Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Al, that is a strategy used by, usually beginning landlord but can be used by others. The way this strategy works is there is no real qualification requirement or formal application process, that's what makes it so popular, The landlord simply allows tenants to move in. If they move in in the middle of the month the tenant just pays the rents to the end of that month, there is no security deposit required.
Then, the following month the landlord finds that the phone number given isn't the one of their tenant. They go to the property to collect and find the lock changed, curtains drawn and no one answers the door. The tenant is independent from any landlord involvement at all.
This is the first month of the Tenant Free program, while it only lasts for a few months, the landlord is free of having to interview new people, taking any applications or processing them. They also don't have any complaints which is big plus. But, like all good things, this comes to an end as well in a short time, 3 maybe 4 months (can last longer in some states) when the property is finally vacated and then the landlord must go back to work. :)
Other wise, the term likely means a property that is empty and occupancy efforts will need to start from ground zero. :)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Al, that is a strategy used by, usually beginning landlord but can be used by others. The way this strategy works is there is no real qualification requirement or formal application process, that's what makes it so popular, The landlord simply allows tenants to move in. If they move in in the middle of the month the tenant just pays the rents to the end of that month, there is no security deposit required.
Then, the following month the landlord finds that the phone number given isn't the one of their tenant. They go to the property to collect and find the lock changed, curtains drawn and no one answers the door. The tenant is independent from any landlord involvement at all.
This is the first month of the Tenant Free program, while it only lasts for a few months, the landlord is free of having to interview new people, taking any applications or processing them. They also don't have any complaints which is big plus. But, like all good things, this comes to an end as well in a short time, 3 maybe 4 months (can last longer in some states) when the property is finally vacated and then the landlord must go back to work. :)
Other wise, the term likely means a property that is empty and occupancy efforts will need to start from ground zero. :)
Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
12y
I'm going to publish a fictional story of a landlord who auxiliary income is equivalent to tenant rents. I'm trying to find a phrase to help you catch my meaning quickly.
Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
12y
Perhaps you are looking for a term to describe a landlord that is free of the headaches of dealing with tenants. Landlord that has a great property manager or a great staff that deals with tenants. The other option is a commercial property that is triple net lease.
Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
12y
Thanks everyone for your input.
Without giving the story away (it's for the BP Blog) the landlord does "this thing" take changes her complex into a mix-use building that's produces enough auxiliary income to cover mortgage and holding expenses.
Tenant rents are sheer profit (fictional story OK).
Gene Rodenberry stretched our imaginations with Star Trek. I'm attempting to stretch our collective landlord imagination the same way - with fiction.
Anyway, back to the drawing board to work out a better phrase to describe a landlord that uses their rental in a new manner to diversify income so they aren't solely reliant on tenant rents.
Investor · Chicago, IL · Member since 2012 · 190 posts · 85 votes
12y
To me, "tenant free" means I'm free of the burden of deciding how to spend the money I'd normally get as rent from my tenants. Also, I'm not faced with actually having to deal with tenants.
No rent, no decisions to be made, and no work to do!
Sorry, can't come up with a single word.
Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
12y
Since you bring up Star Trek, then let me add that I really look forward to the day we have a teleport device to beam us from one spot to another.
So as landlords all we need is to build a corridor or with say 10 doors. Your rent out the "SPACE" behind each door. The tenant says he want a 3/2 2500 SF ocean front place. You say OK the rent is $2500 a month. You give him the key and once he opens the door, that act of opening door activates a teleport mechanism that beams him to the entrance of a ocean front unit in Thailand which you own and it's already furnished with a maid who charges you $50 a month. You as a landlord just need to have the physical space to provide entrances and exits.
Now of course the tenant didn't go through immigration to get inside his house in Thailand, so he got picked up by Thailand immigration official for illegally sneaking into their country and got thrown in jail. With the tenant in jail you are now truly "tenant free" but the tenant himself is not "free".
Rental Property Investor · Sacramento, CA · Member since 2011 · 2k+ posts · 1k+ votes
12y
@sam very clever. I would love to rift off that idea but it would send me off track.
@bill. Sorry to be a tease, but I am guaging interest as well. I'm planning to roll out a three part series: income independent of tenants (tenant proof), aux income dependent on tenants usage, and aux income dependent on surrounding community.
Done with part 1, just need to persuade Brandon Turner to publish it. Stay tuned.
Professional · Phoenix, AZ · Member since 2013 · 14 posts · 8 votes
12y
Al, I am new here, but I think you mean to use a "donation for a charitable gift annuity." It is a totally free donation, no commission, no capital gains taxes and you deduct the full market value of the property from your personal income taxes. The annuity pays the same net income (or greater) for the rest of your life, tenant free. The extra income is generated by the tax deductions that carry forward for five years, generating much larger tax returns or much lower tax bills.
Investor · Wilmington, NC · Member since 2013 · 109 posts · 14 votes
12y
@Al I loved your podcast and I'm excited about reading your blogs after I make this post. As for the phrase "tenant free", I'm a little late to the response because This is my first week with the blog, but I would think it means "rental income without needing it".
Examples are charging to use the following:
Washer and dryer
Garage
Storage
-------------------
Here are a few I've been thinking about:
1) setting up a strong wireless modem and charging $15 a month for the access code which changes every month.
2) offering basic cable kind of like an HAO does and then adding it into their rent.
3) redbox so that tenants can rent DVDs and games. Would probably work best with 20 plus units.
4) adding a laundry soap dispenser in the laundry room.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
12y
Logan, maybe I missed something, but all of those aspects depend on tenants being there, units leased.
Steve is at a different level, I like it.
Better yet, take your project and seller finance it, set the note into a charitable remainder trust and split the income between beneficiaries and retain funds for the selected charity, paying that out to off set income. The note funds the trust, you may need to toss in some cash too as there is a schedule to follow.
You can sell a half interest too, allowing property management to remain in the half held with passive income still flowing your. See your estate attorney, make friends with one. :)
Investor · Wilmington, NC · Member since 2013 · 109 posts · 14 votes
12y
@bill your right it does need tenants, but I thought the goal was to find income to cover the expenses before having to dip into the rental income. Which would make the rental income and extra added bonus.