All Forum Posts by: Rob B.

Hi Lei, sorry to hear that your tenants are dealing with this situation. A little surprised by a rodent situation given that the place was newly renovated (that said, complete renovations can sometimes drive pests out of their normal hiding spots). Having said that I'm inclined to concur with what others have mentioned above; is there something the tenant is doing? (ex. leaving food out, leaving windows or doors and screen windows/screen doors open too, etc). Where are they noticing the rodent behavior (basement, attic, general central living space, etc)? This can help you identify where they might be coming in so a fix can be implemented). @Lei L.

Hi Jo. I am so sorry to hear that you're dealing with this headache. Usually, you'd get a feel for the type of person during the screening process (and it sounds like you definitely did your due-diligence; props to you!). This is one of those situations that makes you realize that while someone might look incredible on paper, they might be a horrible tenant (aside from looking into past evictions or references from prior landlords) it is close to impossible to know how they'll actually be once they're resident occupants on a lease. Unfortunately, the best advice I can give is to follow the advice of what others have noted above. Try and get this tenant out as best as you can. I hate to hear that you're dealing with the drama of some of this, and sometimes that drama can carry over, which is exactly why it makes sense to get a new one in there as fast as you can. I hope everything works out! @Jo Ballagh

Hi Michele! Congrats on getting started and welcome to BP. I'm sure there will be a flood of advice to follow but wanted to be sure to throw in that you really have to watch for the terms of your agreement with a property management company. And keep a close watch on the $$$/fees. Quite often they're not only taking a portion of monthly rent (anywhere from 6 - 10%, and in some cases even more than that); a lot of times they'll also charge a fee of a month's rent for finding you a tenant. There are a lot of great PMs out there, so definitely don't want to make it seem like looking for a PM is the wrong way to go. I'll defer to others on referrals/recommendations specific to the Detroit area. 

For many DIY landlords and real estate owners here on BP, you want to factor in some of those expenses/costs on the front end so you have a more precise outlook on whether it is going to generate enough positive cash flow for you. If you didn't really factor in a property manager's costs/fees on the front end before acquiring the property then that may eat into more of your profit than initially anticipated. There are other options too; tools that will allow you to self-manage (just depends on your situation!). Wishing you the best of luck on your endeavor! :)

Sorry to hear that you're going through that, Paul. I'm no attorney, but in most states that is illegal (some of that may depend on the state, but I'm pretty sure that they are required by law to relinquish security deposit back to the LL in VA as well). May need to get legal counsel to take a look at the contract you had with your prior PM, but from the details that we have thus far, the PM withholding the deposit sounds illegal.

Also, just a good rule of thumb -- if you have a smaller business portfolio in REI (ie. only own anywhere from 1 to few units), it doesn't make as much sense to go the property management route, rather, manage it yourself with a bit of guidance. Generally, you're going to be paying 6% + out to a property manager -- not to mention that many property management companies ask for a portion of the first month's rent (or even a full month's rent). And then you still end up with potential situations like this. I do hope everything works out! @Paul Kuhn

Happy to help! @Bryan Laufenberg

This is definitely one of those instances where it really takes consideration of the type of student (ie. graduate vs. undergraduate) that you want to rent to. Thus far I'm of a similar notion as Nate and Carl in that you want to make sure that you have a clear outlook on the area you're aiming to invest in and those behemoth developers really can hurt your bottom line. That said, with big complexes like those on a college campus (or near a campus), they're still going to be charging top dollar and you're still going to have a market for student rented. Still have your screening process in place, and honestly keep in mind that move-in/move-out checklist process, and frequent check-ins. A very close family member is located in the Hyde Park area and it has proven to be a great market for graduate students at the University of Chicago. Usually, their rent is covered by the program that they're in and with it being a top university (and one of the most challenging) you're dealing with a different type of student in many instances; but, they're still college kids so never lose sight of that. It all comes down to the amount of risk you're comfortable with assuming (as far as damages to the property). Probably putting the property at higher risk when dealing with undergrads. But again, students can be great for cash-flow. Just a thought! But some great suggestions have been noted above. 

Hi Brittany. A lot of great advice here already, but I wanted to be sure to throw in that you really have to watch for the terms of your agreement with a property management company. And keep a close watch on the $$$/fees. Quite often they're not only taking a portion of monthly rent (anywhere from 6 - 10%, and in some cases even more than that); a lot of times they'll also charge a fee of a month's rent for finding you a tenant. There are a lot of great PMs out there, so definitely don't want to make it seem like looking for a PM is the wrong way to go.

For many DIY landlords and real estate owners here on BP, you want to factor in some of those expenses/costs on the front end so you have a more precise outlook on whether it is going to generate enough positive cash flow for you. If you didn't really factor in a property manager's costs/fees on the front end before acquiring the property then that may eat into more of your profit than initially anticipated. There are other options too; tools that will allow you to self-manage (just depends on your situation!). 

Inexpensive security systems are definitely out there. Since it sounds like you have a triplex unit, you probably only need a 4-to-6 camera system, but it comes down to how big the property is. I'd probably find a camera system with 7-day recording storage on a T-drive that you'd be able to review or watch live with an app on your smart device. I also know that camera systems most folks are probably familiar with lead to the over-notification of activity (ie. Ring tends to do this a lot; anytime leaves blow in a different direction it sends a notification lol but there is a way to adjust the settings for Ring so that it isn't destroying your phone's battery or filling up your notification center with too many notifications). That used to be my biggest complaint with Ring but.. better safe than sorry? There's also the option to put up motion lights that look like cameras and are solar-powered (you can get those for super cheap; $40 for 2 on amazon).

I'd recommend a camera system that will allow you to save the recordings to your phone/smart device and can grab still shots/certain frames. This way if you have to show recordings to Police they'll have a clear idea of who was trying to get in. And you may want to go with a wired system (with a lot of the wireless systems, if the internet goes down, then the wireless security system does as well). I hope that helps! @Bryan Laufenberg

Sounds like you have this on-lock, Rousner. Happy to hear that things worked out; all too often in situations like these, that tends to not be the case. Definitely good advice from Joe as well. I'm hoping all goes well with the next tenant. As you already noted, it could be good to think about refining the screening process moving forward (easy way to ascertain whether or not someone has displayed signs of being a not-so-great tenant in the past). The most stringent screening process still can't guarantee you won't run into this again, but certainly can help you mitigate some of those risks (ie. be sure to include a nationwide criminal background check, eviction history, credit score and credit history breakdown, and reference checks from prior landlords). Happy everything worked out for you!

Hi Otis, this a good question to think about as you're getting started. 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 might be that 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. 

Additionally, there are a lot more regulations that you'll have to abide by as far as the level you can set the rent at, and I don't believe HUD covers Security Deposit either. Other downsides to going this route: the process to get the unit approved can be long and tedious; the apartment has to pass section 8 inspection - they are thorough, and go by the book. Section 8 doesn't manage the tenant, so if the tenant isn't paying their portion of the rent it's still your responsibility to evict them. All you can do is report it to Section 8 and there's a possibility they can lose their voucher. I'll defer to others though to keep the pros and cons coming! Still learning about this myself but happy to share what I've learned thus far.