All Forum Posts by: Tony Schober

If someone looked like Marilyn Manson and passed all screening, I would not rent to them. Do you think the neighbors want that kind of trash living next to them? I know I don't.

Thanks for all the opinions. I'll take it on a case by case basis.

Ralph,

It is a matter of managing my risk. If I know I don't want to rent to someone when I see them, why would I risk my safety bringing them into a house?

Mike,

What kind of reaction do you get out of them when you tell them you are denying because "you look like a freak"? Do they start to get "excited", or do they just leave?

I haven't found a clear answer on this.

A prospective tenant meets you at the property for a showing. They have already passed your phone screening. Upon arrival, they look like FREAKS.

Do you still show them the property and then just deny them later?

Or do you tell them something on the spot and not show them the property at all? I read that you could deny them a showing based on their freakness, but what are you actually telling them? Certainly you don't just say its because they look like freaks...or do you (I wouldn't doubt it from some people on the board).

What type of contract do you think would work better

- A standard contract promulgated by say the Texas Real Estate Commission

or

- A dumbed down contract that gets to the necessities/basics

I see benefits for both sides.

On a standard contract the seller may feel more confident that you are using a "good" contract. This trust factor along with the added protection of all the legal jargon would be good for you.

On the other hand

A standard contract may scare sellers away because they do not understand what they are signing.

Do you think you would see any benefits in using a contract (reviewed by an attorney) that is in plain english. No herein, hereof, hereunder, hereby, whereof, thereof, etc. Just plain english, in comprehendable sentences, so that the seller would understand what they are signing.

Your thoughts?

Lets say you want to buy homes for cash to close quickly and cash out refinance to continue to buy homes over and over again. Lets also say you have a hypothetical 1 million in the bank.

The bank you are working with has done a refi a half dozen times and decides not to approve anymore loans. Would any of you use that 1 million in deposits as leverage, or do you think this is unethical?

By leverage I mean that if they don't want to lend, you will move your deposits to another bank. I would think they would be more receptive if you had a large deposit with their bank, but I also think that if you "threatened" to withdrawal your funds, that it would ruin any future relationships. What are your thoughts? Do you think banks would be more willing to lend to you if you keep a large deposit with them?

Looks like the successor to "Flip this House".

"About This Show
Scott McGillivray helps first-time homebuyers turn part of their home into a moneymaker to help with mortgage. In each episode, Scott presents the homeowners with options and they choose which part of the house to renovate into an apartment. We see the renovation and the amazing reveals. "

Most of the McMansions will be subdivided into multifamily units. I hope people have a solid cash flow model because I see both housing prices and rents decreasing as a flood of new rentals and inexperienced landlords hit the market. Those that rely on the appreciation model will soon be selling to those with cash flow.

Tony

After reading through the landlord forum and taking notes, I have a list of recommended clauses to put into leases. Some were just copy and pasted, so there is some added "commentary" to them. Some of them are also going to already be in basic leases. Can anyone think of any that could be added or should be amended? I'm not necessarily using all these...just gathering ideas.

-if the tenant sues and loses, they pay your legal fees.

-property abandonment clause

-if allowing pets, "normal" pest control is tenant responsibility

-define what constitutes a guest and an occupant

-right to enter quarterly for pest spray and/or filter change

-emergency provision to enter with zero notice in certain situations

-only cars registered and functional can park in driveway, and no working on cars such as installing a new engine. Minor repair OK (ie. oil change)

-lease also says that the tenant is responsible for damage caused by their invitees or guests

-sign off on "end of lease checklist". send 30 day letter spelling out what needed to be done to prevent charges. ex broom clean (100) no stains on carpet (50 per), lawn mowed within 2 days of vacating (50), oven (50), tubs (25), sinks and tile floors " sparking" , no dog poop in yard (5/pile), all light bulbs working (10), all light fixtures clean (10), windows " sparkling", no cobwebs, auger toilet, rekey locks (per cylinder), painting (per room, or SF), cleaning appliance, stripping/waxing per room, carpet shampoo per room, light cleaning, heavy cleaning, trash removal per pickup load, etc-----Have several LLCs and hire one of them to do the work and subtract from deposit.

-require that any renter that owns a dog (of any breed) provides documentation that they have been to some form of obediance class. Obediance classes are great for training the OWNERs of the dogs.

-lease has a towing statement. Lease states that unregistered, non running vechicles etc will be towed. Post a 72 hr warning of tow and then have it towed. You can purchase these notice stickers thru Great American business supplys etc

-contingency for their failure to move in due to any reason, or no reason. Failure to move out on the part of old tenants.

-NO PAINTING OR DECORATING, without your prior written approval

-ALL UTILITIES in tenant's name

-make "security" deposit a different (higher) amount than a month's rent. Otherwise on the first day of the last month of the lease, the tenant calls you, says they're moving out and says you've already got the last month's rent so everything is "even".

-A separate paragraph stating in all capital letters that "owner's insurance does not cover tenant or tenant's possessions". Put a place for each tenant to sign this paragraph.

-A full checklist for move in. Note that there are DOORSTOPS on each and every door, that there are NO HOLES in sheetrock, that STOVE AND OVEN are clean, windows are clean, no cobwebs hanging from ceiling and no dog poop in the yard

-Spell out the tenant's responsibility for mowing, edging and trimming shrubs. Spell out that on the SECOND WARNING from either you or the HOA that YOU will take over responsibility for this and that the rent will increase by ???$ to cover you doing so

-Pictures and other things may only be hung using appropriate fasteners which you preapprove! It's a pain in the butt to remove 16d coated sinkers and fill the holes after they were used to hang 3 X 5 pictures and christmas tree lights on the outside

-Furnish sliders for the feet of their furniture and make sure they're in the threshold when they move in their furniture. Fines during quarterly inspections if not in place

-That nail hole fee needs to be in every lease. Automatic amount paid up front, non refundable. Apartment complexes have always had that policy around here

-When new tenants moved in I gave them and had them sign for TWO KEYS. Their move in checklist said that there was a $5.00 charge for any key not returned

-Something I am adding to all my new leases is an incentive for the tenant to pay by the 1st. The lease shows two rent amount. Ex. $995/mo if paid on or before the 1st (which is the current rent amount for the property). Or $1,020/mo if paid after the 1st. You cannot say the higher amount is a penalty for not paying by the 1st, BUT YOU CAN say the $995/mo is an discount. And then I also put in the lease if the rent is ever past due, the discount is null and void for remainder of the lease

-charge a $200 administrative fee to process a substitution, and this is clearly spelled out, in the original lease, AND DISCUSSED at the time of original application when dealing with this type of situation

-No boats, RVs etc stored

-NOISE: All radios, television sets, stereos, etc. must be turned down to a level of sound that does not annoy or interfere with neighbors

How can I best prepare for an eviction hearing? What documentation is needed to make my case?

I understand the process at the hearing and the speed that it is completed is dependent on the judge, but what can I do to prepare to make it go as smoothly as possible. Any tips?

Thanks Mike, I was actually asking if my tenant base would be eliminated if my policy was no evictions/felonies EVER. I'm wondering if my property would sit vacate for months on end w/ a policy like this, or if I need to be more realistic w/ the types of tenants and their past baggage that comes along w/ them. Good points on the misdemeanors.

So w/ your qualifying tenants of no evictions in the past 5 years, are you still seeing many w/ prior evictions before that?

Those that rent to low income tenants:

If I were to institute a policy of no prior evictions and felonies during the screening process, do you think I would eliminate my entire rental base?

What are your standards when it comes to these 2 categories. I know some go back 5 years, and am not sure if this is because it is just impossible to find low income tenants w/out one of these two items in their past or if it is just a business decision to compromise and get a tenant into the property.

What are your thoughts/policies?