Landlord of the Year award

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Landlord of the Year award

Pat L.

Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes

This was in the UK....where they call it Letting & he does fill his ramshackle units with the perfect tenant.

He's being investigated so this should end well!!!

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

By way of example, I have an investor here in my town that owns over 40 units and most of them are slums.

1. He accepts anyone with cash in hand for first month's rent and deposit. No application, no background check, nothing. He takes down their name and phone number, takes the cash, tells them where to drop off the next month's rent, and hands them the keys.

2. He keeps the utilities in his name. If the tenant stops paying rent, he turns the utilities off and waits for them to leave.

3. After they leave, (regardless of the circumstances) he does not clean or do maintenance unless absolutely necessary. He makes the new tenant rent it "as is" and clean it to their satisfaction.

4. If there are repairs during tenancy, he makes the tenant handle it and pay for it. He only repairs major items like water heaters, furnaces, and roofs.

5. He's been doing this for almost 40 years and never been sued. He's never had a complaint filed against him with the real estate commission. He makes over $40,000 a month rental income and expenses are almost zero because tenants handle the maintenance.

Not the way I want to run a business, but it's also hard to argue against it.

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
7y
Wow is all I can say.
0 Reply
Patrick M.
Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
7y
I recommend "Nightmare Tenants and Slum Landlords" to anyone with Netflix. It is a great series on the pitfalls of "passive" landlording. And over there you need to get behind 2-3 months before an eviction can be filed.
4 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
Landlords understand the reason for most exclusions on the list but no plumbers ? What's with that.
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
Fergus Wilson is a famous Landlord in Britain known for his strict rules that often violated what we call Fair Housing laws. He made the news a few years back for some of his crazy rules. He was occasionally fined but those fines were simply drops in the bucket compared to what he was making. The last I heard, he sold all his properties for around $500,000,000.
Who's laughing now?
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Pat L.
OP
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
7y
@Thomas S. here's the full article...it's a great read
& yes he made an ABSOLUTE killing in REI...
https://www.telegraph.co.uk/news/2017/01/06/britai...
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Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
Fergus is the man ! If i followed his same screening I would literally have empty buildings lol
0 Reply
Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
7y
@Nathan G. According to google it was 250M but you get the idea haha
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Mike S.
Rental Property Investor · Huntsville, AL · Member since 2013 · 419 posts · 323 votes
7y
Originally posted by @Caleb Heimsoth:

@Nathan G. According to google it was 250M but you get the idea haha

Pounds to dollars, but closer to $400 million in 2015.
1 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
I better update my screening criteria to be as successful as my boy fergus here . No plumbers no electricians no singles mothers or fathers or anybody with kids . Maybe there’s something to this we aren’t seeing lol
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Pat L.
OP
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
7y
@Dennis M. & the only downfall maybe your $400 million tax problem!!!
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Account Closed
Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes
7y
@
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
By way of example, I have an investor here in my town that owns over 40 units and most of them are slums.
1. He accepts anyone with cash in hand for first month's rent and deposit. No application, no background check, nothing. He takes down their name and phone number, takes the cash, tells them where to drop off the next month's rent, and hands them the keys.
2. He keeps the utilities in his name. If the tenant stops paying rent, he turns the utilities off and waits for them to leave.
3. After they leave, (regardless of the circumstances) he does not clean or do maintenance unless absolutely necessary. He makes the new tenant rent it "as is" and clean it to their satisfaction.
4. If there are repairs during tenancy, he makes the tenant handle it and pay for it. He only repairs major items like water heaters, furnaces, and roofs.
5. He's been doing this for almost 40 years and never been sued. He's never had a complaint filed against him with the real estate commission. He makes over $40,000 a month rental income and expenses are almost zero because tenants handle the maintenance.
Not the way I want to run a business, but it's also hard to argue against it.
The DIY Landlord Book4.7247 Reviews
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Account Closed
Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes
7y
Originally posted by @Nathan Gesner:

By way of example, I have an investor here in my town that owns over 40 units and most of them are slums.
1. He accepts anyone with cash in hand for first month's rent and deposit. No application, no background check, nothing. He takes down their name and phone number, takes the cash, tells them where to drop off the next month's rent, and hands them the keys.
2. He keeps the utilities in his name. If the tenant stops paying rent, he turns the utilities off and waits for them to leave.
3. After they leave, (regardless of the circumstances) he does not clean or do maintenance unless absolutely necessary. He makes the new tenant rent it "as is" and clean it to their satisfaction.
4. If there are repairs during tenancy, he makes the tenant handle it and pay for it. He only repairs major items like water heaters, furnaces, and roofs.
5. He's been doing this for almost 40 years and never been sued. He's never had a complaint filed against him with the real estate commission. He makes over $40,000 a month rental income and expenses are almost zero because tenants handle the maintenance.
Not the way I want to run a business, but it's also hard to argue against it.
The one argument you could make against it is that the dude collects $500K in rental income and still has to do it himself. So basically he has a high earning job.
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Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
Originally posted by @Nathan Gesner:

By way of example, I have an investor here in my town that owns over 40 units and most of them are slums.
1. He accepts anyone with cash in hand for first month's rent and deposit. No application, no background check, nothing. He takes down their name and phone number, takes the cash, tells them where to drop off the next month's rent, and hands them the keys.
2. He keeps the utilities in his name. If the tenant stops paying rent, he turns the utilities off and waits for them to leave.
3. After they leave, (regardless of the circumstances) he does not clean or do maintenance unless absolutely necessary. He makes the new tenant rent it "as is" and clean it to their satisfaction.
4. If there are repairs during tenancy, he makes the tenant handle it and pay for it. He only repairs major items like water heaters, furnaces, and roofs.
5. He's been doing this for almost 40 years and never been sued. He's never had a complaint filed against him with the real estate commission. He makes over $40,000 a month rental income and expenses are almost zero because tenants handle the maintenance.
Not the way I want to run a business, but it's also hard to argue against it.
Everything you described is what the last guy who owned my recent properties did . He’s a multimillionaire and known as a slumlord in the area but he could care less . He laughed all the way to the bank
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
Really? He spends 1-2 hours a month on his rentals and you consider that a "high earning job"? That's not even a hobby!
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Account Closed
Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes
7y
Originally posted by @Nathan Gesner:

Really? He spends 1-2 hours a month on his rentals and you consider that a "high earning job"? That's not even a hobby!
Highly doubt it takes 2 hours a month to collect cash from 40 tenants, who are probably all low income (considering the condition of the units they are signing up to live in), of which many probably pay late and have payment plans, which takes more trips to the units.
You’re a property manager, surely you can agree that anyone willing to take a unit that is not clean/ready to rent is a higher risk, higher collection risk tenant.
And what about his time paying utilities, calling to turn them off? What about bookkeeping and paying bills?
No way it’s 2 hours a month. Perhaps it’s 2 hours a week and even then I doubt it.
And nothing against low income tenants. 80% of my units are Section8, and they all pay directly at my bank. I refuse to collect in person (or accept cash).
2 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
@Account Closed I worked with this guy for two years. Utilities are automatically deducted from his accounts. His tenants drop payments off at his office or at his bank. He drives to the bank to drop payments off and it literally takes longer to walk out to his SUV than it does to drive to the bank from his office or home. Some of his utilities are on multi-units with single meters so one bill can cover up to eight tenants. Another one of his tenants is the natural gas company. Long story short, he literally spends a couple hours a month tracking rent payments and expenses.
You're apparently under the impression I make it a habit of creating fantastic stories to garner a few more votes. Come on over to Cody and I'll introduce you so you can get it straight from the horse's mouth.
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Account Closed
Rental Property Investor · Oakland, CA · Member since 2014 · 730 posts · 1k+ votes
7y
@Nathan Gesner sorry I missed the part on his tenants dropping off the rent to his office. Now I see it. I saw the part on collecting cash upfront and figured he did it monthly. Not accusing you of anything my friend!
And Yellowstone is on the list. Went there as a kid (road trip) and loved it. Now want to do the same with my daughter. Would love to connect over some Glenlivet/Starbucks. Your choice :)
1 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
@Dennis M.
"Fergus is the man ! If i followed his same screening I would literally have empty buildings lol"
I have most of the same standards as Fergus, and more, for my properties (B class) except for the "no plumbers" and never have any issues filling my units.
The only difference is I don't advertise them.
0 Reply
Dennis M.
Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
7y
Originally posted by @Thomas S.:

@Dennis M.
"Fergus is the man ! If i followed his same screening I would literally have empty buildings lol"
I have most of the same standards as Fergus, and more, for my properties (B class) except for the "no plumbers" and never have any issues filling my units.
The only difference is I don't advertise them.
Yeah I think about any successful landlord has specialized screening criteria that some folks would find to be unfair
0 Reply
Jonathan R McLaughlin
Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
7y
@Thomas S. Took me a few minutes on the plumbers but its kind of genius...every plumber thinks the "last guy was an idiot, I can do it better" and will probably take apart the plumbing themselves at the slightest drip then put it back together the way "it should be done"
1 Reply
Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
@Dennis M.
You have to be specialised when screening. How many times do we get posts about tenants with kids causing noise problems for a down stairs tenant in a over under duplex. Any smart landlord would not rent to someone with kids in that situation. It would be unfair to applicants to accept those that are obviously going to end up unhappy.
When I reject a applicant I am not discriminating, I am doing them a favour.
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
7y
@Jonathan R McLaughlin
Everyone has their own reasons fro screening out certain applicants.
As a example I don't rent to lawyers, law enforcement or gingers. The reasons are obvious to me but some may not see it.
1 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Thomas S.:

@Jonathan R McLaughlin
Everyone has their own reasons fro screening out certain applicants.
As a example I don't rent to lawyers, law enforcement or gingers. The reasons are obvious to me but some may not see it.
lol why gingers?
1 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Nathan Gesner:
By way of example, I have an investor here in my town that owns over 40 units and most of them are slums.
1. He accepts anyone with cash in hand for first month's rent and deposit. No application, no background check, nothing. He takes down their name and phone number, takes the cash, tells them where to drop off the next month's rent, and hands them the keys.
2. He keeps the utilities in his name. If the tenant stops paying rent, he turns the utilities off and waits for them to leave.
3. After they leave, (regardless of the circumstances) he does not clean or do maintenance unless absolutely necessary. He makes the new tenant rent it "as is" and clean it to their satisfaction.
4. If there are repairs during tenancy, he makes the tenant handle it and pay for it. He only repairs major items like water heaters, furnaces, and roofs.
5. He's been doing this for almost 40 years and never been sued. He's never had a complaint filed against him with the real estate commission. He makes over $40,000 a month rental income and expenses are almost zero because tenants handle the maintenance.
Not the way I want to run a business, but it's also hard to argue against it.
I've met some dudes like this. Super hardcore guys managing properties in the hardcore ghetto. As the owner of a licensed management co I would never get involved in anything like this but the alleged stories are out of control. Rats being let into the basement when tenant's aren't paying. Front doors being remove while the tenants are at work etc......
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