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All Forum Posts by: Account Closed

Account Closed has started 21 posts and replied 4391 times.

Post: Tenant asked to borrow money from ME!

Account ClosedPosted
  • San Jose, CA
  • Posts 4,456
  • Votes 3,246

LOL, never.  Some tenants need to learn how to prioritize their money, but you can rest assured that they do know who they have to pay first.  If they know they will lose their housing if they don't pay you first, usually they will pay you first.  Then go get their $500 tattoo.  

I inherited tenants who got away with murder, who started out showing me their expensive new tattoo or that they were going on vacation - and that's why they couldn't pay their rent on time this month.  The previous manager (one of the previous owners) let them get away with this.  I very nicely, but firmly, explained that I was hired to collect the rents on time and would really, really hate to have to evict them.  

Most started paying on time every month.  I did have to evict one who just couldn't help getting more new tattoos instead of paying rent.  She couldn't believe I really meant it.

You can do it nicely.  But, no need to go into a huge explanation.  They're just listening for a definite "no," and if they don't hear that, they will keep pushing the boundaries.  So, nicely but firmly say - no.

Post: Fresno monthly utilities costs for SFH

Account ClosedPosted
  • San Jose, CA
  • Posts 4,456
  • Votes 3,246
Originally posted by @Franklin Romine:

The system is designed to keep away people that are on the fence from making decision.  It's no different than if McDonald's told us how much weight we would gain if we ate Chicken Nuggets.

 Are you really saying that you advise buyers to just buy an investment property and then find out what their costs would be - after the fact?  This is the kind of thing agents were telling people just before the crash in 2008.  When buyers were saying, I can't really afford to buy a $500,000 house, even though the bank says I qualify, and the agents were saying, "Are you careless with your money?"  

No, they were asking valid questions, and getting the runaround.  Kinda like here.  Makes no sense for a utility district to have mysterious charges that aren't revealed until you have already purchased a property.  Other utility districts in other cities disclose this info in a very easy to understand format online.

I think it's really interesting that there aren't any Fresno agents or property owners on BP who actually own property and pay utility bills in Fresno and can explain what the costs are.

Post: Fresno monthly utilities costs for SFH

Account ClosedPosted
  • San Jose, CA
  • Posts 4,456
  • Votes 3,246
Originally posted by @Soo Kim:

I think it would depend on the size of the house, but for a SFH in Fresno about 2000 square feet, it comes out to about $90-100 monthly. Tenants pay for it so if it is for investment purpose, no need to take it into your calculation/analysis.

 Thanks for responding.  So, you're talking about a rental that you own in Fresno?  Your profile has no information.  Could you break that down, please, by how much for each utility?  And you honestly have your tenants pay for water, sewer and garbage?  And put all of these utilities in their name?

I'd love to hear from others who actually live in Fresno, too.  Thanks.

Post: Advise to Phase out Swimming pool

Account ClosedPosted
  • San Jose, CA
  • Posts 4,456
  • Votes 3,246
Originally posted by @Gary B.:

Hi Fellow investors, i recently took over a 27 unit complex and it came with two pools - overkill for apartment of this size. 

Now, I figured it is very expensive to maintain swimming pool in apartment complex in California. $500 /year permit fees /pool, $350 /month to maintain in summer / spring, and $150/month to maintain in winter. 

I want to close one pool and keep other open, can you suggest what can I do phase out one pool in Fresno county ? I cannot financially afford to fill up one with sand now but might be able to do year down the lane. 

How can I reduce my operating expenses for one pool that is not open for public use and I want to close down the lane in year or two?


Thanks,Gry 

 I would "spin" the closure of one of the pools, saying that you are creating a quieter apartments area and will be creating a garden area or patio area, etc.  Many tenants hate living next to noisy pools.  But, I would be concerned about just closing off the pool area and not having the pool filled.  If you drain it, you may end up with all of the local skateboarders jumping the fence and you end up with a separate liability issue, let alone damage.

By the way, you didn't mention the cost of insurance for having the pools.  I'm going to assume your insurance is higher for having each pool.

If you don't want tenants and their friends or locals gathering in a new park area, then just plant a bunch of cacti in there, close together, so nobody will want to hang out there.  If you want to turn it into an amenity, you could add picnic benches and barbecue grills.

Post: Fresno monthly utilities costs for SFH

Account ClosedPosted
  • San Jose, CA
  • Posts 4,456
  • Votes 3,246

It would be helpful if someone who lives in a SFH in Fresno would share how much their monthly utility costs are.

Post: Be friends with your tenants?

Account ClosedPosted
  • San Jose, CA
  • Posts 4,456
  • Votes 3,246
Originally posted by @Peter Morgan:

@Sue K.

Thank you all. I feel it puts a landlord in a complicated situation especially when cohabiting with multiple families and it needs to be handled tactfully . If you oblige and socialize tenants will seek favors and try to take undue advantage and if you don’t socialize they may end up treating you as pariahs for not socializing.

 Oddly, the good tenants never treat you like a pariah for not socializing.  They don't normally expect to socialize with the other tenants in an apartment building.  Like living in any apartment building, even like I do now in a senior apartment building, you have to watch out for the friendly ones.  They're the ones who will want to borrow things from you, want rides places, want you to watch their dog, etc.  

So, I really wouldn't worry about it.  What you could do when you interview prospective applicants is tell them that you aren't the kind of landlord who will bother them, and you appreciate not being bothered with anything other than landlord-tenant issues from your tenants, so everyone can live their own lives without things being awkward.  The ones you want to rent to will be the type to sigh a huge sigh of relieve that their landlord will not be all up in their business.  They make for good tenants and neighbors.

Having a default answer until you get comfortable with setting the boundaries, is to just always answer with "Let me think about it."  Then, eventually, you will learn to say no right away, in whatever words you find most comfortable- "Oh, I'm sorry, but that's not something my lawyer suggests I allow," for instance.  It is helpful if you can blame it on someone else, if you find that more comfortable than just saying a straight out no.

But, it's also really true that at the same time, you can be really friendly.  I was very friendly.  And I would really nicely say no.  I'd say, oh, I completely understand why you want to be able to park in two parking spaces, or want a pet rabbit, or want a washer/dryer in your unit, or want the owner to pay for your blackout curtains...but, you know I can't say yes because the lease says no and if I let you do it, I have to let everyone else do it, and so as much as I understand why you want what you want, I'm just so sorry, but I have to say no.  I'll completely understand if you feel you have to move out and if that's what you choose to do, I'll be happy to work with you on your move-out date...(if it gets that far).  Yay for month to month rentals.

Post: Eviction without possession?

Account ClosedPosted
  • San Jose, CA
  • Posts 4,456
  • Votes 3,246
Originally posted by @John Teachout:

The way we work it is we require a holding fee of an amount equal to the security deposit to take a property off the market. If the person hasn't paid that, then it's still for rent. We sign a contract when they have paid all the move in fees. (rent, pet fees, etc) and they get a contract then but don't get keys until they prove they've transferred the utilities into their name. If someone wants to sign a lease but doesn't have the move in funds, this is a red flag right from the get go as it demonstrates they have weak financial planning. These are the same tenants that won't have the rent because they took their dog to the vet, needed a car repair, etc.

 This is brilliant.

Post: Is the private money buying equity or is it a loan?

Account ClosedPosted
  • San Jose, CA
  • Posts 4,456
  • Votes 3,246
Originally posted by @Jason Lam:

@Kenneth Garrett Thanks for the response. I figured that was the case and that would I would be doing is a little unorthodox where I would put cash in on a buy and hold. Doing a mix like option 3 might be a good fit for this one as it will allow me to pull out the majority of my money but still keep an equity stake in. I would rather know the risk I am taking and lose money than to have to try to foreclose on a family member in the event something went south. 

@Account Closed Thanks for your response. You're a few steps ahead here but yes I would be on the deed so there is no issue there. I was more inquiring on the best way to structure a deal where I want an equity stake and I'm paying in money. If it should be a loan or just a simple equity stake where I get paid 50% of cashflow but can't get my investment out until we sell. 


I think you should talk to a lawyer.

Post: Eviction without possession?

Account ClosedPosted
  • San Jose, CA
  • Posts 4,456
  • Votes 3,246

I'd give them written notice (which can be done with text or email, but I'd also send a hard copy with proof of delivery to whatever address you have for them) that because they have breached your written agreement by not paying you as agreed, the lease agreement is void.  That way, if they break in, they are obviously trespassers and not tenants.

Post: End of Tenant Leasw

Account ClosedPosted
  • San Jose, CA
  • Posts 4,456
  • Votes 3,246

Google your state and lease termination notice.