All Forum Posts by: Jennifer T.

I think it's a little tough out here for comps, whether purchases or rents, because neighborhoods change on a dime.  But I still find it surprising the data is as spotty as it is.  I'm not sure how they each pull data, but both Rentometer and Zestimates miss a lot.

A problem I have found with both Rentometer and Zestimates are there sometimes are not enough data points to give an accurate figure.  With Zillow's Zestimates, they usually won't give me info at all for a couple properties I have, because there aren't enough data points.

All my properties are in the medium-sized city of New Orleans, so I don't know why there are so few data points the majority of the time.  But that is what I run into the majority of the time when I have a vacancy or am trying to analyze a property.  It is annoying.

Like @Mike McCarthy mentioned, a conversation before anything happens is the best course so everyone can weigh in and understand the expectations.  I'd also suggest if something like that happens, that everyone wear masks while they are in the common areas for the 14-day quarantine period.  Another thing to keep in mind is you all should quarantine yourselves if someone in the household gets sick.  That could be a potential issue if any of you have jobs that are outside the home.

I don't even know where to start, haha!

I've had tenants steal things out of units.  Of course, those were always people being evicted or moving out from a Pay or Quit notice.  One of those did a "midnight move-out" the day after rent was due.  They also owed me some money from the previous month (this was in my early, more naive days of LL'ing).  They stole a variety of things out of the unit.  Nothing valuable, but just so scuzzy and lowdown, when they already owed me money.  And I'd been so accommodating, ie foolish as heck, in being liberal with their constant rent problems.  But of all the things I've had tenants steal from me, they PO'ed me the most with an item that had zero value.  The batteries out of the smoke detectors.  Really?!?!  They literally could have killed people.  For worthless, used AA batteries.

If a unit is fully ready and I already have a tenant lined up, I will allow them to start moving in a few days before the official lease date without any extra cost (assuming I have the security deposit and first month's rent, in full).

Now that I'm thinking about it, I do a lot of freebie gifting!

For example, I have a tenant who is partially living and partially using my rental house as an AirBnB (I knew that ahead of time).  The previous tenants had moved out, but only took their clothes.  I took the few things I wanted and actually threw out or put on the curb most of the other stuff before I did showings.  But I'd kept all the plateware and pots/pans in the cabinets, jic the next tenant might want them.  He was SO thrilled I'd done that!  All of it was stuff he would have had to buy anyway.

I also had a win-win with a tenant last year.  She was moving in, but didn't have any furniture.  Coincidentally, an evicted tenant had moved out a few days prior and left their living room set and large tv armoire.  We were just going to throw them out/leave them on the curb.  But I told the tenant she could have them, if she wanted them, and be responsible for moving them out.  We saved them for her for a few days and made arrangements to meet her with brother and dad at that other unit.  She wanted the furniture items and was ecstatic to get them for free.  We were happy to have someone else take them away!

I had a set of tenants who were in the process of buying a house.  They ran into a lot of bumps and their closing kept getting pushed out, even though they had already given me a 30-Day notice they were leaving.  Fortunately for them, I was planning to redo the kitchen when they moved out, so I wasn't looking for a new tenant yet anyway.  I allowed them to shorten the notice to only 14 days because their closing had become such a moving target.

As it turned out, for their last notice when all the ducks were in a row and they were definitely moving out on X day, they were going to be a few days shy of the two weeks.  They asked if I would forgive the prorated rent for those days.  I didn't have to and they understood that.  However, they'd been fantastic tenants and I agreed to it.  It was a loss of about $160, but I've never regretted that decision.  In my own heart, I felt it would have been greedy to have insisted on it just because I could.  To me, it wasn't a real loss because it only meant I started on my kitchen reno four days earlier.

Technically I could swing it on just my rental income.  I wouldn't feel comfortable quitting my W-2 job yet, but I'm getting into the ballpark.  I think I have decent job security for about the next year but, if I ever do get laid off, I don't think I'd look for another job.  Or at least not another f/t one.  Plus I already do some gig work that varies, but typically brings in another $1,000+/month.  I could probably bump that up a few hundred more if I didn't work f/t.

My goal is to be at $5,000/month net rental income, which needs to already account for all mortgage payments, rental expenses, and an 18% set-aside for Capex/repairs/vacancies. I'm at around $3,700/month.

In the meantime, while I've been waiting to "retire to only working for myself", I've enjoyed so much more financial security and have also allowed myself a higher standard of living.  With that said, I'm still fairly frugal.  By keeping my own personal living expenses low, I can get to my goal of "no f/t W-2" job faster.  

I buy cars I want (within reason), but never new and usually for cash so I don't have a payment.  And I keep cars for years.  Until a repair is more than the car is worth!  The mortgage for my personal duplex is only $720/month.  Oh!  But then I make $1200/month from the rent on the other side.  My husband and I don't care as much about "things" or having the "latest and greatest".  So our spending every month is primarily just typical bills.  Our "splurges" are restaurants and travel.  The restaurants can be $200-$300/month and the travel, which still isn't excessive, is $3K-$5K/year.  Usually 1-2 weeks away somewhere else and a couple long weekend trips.  Though travel has been ZIPPO for this year, for obvious reasons.

Bingo!  It can be a lot of work and time to clear out a house where previous tenants left a bunch of their junk.  And I've never even had a hoarder tenant.  Since she wants that $300 SD back, I would dangle that as a carrot to make sure she gets all of her stuff out of the house.  In this specific situation and because of the low dollar amount, I wouldn't even make her wait for the SD.  I would tell her that, as long as she isn't short on rent or caused any major/medium damage since I bought the house and removed all of her belongings (emphasis on removing all of her belongings), I will return her $300 SD within a couple days of her move out.

I would be thrilled to give a hoarder 300 bucks to get all their stuff out of a property.  Unfortunately, I doubt you will be that lucky.  But at least if you have set the parameters for what she needs to do to get the SD back, she won't be surprised if she doesn't get it back because she left a bunch of junk.  Actually, she probably will be surprised.  But you'll have a stronger leg to stand on.  

You already knew the condition of the house when you bought it.  You knew it reeked of cats.  I'm sure there are all kinds of tenant-caused damages but, unless there is additional damage caused since you bought the home, it's not fair to hold her to any other damage because you have no idea what the conditions were when she moved in.  Like a lot of other people mentioned, after 25 years, most/all the repairs needed are way past the "wear and tear" stage anyway.

For future deals, make sure security deposits and pro-rated rents are turned over to you at closing.  Even better, get estoppel agreements signed by both the tenant and seller in regards to WHAT the SD and rent amounts are.  If nothing else, $300 is a very cheap lesson to learn this.

For example, I bought two duplexes, 3 of the units occupied, last year. My title company...despite my reminding them multiple times "don't forget the pro-rated rents and security deposits" leading up to closing...forgot the pro-rated rents and SDs. They also didn't send me the HUD statement until 90 minutes before our closing. Fortunately I caught all the mistakes, despite being last minute!! But the SDs alone were $1500 of money I would have lost otherwise or would have lost if I didn't know to expect/ask for it. The pro-rated rents were another $1100.

@Account Closed, sounds like you all have been doing a great job mitigating your all's loss, while also helping a lot of the tenants not get completely buried in debt.

Something I've done, both in the past and currently, Is let unemployed tenants...or tenants I know are looking for extra cash...about general job opportunities I come across.  For example, right now most states are looking for poll workers and it's a paid position.  Sure, that's only for a very limited period of time, but every little bit helps people right now.  I don't know if the Census is still looking for people, but the hourly pay is decent.  

Sometimes I'll see job opening posters when I run errands.  Oh wow, Whole Foods is hiring and pays $15/hour, I need to pass that along to Tenant A.  Pizza delivered from Dominoe's and, right there on the box, advertising a $1500 hiring bonus for drivers.  Tenant B has been paying the rent great, but I remember he said he is looking for a part-time job.  Gotta tell him about this.

I know that's outside the box.  But tenants in those situations have really appreciated it and, yes!, some of them have found jobs and p/t gigs with suggestions I've given.

The holiday season is right around the corner and there are about to be a lot of opportunities for seasonal help.  I read an article that CVS is looking to hire 10,000 people (primarily pharm. techs).  I got an e-mail from Honeybaked Ham today that they are already hiring for seasonal help.

You all oversee a whole lot more tenants than I do!  But, if that sparks an idea, I assume you all could send out a 'bcc e-mail to anyone interested.

I'm sorry this is happening to you.  Whether in real estate or something else, it can be very upsetting and disturbing to encounter people who are so devoid of any ethics or moral character.  Especially when their actions have harmed you.  I've developed a much thicker skin over the years.  You have to.  But it still gnaws away at that deep down sense of "fairness" that humans are almost born with.

I agree with the others to speak to an attorney.  And listen to that attorney if they don't agree with the rest of the words I'm about to say, lol.  But your tenant is wrong.  I assume there is something in their lease that they cannot change the locks without providing you a key.  I'd post an appropriate Cure or Quit notice to change the locks back or give you a key.

You can also post a Notice of Inspection (or Repair) or for whatever other reason you need to enter the home.  Look up your local laws, but it usually needs to be posted at least 24 hours ahead of time.  Don't do this just to harass him.  But if you have a legitimate reason to enter with notice, you can.  And if he doesn't give you a key or cooperates to let you in, you can enter the home however you see fit at the appropriate day/timeframe.  Change the locks while you are at it and give him his copy of the key.

Make sure to track all the lease violations and post Cure or Quit notices and more tracking the history if they do not comply with some/all.  There isn't much you can do about a backed up or closed eviction court system.  But all the various eviction moratorium crap only has to do with unpaid rent and often only if it is related to the pandemic.  However you can evict for lease violations and, even if you end up in court for the nonpayment you've already filed, lease violations will just be that much more ammo to take away whatever made-up sympathy this deadbeat will try to wield.

Though my guess is he won't even show up to court.  Once he's been notified the court date has been set, he'll do a midnight move-out before it.  But that isn't so helpful if it will be months before you have your day in court.

Another issue with providing utilities that people don't usually think about, is that a running toilet causes a huge water bill.  And, if you are providing utilities, you're responsible for paying that bill even if the tenant didn't inform you in a timely manner about the toilet.

Something like that happened to one of my tenants.  Her toilet was running for a few weeks.  She never bothered calling me about it...until she got an $1100 bill that was for ONE month of water!  That's how bad it can be and why I never pay for utilities.  Fortunately, SHE was the one who paid her own water bill and it was in her name.  I also live in a city that doesn't attach unpaid water bills to the property.

Unrelated to the water, I ended up having to evict her because she did not comply with my 30-Day Notice to Vacate.  When I reclaimed the property, I saw the Sewerage and Water Board had snatched the meter due to nonpayment.  That agency had a 2-year hiatus where they were not taking people's meters, but it had coincidentally ended right around the time of the eviction hearing.  She owed $3K in sewerage/water bills!  I could tell exactly what happened.  She wasn't going to pay that huge bill.  So, since she wasn't paying that one, she wasn't paying any more of them either.  The additional $2K in arrears was about the right amount I would have guessed for her total, after receiving the large bill.