All Forum Posts by: Terri David

I know someone looking for about 60 acres near Taos, NM. Know of a good, honest, reliable contact in the area? Thanks!

@Jerel Ehlert Monies collected will be for unpaid rent, and I will collect on the additional damage to flooring, appliances, and bathrooms. I had just completed an inspection with no significant damage; however, on their way out they decided to destroy the oven and kick the handle off the refrigerator and continued to tear up tile and tubs in the bathrooms. $3k was collected for deposit because they had low credit. However, I also am an attorney that works helping disabled people and gave them a shot - maybe that's my learning opportunity - I don't do it next time. However, that is just one tenant. The other actually stole a refrigerator and didn't pay rent for the last couple of months. The other tenant is a similar story. I should have evicted them both a lot faster than I did - I do now. 

I can't speak for the others; however, I am becoming a lot more "hyper-pro-landlord" the more often my tenants that I am more than flexible with leave me standing with no money, no profit. My patience and profit are wearing thin.

1) Both my property manager and I did tenant screening. However, I have noticed the tenant population even from my property management company is less than desired for middle class properties. Not a lot of amazing choices. I might as well be in MF. 

2) Maybe that's true, but the bid I accepted is below market rate and much lower than the $20k bid I also received.

3) Nope. To save money, I am downgrading from laminate to carpet and getting a less expensive oven/stove replaced. No upgrades AT ALL, it's actually a downgrade. My neighbor was right - tenants will tear up our property. Live and learn. Another reason I'm going to MF.

The great thing about how I manage my property is that I cover all my legal bases so when I collect or evict, I'm completely covered - I go above and beyond to document all the extras I do for my tenants - no worries there.

Thanks for your feedback and the opportunity for me to further evaluate the issues I'm resolving.

@Alina Trigub Excellent point! I typically give a 90 day period then reevaluate in most of my commitments. I see no reason why I would not apply the same principle here, except here I like the six month 'probationary period.' Again, another example of economies of scale at work in MF properties. The property management company I use right now requires 20 units before they offer a discount for subsequent units/doors.

@Alvin Sylvain Very interesting - it "feels" like as the author described. I look forward to making more money in MF.

@John Warren Interesting point that I have not thought about much is that in my area it can be more expensive to rent than buy a house and renting a house is about the same as renting an apartment. That may be one reason why I'm getting the questionable tenant population in a middle class neighborhood that treat the property like a cheap apartment. As I do research on the location of my MF purchase, I will keep this in mind! And, I have to admit, I'm a little envious of the 19-year long tenant - that's awesome!

@Jason D. Yeah, been thinking about hiring someone for free/reduced rent and look over the property. Maybe they could help with screenings, contractors, etc. but also that's  something I can do online/phone... and if tenants have bank accounts take care of rent that way too. I've never had a tenant that didn't have a bank account but know it's possible. What I know for sure! is that even if I have someone "managing" property, I still end up doing more work than expected. It truly is semi-passive income. It's really a choice of working with tenants or working with someone managing tenants - it's work either way. At this point, I would rather work business-to-business rather than landlord-to-tenant. 

@Nathan Gesner Yep - I'm going straight to collections. I just learned in Texas the statute of limitations is 4 years on nonjudgment and 10 years on the judgment. So, I'm using the statute of limitations to try to collect on even a past tenant that was evicted, owes me money, and stole a refrigerator. If nothing else, a landlord that checks her credit will be forewarned.

@John Warren Yes - I've decided to sell my SF properties, use it as a great learning experience, educate myself in CRE more, then buy MF. I have learned a lot! The numbers on MF have been more appealing for along time, and now my experience confirms at least what I have heard about SFHs. I can't complain, at least I have not lost money, I just have higher expectations for my monies. Thanks for the encouraging response.

@Jason D. Thanks - I was wondering about on-site management. Good to know as I am not in the area of my properties, which is bittersweet. Exit strategy is better for SF unless maybe smaller MF properties. Most of my tenants have stayed about two years, but I want/need longer for the make-ready on middle class homes more profitable. Will see - I'm selling my SF properties and chalking this up as a good learning experience and do better next time! Thanks again for your response.

@Kyle J. As I started doing some research - found this active link- thought you may be interested:

https://www.american-apartment-owners-association.org/solutions/rent-collection/