All Forum Posts by: Timmi Ryerson

Have you considered property management software..for 8 units, you could get all services for around $50 per month then hire a property management company when you need  showings.  It is very economical.

Meth problems are every landlord's nightmare.  If you do decide to buy this property have it tested by a certified company before you sign on the dotted line.  Have you inspected the roof?  In SLC you can get snow and the roof needs to be able to handle the snow load as it ages.  If the utilities are not separated, now is the time to get that done or have the seller do it for you.  I saw some recommendations about checking for plumbing issues so assume that they are resolved.  Good luck with your decision.  If the price is right, you will probably have made a good buy by holding out for getting what you need to make this property cash flow.

My properties have all had fireplaces and were not blocked off.  I kept them because I could get more rent from a unit with a fireplace.  But you do have to put some language in your lease  agreement or lease addendum that deals specifically with issues that will come up for the fireplace.  

First of all, consider what type of fireplace it is.  If it is built from scratch with a full fire box, then most types of wood can be burned.  Please note that softer woods cause more creosote to build up in the chimney.  If this is a "store bought" fire place (not a wood stove) then usually only processed presto logs are appropriate because they burn at a constant speed and keep the heat down.  It is important to have a document which spells out the type of wood to burn which is signed so that there can be no misunderstandings.  Under no circumstances should the tenant ever burn scrap lumber in a fireplace. It will damage the firebox and the chimney as it burns hot and fast.  There can also be chemicals in the treated lumber that are harmful to the environment.

Invest in a good screen or built in door system.  That way the screen cannot be taken off or removed and even lost.  Put language in your lease about use of the screen for all fires.

I always made it the tenant's responsibility to have the chimney cleaned at least once per year for the built in fireplaces and twice per year for the store bought types as they have smaller chimney piping.  They were required to provide proof in the form of a receipt by a certain date or I would order the cleaning and bill them.  

Finally at move out, the chimney was required to be clean and the firebox as well.  Fireplaces can add to the value of your rental if they are well maintained and managed.

Month to month leases can be a good thing.  You have the ability to raise rents with proper notice.  If the tenant is causing problems and attempts to get that person to comply are not successful, having a month to month lease will allow you to give notice to terminate easier that with a long term lease.  That being said, whenever you are buying a property where a tenant is in residence already, you will want to do tenant screening and background checks as you would with any new tenant to be sure that they meet your requirements.  The tenant screening should include a full credit check, criminal background check for felony at the state and federal level, homeland security check and sexual predator check.  If it also verifies identity that is even better.  Do check out their employment history and verify income.  Next be sure to get transfer of the security deposit for this tenant at closing of the property. If the closing happens mid month, you will also be entitled to the pro rated rent for that month.  If there have been notices or document history for the tenant, you should get all of those records.  You will also need the tenant to sign a lease with you either on the day that the purchase closes or within a reasonable amount of time thereafter.  If the tenant has a pet, there is probably a pet deposit or pet fee that has been paid and should be transferred to you at the time of closing.  As Michael said, be polite and professional with the tenant.  They are going to be a source of income for you.  Congratulations on your investment.

Wes,

The answers are all good.  But I am going to chime in my 2 cents worth as well.  First of all the sheer numbers applying for the rental suggests a rental market but you may have priced your rental too low.  I suggest you use Rentometer.com to see what the comps are in your area.  Then charge a median rent.  Also collect an application fee from each applicant.  I always ask for cash but I see that at least one guy took checks so that they could be refunded if he found a tenant and did not screen the rest off the applicants.  Tenant screening is a must.  You need a full credit check and full criminal check.  Then from the application, call to verify employment history and income.  Use references and also previous landlords to check for "issues".  Be sure to ask questions that only that landlord could answer to avoid thinking that you are calling a landlord when you are really calling a friend of the applicant's who is trying to "help".

I am going to also suggest that you use a property management software to help you get organized.  Of course I am partial to my company Smart Property Systems, but you will find that there are many out there.  Using software will give you help with collecting rent and keeping your books as well as show up as being professional.  Getting rent paid when you look like you know what you are doing (even if you are just starting out) is much easier than if you look uncertain or disorganized.  Hope this helps.