All Forum Posts by: Rob B.

Not to sound like a broken record, but I would highly recommend reaching out to legal counsel who specializes in this type of issue; they'll be able to give you a more accurate read on language interpretation from that clause you included above. The "I'm not a lawyer but..." posts always get me because it really does come down to the laws/regulations of the area where your property is -- not to say others don't have the experience but you really want to make sure you're proceeding with caution here and handling it to the best of your ability; with the guidance of legal counsel. 

Russ hit this one on the head. That other tenant has absolutely done their due-diligence by coming to you. I'm less inclined to believe that it is a skunk, although the season/timing would be about right. Correlation doesn't always equate causation, but it is awfully coincidental that she moves in and then this started happening. I get what some of the others have noted (ie. the one who brought their complaint to your attention happens to pay rent late/not on time, vs the new one who maybe smokes but pays on time), however, this other tenant who is smoking week can drive up vacancy beyond just this one tenant who complained. 

Hi Maurice, I'd say Patricia has this spot on -- if they have a good history of making those rent payments on time and a stellar credit score, you have an opportunity to get tenants in your unit who are going to do what it takes to make sure they're getting those payments to you, and will do so on-time.

This is a great idea; the minimal monthly increase in rent starts to build up and most tenants will take an action of some kind to make sure that they're not paying more money out of pocket (kind of acts as a swift kick in the butt to take some type of action on their part). At a bare minimum, I would have them on a month-to-month lease and if they're not already, as Jonathan mentioned, I would require all tenants to sign my lease at the same time (acknowledging that doing so replaces any prior lease).

Exactly. Allan has a ton of points that are spot on here; your exit strategy will be largely dependent upon what your underlying goals are. I'm also of the mindset that you should keep the house and rent it out and keep building up your REI portfolio. If you have any concerns about managing it, there are lot of great options out there for self-managing if you decide to go that route; aside from providing the basics (listing, tenant screening, digital lease creation, rent collection, and maintenance tracking) some services also offer your tenants additional capabilities which makes it an easier sell on your end when getting them to transition over (ie. their ability to report on-time rent payments to the credit bureaus). All about finding a balance. Either way, I hope this info helps! Best of luck to you, @Matthew Brown

This is why it is super important to pay close attention to the fine print (specifically as it pertains to their fees and other charges that might come up like termination fee). Great catch! And I would recommend reaching out to legal counsel who specializes in TX landlord/tenant laws; they'll be able to give you a more accurate read on language interpretation from that clause you included above. A lot of great options out there for self-managing if you decide to go that route instead; aside from providing the basics (listing, tenant screening, digital lease creation, rent collection, and maintenance tracking) some services also offer your tenants additional capabilities which makes it an easier sell on your end when getting them to transition over (ie. their ability to report on-time rent payments to the credit bureaus). But, the time you're putting into self-managing may mean less time towards learning about investing; all about finding a balance. Either way, I hope this info helps! Best of luck to you, @Zoe Lee

Hi Jay. Happy to hear that you're doing your research. There are a lot of great options out there; aside from providing the basics (ie. listing tool to get the property published to 10+ major sites, scheduling tool to schedule viewings, tenant screening with comprehensive applications which include nationwide criminal background checks + credit checks + eviction history, digital lease creation tool, rent collection tool, and maintenance tracking tool), some services also offer your tenants additional capabilities which makes it an easier sell on your end when getting them to transition over (ie. their ability to report on-time rent payments to the credit bureaus; this can create an added incentive for making sure they pay that rent on time). The best part is the level of automation that you can experience with maintenance tracking. It could be worth looking into. Either way, best of luck with your decision! @Jay Yoo

Since you have reached a point where you've scaled up your family's REI portfolio a bit, it could make a lot of sense to go the PM route; or, you could continue to manage it yourself with a bit more guidance by using a proven platform to help you with the different steps of the process (ie. listing, tenant screening, digital lease creation, rent collection, maintenance tracking, etc). Pricing and standards for each PM company vary, and it really also depends on your region; some have said you might pay 1-2% in prop management fees which sounds incredibly low (and borderline unbelievable), not factoring the standard 1-month rent fee policy; on average, you're going to be paying 4-6%, or higher out to a property manager in addition to that 1 full month rent (standard fee). Give some thought to the number of units you have, and where you are in your REI process. The advantage you have at this point is there are certain things you know to look out for having managed it yourself for a while. Also, pay close attention to the fine print (specifically as it pertains to their fees and other charges that might come up). A lot of great options out there for self-managing if you decide to go that route; aside from providing the basics (listing, tenant screening, digital lease creation, rent collection, and maintenance tracking) some self-management services/tools also offer your tenants additional capabilities which makes it an easier sell on your end when getting them to transition over (ie. their ability to report on-time rent payments to the credit bureaus). Either way, I hope this info helps! Best of luck to you. @Julie Marquez

Generally, if you have a smaller business portfolio in REI (ie. only own anywhere from 1 to just a few units), it doesn't make as much sense to go the property management route, rather, manage it yourself with a bit of guidance. And it really also depends on your region; some have said you might pay 1-2% in prop management fees which sounds incredibly low (and borderline unbelievable), not factoring the standard 1-month rent fee policy; on average, you're going to be paying 4-6%, or higher out to a property manager in addition to that 1 full month rent fee. Give some thought to the number of units you have, and where you are in your REI process (if just starting out with only a handful of units, it probably is worth giving DIY self-management services another shot -- this way when you do go with a PM you'll have had your first experience managing it on your own, so you'll know what to look out for). Also, pay close attention to the fine print (specifically as it pertains to their fees and other charges that might come up). A lot of great options out there for self-managing if you decide to go that route; aside from providing the basics (listing, tenant screening, digital lease creation, rent collection, and maintenance tracking) some services also offer your tenants additional capabilities which makes it an easier sell on your end when getting them to transition over (ie. their ability to report on-time rent payments to the credit bureaus). But, the time you're putting into self-managing may mean less time towards learning about investing; all about finding a balance. Either way, I hope this info helps! Best of luck to you. @Tamera Jackson

I know there are a lot of stigmas attached to renting to individuals who hold Section 8 housing vouchers; it is easier to think through the cons - however, some of the pros have been clearly noted above; you open up the property to a bigger pool of potential applicants. In many instances a large portion of the rent is almost guaranteed to hit your pocket each month - again, this may not cover the full amount but they are consistent payments coming in (paid by the government). Typically the tenants are already prescreened and you're much more likely to have a lower vacancy rate. However, there's always a certain level of risk that you take in accepting Section 8 vouchers and for you, you need to decide how you'd like to proceed - I know a portion of the rent is guaranteed, which is great, but I also wonder if the portion that the tenant is responsible for is considered riskier when compared to non-section 8 tenant candidates. It comes down to your process and making sure you set your standards for checking in.