All Forum Posts by: Clint Cook

I have two applicants. I like both, have run background checks, and there are no red flags. Candidate 1: financially a little better off, and I believe will treat the house very well. Due to their family situation I'm pretty sure they will move out after 1 year. They have a bankruptcy from 2008, from a failed business. They are current on all bills. Candidate 2: Rent will be tight based on their income. Current landlord wants the house for a family member, so the candidate needs to find a new place. I believe they will take care of the house and stay long term-several years. Current landlord was very positive about renter, never had problems with rent. However my rent is 30% higher (my house is a definite step up from the home they are currently renting) So my options are short term ( only one year), but I'm sure for that year they will be great renters. Or, long term renter, but one who will have to be careful with their budget to pay rent. Who would you rent to?

@Jack B  - Thanks you pretty much summed up what I knew or thought I knew.  I like the guaranteed rent (or at least of portion of it).  I do have some concerns about the tenants taking care of the place.

Please share your thoughts on the good, the bad and the ugly of Section 8 rentals.

Thanks

So I've looked through the posts accepting CC for rent.  I'm one of those that use my CC for everything for the rewards and pay it off each month, plus I really like the convenience of CCs.  Which is why I'm considering allowing tenants to pay rent that way.  I get that some people aren't on top of their finances and misuse credits cards.

From the posts I've read I see two potential problems. 1- Disputed charges will typically favor the card holder (i.e. I loose my rent for the month). 2- You legally can't charge more for credit card use (service fees ?3%, which add up pretty fast).

So for those of you who do allow tenants to pay with CC - How often do you have tenants that dispute the charge?  Is there anything you can do to protect yourself?

As for the service fees, my understanding is you can't charge more for CC use, but you can offer discounts for cash/check.  So can you say Rent is $1030, with a 3% discount for cash/check?

@Danny Morris - Thanks, I'll give them a call.

@William Hochstedler

You pretty much nailed it on the head. After speaking with them I was a bit concerned. I think they would do a excellent job, in getting tenants screened and placed. Their commission seemed a bit higher than what I've been told to expect, and they were a bit vague on maintenance costs.

Like the many in Logan you mentioned, I was drawn to their technology and market reach, but left feeling quite concerned about what my real cost with them would be. Thanks for the quick reply.

I met with "Real Property Management" yesterday. I'm considering using them to manage my first property. Does anyone in Utah have experience using them and what are you thoughts about them?

@Account Closed

I feel the same way about references, but I ask for them anyway. I call expecting the reference to give a glowing review, but I specifically ask what problems they've had with the PM and what they don't like. Most of the time the reference will at least give you a few things to consider.

@Account Closed

I've heard many horror stories, and I'm trying to avoid being one of them. I've also talked to people who have loved having a PM. Of course it all depends on both the PM and what the owner is expecting. The most common complaint I've heard is the nickel and diming for maintenance.

@William Hochstedler

Good points, you've given me a couple more questions to add to my list. I'll read the post, I usually find lots of good stuff for a newbie that either gets me thinking about something I hadn't considered, or gives me a clearer perspective of something I've been wondering about.

THANKS ALL!

What are some good questions to ask, and things to watch out for when looking for a property manager for a Single Family Home?

@William Hochstedler

Thanks for the quick reply. You stated the following.

"I have found that it is rare to find a seller willing to finance a full term mortgage but instead are open to 1-5 year carries with balloons. During this time, you are able to improve the property to increase value and stabilize rents. And the big bonus is that after 6 months or a year, you can balloon the seller financing with a conventional loan based on appraisal valuation instead of purchase price."

Pardon my lack of knowledge, but could you give me a little more information on how this works? I understand what a balloon payment is, but I'm not up to speed on the 1-5 year carry.