All Forum Posts by: Timothy G.

I have four units.  They all use cozy.  Sure, I don't usually receive the payment for about a week later but at least I receive it and I don't worry about it.  Cozy sends them a reminder that the money will be taken out of their account, sends me a reminder that their payment is being processed and has deposited.  I never have to chase them and I've enjoyed the fact that my tenants contact me for maintenance concerns thru the app.  Plus I like and they like the fact that their credit rating goes up using the app.  Very convenient and free.  Plus, I keep all documents that have ever been signed by me or them uploaded using their file system so at any time, either party can access their lease terms or rules and regulations quickly without having to dig in a drawer to find them.

I highly recommend for a first time landlord.  I would gladly pay for additional options that they could offer but they seem to work fine for what I need.  I do not use their screening tools as I have found much better and cheaper options.  Also, my tenants have found cheaper alternatives to renters insurance and have not used their services either.  I'm not sure how they will be able to continue this free service without selling their services but I have already informed them that I would gladly pay them in the future for their service if needed.

Thanks @Jill F.

I already have a disclaimer in the lease about charcoal usage indoors and in the garage and I have a ducted vent so I think I was being a little too cautious about it all.  

@Ader Viloria  Totally understand your perspective and I agree, 40% is a huge jump.  I didn't know all of that before I posted.  DEFINITELY fight this.  I think you have a good case especially if the valuation was done in the previous year. Best of luck and please keep us posted as to what you find out please.  By the way,  I would love to find a deal like that!  A property like that in Appleton is at least $800k and they need A LOT of work.

If your serious about fighting it, you should have your own private analysis done.  The city always has an opportunity for you to dispute the taxes.  They either will offer a date that people can go in or you will be able to set up an appointment.  My gut feeling is that since the bank has already appraised it higher then even what the city assessed it as, your going to have a difficult time finding a neutral party evaluating it and giving you the lower appraisal that your looking for. 

I know that your fearful of having vacancies if you raise the rent.  Losing revenue is serious when a mortgage is at play.   However, loosing a tenant gives you the opportunity to go in and do the renovations that you need to make to justify the higher rents.  It sounds like you found a great value-add property with huge potential but limited resources.

The question is how much did you pay for it?  Sounds like you got a great deal!  How about getting your property reappraised, refinancing it and pulling out money for renovation expenses.  Raising those rents and increasing your overall cash flow by a substantial amount.   Sure you will loose good tenants but you will also gain great tenants as well as gain profits in the long run.

If you need a partner, I’d be happy to consider it after running your numbers.  Stoughton is a great rental market considering that it’s so close to Madison and rents are a lot cheaper. 

@Nathan Gesner  your advice has been well received and I appreciate it!  That is one road I do it want to go down.  Inspections have always been on my side in the past so I think that is a safe option here as well.   

Good luck with that!  This has been going on everywhere in the country.  I believe most counties know that a recession is looming around the corner.  They know that the properties need to be reassessed to lock in their tax revenue for their own current and future expenses.  If Stoughton is anything like Appleton, all of the government buildings have been getting huge facelifts or new buildings over the past 5 years.  Officials have been all getting nice raises and we have new fire trucks and snowplows, etc.  Where does all that money come from?  Have you been told that the higher valuation in your assessment won’t raise your taxes?  You believe that?

Did you get an increase in your investment income? Were you able to remodel any of your properties this past year with the increased revenue?  No?  

You can argue it and you might get them to lower it but I highly doubt it.  Not in Stoughton. My suggestion is to simply do what they have done, what every business does, pass it off on the consumer.  

Raise your rents my friend, raise your rents.

I just want to make this last point.  Have you noticed all of the self storage facilities popping up?  They know that once a tenant moves in, they can gradually increase their rents. The tenants will pay the higher cost because it’s too much of a haste for them to move their stuff out and easier to just keep it there and pay the extra rent amount.  Actually the increase in rents on storage units is far higher over the past 5 years then the increase in rents on apartments as a percentage.   I think there is a lesson to learn there.  Your costs are going up(or soon will be) your building is depreciating, things need repair and you want to improve the place and the tenants life. Improvements cost money and lots of it.  I know raising the rent can be hard to do but you did buy the place as an investment right?  

Security deposit doesn’t cover damage like this.  

I appreciate everyone’s help.  I wasn’t really talking about someone who made french fries once on a while.  I’m talking egg rolls, won tons, crab rangoon and other heavy oil cooking every day of the week.  Imagine the worst greasy spoon restaurant you’ve ever seen and compound that by 10.  Dust and grease so thick on the walls that one spark would set the entire house up like a roman candle.  The ceiling had grease literally hanging and dripping down like stalactites. Just walking thru these properties made be want to vomit and two hours later it can still be smelled on your cloths.  Sure a person could renovate that but you can’t get rid of the smell without gutting the entire kitchen(and other rooms).

Believe me when I say that I didn’t pass up any good deals by turning these places down.   The neighborhood would never accept the higher rent I would have wanted and I would never get out what needed to be put in.   I’m not a desperate investor.  

I’ll put something into the lease and just keep an eye open for issues.  I already check on my properties two times a year. 

Thanks again. 

That's a little tight in my opinion.  When the property is vacant, how do you go about paying the mortgage?  Shop around for insurance.  Should be able to get something closer to $700.  

A deal like that would get your foot in the door but I always look for value add properties.  Something I can turn into a three bedroom or something that can be fixed up where the rent can be increase by 30% or more.  

Without seeing pictures or knowing its location, It doesn't sound like a deal that would net you very much money and might not be worth your time but I've seen no so good deals turn into wise investments in the long run.  Especially if you can rent it out for a few years and then leverage the equity to buy something else.  More than likely, you won't be "stuck" with a deal like that but you might not walk away with enough money to make it worth your time and it could seriously make you not want to get into the rental business again.  Just my 2¢.

Don't get caught up in having such a desire to do something that you end up regretting your decision later.  Make sure the numbers work for your situation.  If your comfortable with the worst case and can get back on your feet and move forward then go for it.  It's a personal and financial choice that you ultimately have to make on your own.

Just looking at the basics and the information we have though, I would probably give a polite thumbs down to the deal.

I have looked at many properties where the tenants cook with oils and grease.  I have passed many of these properties up because of the smell, the cost of cleaning walls and cabinetry and the damage that has occurred because of this.

Does anyone have any recommendations as to something that can be added to a leases rules and regulations regarding the excessive use of oils and grease (what would be considered excessive in one group of people wouldn't necessarily be called excessive in another group/race)?  I do not want to discriminate but I also do not want to have my property damaged because of this.  I would also want to put something into the lease regarding the proper disposal of this as well.

Thanks for any input and suggestions!