All Forum Posts by: Rick Bassett

We have all prospective tenants with pets, ESAs and SAs get screened via the petscreening website. We have found that people with weak documentation/proof usually won't follow through with the process or they take so long to complete the process that very often more complete applicants come along in the meantime. There are a lot of legal landmines in rejecting applicants with ESAs or SAs, which is why we enlist the services of a 3rd party screening company.  

This year we gave out tape measures with our logo on them to most of our property owners, vendors, and our top tenants. It was the first time in 25 years of business that we gave out anything, and they were well received.

We budget 1 rent payment per year

Quote from @Jordan Deaver:

I am currently a small time landlord. 

Jordan, don't sell yourself short by calling yourself a small-time landlord. "You're in the great game now. And the great game's terrifying" Tyrion Lannister

Quote from @Chris Seveney:

Quote from @Rick Bassett:

Had a prospective tenant reach out yesterday and ask us if we are 'eviction friendly'? (We aren't)

Never had that question before; usually, it's, are you pet-friendly or are you kid-friendly?

It's the little things in this business where you find joy

That would be a big red flag for me. Did you ask them if they are pay rent on-time and abide by lease friendly?

No need to ask them anything, their question says it all.

Start earlier / younger 

Learn about RE taxation 

Had a prospective tenant reach out yesterday and ask us if we are 'eviction friendly'? (We aren't)

Never had that question before; usually, it's, are you pet-friendly or are you kid-friendly?

It's the little things in this business where you find joy

Quote from @Edwin De leon:

 Rick thank you, what do you think is the reason why out of state investors are buying in New Haven, especially since property taxes are heavy in CT not sure what tax rate is in New Haven, good question what is the property tax rate in new haven. The 194 apartment building, are these condos, coops, regular apt and what demographic are they targeting lower / middle / upper income folks.

It's my understanding that this project will be aimed at working professionals. It is very close to Yale hospital in what is known as the Hill section of New Haven. It's one of the last few affordable areas of New Haven and probably has the best location of those given its proximity to Yale, the University of New Haven, downtown New Haven, train station… 

Quote from @Edwin De leon:

CT has one of the highest property tax rates states, and also high car owner taxes. Why do investors still invest in properties in CT despite higher property taxes. Aren't these higher taxes cutting into your profits especially if located in higher tax areas like bridgeport or stratford ? 

While taxes are an important consideration, they are just 1 component of the overall  expense structure that affects cash flow. Cash flow is just 1 of at least 5 benefits of owning rental properties (cash flow, appreciation, depreciation/taxes, leverage, equity).  Not all five benefits need to be present or stellar for a property to be a good investment. As much as I dislike paying property taxes, it is an expense that is somewhat predictable, unlike maintenance or bad tenants.

We own many rental properties and manage others for other owners around Connecticut, and the 'numbers' work on them, even with our higher taxes. 

We also work with a lot of out-of-state investors, in particular from New York and New Jersey, and they like to invest in Connecticut because our tax structure is lower than theirs, so I guess it's a matter of perspective.

We manage over 100 units in Connecticut; it's not difficult to get a tenant out as long as you follow all of the rules, keep the emotion out of it, and use an experienced eviction attorney for the process. "He who represents himself has a fool for a client." Remember that most tenants are entitled to free attorneys in our state; you don't want to be out-lawyered. 

If everything is in order, and you don't get an overly sympathetic judge, they should be gone in 2 -3 months. Far less expensive and stressful than dealing with them in the long term.

We usually start by offering them both a carrot (cash for keys) and a stick (30-day non-renewal notice)  simultaneously. If they balk at both or don't respond within ten days or so, then, we withdraw the carrot and start the process.

Hope it helps.