All Forum Posts by: Sean McKee

@Stephanie Young- I think you can only charge her for the two weeks it was vacant, and probably the early termination fee. But you should check local laws. Is she demanding it back in full?

Don’t worry about the ethics, you have every right to charge her reasonable fees for breaking the lease. She had every opportunity to research the area before she signed the lease.

@Kim Dillaway- I'm not sure where you are located. A lot of time son redfin, realtor, or zillow they will list the rents/lease end dates. If not then you can certainly try and engage to the broker to disclose this.

@Marcus Johnson- It sounds like you are positioned well for the increased regulations. I hope they come to their senses and follow the Oregon model, and factor in inflation to the yearly increases.

@John Warren-I've been looking at the Waukegan market for a little over a year now.  What areas do you recommend for longer term rentals?  Are the any areas you would avoid?

This is crazy. Not only is a 3% cap ridiculously low, it doesn't adjust for inflation. You can't increase rents after the tenants moves out. What if your rents are 20% below market value? I know plenty of landlords like that. There goes any incentive to improve properties beyond the absolute bare minimum. In 10 years time they will be complaining even more about housing shortages. Current landlords I hope you are close to market rents or have the time to increase rents.

@Alex Tokmazeyskiy- I'd also through Little Village out there.

@Kim Dillaway- You can certainly have your agent reach out for this kind of information. However depending on types of properties you are buying, the seller might not have all that information readily available. I purchased distressed buildings with so much deferred maintenance that I wouldn't trust any data they provide me. I'll take whatever information they provided with a grain of salt and then use my pro-forma data to make the offer price. I'll also check with the local building department for any permits issued, sometimes you need to submit a FOIA request. During the due diligence phase you can verify your original assessment.

@Allen W.- I own several C class properties. You can definitely increase rents by making the units slightly nicer. The key word is "slightly", so maybe 10% to 20% more than what would be typical for your market.  Also realize, unless the units were severely underpriced, you likely only get a 100 to 200 dollar rent increase. People in those markets typically won't pay that much more for premium finishes as they have limited budgets.

I had one unit that we just cleaned up and put new appliances in and got $200 more in rent. Most people just want clean and safe place to live. 

Good post. I think a lot of landlords, including myself, have been guilty of this to some extent at some point in our careers. Obviously this was an extreme case of letting stuff getting way out of hand. I think it's the fear of not wanting stir the pot. Some tenants cause problems, but not enough where you want to go through the headache of either finding a new one or take on the cost of an eviction.

It's not that you don't know what to do. You just don't want to deal with the costs associated of those actions and take the path of least resistance. At least you thought it was the easiest way forward until something else happens. By then it's too late and the tenant caused more damage than if you had acted earlier. It's not until then you learn the error of your ways and that you cost yourself more money, time, and stress.

I think COVID taught a lot of us the importance of tenant screening and not letting issues fester.

@Mary Aviles Lease Runner can accomplish it. You can run eviction, credit, and background separately. Of course it cost $49 which is like $10 more than Transunion. I've heard a number of brokers say they have the tenant initiate the report on Transunion and said it complied. But I'm not sure if this is true, because you get access to everything at once.

Splitting everything up just increases the cost to potential applicants, which I'm sure is the exact opposite of what they wanted. I hate having to charge more money and go through a longer screening process with applicants. A lot of them get confused when I split it up and charge more.

I don't think it was well thought out ordinance and I don't think a lot of people out there are complying with it. I guess we will have to see how they eventually start to enforce  it.