Rental Property Investor · Phila, PA · Member since 2018 · 554 posts · 118 votes
Just finishing my open house with another list of prospective tenants I had received from Zillow... I have a few questions for my fellow city investors...
- What has helped you find the most quality/qualified tenants?
- How High have you set the criteria for applying If ANY criteria was set?
Low income rentals require different expectations. In higher end rentals your "stick" is the ability to trash a credit score if the tenant fails to play by the rules; this stick doesn't work with low income rentals. Almost all applicants will already have crappy credit-- even the kids just starting out (because all to often their parents opened utility accounts in the kids name because they had a heat emergency and they needed to get around their own bad credit). In low income, your stick is the security deposit... never ever let someone in without a cash security deposit. It's very difficult for most low income tenants to get up both rent and the security deposit at the same time. So when you want someone out, an offer of an on the spot security refund for a nice clean place is a carrot they will almost always take. (I require clean ovens too). In low income housing the carrot is more important than the stick: rent clean, nice looking units. Keep advion and contrac blox available at all times. Have a handyman, an hvac guy, and a plumbing company and actually fix problems (and you'll be providing vastly better service than most landlords renting low income housing.) Most importantly, have a flexible late policy that punishes failure to communicate and rewards tenants that are trying to pay even if they are late. (never let anyone get behind a whole month).
I'm currently trying honestrenter.com instead of a credit report. The first tenant I picked with that tool, so far seems to be a winner. I wait for a strong work history and adequate income.
A common sense rule: don't expect an 'A' tenant to occupy a 'D' unit.
Marc Just broke the internet. This sums it up. I'm in the city...Its tough...I realized the Dentist that used to own my property sold it to me because he was tired of dealing with knuckleheads. I'm blessed to be in Los Angeles County with high demand, because eventually I was able to find decent tenants that are willing to put up with the neighborhood I'm in.
jill, I respect the process. You select who is qualified and who you like. I have done the same but I still have questions because it seems like nothing is clear cut anymore
If you treat it like a job interview, isn’t that borderline discriminatory???
Asking, why they are moving and their current situations.. ETC
Slap them with the photo of my gouged wood floors and the firearm with the serial number filed off!
I worked with Kristopher to get this problem property off of his hands ya'll. If walking in on this unregistered firearm just chillin next to them J's doesn't freak out a new buyer I don't know what does, lol!
jill, I respect the process. You select who is qualified and who you like. I have done the same but I still have questions because it seems like nothing is clear cut anymore
If you treat it like a job interview, isn’t that borderline discriminatory???
Asking, why they are moving and their current situations.. ETC
@Amber Gonion
No, An interview is not discriminatory if you don't ask discriminatory questions (nothing about age, race, color, religion, disabilities, sexual preference, family status). I do think that tenants are more like "valued employees" rather than "customers."
When I talk to potential tenants, it is kind of an interview but the potential tenant is interviewing me as well! I really try hard to sell our management and our properties because I want to recruit the very best tenants that will appreciate and treat our thoughtfully renovated places well, that will be be good neighbors, and stay for a while. I think many tenants appreciate "being sold" and that they often feel that they are being interrogated when looking at rentals. I get more and better information when I conduct the "interview" in a conversational manner while showing/selling the apartment. After all, a potential tenant is about to pay me a lot of their hard earned money.
I ain't scurred! I still have a property in the ghetto. I never learn my lesson.
lol. Dude I freakin love it. I mean I hate it but I also love it. It's so savage it's great. For example a couple days ago my team just got done pumping out an entire basement of water. Copper thieves came in & stripped everything without turning off the water. The drains got clogged & the house sat for a couple days before this was discovered so the entire basement became a 7 ft deep swimming pool. Lol there were flip flops floating in it.......What other job in the world can you tell a story like that?
Which hoods are you in? More Cleveland or another market?
That is complete savagery! Flip Flops floating. Takes me back to my childhood with the pool in the back yard. But, I have never had an indoor pool though. That pool in the basement should add about $20,000 in value to that property.
I'm in the 44120. 146th just north of Kinsman Rd. I'm not running from Cleveland.
Just finishing my open house with another list of prospective tenants I had received from Zillow... I have a few questions for my fellow city investors...
- What has helped you find the most quality/qualified tenants?
- How High have you set the criteria for applying If ANY criteria was set?
- Do you enjoy the urban markets/inner city?
Cameron,
I specialize in 50+ unit apartment complexes and hotels. I have a lot of units in the inner cities.
Let me answer the last question first. "Do I enjoy inner city market?"
Heck no. But I LOVE the profit I make.
To answer your first question and to give you an idea on how much profit I make on these inner city properties that a lot of investors want to avoid, read below. I made over $1M on one property (which is inner city type property):
That is complete savagery! Flip Flops floating. Takes me back to my childhood with the pool in the back yard. But, I have never had an indoor pool though. That pool in the basement should add about $20,000 in value to that property.
I'm in the 44120. 146th just north of Kinsman Rd. I'm not running from Cleveland.
Damn that is pretty hood my man. And yes indoor pools are all the rage in the D-Class neighborhoods.
I’d Leave the water in the basement and advertise it as indoor pool - just bring your beach towel and ball . Plenty of splashing fun for the whole family
I’d Leave the water in the basement and advertise it as indoor pool - just bring your beach towel and ball . Plenty of splashing fun for the whole family
It's all fun & games till a used syringe floats into your eye.
Wow. This is great stuff. I have a former parter (who is still a friend), that deals in the hood. I think he’s done 40-50 EVICTIONS! We bought a 4 plex together that was a disaster. I went for B+/A- ‘pushbutton’ properties, he went ‘hood. He has way more stories than I do. Lol