Originally posted by Bienes Raices:
Originally posted by Ann Bellamy:
I let all my leases after the first year go month to month automatically, unless they ask for a lease.
Ann, do many of them ask for a new lease? Do they get turned off that it's going to be month to month?
Actually, most prefer it. One said if I made her sign a lease, she'd leave. She's been there over 15 years. If they ask for a lease and they are good tenants, I give it to them. I have mostly 1BR's and starter apartments, so they prefer the flexibility.
@Christopher Brescia, the on-time credit is handled as follows
If I want 650, the lease states 700 with verbiage defining the on-time credit. Then the security deposit is also the higher amount of 700. I have NO GRACE PERIOD and it's spelled out clearly in the lease. If your rent is not in the rent box by 7AM on rent day, and the rent is picked up at 7:30 AM and the check isn't there, they are late, and it's very clear in the lease.
I also explain to them that I am not trying to jack up their rates, I simply want to pay my mortgage on time, and I need their rent to do it. (I don't, but that's not the issue)
As for the credit, if it's paid on time, they take their credit, if not, they owe the extra, and in my software, I record the rent and the credit as two different line items. I have never yet had to chase them for the extra, but if I did, I simply would not apply the credit, and if they didn't pay the full amount, they are now late for that amount. I would make a call and give them the opportunity to make it up within the 3 days.
I'm a lazy landlord, and I don't like bad tenants. I'll screen and sit on an empty apartment until the right person comes along. I don't have many bad ones, but when I do, I hate the high maintenance, so I'll act quickly to get rid of them. I once remodeled an entire bathroom and moved walls just to have a legal reason (in NH you have to have "other good cause" if they are paying) to evict the tenant.
Ann Bellamy, Buy Now, LLC
Hard money lending in NH and MA, and for free networking in MA, http://www.BlackDiamondREI.com