All Forum Posts by: Ron T.

@Mashika Johnson as a semi local investor who also has some mobile homes, I would question your market rent level? I think you may have slightly bad intel. But of course I dont know exactly where these MH are. Remember Mobile Homes(especially older ones) arent as energy efficient as apartments. Meaning the power bills are much higher for equal square foot. Always remember to consider the total cost of living to the tenant. As they will hopefully be evaluating the same when picking your property.

That said, it isnt what you asked. You asked about how to raise the rents. So assuming you have decided to raise rents after this crazy season dies down. The mechanics of ho are pretty easy and in SC you can do about what you want. I cant tell you what works for you, you will have to determine your style, Ill gladly share what works for me in hopes it does the same for you.

Im a touch old school. I like to talk to people instead of email, write and text. I always document conversations in writing for evidence "just in case"....in this case Id pick up the phone or stop by. Talk one on one. Ask them first what if any repairs or upgrades they need (when you introduce a rent increase they will suddenly remember what needs to be fixed, cut this off by getting them ageable that the home is in good shape first) Then let them know that an increase is coming, and I like to offer some choice, even if they really arent choies, it makes them feel more in control. "We are having to raise rents to market level. The new rent will be $650/month. I can work with you either by raising it to $550 now for 6 months and then to $650 after or I can wait  months and then raise it right to $650 then with immediate increase to give you time to prepare. What is your preference?"

If you have reason to suspect you ave a professional tenant, do NOT try this. Just work on getting rid of them now. The easiest rent raise is the one on a new tenant anyway.

Good luck!

@Stan McCune that is an awesome and well thought out response.

That's why there are choices and options, "Different strokes for different folks"...without totally de-railing the thread I think its worth noting there is a line you are tip toeing there. Once you start analyzing P&L or cash flow and start making recommendations on that the conversation starts to migrate from an agent to one of financial advisor. And that opens Pandora's Box around legality, requirements, etc.

But you are right - investors come in all shapes and sizes just like RE agents.

Speaking for myself I am looking for someone in the middle. I can set my own MLS drip up off set criteria, that doesnt provide any value. (MLS access is easily attainable these days for non agents for pennies or free depending on how much work you want t put in vs automate)

On the flip side I'm really not interested in the average agents rehab cost estimate is, as I have my own views, experience and plans there.

Specific localize neighborhood can insight provide a great value.

Your example above about identifying a duplex that isn't listed as such is huge value. But what about your ability to do that once should preclude an investor from buying another deal from another agent who found the same type of error and you missed?

Do you see how your structure is completely one sided? That was my larger point. Of course you provide value to your clients, if you don't you don't "deserve" to earn a dime. But what do you provide them that should make them agree to forego profits others may also find?

The easy button we all look for is separating the wheat from the chaffe. You want investors not wantvestors. I want to findreal estate pros not people with a job in real estate.

Like I started it with though there is a market for all of us.

Best of luck and hopefully our paths cross one day in the future, Id love to share a beer or coffee and discuss ideas. Its obvious you are a thinker and a hustler and there are far toof ew of both in this area.

Yes lot still buying. Some are accelerating or preparing to.

What part of SC you focusing on?

@Stan McCune I wish you luck. As a semi-experienced investor I would never pay a retainer to an unknown commodity nor sign an exclusivity agreement. What if my realtor friend calls me tomorrow with a deal....an agent Ive done 5+ with in the last decade. Now I owe you cut, for what?

I would say that you are asking the wrong question, but if it works for you why do you care what I or anyone thinks?

For me I come from a point of servant leadership. I ask everyone I meet how can I better serve you. Regardless of whether they can help me. I find this is one think Zigler had perfect 'If you help enough people get what they want you will never want for anything'

I know there are time wasters, and I do understand vetting them and disqualifiying prospects. But if you are going to be the highest priced you had best not just be good, you have to be THE BEST. Heavy is the head that wears the crown and folks always shoot for the king...

Good luck.

Dont forget your property tax will increases by 2.4x in York Coutny with it not being your primary residence.

Ive seen several people make that mistake and get hit with a huge surprise at year end that screwed up cash flow.

Just local market knowledge. Its over priced. Its in a non-desireable area. You will struggle to locate qualifiable tenants who want to live in that area. Housing Authority (Sec 8) doesnt like the specific neighborhood. They will approve houses there but because of issues they are extremely strict (to the point of being excessive) its one of the 3 highest crime streets in the entire zip. Vandalism and property damage are constant concerns there.

Should I continue?

In a larger metro it is what would be described as a war zone. This market is too small to carry that designation. 

That property was bought by an institutional client who lipsticked it and is trying to play market metrics. They have about 5 properties currently on the MLS in 29745 with the same issues. The only exit strategy is out of market, long distance, or instiutional buyers.

That's my home market. I have several duplexes there.

It depends greatly on where it is. If its the mighty joe property on mls...RUN.

Wouldn't be worth it at half the asking price.

Actually...adverse possession is real.

Im in a dispute right now...but its on a much larger trct of land and a fence line that has erved as the boundary for 4 transactions and I'm developing and guess where "their" fence line is....

@Joe Kavan 

I apologize my post wasnt clear. I never meant to insinuate that he should take the guy to court. I was (in my head) thinking about a scenario where a tenant took me (the landlord) to court for extortion...then the burden would fall on you, the evil landlord, to prove the mount charged was "reasonable and customary"

I agree taking to court would be foolish, but never underestimate the potential folly of certain tenants.

In my experience, outside of Charleston (which is just a beast of its own right now) competition in the metro areas actually drivers repair costs down. For example on my Columbia properties I have 5 plumbers on my list - I own a couple properties in Union, SC - there are 2 plumbers in the entire town. Otherwise you are paying someone to drive from Spartanburg. They know it and inflate their prices accordingly.

Replacing a toilet is considered repair and maintenance and does not require a licensed mechanical contractor to perform in SC. So Bob's handyman service can swap that toilet provided Bob has a business license without needing a licensed plumber - note I am a contractor and engineer not a lawyer get your own legal advice this is merely my understanding of the law as explained by my legal representative.

There is zero justification for a $600 toilet replacement in SC unless you had sub floor repaired, or the flange broke and they had to fix piping etc. For a toilet and wax ring replacement you paid more than double the going rate.

In my experience the standard trip charge is $60-75. So lets say they hit you for a trip charge at top end $75.

Then they purchased a $300 toilet (stupid in a rental property) marked it up 15% and charged you $353.

Then charged you two hours to install it at top of the mark rates or $150

Even still that only comes out to $578. $600 isnt just high its "laugh at the newbie" high or "rip off the rich man" high.

I want you to be as pissed off at what your contractor charged you as you are at your tenant. When you hire repairs hat you intend them to pay for you are a custodian and a steward of their money. Fight for your tenants. Protect them like friends. Treat them like business partners. And they will provide you wealth.

FYI the $350 replacement I quoted above - the home is in Harbour Watch  in Lexington so its as metro an area as youd want.