All Forum Posts by: Jeff G.

@Daniel Taylor, I use https://www.rentometer.com/ to analyze rentals. Give it a try and see if that helps with your numbers.

@Nerissa Marbury and @Pawel N.

Here is my two cents: start looking for flat rate eviction attorneys in your area -- even if the tenant has already moved out. Call them up and ask them their rates and ask if they do the collections side of things to: obtaining judgments, bank levies, etc. It may take some digging, but you'll find one who will take your case for a flat rate. 

There really isn't much of a point in referring the balance out to a full blown collection agency -- they'll take 20-30% OR buy the debt from you for pennies on the dollar.

Conversely, if you have a lawyer do it 100% in house your legal fees are recoverable. If the ex tenants manages to evade your collection attempts you're only out a fixed fee.

When I was a tenant in a multi-family unit I was on good terms with the landlord. One thing that drove us both crazy was smokers. I get it, if it's your house  and you want to smoke -- smoke away. 

The problem is in a multifamily unit the other renters can neither truly consent to second hand smoke exposure or avoid it entirely -- they're sort of captive in the situation. This leads to unhappy non-smoker tenants who move out early because of that one guy who smokes like a chimney. Oh, and landlords hate it because it takes extra effort to get the tobacco tar out of the walls too. Ugh.

I echo @Matt Lefebvre, this is a very market dependent issue.

Now, if you know you're going to run into trouble due to tenant abuses there is a sometimes a third option. You could pay water but stipulate (in the lease) that if water usage exceeds 120% of normal (you'd have to explain what this means in concrete numbers and have a sound statistical basis for what defines "normal") the tenants will be billed the difference divided evenly.

It takes a bit of legwork up front and some math, but it's a good way to curb tenant abuse of "free" utilities. Some Section 8 landlords swear by this tactic. The only gotcha is, you've got to be willing to evict someone for not paying their portion of the water bill.

@Patti Robertson, have you ever required any of your Section 8 tenants to have renters insurance? We all get that not all Section 8 tenants are destructive or negligent. I think it would give landlords a bit more peace of mind to have $10-15k of insurance to cover them in the event the tenant is destructive. It will also cover the tenant's stuff -- which will prevent drama -- if something unfortunate happens to the property beyond everyone's control. Thoughts?

So, some advice on actually finding a cleaning lady. An old friend of mine swears by this:

This is going to sound like a very strange approach, but hear my out... Contact a nearby Jehovah Witness Kingdom Hall ("Church" by another name) and ask to speak to one of the Elders ("Pastor" by another name). Tell them the brass tacks: you're a landlord looking for a cleaning person who is scrupulously honest and hard working. Ask them to put you in touch with anyone in their congregation who fits that bill who is looking for work. They will.

You'll probably end up with a Pioneer ("Missionary" by another name) who just needs to make enough money to meet his/her basic needs. Because their faith is especially strict you're much more likely than not to end up with someone who has a squeaky clean record, works very hard, and wouldn't dream of being dishonest or stealing from you.

Let me know if that helps, @Luke Carl.

@Melba Chambers, experience no. But I do have some insight gleaned from books and the equivalent of "water cooler talk" with landlords I'm friends with. 

First thing: CT requires that you permit Section 8 rentals in your properties provided they're otherwise qualified tenants. So be very careful when turning away a Section 8 rental applicant. You can get burned and the local press will make you out to be an "evil capitalist" landlord stepping on the little guy. Also, you can get badly fined ($10k-$25k) for improperly turning away a Section 8 tenant. 

So, protect yourself: document your exact rental criteria in an easy to follow format and keep records of what (legally permissible) reasons you deny a tenant, etc. Always cite that reason (legitimately) as the reason for a tenant being turned away.

Second thing: For the love of God call the applicants last landlord or two and confirm [s]he was never destructive or otherwise the source of significant problems. You may want to run this part by a lawyer... I'm not positive, but I suspect there are "illegal questions" you aren't supposed to ask his ex-landlord but "did he pay on time or break your stuff?" is probably not on the list.

Third thing: The Section 8 Fair Market Rent Lookup Tool. Match the renter's "packet" with the number of units your rental has. Next look at the maximums shown in that tool. Often, but not always, "fair market rent" for Section 8 benefit purposes is significantly higher than what the market would otherwise bear. Adjust your rents accordingly, but don't charge the absolute max, leave some breathing room in there in case something odd comes up.

Fourth: read the Section 8 Bible Vol 1 and the Section 8 Bible Vol 2. The advice about "minimalism" is really good. Section 8 inspections really are a thing and you'll need to be up on what that means for your rental business. Note: some of the author's "advice" is laughably illegal when it comes to "self help" with problem tenants. Minimizing "frills" that tenants can break is good. Yanking the power meter from the side of the building is bad. Also, the spelling and grammar errors in this book are really bad, ignore them. It's still a good read.

Lastly, three things. Consider requiring renters insurance right in your lease. This will help you recoup up to $10-15k in damages (depending upon the policy) if the tenant wrecks your place. Take pictures of the move in and move out condition of the property to verify your claims. Also, get to know a flat rate eviction attorney to keep costs down in lower tier neighborhoods where the chances of an eviction are higher. Make sure the attorney can both drive the eviction and the subsequent collections process post eviction.

I hope this helps.

@Patrick M. yeesh rent control, a temporary government program from the Great War (World War ONE) run amok until the present day. Yes, that's how rent control started in the US. I wish it did not exist.

Is cash for keys not an option in a rent controlled market?

Thanks @Austin Fruechting, is there a name (or good descriptive term) for this kind of LLC structure? I'd like to read up on in.

Thanks @Wade Sikkink. This has really turned into an interesting thread. I'm glad I asked this question.