(Topic ID: 257412)

Any landlords here? Please post tips and stories

By JohnnyPinball007

4 years ago


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  • 277 posts
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  • Latest reply 52 days ago by MRG
  • Topic is favorited by 44 Pinsiders

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Topic poll

“Rental property, yes, no, or thinking about it?”

  • Hell no, I do not want the hassles 35 votes
    25%
  • I love my rental properties 48 votes
    34%
  • I have been thinking about doing that 28 votes
    20%
  • I used to and called it quits 31 votes
    22%

(Multiple choice - 142 votes by 141 Pinsiders)

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There are 277 posts in this topic. You are on page 2 of 6.
#51 4 years ago
Quoted from Zablon:

Does anyone charge late fees or do you simply start the eviction paperwork the next day?

When I used a property manager the late fee game was played.

Now that I am the property manager I do not play around, eviction starts next day...unless the tenant has been awesome for a very long time, then I would find out what is happening first.

#52 4 years ago
Quoted from Zablon:

Question for everyone:
Do any of you use any form of positive reinforcement regarding rent? I know some of you say you don't raise the rent but does anyone do things such as small discount for paying early? Discount on last month of year if paid on time rest of year? Discounts for 6 or 12 months up front. Things of that nature?
Does anyone charge late fees or do you simply start the eviction paperwork the next day?

I've never raised the rent while anyone is living there, but have adjusted prior to a new tenant moving in -

I charge a $25 late fee if rent paid after the 5th. They get one freebie - it's a lesson people learn quickly if they actually have to cough it up. Some of my longer-term, good tenants I've let slide though.

No discounts for early payment - not gonna reward them for something they're supposed to be doing.

#53 4 years ago
Quoted from Pinless:

I’ve always wondered what it would be like having rental houses in college towns. Does anyone here have any experience?

A good friend of mine has over 60 "doors", a majority of them in Ann Arbor MI, big college town. He's virtually guaranteed a constant tenant pool. Most of these kids don't want to move once they're settled and many stay for 3+ years during their entire program. The parents always sign the leases - that's a must. Most of his are larger 4+ bedroom houses as well as apartment buildings. He also has a couple mobile home parks but he mostly complains about those lol

#54 4 years ago

I've considered buying investment properties for years, but can never make the numbers work vs. keeping the money in a long-term, diversified stock portfolio. The only opportunities seem to be when the housing market takes a real downturn and you have cash on the sidelines, can somehow beat out the pros in buying property that will benefit from planned development in the area, or have the skills/time to do major improvements yourself. Doesn't seem to make sense to accept mid single digit returns given the work and risks involved. Am I missing something, or is your main motivation to be a landlord aversion (or diversification) to the stock market?

#55 4 years ago
Quoted from luckymoey:

I've considered buying investment properties for years, but can never make the numbers work vs. keeping the money in a long-term, diversified stock portfolio. The only opportunities seem to be when the housing market takes a real downturn and you have cash on the sidelines, can somehow beat out the pros in buying property that will benefit from planned development in the area, or have the skills/time to do major improvements yourself. Doesn't seem to make sense to accept mid single digit returns given the work and risks involved. Am I missing something, or is your main motivation to be a landlord aversion (or diversification) to the stock market?

My main desire is to earn money 3 ways.

But most importantly I have no idea where I could do better with my money.

20k down plus 20k in fix up gets me a 120k house that is worth 200k when I have fixed it up. So 40k plus sweat equity already more than doubles my money.
I am cash positive a minimum of $3600 on the year so that is a 9% gain on my 40k real money investment. Most years that beats the stock market.
Lastly, I take the write offs on taxes.

Best part for me is once a house is completely paid off then it is promised income for the rest of my life with relatively no risk.
(note: I have bought smart in a good city that did not even feel the blip on the radar the last housing downturn and in fact, rents went up even more then. Madison is under 2% vacancy and much of that is due to college kid turn over season which I am not subject to).

In short, other investments will have bad years, but my property should be very stable and in the long term (once paid off) it will make me big money.

#56 4 years ago
Quoted from Whysnow:

My main desire is to earn money 3 ways.
But most importantly I have no idea where I could do better with my money.
20k down plus 20k in fix up gets me a 120k house that is worth 200k when I have fixed it up. So 40k plus sweat equity already more than doubles my money.
I am cash positive a minimum of $3600 on the year so that is a 9% gain on my 40k real money investment. Most years that beats the stock market.
Lastly, I take the write offs on taxes.
Best part for me is once a house is completely paid off then it is promised income for the rest of my life with relatively no risk.
(note: I have bought smart in a good city that did not even feel the blip on the radar the last housing downturn and in fact, rents went up even more then. Madison is under 2% vacancy and much of that is due to college kid turn over season which I am not subject to).
In short, other investments will have bad years, but my property should be very stable and in the long term (once paid off) it will make me big money.

I'd definitely be attracted to an opportunity like that, and am willing to put in some sweat equity. Probably tough to find homes that can yield that kind of cash flow and return in my area, but I may try to find a good broker and take a harder look.

#57 4 years ago
Quoted from luckymoey:

I've considered buying investment properties for years, but can never make the numbers work vs. keeping the money in a long-term, diversified stock portfolio. The only opportunities seem to be when the housing market takes a real downturn and you have cash on the sidelines, can somehow beat out the pros in buying property that will benefit from planned development in the area, or have the skills/time to do major improvements yourself. Doesn't seem to make sense to accept mid single digit returns given the work and risks involved. Am I missing something, or is your main motivation to be a landlord aversion (or diversification) to the stock market?

To super-oversimplify it, think of it this way - you plop down 20k on a 200k house, and even if it only breaks even for the next 15 years and never appreciates, your tenants have paid off a house for you and you can now sell it for $200k, or you can continue to get rent payments for the rest of your life from it -

#58 4 years ago
Quoted from pinzrfun:To super-oversimplify it, think of it this way - you plop down 20k on a 200k house, and even if it only breaks even for the next 15 years and never appreciates, your tenants have paid off a house for you and you can now sell it for $200k, or you can continue to get rent payments for the rest of your life from it -

Yep. I own 30 houses from this strategy. Also used a LOC on some paid for to buy more and pay it off with rents.

#59 4 years ago
Quoted from Grizlyrig:

This--

--is discrimination and will eventually get you in a lawsuit that's deep in triple digits.
Just my .02
-Mike

Naw, it's not. It's not one of the protected classes, and so long as I'm not using it as a thinly veiled excuse to not rent to a protected class, it's completely on the up and up. My felony policy is far more specific (no violent crimes, crimes against children, the list goes on) and are there to genuinely ensure safety for the other tenants living in the property.

I don't rent to certain professions. For example, I won't rent to lawyers or paralegals. If I used that as an "excuse" to not rent to a member of a protected class, that would violate fair housing. If I apply the same standard to all applicants and don't discriminate against any protected class, I'm well within my rights to reject an applicant based on history of specific types of felony convictions. It's a bit more gray than other areas, I'll grant you that, but I'm not concerned in the least.

https://regoddess.com/so-now-i-have-to-rent-to-felons-what-the-new-hud-rule-actually-says-about-applicants-with-criminal-records/

Race, color, religion, nationality, sex, age, disability, veteran status, genetics, and citizenship have exactly zero bearing on my screening process. I do not ask any questions relating to any of those listed, and I do not care about any of those things listed. So long as you meet my legal, non-discriminatory criteria, I'll hand you the keys.

#60 4 years ago

^^^ interesting read. You definitely have a plan in place.
-Mike

#61 4 years ago

I don't rent to people on social assistance BUT I will say it in a different way........ I don't rent to anyone who doesn't have "skin in the game" if their Damage Deposit is payed by a third party IE: Gov't, no way, because the Gov't just gives basically a "promise note" to pay up to damage deposit (if) there is damage, so, someone with NO skin in the game damages my property I have to chase a third party and argue my case to get funds. Not going to happen.

Nobody on social assistance has come up with the damage deposit beforehand yet, and so far, this is the reason I don't take what people call guaranteed money.

#62 4 years ago
Quoted from northerndude:

I don't rent to people on social assistance BUT I will say it in a different way........ I don't rent to anyone who doesn't have "skin in the game" if their Damage Deposit is payed by a third party IE: Gov't, no way, because the Gov't just gives basically a "promise note" to pay up to damage deposit (if) there is damage, so, someone with NO skin in the game damages my property I have to chase a third party and argue my case to get funds. Not going to happen.
Nobody on social assistance has come up with the damage deposit beforehand yet, and so far, this is the reason I don't take what people call guaranteed money.

Nope on my nearly 100 doors I wont rent to anyone on government assistance/section 8. Not worth the hassle dealing with the government nonsense and these people damage more properties as a rule then the others.

#63 4 years ago
Quoted from luckymoey:

I've considered buying investment properties for years, but can never make the numbers work vs. keeping the money in a long-term, diversified stock portfolio. The only opportunities seem to be when the housing market takes a real downturn and you have cash on the sidelines, can somehow beat out the pros in buying property that will benefit from planned development in the area, or have the skills/time to do major improvements yourself. Doesn't seem to make sense to accept mid single digit returns given the work and risks involved. Am I missing something, or is your main motivation to be a landlord aversion (or diversification) to the stock market?

The returns should be much higher than that with a good investment property. How are you doing your calculations? Are you factoring in principal reduction and tax breaks? Long-term appreciation?

#64 4 years ago
Quoted from IdahoRealtor:

The returns should be much higher than that with a good investment property. How are you doing your calculations? Are you factoring in principal reduction and tax breaks? Long-term appreciation?

Probably just being too conservative in my assumptions about expenses and risks. I have a lot of financial and business experience so have no problem with the variables and calculations. I recently retired at a relatively young age, and am looking for something else to keep busy and get a better yield than current bond rates without taking on a lot of risk. I'm pretty handy, enjoy real estate and understand all the legal/business aspects so property investment seems like a good fit. Will talk to some good realtors and do more research in the new year - too bad you don't live in SC.

#65 4 years ago

Very first renter of my very first rental I had to evict, they left all their crappy belongings including the dog! Which turned out to be a really good dog that the neighbor ended up keeping.

#66 4 years ago
Quoted from Droptargets:

Very first renter of my very first rental I had to evict, they left all their crappy belongings including the dog! Which turned out to be a really good dog

Reminds me of a time back when I had a property manager handling things. She sucked at screening tenants.

Anyway, I would go over there on a service call here and there, and they had this dog tied up in the back that just acted like it wanted to eat me up. (this was long ago, no longer legal to tie a dog now and I will personally make a phone call about it if I see it now).

Anyway, about the 3rd time I was ever around that dog, and it acted like it wanted to eat me up...I looked closer at the way it was wagging its tail. So I was curious, I got just close enough for the dog to get to me, and that dog just jumped up and hugged me and tried to kiss me, and was just such a sweet dog to have been barking so mean sounding. I think that dog was just starved for attention, but did not know how to act to get attention.

And yeah, just like with you, when that tenant was evicted and all his crappy stuff was left...including 5 flat screens, his penny bank, fully stocked kitchen...everything(and all went to the dump except the penny bank, I will not pay to dump money)

And the dog was left also.

If I had not of have had a dog at the time I would have kept that dog. In the meantime I called the pound and gave a statement that this dog acts one way with its barking, but is actually very gentle and sweet.

And this was the last house that property manager ever handled for me.

My life has been so much easier since I started managing for myself.

#67 4 years ago

Also reminds me how long ago when I was using a property manager and I was just going to houses as a handyman some of the tenants were trying to sell me drugs and bootleg movies.

Now I am the property manager and have no problems with any tenants. They only call when the furnace is acting up or a pipe is leaking. And I need those calls to keep the house in good shape.

One tenant is a tad too good, called me one time for storm damage. The only damage was a shutter had came down.

They may sense or even know I am the owner, but I always respond as property manager. That way if they ask me something out of the blue I do not have a answer to, I can tell them I will check with my boss, or the owner if needed and get back to you.

Gives me time to think and to also talk to my real estate broker friend that handles a lot more houses than I do. I handle 4, and 10 is enough if I make it that far.

Over 10 here you are supposed to get a real estate license from what I have been told.

#68 4 years ago
Quoted from pinzrfun:

A good friend of mine has over 60 "doors", a majority of them in Ann Arbor MI, big college town. He's virtually guaranteed a constant tenant pool. Most of these kids don't want to move once they're settled and many stay for 3+ years during their entire program. The parents always sign the leases - that's a must. Most of his are larger 4+ bedroom houses as well as apartment buildings. He also has a couple mobile home parks but he mostly complains about those lol

John S?

#69 4 years ago

Lots of good posts in here.

I have one rental and hope to get more. I manage it myself. I'm also a lawyer and one of my practices is landlord-tenant.

After doing my best to screen tenants, I always consider the worst case scenario and how I can collect every cent that's owed should it be necessary. Thankfully, most of the time it's not.

As others have said, understanding the laws and a good lease are crucial. I also use personal guarantees where appropriate.

#70 4 years ago

While I am thinking about it, get as much security deposit as you can(like 1.5 to 2 times a months rent), they will normally behave a lot better. AND, make it clear that the security deposit is not the last months rent.

Thankfully I have not had to do any of that in a while, and the last tenant that moved did get back 100% of their security deposit, only the 2nd so far to be this awesome.

#71 4 years ago
Quoted from JohnnyPinball007:

While I am thinking about it, get as much security deposit as you can(like 1.5 to 2 times a months rent), they will normally behave a lot better. AND, make it clear that the security deposit is not the last months rent.
Thankfully I have not had to do any of that in a while, and the last tenant that moved did get back 100% of their security deposit, only the 2nd so far to be this awesome.

That’s an absolute. We have several rental houses and since we’re in the business of remodeling homes, our houses are always being updated. Sometimes full remodels. This helps keep maintenance to a minimum and allows us to get maximum rent. Rules are very simple:
-Have good to very good credit
-Two months security (no last month bullshit)
-No short term leases (minimum 1 year but try to get at least 2 year commitments)
-No pets
-Tenant responsible for all utilities
-Tenant responsible for yard maintenance and if they don’t want to, then they get charged another $120 a month and we will provide landscape service
-All properties are in my town which allows for quick service if a problem arises

Also everyone has to have a background check and houses need to be inspected once a year. This is Elk Grove Village rules. They do the inspections and background checks. We have had pretty good luck with tenants but that’s probably because when they have a lot of skin in the game they respect the property and actually sometimes improve it on their own. Some of our tenants have been renting from us for over 20 years.

#72 4 years ago
Quoted from JayDee:

Some of our tenants have been renting from us for over 20 years.

AWESOME POST!

Being tough to cover yourself allows the good tenants to stay in a good place, while quickly staying away from the bad ones.

#73 4 years ago

I could tell you everything you ever wanted to know about running a vacation rental could practically write a book on that.

#74 4 years ago

I have actually found pet owners to often be good tenants. I have strict rules around it, charge a little extra, and find that they tend to stay and keep good care of the place. I will ALWAYS take dogs over cats. Cats can cause way more issues in my experience.

Quoted from JayDee:

then they get charged another $120 a month and we will provide landscape service

curious if this $120 is standard for landscape services in your area. I have a few tenants that dont maintain the laws as well as I would like. I have been unable to find a reasonable service for them to hire that is affordable.

Quoted from JayDee:

Also everyone has to have a background check

curious what other landlords are using for a service to do background, credit, and criminal history checks? I need a new one and have some spring/summer rentals coming up.

#75 4 years ago
Quoted from Whysnow:

I have actually found pet owners to often be good tenants. I have strict rules around it, charge a little extra, and find that they tend to stay and keep good care of the place. I will ALWAYS take dogs over cats. Cats can cause way more issues in my experience.

curious if this $120 is standard for landscape services in your area. I have a few tenants that dont maintain the laws as well as I would like. I have been unable to find a reasonable service for them to hire that is affordable.

curious what other landlords are using for a service to do background, credit, and criminal history checks? I need a new one and have some spring/summer rentals coming up.

We do accept dogs sometimes but requires another month security. Absolutely no cats though

Yes landscape costs $30 a week. No up charge from me

The village does the background check through the police dept. so I can’t answer that question. My realtor does the screening for us as part of his fee when finding tenants. He won’t show our properties if they don’t fit our requirements listed above.

#76 4 years ago
Quoted from Whysnow:

curious what other landlords are using for a service to do background, credit, and criminal history checks? I need a new one and have some spring/summer rentals coming up.

I used smart move for a long time, but I now use Cozy exclusively. I also use Cozy to collect rent electronically for all of my current tenants except for one. Completely free for all parties, just takes 7 days to clear. You can pay to get it faster, but I have plenty of liquid cash and don't need the money on the first of the month, so it's more than perfect for my needs.

An unrelated aside to previous posts: In regards to security deposits, remember to check local laws. In MA, we cannot collect more than 1 month's rent for security, we need to keep it in a completely separate interest bearing account, and we need to provide proof of having done so very shortly after receiving the deposit.

#77 4 years ago
Quoted from mrmark0673:

An unrelated aside to previous posts: In regards to security deposits, remember to check local laws. In MA, we cannot collect more than 1 month's rent for security, we need to keep it in a completely separate interest bearing account, and we need to provide proof of having done so very shortly after receiving the deposit.

Does that apply to all rentals? I can’t remember the exact laws in Illinois off hand, but I believe that the interest bearing accts apply to buildings with 25 tenants or more. All our rentals are single family homes.
https://www.nolo.com/legal-encyclopedia/illinois-security-deposits-36207.html

#78 4 years ago
Quoted from JayDee:

Does that apply to all rentals? I can’t remember the exact laws in Illinois off hand, but I believe that the interest bearing accts apply to buildings with 25 tenants or more. All our rentals are single family homes.
https://www.nolo.com/legal-encyclopedia/illinois-security-deposits-36207.html

All residential. Commercial properties have a completely different set of rules.

All of my rentals are 2 family properties and I absolutely need to keep all deposits in a separate interest bearing account.

#79 4 years ago

Anyone who says they never accept government assistance (section 8/vouchers) needs to check their local fair housing classes. "Source of Income" is a protected class in many areas and makes blanket bans on housing assistance applicants a fair housing violation.

#80 4 years ago

I just bought my 5th house. Selling coin-op equipment for a living does not give me a 401K, so I decided a few years ago to invest in properties and make that my retirement. Houses in my area are around 100k for a 1100 sf house with garage. Rent is generally around 1150 per house. I do not hold on to any of the rent that comes in, take 100% of it and apply it to the mortgage. The wife has a rule that im only allowed one mortgage, so 4 of the houses are paid off now. I take the rental income from all 4 of them and apply it to the one mortgage. Last house took 2 years to pay off doing it this way. I am expecting the house I bought last month to take around 18 months to be paid for. I have an escrow account set up to pay for the taxes on them, and any repairs that I make I pay for to keep the mortgage on track for my 18 month payoff.

Once the house is paid down to 20k, I start looking for the next. All my properties are within 2 miles of my house. My longest running rental is 10 years, and I am on my 3rd tenant. One other is at 4 years same occupancy, other is at 3 years same occupancy. So my tenants tend to stay. If they call me, I take care of things right away. One tenant had a clogged sink, her fault, but no big deal. While I was there, she told me that her freezer was cold, but not freezing ice cream. She said that she wasn't complaining, but just wanted me to know. I went that day and bought a new refrigerator and took it over. Two days later she sent me a thank you card. Take care of the tenants and they take care of your property

#81 4 years ago
Quoted from mrmark0673:

All residential. Commercial properties have a completely different set of rules.
All of my rentals are 2 family properties and I absolutely need to keep all deposits in a separate interest bearing account.

Curious, do you use high interest online accounts or just a local savings account? I ask because access to the local is faster than online (although usually just a few days difference).

Also, is that a separate account for EACH unit?

#82 4 years ago

I currently have a 138 units, been doing it for over 10 years now, I love the business. I have also been doing a lot of land acquisitions and land subdividing....buying 5-10 acres of land, splitting them, and selling them for pieces.

So for fun I collect arcades and pinballs...and real estate haha.

#83 4 years ago
Quoted from Zablon:

Curious, do you use high interest online accounts or just a local savings account? I ask because access to the local is faster than online (although usually just a few days difference).
Also, is that a separate account for EACH unit?

I just use a typical security deposit account at my local bank. You sign some very specific paperwork and can wrap it up in a few minutes. I don't keep them in any sort of high interest accounts, I just do what the law asks of me. They accrue literal pennies a year, and I have to apply that to their rent at the end of the year or cut them a check, but the law is what it is.

To answer the other question: Yes, separate accounts for each one. I have a billion accounts at my local bank as a result, but the law is very clear in what I can and cannot do. I can't intermingle security funds with anything else.

#84 4 years ago
Quoted from JayDee:

Does that apply to all rentals? I can’t remember the exact laws in Illinois off hand, but I believe that the interest bearing accts apply to buildings with 25 tenants or more. All our rentals are single family homes.
https://www.nolo.com/legal-encyclopedia/illinois-security-deposits-36207.html

I’m in Illinois, and while that interest bearing account law is valid. Its more geared towards corporate landlords as oppose to mom and pop landlords.

#85 4 years ago

No, Helmut U....German gentleman.

#86 4 years ago

In 1991 I lived in a building with 30 suites. The owner/manager would do what ever he wanted. One day I bought new car, he admired it, as he had an older version. The next month he gave me notice for a rent increase. He knew I was always gone during the day, I think he was entering my unit and was helping himself to beer every once and a while.

#87 4 years ago
Quoted from LargemouthAss:

Anyone who says they never accept government assistance (section 8/vouchers) needs to check their local fair housing classes. "Source of Income" is a protected class in many areas and makes blanket bans on housing assistance applicants a fair housing violation.

actually you are allowed to NOT verify eligibility of you property for gov assistance. Then your house is not able to take section 8.

Outside of that, I believe you can stipulate that security deposits of 1.5x must be provided by tenant. Most giv assistance will not provide more than 1x security.

#88 4 years ago

This will serve as a future placeholder...

but...

To echo what everyone else has said: Screen, Screen, Screen; check local laws/hire an attorney who landlords themselves to give you advice; expect this to be a part/full-time job depending on number of doors.

#89 4 years ago

I only hired my lawyer once.

My best friend is a real estate broker with several rentals himself so he gives me all the info for free. Except I do buy his lunch sometimes for all the information favors.

#90 4 years ago
Quoted from Whysnow:

actually you are allowed to NOT verify eligibility of you property for gov assistance. Then your house is not able to take section 8.
Outside of that, I believe you can stipulate that security deposits of 1.5x must be provided by tenant. Most giv assistance will not provide more than 1x security.

Not sure if I understand that correctly, some of my units I take section 8 and it must be certified and pass inspection to collect section 8 vouchers.

#91 4 years ago
Quoted from DaHammer12:

Not sure if I understand that correctly, some of my units I take section 8 and it must be certified and pass inspection to collect section 8 vouchers.

correct.
As I understand it from my real estate lawyer that specializes in this sort of thing.

You can legally opt to NOT allow officials into your units for certification/inspection, which means you are not eligible for the program.
You can also have screening parameters based on all sorts of things that ensure you are not discriminating.

I have never run in to section 8 requests and doubt I will. I have a simple primary screening that requires household income to be 3x takehome of the rental amount. Add 1k for each additional person.

If rent is 1200 per month, then you must have 3600 take home. If you have 2 dependents then that would be 5600 take home.
This is a simple approach and you are allowed to set non-discriminatory parameters. You can adjust over time as needed to fit each house/timing. All that matters is you are consistent in your use (i.e. dont discriminate)

#92 4 years ago
Quoted from Whysnow:

correct.
As I understand it from my real estate lawyer that specializes in this sort of thing.
You can legally opt to NOT allow officials into your units for certification/inspection, which means you are not eligible for the program.
You can also have screening parameters based on all sorts of things that ensure you are not discriminating.
I have never run in to section 8 requests and doubt I will. I have a simple primary screening that requires household income to be 3x takehome of the rental amount. Add 1k for each additional person.
If rent is 1200 per month, then you must have 3600 take home. If you have 2 dependents then that would be 5600 take home.
This is a simple approach and you are allowed to set non-discriminatory parameters. You can adjust over time as needed to fit each house/timing. All that matters is you are consistent in your use (i.e. dont discriminate)

Holy cow, while I respect those figures that you offer they do seem steep....at least in the Chicago standard. Sure that could be offered here, but there is so many rentals here that are not only getting top dollar but are also competitive...it would never happen here. But I see what you mean.

Also the section 8 game has changed tremendously here, I use to have section 8 tenants in my units that would DESTROY it and get away with it. But now the housing authority has become smarter at the game, its the new blood that runs it, and they see it as a privilege to be getting rent credit. So if they destroy a unit, tenants get booted from the program, and once you are you get BANNED. Now all tenants appear to be on their best behavior and have been for YEARS, its not like it was back in the day. I mean things can still happen, but within reason....its been 10+ years and I have not had any issues...not 1.

#93 4 years ago
Quoted from DaHammer12:

Holy cow, while I respect those figures that you offer they do seem steep

yeah, they are set to properly screen for my needs as a landlord.

It simply comes down to what the market allows, how to find the best tenants for my rentals, and making adjustments as needed.
All my places are on average $200 below market rate so that brings me lots of applicants. Since I get lots of applicants, I use aggressive filtering.

The TLDR version when I list a place:
Good description with lots of photos that blasts out to Zillow, hotpads, etc... on a Sunday late in the day (markets to people with jobs on Monday mornings). Description notes showings available for the following Saturday for qualified applicants.

Description notes to call (no text and no email; if you do then you are automatically disqualified since you can't follow directions). Requests when calling to leave a voicemail with some basic info about yourself. I turn off my phone while at work and then pre-filter from messages.

I will get 20-50 voicemails that day. I call back every single person after 5pm that day and have a list of general questions (where do you work/how long, where do live/how long, pets/trained, etc...)

If an applicant answers all my questions and has good work/housing history, then I set up the first appointment for showing at noon the next sat.
If the next applicant I screen has better answers then I book them at 11:30
If the next applicant I screen passes but slightly worse answers (less employment history, any questions of concern, etc...) then they get booked at 12:30
I typically book 5-7 showings so I am only busy 2.5-3.5 hours on that Sat; working my way earlier/later based on phone screening.

The trick is that 30min is barely enough to show the place. The 'best' people on paper are first to see the place and as they are getting done, the next ones are knocking on the door. I hand the first people the application if they are a good fit and have found that if they want the place (they usually do) then they are filling it out in the car and bringing back as the 3rd set is showing up for showing at 12:30.

I take the applicants, historically run them through local court search and an online credit/criminal background check, and then call their most recent AND the one before landlord for info.
Whomever passes this screen gets a call back to let them know and I suggest meeting on Saturday afternoon/Sunday morning to sign the lease and for them to provide a check for security deposit to secure the place.

This far, staying under market and providing nice house with a few perk features has brought me good tenants that like to stay for multiple years.
The cost per month being below market means I typically have more tenants to pick from but I need to filter better to avoid potential issues.

A few things I have found is that people can and do lie on applications. You must follow through on background and reference checks.

#94 4 years ago

Wow! Good on ya

#95 4 years ago

This is a helpful thread. I only have one rental in Denver and have found the insight on this thread is similar to what I do. That being said I am going to switch a few things up now that I have read this thread. Thanks.

#96 4 years ago

I have thought about getting into the rental game in my area recently, but the housing market is very tight at the moment. 1 bedroom apartments are going for $1000-$1500 now fairly regularly, but the median household income is $56k. Housing prices are high compared to the income, and what works in Chicago or Denver most likely doesn't play well in other areas like mine. Thanks to TV romanticizing house flipping, every fixer upper is going for far too much money if it isn't in a high tax shithole municipality. The Amish are also getting big into the rental game...many are sitting on millions in cash, and will not bet outbid by non-amish at a public auction.

One of the larger rental owners in my area once told me if a perspective tenant shows up in a car that looks like a pigsty inside, he wouldn't take them. He found a reason to legally deny them. But he felt if they don't keep after their vehicle, they aren't going to take care of his property either.

-6
#97 4 years ago

Sounds like JodyG should buy a house, put it up for auction and take these Amish millionaires easy money.
I would never try to outbid the Amish unless it’s on eBay.

Try not to stereotype people to make your inaction justified.
#okboomer

#98 4 years ago
Quoted from Londonpinball:

Sounds like JodyG should buy a house, put it up for auction and take these Amish millionaires easy money.
I would never try to outbid the Amish unless it’s on eBay.
Try not to stereotype people to make your inaction justified.
#okboomer

The only one here that sounds like a boomer is you...I'm 37. Thanks for shitposting on this otherwise informative thread though.
And it's not a stereotype, it's a known trend here. https://lancasteronline.com/news/local/amish-driving-fast-into-the-rental-business/article_76eb754c-533d-11e5-b7d8-3b7077521413.html&ved=2ahUKEwjT4vGv2MDmAhWPxVkKHSo8AXAQFjAAegQIAxAB&usg=AOvVaw2m5QQmO0YMLiYJD0OY4TIS

-3
#99 4 years ago

your link doesn’t work and your not a landlord.
If you have anything positive to post, buy a house and tell us about it

I found your “known trend” internet news
It’s 5 years old, has zero actual facts proving the point your trying to make
but it does have tons of
Hateful comments about Amish people in the comments.

Maybe you feel comfortable stereotyping this group because ...

#100 4 years ago

Been there, done that, and I’m glad I’m out. It’s all about having good renters. If you have people that care about your house or at least have respect for your house and pay the rent on time your golden. If you have people that don’t give a shit or respect your house then your fucked. My experience was mostly tainted by people destroying my house. You name it, carpet, walls, windows, doors, appliances, etc. I fix things up, people destroy it, which costs me more money and time which is often more valuable than money. Always have to worry if and when something breaks. If you have lots of cash and can afford a property manager and can replace things on a dime then good for you. The rich get richer. Market came around, finally got out of a backwards situation and never looked back. Sure I learned a lot, but would never do it again. Unless I won the lottery.

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