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Posted: 10/23/2016 8:33:14 PM EST
I've been thinking of purchasing a property for renting out.  What am I in for?
Link Posted: 10/23/2016 8:40:18 PM EST
[#1]
You need to be a little more specific in your question.
Link Posted: 10/23/2016 8:46:33 PM EST
[#2]
Section 8 and destroyed rooms .
Link Posted: 10/23/2016 8:48:32 PM EST
[#3]
Read the tax code first.  If you do it right, you can write off your rental losses against your other income.  (You might notice I said rental LOSSES).
Link Posted: 10/23/2016 8:52:50 PM EST
[#4]
World of shit.

Selling my extra house spring of 2017.
Link Posted: 10/23/2016 8:54:33 PM EST
[#5]
Quoted:
I've been thinking of purchasing a property for renting out.  What am I in for?
View Quote


Depends
Link Posted: 10/23/2016 8:54:56 PM EST
[#6]
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Quoted:
You need to be a little more specific in your question.
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Residential?
Link Posted: 10/23/2016 8:54:58 PM EST
[#7]
Discriminate your renters. More work on picking the right one and less work on you taking care of the house. It took me 15 years of renters before I had to change the carpets. When people care for YOUR home, like it is theirs, it is an easy venture.
Link Posted: 10/23/2016 8:55:20 PM EST
[#8]
You handy???
Otherwise you'll need to hire ...hvac,plumber, electrician, painter, carpenter, .....
Link Posted: 10/23/2016 8:55:59 PM EST
[#9]
Find an experienced mentor in your area
Link Posted: 10/23/2016 8:55:59 PM EST
[#10]
i got out of it a few years ago, not worth the hassle and my homes were in a good area and highly rated schools - got annoyed by the fucks calling me at 3 am saying their faucet is dripping



plus getting called a racist because their credit rating was shit
Link Posted: 10/23/2016 8:56:14 PM EST
[#11]
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Quoted:
Section 8 and destroyed rooms .
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Will be planning on screening the renters, don't plan on making it section 8
Link Posted: 10/23/2016 8:56:38 PM EST
[#12]
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Quoted:
Discriminate your renters. More work on picking the right one and less work on you taking care of the house. It took me 15 years of renters before I had to change the carpets. When people care for YOUR home, like it is theirs, it is an easy venture.
View Quote

Link Posted: 10/23/2016 8:57:19 PM EST
[#13]
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Quoted:
Find an experienced mentor in your area
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This is what I'm looking for.  Figured I would come here for quick assessment.
Link Posted: 10/23/2016 8:59:39 PM EST
[#14]
I have 19 units and plan to buy a lot more in the next 8 years. My goal is to have 150 to 200 eventually.

What would you like to know?
Link Posted: 10/23/2016 9:00:07 PM EST
[#15]
I have properties in several states. Strict credit requirements are a must. It can be a lot of work depending on your area and available tenant pool.
Link Posted: 10/23/2016 9:00:11 PM EST
[#16]
need the temperament and financial resources to handle a vacancy and repairs.  You will be fooled into renting to a bad one, sooner or later
Link Posted: 10/23/2016 9:00:32 PM EST
[#17]
If the house is solid cinder block with concrete floors that have a drain in the middle of every room,  then you may be able to rent section 8.
Link Posted: 10/23/2016 9:00:57 PM EST
[#18]
Are you asking what kind if property to buy? What kind of renter to look for? Or... what?

It's all I do, since I sold my business and "retired".
Link Posted: 10/23/2016 9:01:03 PM EST
[#19]

Quoted:


I've been thinking of purchasing a property for renting out.  What am I in for?
View Quote
Don't do it it's a pain in the ass.



 
Link Posted: 10/23/2016 9:01:35 PM EST
[#20]
Quoted:
I've been thinking of purchasing a property for renting out.  What am I in for?
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Unless you are willing to be more specific in your question... all I can say is that you are 'in for' whatever you make of it.
Link Posted: 10/23/2016 9:05:53 PM EST
[#21]
It's a second job.
We have 15 units and make about $20K/yr. If we keep them rented. To GOOD tenants. And you are handy.
Link Posted: 10/23/2016 9:08:01 PM EST
[#22]
FUCK NO. NEVER AGAIN.





Disappointment, grief, and regret. That's what you're in for.







I have owned several rentals.







Fuck. That.







On the other hand, if you want to know how truly fucking shitty people can be, then by all means,


jump right in.


 
Link Posted: 10/23/2016 9:08:10 PM EST
[#23]
Here's my general statements.

It's about like anything, if you are a strong manager you will do fine. Most people can't manage their life, let alone an investment so they struggle terribly. I manage 30 immigrants at work (well paid skilled immigrants, which causes a lot more ego bs than minimum wage illegal immigrants that have to take some abuse bc of their situation) and deal with large commercial customers that have a lot of leverage over us (the customer pool is 25 customers for 3 companies like us in the area) so managing rentals is a piece of cake.

I've been getting lied to by losers and beat up on prices for 15 years, I'm a pro. I know all the angles, all the tricks. I can smell it from a mile away.

I deal mostly in multifamily properties as the numbers look better here.

Typically mortgage, taxes, and management is around 50% here, repairs and misc are around 45%. That's financing 75 to 80%.

I have a manager taking care of half of my properties. He gets around 13% after placement fees. I manage a mechanical company so he has to call me for repairs, that way I know he isn't getting kickbacks or letting warranty comebacks slip through.

If you figure in appreciation (.05% here annually), equity, and cash profit, you can make 14-18% return on cash here but to do that you will typically be cash flow negative about 500 bucks a unit per year with 80% borrowed. To make a good return on cash AND be cash flow positive is pretty tough in my area.

Typically it will take 1 to 1.5 hours per month per tenant to manage it. That is if you hire all of the repairs done.

As you scale, that will trend down towards .5 hour per tenant per month.

You need to put together a business plan that works for you in your area and stick to it.

If you want books, they didn't help too much bc I already had a plan but did reaffirm what I was doing but John T Reed writes some decent books on real estate investing.
Link Posted: 10/23/2016 9:08:30 PM EST
[#24]
I just bought another house with 5 apartments in it. If you can handle the occasional stress, separate your emotions from your renters, and do the work of running a business you will be good to go. Do not EVER make friends with a renter. When they hit a hard patch and can use some help, you will understand why it was a mistake. There are lots and lots of renters out there. Some are crooks who want to rip you off, some are just people who keep on making bad decisions. Finding better renters takes more work(paperwork) but it is well worth it in order to make a good return on your investment. There are lots of great renters out there.
The book "Landlording- A handymanual for Scrupulous Landlords and Landladies Who Do It Themselves" is equal to about 5 attentive years in the school of hard knocks, but all you have to do is read the book.
Link Posted: 10/23/2016 9:09:40 PM EST
[#25]
Learning about sides of humanity you never thought possible, much less wanted to deal with on a weekly basis.

Kharn
Link Posted: 10/23/2016 9:11:36 PM EST
[#26]
Advertise through word of mouth only, publicly advertising is a bad idea
Link Posted: 10/23/2016 9:11:57 PM EST
[#27]
You can be successful or lose your ass. Depends on how smart you are and how much work you plan to put into it.
Link Posted: 10/23/2016 9:23:50 PM EST
[#28]
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Quoted:
Learning about sides of humanity you never thought possible, much less wanted to deal with on a weekly basis.

Kharn
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I inherited a few Somalis that worked at the packing house in my first duplex. They slaughtered a horse in the bedroom then smoked it over a campfire in the living room before they skipped town. My bug guy was buy doing routine foundation spray and say roaches on the windowsill. That was around 20 grand to repair. Blood and smoke smell everywhere.

Another poster on here had a junkie eat a shotgun if I recall right.
Link Posted: 10/23/2016 9:29:39 PM EST
[#29]
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Quoted:


I inherited a few Somalis that worked at the packing house in my first duplex. They slaughtered a horse in the bedroom then smoked it over a campfire in the living room before they skipped town. My bug guy was buy doing routine foundation spray and say roaches on the windowsill. That was around 20 grand to repair. Blood and smoke smell everywhere.

Another poster on here had a junkie eat a shotgun if I recall right.
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Quoted:
Quoted:
Learning about sides of humanity you never thought possible, much less wanted to deal with on a weekly basis.

Kharn


I inherited a few Somalis that worked at the packing house in my first duplex. They slaughtered a horse in the bedroom then smoked it over a campfire in the living room before they skipped town. My bug guy was buy doing routine foundation spray and say roaches on the windowsill. That was around 20 grand to repair. Blood and smoke smell everywhere.

Another poster on here had a junkie eat a shotgun if I recall right.

My worst was an unintentional litter of chihuahua puppies that would fit through the slats in the fence and escape the yard if let outside, so the family just let them shit and piss all over the finished basement. We brought a 1' square of the ruined carpet and 1' of the scrap we had saved to court to show the judge how nasty they were, along with several other areas of disgusting filth. We wage garnished the hell out of them until several thousand worth of damage was repaid.

Funny thing was Animal Control took all their dogs/cats/birds away on the spot when the conditions were discovered, but Child Protective Services gave them 7 days to clean the house or they'd take the kids. The kids were going to school with fleas according to the neighbor.

Kharn
Link Posted: 10/23/2016 9:31:53 PM EST
[#30]
we have two rental properties

first rule - have a SUBSTANTIAL Cash Reserve.

Second Rule - Make sure your lease is SOLID.  Have it reviewed by a lawyer before you give it to your possible tenant.

Third Rule - Get a home insurance program for appliances, water heater, AC, etc.  

Forth Rule - Do a background check on every person in the house.  Credit Check also.  


We just went through a nightmare tenant.  Another tenant we found out was a pornstar....LOL...that was interesting.

Link Posted: 10/23/2016 9:40:06 PM EST
[#31]
Do not rent to family. I rented a house to my step daughter and grand daughter, 4 houses down from me, for $600/ month. It's 1/2 what it should be, and after 2 Years she's not paying all of it. I've threatened to sell the house from under her, and now I have to, and I'm the asshole.
Better off renting to total strangers, after a background check of course.
Link Posted: 10/23/2016 9:41:16 PM EST
[#32]
I'm selling my last rental in Nov 4. I'll be drunk for a week getting out of that business.

Edit- I did ok financially, it's just that with 4 kids and a 60hr/week job it was more stress than it was worth. I was doing all my own repairs, taxes, tenant screening, etc.  I can make more money putting effort into my day job than I did running rental properties. YMMV
Link Posted: 10/23/2016 9:50:38 PM EST
[#33]
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Quoted:

My worst was an unintentional litter of chihuahua puppies that would fit through the slats in the fence and escape the yard if let outside, so the family just let them shit and piss all over the finished basement. We brought a 1' square of the ruined carpet and 1' of the scrap we had saved to court to show the judge how nasty they were, along with several other areas of disgusting filth. We wage garnished the hell out of them until several thousand worth of damage was repaid.

Funny thing was Animal Control took all their dogs/cats/birds away on the spot when the conditions were discovered, but Child Protective Services gave them 7 days to clean the house or they'd take the kids. The kids were going to school with fleas according to the neighbor.

Kharn
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Quoted:
Quoted:
Quoted:
Learning about sides of humanity you never thought possible, much less wanted to deal with on a weekly basis.

Kharn


I inherited a few Somalis that worked at the packing house in my first duplex. They slaughtered a horse in the bedroom then smoked it over a campfire in the living room before they skipped town. My bug guy was buy doing routine foundation spray and say roaches on the windowsill. That was around 20 grand to repair. Blood and smoke smell everywhere.

Another poster on here had a junkie eat a shotgun if I recall right.

My worst was an unintentional litter of chihuahua puppies that would fit through the slats in the fence and escape the yard if let outside, so the family just let them shit and piss all over the finished basement. We brought a 1' square of the ruined carpet and 1' of the scrap we had saved to court to show the judge how nasty they were, along with several other areas of disgusting filth. We wage garnished the hell out of them until several thousand worth of damage was repaid.

Funny thing was Animal Control took all their dogs/cats/birds away on the spot when the conditions were discovered, but Child Protective Services gave them 7 days to clean the house or they'd take the kids. The kids were going to school with fleas according to the neighbor.

Kharn


When I was in highschool I used to work for a landlord during the winter. Similar deal, he had someone that was basically a hoarder and let the cats piss and shit all over the floor. We ended up gutting all of the subfloors and cabinets because we couldn't get the ammonia smell out.

I did lawn care back then and I had a few local landlords and banks hire me to come clean out evictions and foreclosures. Every once in awhile we couldn't do it even with masks so they would knock it down. I used to do about 5 to 7 a year and i always dreaded it.

I walked in the door of a trailer house once, flipped on the lights and there were thousands of roaches. Like every 8 inches on the walls and floors. I was suited up in a full mask and like a white painters suit, taped up cuffs and whatnot so I was sealed it. I said fuck that, I wasn't that desperate for money and neither were my buddies that worked for me. Stacks of boxes, food, shit everywhere.

They towed that one out of city limits and burned it.

Link Posted: 10/23/2016 9:51:14 PM EST
[#34]
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Quoted:
If the house is solid cinder block with concrete floors that have a drain in the middle of every room,  then you may be able to rent section 8.
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Description of humane society.
Link Posted: 10/23/2016 9:51:57 PM EST
[#35]
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Depends
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Quoted:
I've been thinking of purchasing a property for renting out.  What am I in for?


Depends


Could be... if he rents to some older folks.
Link Posted: 10/23/2016 9:54:32 PM EST
[#36]
Make sure you have extra funds for repairs and vacancy.  Get proper insurances plus an umbrella policy. Check for safety compliances ( o2 detectors, smoke detectors, etc)

Run real background checks and rental references.

You will be fine.
Link Posted: 10/23/2016 9:57:00 PM EST
[#37]
You are in for some work, and probably some profit.  



Get an older property.  

For example, kitchens should have older cabinets that can be painted or cleaned.  You don't want brand new $30k cabinets that someone's dog is going to scratch up.  You want a $300 basic dishwasher, not a $1000 stainless dishwasher that will get dented.  

Single family houses are best.  Easier to resell than condos or townhouses.  



Get a tenant with either some assets or a decent ($50k+) job.  If they trash or abandon the place, you can sue them and get your money.  



Find a good lease.  It should cover when you are allowed to enter the property, what happens if you suspect they have abandoned it, and that they will pay attorney's fees.  
Link Posted: 10/23/2016 10:04:14 PM EST
[#38]
Credit check.

Criminal background check. Multiple drug arrests equals nope.

Drive by current listed address. Is it a dump? If yes then nope.

$50 non refundable application fees weed out most of the shit birds.

Avoid certain vibrant folks.
Link Posted: 10/23/2016 10:04:50 PM EST
[#39]
Don't rent to this guy.




Link Posted: 10/23/2016 10:08:24 PM EST
[#40]
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Quoted:
Credit check.

Criminal background check. Multiple drug arrests equals nope.

Drive by current listed address. Is it a dump? If yes then nope.

$50 non refundable application fees weed out most of the shit birds.

Avoid certain vibrant folks.
View Quote


Even 15 in my area cut down on the headaches A TON. Should have done that from day one.
Link Posted: 10/23/2016 10:10:01 PM EST
[#41]
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Quoted:


I inherited a few Somalis that worked at the packing house in my first duplex. They slaughtered a horse in the bedroom then smoked it over a campfire in the living room before they skipped town. My bug guy was buy doing routine foundation spray and say roaches on the windowsill. That was around 20 grand to repair. Blood and smoke smell everywhere.

Another poster on here had a junkie eat a shotgun if I recall right.
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Quoted:
Quoted:
Learning about sides of humanity you never thought possible, much less wanted to deal with on a weekly basis.

Kharn


I inherited a few Somalis that worked at the packing house in my first duplex. They slaughtered a horse in the bedroom then smoked it over a campfire in the living room before they skipped town. My bug guy was buy doing routine foundation spray and say roaches on the windowsill. That was around 20 grand to repair. Blood and smoke smell everywhere.

Another poster on here had a junkie eat a shotgun if I recall right.




Friend of mine owns 30-40 houses at any time. Worst story I heard from him was a lady who hung herself in the basement right after setting a fire upstairs. Insurance fought the claim because it was arson. Still awaiting a judgment on that case last I heard.

I only own 8 homes at the moment but I buy repos, rehab, rent a few years and flip. Most of my buyers have been tenants I start off with a 3 year contract for deed. It's been a good business so far but I am thorough is selecting renters and do 95% or the handyman work myself.
Link Posted: 10/23/2016 10:20:58 PM EST
[#42]
Most horror storys come from landlords who rent to the first slob who can borrow the deposit and rent from a relative that desperately wants them out of their basement. Interview your prospective tenant. Hygiene and the condition of their vehicle can tell you just about everything you need to know. If they smell like they have not bathed in a few days and their car is full of fast food bags and empty cigarette boxes take a pass. The other place bad landlords get lax is not rwgularly inspecting their property. I drive by my homes every week and try to get inside at least every three months. Finding problems early solves a lot of issues. Also no pets period. Allowed that once and never agin. Cat piss soaks into everything.
Link Posted: 10/23/2016 10:32:06 PM EST
[#43]
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I have properties in several states. Strict credit requirements are a must. It can be a lot of work depending on your area and available tenant pool.
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I've found the credit requirement can be an indicator, but have had several recent divorce, or job loss and moving due to new employment that were excellent tenants.  Case by case basis though.  Thorough check of evictions and liens can be the most telling.  And I avoid pets like a mofo unless my property manager has rented to them with the same pets recently, and then a pet deposit and $25-$50 extra per dog depending.   Absolutely no cats ever!

I got sick of babysitting and have a property manager and she's a bad ass!   Worth every penny she earns.  She's experienced enough to weed out the idiots for the most part and all I have to do is fix shit if I want to and collect a check.  

When we get big enough, I will likely drop the manager, but that is a ways off from now.

Make sure the property is in outstanding condition to keep repairs to a minimum.

If you're worried about the renters schedule to change the ac filter once a month so you can get a glance at your investment.
Link Posted: 10/23/2016 10:32:16 PM EST
[#44]
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Quoted:
I just bought another house with 5 apartments in it. If you can handle the occasional stress, separate your emotions from your renters, and do the work of running a business you will be good to go. Do not EVER make friends with a renter. When they hit a hard patch and can use some help, you will understand why it was a mistake. There are lots and lots of renters out there. Some are crooks who want to rip you off, some are just people who keep on making bad decisions. Finding better renters takes more work(paperwork) but it is well worth it in order to make a good return on your investment. There are lots of great renters out there.
The book "Landlording- A handymanual for Scrupulous Landlords and Landladies Who Do It Themselves" is equal to about 5 attentive years in the school of hard knocks, but all you have to do is read the book.
View Quote


You also don't realize how many people have criminal backgrounds of some sort until you start seeing a lot of credit applications and background checks.  typically DUI, domestic violence, with a smattering of armed robbery and assault.

Link Posted: 10/23/2016 10:37:54 PM EST
[#45]
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If you're worried about the renters schedule to change the ac filter once a month so you can get a glance at your investment.
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The air filters really do need to be changed either way, and it is a very rare renter who will do it themselves. It's a good idea all the way around.

Link Posted: 10/23/2016 10:40:48 PM EST
[#46]
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The air filters really do need to be changed either way, and it is a very rare renter who will do it themselves. It's a good idea all the way around.

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Quoted:

If you're worried about the renters schedule to change the ac filter once a month so you can get a glance at your investment.


The air filters really do need to be changed either way, and it is a very rare renter who will do it themselves. It's a good idea all the way around.



Yes, and it gives you the perfect excuse to peak without looking like an overbearing landlord

ETA: and to check for cats, and dogs if they're not allowed..
Link Posted: 10/23/2016 10:47:48 PM EST
[#47]
Quoted:
I've been thinking of purchasing a property for renting out.  What am I in for?
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You said "a" property. Most people who whine and complain about rental property nightmares had "a" property. What kind of property they had was usually a stand alone house where they were responsible for maintenance on everything. I repeat everything.

I on the other hand bought five 800 square foot townhouses, two duplexes and one half of another, as my entry into the rental market. I pay $75.00 per month townhouse association dues per month on each which includes garbage pickup twice weekly, lawn care, all exterior maintenance including any fences on patios, carports, roof, windows, doors, painting, driveway repairs, plumbing outside the house and also any foundation repairs. I only have to worry about what is inside those four walls. Paid $240,000.00 for them in 2005 when prices were high. Put 40k down and financed 200k. Four of the five were rented, the other freshly remodeled and ready to rent. One section 8 tenant even, an older black woman who had been there 4 years when I bought it, and is still there today. Any bullshit in the neighborhood and she will know all about it. Her house is always clean, always passes inspection so don't believe everything you hear. I've bought eight more over the years in the same association down to $31,000.00 during the crash. They all rent for $775.00 per month, taxes, insurance and association dues are $275.00 per month per unit.

Other than the wife's beach house, all other 26 rentals are townhouses. We have the occasional issue, but mostly just have to pet them after our initial purchase/refurb as necessary to insure a pretty much trouble free house. I have a property management company handling ten of our properties, we handle the rest. They only charge 5% per month plus 50% of the first months rent for showing and placing a tenant with credit check, background check and rent history check. Their maintenance fees have been fair as well for most things and anything over $150.00 they call me first. Petting these is amazingly simple and stress free compared to our daily jobs at our collision repair business where we have to be there every damn day dealing with customers who are pissed that someone wrecked their shit and dealing with insurance companies who want everything done in record time for less money and junkyard /Chinese parts and lifetime warranties. Counting down the days....and looking for more rentals.

Find yourself a local contractor who can do everything. I spent 6 months evening and weekends working on a 1700 square foot 3, 2 1/2, 2  townhouse that had a bit of storm damage, doing everything I could and subbing out what I couldn't. When it was ready to rent, the first lady who stepped inside immediately said "I'll take it" for $1300.00 per month. It was right then when I realized how stupid I was. I could have been collecting 1300.00 per month for 5 of those months  and hardly stepped foot into the place and had all those evenings and weekends free to do whatever I wanted. That extra $6500.00 in rent would have covered what I saved by doing things myself. Now when we buy a new one we just go in and make a detailed list and tape it to the window before calling the contractor. We make a shopping trip to Lowe's and buy everything needed and drop it off at the house. They will have everything done and ready for flooring in a week. Write a check and start collecting rent.
Link Posted: 10/23/2016 10:51:25 PM EST
[#48]
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The air filters really do need to be changed either way, and it is a very rare renter who will do it themselves. It's a good idea all the way around.

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Quoted:

If you're worried about the renters schedule to change the ac filter once a month so you can get a glance at your investment.


The air filters really do need to be changed either way, and it is a very rare renter who will do it themselves. It's a good idea all the way around.



This is my excuse for checking in.
Link Posted: 10/23/2016 11:00:05 PM EST
[#49]
Make sure you don't have rental property out of state!
Keep it local enough that you don't have to rely on a property manager!




I fucked up and owned a few properties in TX, and living in CA, I had to rely on somebody else to keep track of the properties. That did not go over well after several years!

Shit went south for me. Would have been better if I lived local to my rentals!
Link Posted: 10/23/2016 11:02:29 PM EST
[#50]
I've been a landlord for over a decade.  

Before you start, take 3 months of rent and rat-hole it in a separate account.   Feel comfortable having the unit vacant and ONLY rent to people you would be happy having one of your siblings date.


You will have one of two markets:  Landlord's market (less rentals than interested parties); or Tenant's market (a surplus of units).   Find the 'official' vacancy rate for your area.  If its 5 percent your'e on the knife's edge.   If its closer to 4% or lower, you're in a Landlord's market.   If its closer to 6 percent or higher, the Tenants rule the roost.

You have to do different things to be successful depending on the market.  

Landlord's Market:
1.  ALWAYS charge an application fee of at least $25/ applicant, and use it to pay for a "real" background check service.  Your state laws will spell out the authorizations you have to get to perform these checks.   This filters out tire-kickers, and things the herd.
2.  Don't bother with individual showings.   Whenever you have 4 or 5 people interested, schedule a single hour long 'open house'
3.  Insist on first month's rent, last month's rent and security deposit at lease signing.   In a Landlord's market you can get away with it, and having that much money on the spot creates good lease compliance.
4.  If you expect there to STILL be a Landlord's market, do NOT include an automatic renewal clause in your lease.   Present a new lease at 45 days out from the expiration of the current one with a rent increase that is less than the cost of moving.  

Tenant's Market:
1.  Charge a $5 to $10 application fee and don't bother with showings for anyone who won't pay it, because they're more likely to be flitting around for the best deal.
2.  Discount your rent for (a) the right applicant; or (b) anyone who will sign a 2 year lease.
3.  Add a lease clause that says "this lease will automatically renew for an additional 12 month term unless either Landlord or Tenant gives notice of non-renewal at least 60 days before the expiration of the existing lease term"   Put rent at the renewal term as increasing only by the expected inflation rate.   If the market 'pops' you can exercise the notice of non renewal.   If it doesn't pop, odds are the the Tenant will forget (astonishing they forget, but they do) to send you notice of non-renewal and you then send them a "thanks for renewing" notice during their last month of the original lease term.


At all times:

1.  Include a "no peer to peer housing, e.g., AirBNB, etc." clause.   My clause actually contains a formal "assignment of profits" and says that if they breach, they not only owe me every penny they earn putting strangers in my house via AirBNP but they also owe me 10% interest on such profits compounded monthly.   Take away any incentive.

2.  Include an inspection clause and USE it.   Pop in 2 to 3 months after they move in.  (You can almost always do this as a furnace or a/c check, bring your HVAC guy).  

3.  Require carpets to be cleaned at the end of the term with a professional carpet cleaning service.

4.  Require personal guaranties from parents of college students.

5.  When you sign leases, schedule an hour to meet with the tenants at the coffee shop and go over the lease with them.

6.  YOU show up with the initial move-in checksheet and go over it with the tenants when they move in.   Make them justify anything they point out (e.g., there's a nail hole on this wall, or there's a stain on this carpet).   Make them sign it and then send them a copy.  

7.  Don't get greedy or stupid.   Paint and carpet are limited life items.  Paint lasts 5 years, carpet lasts 10 years.   If they fuck up your paint or carpet you have to pro-rate the security deposit deduction to the remaining usable life.   I have seen Landlords get REAMED in Court for trying to make tenants pay the full replacement cost of 9 year old carpet.  

8.  Don't EVER EVER EVER rent to friends, co-workers, or family members.   They will ALWAYS try to take advantage of you at some point.

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