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All Forum Posts by: Account Closed

Account Closed has started 6 posts and replied 18 times.

Originally posted by @Mario Am:

@Timothy Duggan I’d be so mad as a tenant that u ran my credit on a price agreed on and then increase it to 2000$, people lost points to do credit check

Scammy as hell

That’s totally fair. We have not had anyone submit an application yet, so no credit checks done yet.   this is all happening fast. We have 7+ applicants. 3 want to know what they can do to lock it down so nobody else can get it.

But you make a good point. Thanks

Originally posted by @Tom S.:

@Account Closed I'm in the "disagree" camp from the above posts. How is it any different that listing a house for sale on the MLS as $100k, and a bidding war develops, and it sells for over asking? There's not anything unethical about that and it happens all the time.

That's how I felt. It doesn't seem dishonest to me. It seems like a market. Thanks for the message.

Originally posted by @Jon Reed:

@Account Closed

Congrats on all the leads. If you advertised it at $1,900 then you should not try to get the applicants to 'bid it up'.. that just isn't right.

As far as picking the tenants. If they are all exactly equally qualified then you should go with the person who applied soonest. I say this because you need to set a rule for yourself on how you split these kinds of decisions. In the future if you do not treat these situations the same then you may end up with a discrimination suit without even knowing it.

That's what I'm worried about. I.e. we have an interested tenant with emotional support dogs, and another on government assistance housing, so I'm trying to be very careful to not let there be any interpretation of discrimination. If someone will pay more, that makes it easy. That's a very easy argument if I ever ended up in court. But otherwise, I imagine it is harder. Anyway, I'll do what you mentioned and hopefully never end up in court!

Originally posted by @Mark Fries:

@Timothy Duggan

That sounds scammy to even have that thought because you should have priced it right to begin with....

We're being asked what they can do to lock it down, offering to sign a longer lease. It seems like an appropriate time to broach the subject, but maybe that's taboo? I don't know. This is all in the past 2 days. We're a bit new to this. I don't mean to sound scammy. 

Originally posted by @John Chapman:

Yeah, not sure how you pull that one off without looking bad.  You've advertised it for that price and people have applied for it at that price.  

I've mis-priced like that before (sometimes on purpose, sometimes not.)  I just console myself with the fact that it rented quickly and I have a great pool of tenants to choose from.  Often, I've found it's better to take a little less and have a great selection of long terms tenants.  Pick the best and move on.  

That's fair. The $100/month isn't the biggest concern, but what criteria would you suggest I go off of in choosing a tenant? If I have 3 perfectly qualified tenants, with the required income, clean background checks, similar move-in dates, do I just arbitrarily choose the one whose application was submitted first? What's your thought on that?

This is for a SFH rental. We listed for $1900 and have many parties (6-7) trying to get it, with 2-3 very strongly trying to lock it down.

How do we propose a higher rent when we have multiple parties trying to "lock it down" without sounding misleading or scammy? Or should we just accept the most qualified tenant this time and eat the loss of rent potential?

We've owned the property about 6 months and have fixed a lot. Now it is time to fix the fence. The wood is ugly from weathering, it is literally falling down; a whole section of it loses attachment at either end, it has multiple patches from holes at the bottom. We talked to the neighbors, and on one side, he is all for it; he wished he could've done it with the previous owners.

The second neighbor said it isn't necessary. This is the side that is literally falling down. She said that only the posts need to be replaced, and she has a guy to do it for $400. However this is a bandaid on a bullet wound. Her property clearly gets little care.

1. What should I do?

2. Do I have legal recourse to obligate the next door's landlord?

Post: Do I need Homeowner's Insurance for a rental?

Account ClosedPosted
  • Posts 19
  • Votes 11

Ok, I will adjust my HOI, thank you. Should it be higher or lower with tenants? My current 6 month is $1600 for a $370k house with $271k replacement value.

Post: Do I need Homeowner's Insurance for a rental?

Account ClosedPosted
  • Posts 19
  • Votes 11

If not, who pays for my rental property house if it burns down?

I need some kind of insurance right?

I currently still have HOI for a property that has been a rental for a few months. And it costs at least $1000, so I am trying to see if I can adjust/cancel it.

Post: Real Estate LLC Worth it? What about for each property?

Account ClosedPosted
  • Posts 19
  • Votes 11
  1. 1. It seems like taking advantage of depreciation and all of the tax benefits of real estate are lost if your income is >$150k, unless you are a "real estate professional", right?
  2. 2. I've read a lot about legal entities that you can form for legal protection and tax benefits. But I've also been told, its generally not worth it to form an LLC for each property, because 'piercing the corporate veil' is generally trivial if needed.