All Forum Posts by: Stephanie Jamgochian

@Eric Carr yes, you are correct and I was mistaken! I cannot charge a non refundable pet deposit, but pet rent ok in CA.  Yes, because it's a house in a HCOL area, turn over costs can be significant, so trying to mitigate this.  So far, so good.  

Thanks everyone for your feedback! I truly appreciate your insight as seasoned property managers/owners. It's given me clarity on the situation.  Here's where I ended up: no rent reduction and okay'd a dog under 30lbs, already housebroken, with a $500 pet deposit (cannot charge extra pet rent in CA which is illegal).  The house has vinyl flooring throughout so there is no carpet to contend with.  My renters said they were "happy" to stay, especially after I explained what a great deal they're getting!

@Colleen F. They presented it as "we've had friends send us rentals that are "X" amount lower for houses in our area, but we really like the house.  Would you consider lowering our rent to "X" amount? Also, our kids are at that age when they would like a dog.  I know you have a no pet policy, but we were wondering if you would consider us having a dog?"  I just told them I would get back to them.  After doing a quick market research of rents in our area, yes, there are a couple of homes (literally-there are so few homes available here) that are in the price range that he mentioned but they do not have the upgrades and they are in crappy school districts, however we are just under the median for prices in our city.  

Thank you everyone for your responses! This has been very helpful.  Leaning toward no lowering of rent, allowing the dog with a pet deposit.  

I own a "B+" SFR in a HCOL university town with vacancy rates under 3%. I've owned this unit for the last 2.5 years and have had three turnovers since (first tenant broke lease after 5 months due to job loss and then rented to four college students the next 9 months. They graduated and left). I currently have a family-two parents, one with 6 figure professional job; other with a part-time professional job but is mostly a SAHM. They have three kids in high ranking public school half a block away. They have paid on time with the exception of one month when they were a week late (early on in their tenancy, in which I charged them a late fee as per lease agreement). They have been very good tenants and they are keeping the house clean and well. They have told me how much they like the house.

My question: They have asked for a 5% reduction in rent PLUS they want to get a dog.  Currently the lease states no pets and they have honored that.  Data research from 2018 shows that for our area, the rent is under the median price for a 4/2.  It's also been completely renovated, although it's on the smaller size, square footage compared to other houses in the neighborhood (1,500 sq. feet).  I also don't want yet another turn over as I've calculated at a minimum that would entail half to one full month's rent, which is less than the price reduction, however I'm reading most people actually INCURE additional rent for the addition of a dog.  I feel that based on my interaction with them, that they would be responsible pet owners, although pets always incur a level of damage.  However, based on the fact that their kids are in a school where they are happy, the low inventory of houses in our area, and the fact that many landlords don't allow pets, leads me to think they will be long-term tenants, which is what I'm looking for.  

Thoughts and advice from seasoned landlords?

The rent on my house is significantly more, calculated at 37% of their income, which is pretty high, although where I live this isn't out of the norm since real estate and rents are so high.  But the more I hear your advice, I'm thinking they may not be the best tenants.  I asked for last three bank statements and w-2.  Waiting to see what the results are.  

I was concerned about that too.  I've requested the last three bank statements to take a closer look at their financial situation and spending habits.  I'm really on the fence with them. 

I am fairly new to real estate landlording. I have a SFR in an area that has low vacancy rates. A prospective couple with three kids is interested. They make 2.7x's the rent. The husband has very good credit of 706, no late payments and is the primary breadwinner; his wife is a SAHM, has poor credit of 594, mostly due to late payments (some 120 days late) of student loans, some as recently as April 2018. She had one "unpaid balance recorded as a loss" in 2014. She has always paid her revolving credit cards on time. They have been renting a house for the past 5 years and their current landlord said they have always been on time with their rent and she would rent to them again except they are moving out of town. The husband has consistently worked in his professional line of work for the past 12 years. I'm concerned about the spotty credit and late payments on the wife's part. Any suggestions would be helpful.

Thank you Nathan G. this is really helpful. I've read the 2 person/bedroom rule and in California, things are more liberal (read in favor of tenants) than landlords. I'll read through "Keating Memo HUD" for reference and may do the "You plus two" policy. Is this something you tell people verbally? Do you put this in your polices and procedures information? Would love to hear how you communicate this to prospective tenants.

Thanks Bethany! I'll add a little more to my listing to emphasize the quiet nature of the area. I have listed that it's near the local elementary school, but will add a bit more.