All Forum Posts by: Rob L.

@Richard C.  I agree with you that it only provides a benefit to the owner but I still feel it should be up to the owner on whether or not they pay for the credit/background check or the tenant. In a open market the tenant has a choice to go somewhere else if they don't want to pay a Application fee. 

Not allowing Owners/property managers to charge these fees simply forces them to make up the lost revenue somewhere else. It doesn't take it away all together. A property manager will simply have to charge a higher monthly management fee to recover the costs and the owner will have to charge more rent.  

I got this email earlier today, thought other mass investors might find this interesting....I know there have been some discussions about what we can and cannot charge in the past. 

"An important ruling has been issued by the Massachusetts Federal Court that has big waves in the residential management community - many of the commonplace "fees" charged to Tenants and Prospects are now unlawful. This includes: move-ins fees, application fees, and up-front pet fees. The decision on August 26th, 2014 against Equity Residential, which manages approximately 6,680 units in Massachusetts, affects not only the bottom line, but the way many communities conduct their leasing.

The decision clarifies M.G.L. c186, s. 15B - the law that addresses security deposits and payments. This law prevents any kind of "up-front charge" that is not specifically listed in the statute, even if that fee is deferred to a later point of the Tenant's occupancy (ie, second month).

The Effects to Massachusetts Property Managers are:

? No Application Fee

? No Amenity Fee / Amenity Use Fee / Move-In Fee

? No Community Fee

? No Up-Front Pet Fee

Monthly Pet Fees are permitted: "The monthly pet fee is not incurred up front, but rather each month during which the tenant owns a pet. Because the plaintiffs became obligated to pay the fee after they were already tenants, they may not turn to section 15B(1)(b) for relief."

So, what is allowed under 15B(b)?

1. Rent for the first full month of occupancy;
2. Rent for the rent for the last full month of occupancy calculated at the same rate as the first month;
3. A Security Deposit equal to the first month's rent...; and
4. Purchase and installation cost for a key and lock.

IREM Chapter 4 recommends that our property management colleagues perform a thorough evaluation of all leasing and marketing materials. Staff should be made aware of the changes as soon as possible. If you have any questions, we suggest you consult an attorney.

-Warren Lizio, Legislative Chair, IREM Chapter 4."

In your 950 are you accounting for maintenance & insurance? If not, your still looking at over hundred dollars per door which is ok around these parts. I have a condo in haverhill like that and its not the best in terms of cash flow but we have good tenants and like you mentioned the appreciation has been pretty good. 

I would drop the hammer...no mortgage under your name and you can refinance out. Just keep solid reserves incase anything comes up. 

Hi @Jeff Zhou , I believe it was around 3k originally but we worked it down to just over 2k. Their definitely not the cheapest but it sounds like the agent is insuring you for the entire reconstruction amount. I would check with your lender  as some have restrictions but your rates will go down if you just insure up to the loan amount or whatever the minimal amount required by your lender is. 

I've used Liberty Mutual on mine recently. They will issue a quote and can do so over the phone. We just did one that had a reconstruction amount of 850K so you would be good. 

Hey @Account Closed You mentioned a median house value of 90k but thats too generic for my liking. Have you pulled any comps in the area for like properties? That's where I would start. Need to figure out what the place is worth and go from there. If its going to be a flip then you would need to figure out the ARV and budget for repairs if needed. But, first step is to see what its worth.

Hey   @Cory Mickler, I've had great success by using craigslist.  I just search the town i'm renting in and find places with the same # of beds and put them all in a spreadsheet. Once I have 10-20 I take the average and look at the top rents and see what their offering. I like to get top rents so I make sure our properties are in line with the top places in the area. Then to rent it quick I offer the same amenities as the top rentals a hundred or fifty dollars less per month.

Works like a charm.  Goodluck! 

@Kay Yu Do you mean rental comps like what the average rents are in an area? Because I've had great success by using craigslist  I just search the town i'm renting in and find  places with the same # of beds and put them all in a spreadsheet. Once I have 10-20 I take the average and look at the top rents and see what their offering. I like to get top rents so I make sure  our properties are in line with the top places in the area. Then to rent it quick I offer the same amenities as the top rentals a hundred or fifty dollars less per month. 

Works like a charm. 

Hey @Justin Silverio

@Justin Silverio

@Justin Silverio

@Justin Silverio

@Justin Silverio

Sounds good guys, I will see you tonight.