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All Forum Posts by: Tyson Luthy

Tyson Luthy has started 1 posts and replied 147 times.

Post: Tenant giving 30 day notice.

Tyson LuthyPosted
  • Property Manager
  • Idaho Falls, ID
  • Posts 147
  • Votes 83

It depends on what your lease says. I always pro-rate the last month, because it tends to make happier tenants (which leads to less headaches/disputes).

Also, If I can get a place cleaned up and ready to go - I have found many new tenants like to move in on the 1st of the month, so it's never really been a problem for me.

Post: Ever Charge Less than Market Rent?

Tyson LuthyPosted
  • Property Manager
  • Idaho Falls, ID
  • Posts 147
  • Votes 83

I have found that tenants who are willing to pay the higher prices, are often the better tenants.

I suppose that your question will depend on how strong the rental market is... my rental market is very strong, and I don't ever list properties for under market price.

The only exception is when a lease comes up for renewal. If they have been really good tenants then I keep the rent the same to keep them and avoid turnover.

Even then, I don't let this get too far away from me. If an increase in rent can justify a turnover, then I generally will do it.

Hope this helps! 

Post: Lawn Maint and Tenants

Tyson LuthyPosted
  • Property Manager
  • Idaho Falls, ID
  • Posts 147
  • Votes 83
Originally posted by @Account Closed:

I have to disagree with this whole "train the tenant" approach.  Granted, boundaries are important, but let's remember that tenants are people.

This is your first-test run of this lease clause, and as it turns out, it's probably not a great lease clause, and you're finding that out.

Now, in your life, do you mow your lawn every Sunday, no matter what?  Do you never get busy?  Does it never rain?

I think the problem is this lease clause.  I don't think it's realistic.  And if your tenant is set up to fail, then he will.  If you get all militant on him, he'll be hostile and you can bet he'll leave at the end of the lease.

You are immensely blessed to have a tenant, especially in your first rental, who pays on time and does not have any other issues.  And, he's obviously a hard worker.

So, the only issue you have here, is a great tenant who is working too many hours to mow the lawn.

I always advise landlords to include the cost of yard maintenance in their rents.  Tenants will never keep the yard up the way you would like them to.  It's an important way to protect your investment.  It also gives you a reason to be on the property once in a while - while you're there to meet the gardener.  Unobtrusively, of course :-)

I also think leaving a lawn mower with a tenant is a bad idea, because it could get stolen or abused, and that will be an issue to deal with.

So, how much would the lawn service cost?  If it's not horrendous, I'd be tempted to just take back the lawn mower and pay a service, and just eat the cost.  Let the tenant know when they'll be showing up.  That you value them as a tenant, and can see that the lawncare is going to be too much for them, so you're going to just take care of it.

Option B: Tell them you'll do the above if they sign another year lease.  That you'll keep the rent the same, but you want a two year lease, and you will provide a gardener.

If you try to get them to pay for a gardener now, they'll balk most likely.  They'll want to save that money, and will then try to get the lawn mowed.  They'll be stressing over it, you won't be happy, and they'll be discussing how they need to rent a place that doesn't require them to do yard work.

So, if there's any way you can just provide the service, that's my recommendation.

Figure the cost of turning over that unit at the end of December, if they don't renew.  Yep, middle of winter.  Probably at least one month's lost rent even in the best weather, with painting and cleaning, etc., and lost rent between tenants.  So, would the cost of the lawn service add up to a month's rent?  At least?  

Tenants can "feel" when a landlord is trying to "train" them.  This isn't about training people.  Tenants are not serfs.  This is a business relationship.  And yes, a contract is a contract.  But sometimes a new contract is entered into with the best intentions of both parties, and it just isn't working.  So, look for a solution, not a punishment, when you're dealing with an otherwise fantastic tenant.  In my opinion.

And include lawn service in the rent in the next lease. :-)

"Training your tenants" is simply a by-product of sticking to your lease.

I can't stress enough the importance of sticking to your lease. The lease is what you both agreed to. Why would you agree to something, then start making exceptions? This muddies the waters and creates bad habits.

If you and your tenants both understand and stick to the lease, you will both be better off.

*****

That being said, I do agree with Sue, that mowing the lawn weekly is unrealistic. You will want to fine-tune your lease as you go along. A good lease protects both you and the tenants, and is enforceable.

I also don't ever recommend mistreating your tenants. Sue is right - they are people and you should be grateful that they pay on time. Treat them kindly, and take care of them - don't forget that they are paying your mortgage!

Post: Lawn Maint and Tenants

Tyson LuthyPosted
  • Property Manager
  • Idaho Falls, ID
  • Posts 147
  • Votes 83

This is a very easy question to answer:

You should give them exactly 1 week.

That's what you lease says and that is what you both have agreed to in writing. 

If you stick to the lease you won't ever go wrong.

Take a picture of the lawn so it's documented, and serve a lease violation notice. This will set proper expectations with the tenants as well.

If they learn you make exceptions to the lawn, then they may begin to push their limits and see what else you will let slide.

***

(This may seem unusually harsh or strict. But it is more about the principle and setting proper expectations)

Post: Keep or remove washer/dryer in unit

Tyson LuthyPosted
  • Property Manager
  • Idaho Falls, ID
  • Posts 147
  • Votes 83

Look at the numbers and see if it makes sense. Do you know for sure that you will be able to raise the rent?

I would make this decision purely based off the numbers.

When washing machines don't increase the rent, I always recommend getting rid of them. 

Why spend money maintaining something that doesn't bring in any revenue?

If by having them you can increase the rent, then I would consider it if it was enough to pay off.

Post: Tenant Screening Question: To rent or not rent to this applicant

Tyson LuthyPosted
  • Property Manager
  • Idaho Falls, ID
  • Posts 147
  • Votes 83

I would get some sort of verification of income. Even if it's just a bank statement showing deposits, etc.

I would accept the double deposit to hedge some risk as well.

Assuming everything else in the application looks good, I'd move forward. The lack of credit isn't too much of a red flag to me.

Post: Cash reserves per unit

Tyson LuthyPosted
  • Property Manager
  • Idaho Falls, ID
  • Posts 147
  • Votes 83

Obviously, the answer will depend on the condition and age of the properties, as well as the amount of risk your comfortable with.

My lender requires 6 month's worth of payment reserves for each property in order to lend.

This is very conservative! But at the same time, I feel very comfortable when I have this in place, and I am always ready to jump at the next deal I find.

Post: tenant wants to paint

Tyson LuthyPosted
  • Property Manager
  • Idaho Falls, ID
  • Posts 147
  • Votes 83

He's been there two years and is just now concerned about the paint color? Weird...

I'd say let them move out if they aren't happy.

Most tenants will offer to pay for the paint, then you can let them do it if you trust they will do a good job. Otherwise, why would you pay for them to make a mess?

Post: No Credit Check forTenant - Should I rent to them?

Tyson LuthyPosted
  • Property Manager
  • Idaho Falls, ID
  • Posts 147
  • Votes 83

I agree with a lot of the comments here - that no credit is not as bad as poor credit.

In our screening process, we have built "no credit" into our scoring system:

  • They score nothing for the category "credit score"
  • But they get a high score on "payment history"

These sort of wash each other out, giving the applicant a "neutral" score that is then influenced by other categories.

This has seemed to work well for us overall, and we don't have too many problems with people who don't have credit history - it is often a reflection of good budgeting, especially in older individuals.

Post: Potential Tenant Refusing Application Process

Tyson LuthyPosted
  • Property Manager
  • Idaho Falls, ID
  • Posts 147
  • Votes 83
Originally posted by @Andy Webb:

Hi Mark - I would not continue any farther with this guy if he is not going to go through your full, regular process. You should have a clearly defined process and stick to it. If he does not want to participate, then he is out. Not to mention, making exceptions for one person but later not for others can get you into trouble with FHA rules.

Also, a criminal report from 2012 tells you nothing about the last 2-3 years.

Keep looking!

Andy

Exactly.