finding out what actually happened?  Get a copy of the police report.  Talk to your tenant (in a nice way) by seeing how they are doing and THEN what happen. 

 You might find out they are fed up and want to leave, so then tell them you would allow it penalty free (trust me, you may lose rent for the month....but look on the bright side).

As for the gun, I am unsure if you can legally restrict it on your lease, BUT if the gun was not legal or the owner does not have a valid license (if required in your state), then you can move for an eviction based on that.

@Zach Shrader

So, what was your original question? Sorry couldn't resist !

As you can tell the subject to PM or not PM is a hot topic here on BP all the time.

One of the main issues I think we all run into is that there is no set standard of what a PM is suppose to do for the 8-10% rate they charge monthly.  Some will charge extra fees for certain items and others considered them as part of the 8-10% fee. 

One example is that some PMs will charge you an additional fee when a tenant stays for a second year (re-up fee) while others will not.

Another example is some PMs will charge a percentage fee on top of contractor's invoice and others will not. i.e. plumber/electrician charge $100 for service call and some PMs charge you another $10.

And of course, there are a lot of other examples if you check it out.

Simply put there are good and bad landlords..... there are good and bad PMs.

oh yeah, the 8-10% is based off your monthly gross rent (i.e. 3 family of 1200, 1200, 1200=$3600 gross rent for the month and based on the 10%, your fee would be $360 a month).

especially if it is older equipment.  They will determine it as simply end of life.