All Forum Posts by: Ryan Ahlgrim

I've been doing some homework on how Rent To Own for a landlord works and have a few questions for anyone with experience doing multiple RTO deals.

1. What is the percentage of renters who actually follow through with the option to buy at the end of their lease vs. those who walk away?

2. Who's responsible for maintenance? I've heard it both ways so it sounds like it'll depend on how you write the lease agreement. I like the idea of the tenant being 100% responsible, but I've heard it might not hold up in court. Another great idea is having the tenant be responsible for repairs under $500, and the landlord is responsible for the rest.

3. Do you list your RTO properties for rent or for sale? What websites get you most of your leads (Zillow, Trulia, Craigslist, MLS, etc)?

4. How do you set your option fee? I've heard 5%, 10%, or a flat fee like $5,000.

5. What are the pros/cons of doing RTO and potentially selling a good rental in 3-5 years vs. holding the property long term.

Thanks in advance!

I use a GC who performs 75% of the work in house. The rest we sub out. I'm probably paying a premium doing it that way, but it's worth it because he coordinates just about everything for me so I can keep doing my full time job during the day. Also, I can call him for just about any maintenance issue and he has someone out in less than 24 hours most of the time. 

The problem you'll run into is that all contractors seem to be short handed on reliable help. Supply houses are the same way. Customer service has been on a steady decline lately. You call and ask for a price, then never hear back unless you follow up multiple times. They're all overloaded with work. Most projects are a few months out right now.

Don't let any of those issue distract you though. Get out there and get some. Good luck.

I wouldn't because they're representing you. I've seen wholesalers screw up more deals than they have come through with something worthwhile. If they piss some homeowner off, which they do a lot, you'll be sure to hear about it.

Cowboy up and use a credit card. Don't make a habit out of doing it though.

I've been toying with the idea of automating my showings as well as allowing qualified prospects to view the property alone and at their convenience. So far I've learned of 3 services that help with both: Rently, Showmojo, and Tenant Turner. I'm curious to hear from other landlords and property managers what their experience has been using any of those.

Kenneth Mooney thanks! I'll check it out. Robert Gilstrap very helpful and encouraging response! Thanks! Callum K. thanks for the feedback. I'm thinking I'll start giving this strategy a try and see how it goes. We're doing a meetup in a few weeks downtown. Hopefully you can make it so we can discuss these showings some more.

@Brian Garlington, I prefer to keep the 10% and self manage. My porfolio is small enough so it isn't a problem.

@Loren Clive, I'm considering this because showings eat up too much time. Even if you qualify an applicant beforehand, a lot of them just don't show up even when you schedule them in the evenings. I could be doing something better with my time. 

@David Faulkner, maybe I'm doing it wrong but Tulsa doesn't seem like a high demand market where people are lining up to see an open house for a rental. I've tried open houses and people who say they're coming rarely show up.

@Bill Pate, I agree with what @Joe Splitrock said in response. A tenant could do that or even someone I've never spoken with who noticed the house was vacant and kicked the door in. I don't think the point you were trying to make is enough to say no to self showing.

Kim Meredith Hampton excellent point about the closing ratio. I'll be sure to keep that in mind. Greg S. I agree with you there's risk in allowing an applicant to self show. I also agree running a business requires you to get off your butt and work. At the same time I think automation and stream lining processes can help run your business more efficiently. I think in today's world people (renters) prefer using technology as often as possible. It'll continue to be that way with millennials. We have a immediate care facility in Tulsa now that allows you to FaceTime with an RN rather than drive to their office. They check all your symptoms over video and even call in prescriptions to the pharmacy. So convenient and a great time saver. But think of their risks... What else could you or your team focus on if they aren't having to schedule multiple showings a day?

Kenneth Mooney what's the name and/or brand of that lockbox you're talking about?