Being a Landlord with the pandemic

General Landlording & Rental Properties
5yFollow

Being a Landlord with the pandemic

Randy Bates
New to Real Estate · Fort Lauderdale Fl · Member since 2020 · 46 posts · 14 votes

 I'm a newbie with BP and I would want to own properties, but because of the pandemic, it makes me wonder how tuff it will be to find and really screen potential tenants. Anyone has thoughts on this, please let me know what you guys think.

2Reply
74 views

Most Popular Reply

Luke Skinner
Real Estate Agent · Tampa, FL · Member since 2018 · 43 posts · 39 votes
5y

Go with HUD housing. During times like this guaranteed income is the way to go. In areas like Tampa with a three year waiting list for section8 you're seeing HUD pay out more than market value in some locations. It's a win win during a pandemic.

6Reply
See this reply in the discussion

45 Replies

Jump to latestLatest
  • Randy Bates
    OP
    New to Real Estate · Fort Lauderdale Fl · Member since 2020 · 46 posts · 14 votes
    5y

    Thanks Zachary, good advice, it make since to me.

    Thanks Steven, understanding the laws on the do's & don't is a plus in this business.

    1Reply
  • Patrick M.
    Rental Property Investor · Red Bank, NJ · Member since 2017 · 1k+ posts · 1k+ votes
    5y

    All terrific response.

    The key thing to remember is that if you are 100% prepared to become a landlord then you are at best 50% prepared! We all became experts based on when we entered the market and what type of units we took on.

    This is extraordinarily locality specific, but also very dependent on your skillset as a landlord.

    Based on my locality, if I had just entered my market I would have found it very, very easy to rent. But, my skill as a landlord would have to be sharp because of the rent moratorium, NJ anti-eviction statute and the governor telling landlords that they had to use deposits for rent when asked. Screening is an art and a science that we all developed and continue to sharpen... it is the make or break of successful landlording.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    5y
    Originally posted by @Luke Skinner:

    Go with HUD housing. During times like this guaranteed income is the way to go. In areas like Tampa with a three year waiting list for section8 you're seeing HUD pay out more than market value in some locations. It's a win win during a pandemic.

    Hud pays higher than market rent in almost all markets.. thats the norm.. but you need it to offset wear and tear. 

    and yearly inspections etc.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Alexander Szikla
    Real Estate Agent · New York City · Member since 2020 · 819 posts · 641 votes
    5y

    You want to be very thorough when selecting tenants. Good tenants will make your life easier, free up your time and cost you significantly less in turnover expenses and vacancy. 

    I require all serious applicants to do the following:

    (1) Credit Check

    (2) Background Check

    (3) Landlord References

    (4) Income Verification

    (5) Employer References

    Call them all and be sensitive to any red flags or too many "yellow" flags

    1Reply
  • Randy Bates
    OP
    New to Real Estate · Fort Lauderdale Fl · Member since 2020 · 46 posts · 14 votes
    5y

    @Alexander Szikla

    Thank you that is a must DO!

    1Reply
  • Marlen Weber
    Specialist · Plano, TX · Member since 2020 · 2k+ posts · 861 votes
    5y

    Hi @Randy Bates. While the pandemic may make it tougher to invest, depending on the market, buy while you can. After all, the pandemic is only temporary, while finding a good deal and investing will pay off for years and years. 

    2Reply
  • Randy Bates
    OP
    New to Real Estate · Fort Lauderdale Fl · Member since 2020 · 46 posts · 14 votes
    5y

    Hi Marien, yes pandemic go away and great deal are here to stay Lol once you find them and make them great. Thanks you for your reply.

    1Reply
  • Guido Nunez
    Investor · Los Angeles, CA · Member since 2019 · 38 posts · 22 votes
    5y

    @Randy Bates raise your tenant requirements. Make no exceptions for anyone that falls below.

    1Reply
  • Snug Oddie
    Investor · Warren, OH · Member since 2016 · 2 posts · 1 vote
    5y

    So, I advertised heavily and showed the house to a whopping 18 different parties in a single day.  All were scheduled a part so there would be no traffic in the house.  All were asked - and did - wear masks.  I got an excellent tenant who offered more than the asking rent price.  Just like with food - everyone has to eat; with houses - everyone needs a place to live.  Life goes on, even in a COVID world.  Stay safe, respect the mandates and go get that cash flow =) - Sonny. 

    1Reply
  • Juan Serrano
    Member since 2019 · 16 posts · 10 votes
    5y

    @Randy Bates

    Hi Randy. Im in Southern California and I had the same concern when the Pandemic started. So I only rent to Section 8 tenants thats guaranteed rents. You should look into this. For me it's a little peace of mind during these trying times. Good luck and welcome.

    2Reply
  • Todd Pultz
    Rental Property Investor · Dayton, OH · Member since 2019 · 293 posts · 440 votes
    5y

    @Michael Noto

    @Randy Bates

    Randy, I’m going to disagree with Michaels statement here a bit and if I read it wrong, my apology upfront. “Landlords who attract tenants with something to lose not affected by pandemic”? “Landlords with more questionable tenants affected”? This statement sounds as if our C class areas are the ones struggling, but that could not be further from the truth in our market here in Ohio and for the majority of my friends around the country. Our C areas are thriving and we are business as usual including our market rent C class units that have no subsidy.

    Think about what was essential workers during shutdowns.......contractors, maintenance workers, custodians, mechanics, these are my tenants and they did not stop working! And if they did, they found a side hustle!

    Now, not being affected by the pandemic is more about the type of manager you are and how well you have developed relationships and structured your rentals to be well balanced. Let me explain.......you need to have a network in this game and a team! Most people forget about local churches, homeless shelters, mental health organizations, addiction treatment organizations, Dodd organizations, community action organizations, etc. you can use these groups for various reasons like if a tenant is struggling with rent, we have had church partners step in a pay rent. We’ve moved tenants in that did not have a lot of furniture and the homeless shelters, churches etc have stepped in to provide items for their unit. We partner with mental health and Dodd to move their clients in while they pay 40-60% of rent.

    Besides section 8, which is the only thing people on here talk about, a lot of these places will subsidize rent and the inspections are nothing! But, in class C we tend to have a lot of tenants with SSI or SSD plus they get one of these subsidies, so we were in a much stronger position than the class A and Class B operators that truly had many people out of work that could not pay rent and were already living above their means!

    Do not be fooled, how you manage your rentals determines how you did and are doing during the pandemic! Example you ask? Investor on here I met months ago asked me a few weeks ago to take over management of his properties here locally as he is out of state. Last management told him nobody would pay rent and there was nothing they could do because of COVID! ********! I’ve had his property for three weeks and collected over half of his rent and filed eviction on another tenant. That property will start cash flowing next month, promise!

    And buying??? Yes! buy right now and take advantage of all those freaked out by the pandemic and waiting for the apocalypse to come. If the numbers worked last year and they work today, they will work tomorrow!

    Real estate is more about YOU and how you run your business! And how you run your business! Did you hear me........And how you run your business! Do not be a person that makes excuses for why their not successful or struggling in this game!

    My morning 2 cents for you!

    3Reply
  • Randy Bates
    OP
    New to Real Estate · Fort Lauderdale Fl · Member since 2020 · 46 posts · 14 votes
    5y

    Good Morning Todd, that was more than 2 cents Lol and I hear ya and you're right in all that you said, it how you run your business, and the respect you have for your tenants during these time, thank you for chiming in.

    1Reply
  • Caleb Johnson
    Investor · Mesa, AZ · Member since 2019 · 53 posts · 63 votes
    5y

    Hey Randy, thanks for posting this. 

    For me, life as a landlord has not changed because of the pandemic. It has actually gotten easier because some of my tenants have decided to pay me electronically and I have had to see them less. But this might vary on a state by state level. Go to your local meetups or just go to the network tab on BP and message some landlords that are in your area. See if they have any problems and ask them questions. I'm sure they would like to help a newbie out.

    Hope this helps. -Caleb

    1Reply
  • Randy Bates
    OP
    New to Real Estate · Fort Lauderdale Fl · Member since 2020 · 46 posts · 14 votes
    5y

    @Caleb Johnson

    Hey thanks Caleb, that will help.

    2Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Randy Bates:

     I'm a newbie with BP and I would want to own properties, but because of the pandemic, it makes me wonder how tuff it will be to find and really screen potential tenants. Anyone has thoughts on this, please let me know what you guys think.

     During the height of the pandemic I was able to fill 2 vacancies in 3 days with overqualified top paying tenants. However my places are here in Columbus OH where we have a strong tenant pool, also my places were newly renovated and had high demand.

    1Reply
  • Kevin Hunter
    Rental Property Investor · Carlisle, PA · Member since 2013 · 1k+ posts · 543 votes
    5y

    @Randy Bates, we are definitely in an unusual time.  I will tell you that everyone has to start a some point, and constantly worrying about the current situation won't help anyone.  People were worried about investing in 2005 because the prices were too high, people were worried about investing in 2008 bc the market was crashing, people were worried about investing in 2014 because the market was heating up too much, people are worried about investing now bc of rent moratoriums and covid restrictions, people will worry about investing in 2022 for some other reason, just don't know what that is yet.  Buy at the right price, place the right tenants, all will work out over time.  

    To your original post, your concern is placing tenants.  Make sure you screen them well, check their references, run their credit and background checks, due your due diligence, and make the most informed choice you can.  I haven't had any issued with tenants paying rent throughout this pandemic.  Not to say I won't in the future, but so far so good.  I own in landlord friendly and tenant friendly states with asset classes from A to B-/C+.  Again, it all comes down to deliberate and rigid screening and placement.

    Good luck!!

    0Reply
  • Randy Bates
    OP
    New to Real Estate · Fort Lauderdale Fl · Member since 2020 · 46 posts · 14 votes
    5y

    @Kevin Hunter

    Kevin you are so right about how people worry over so much, and real estate always find away to strive. Thank you for your reply Kevin.

    0Reply
  • Dimitri Paspalaris
    Investor · Rota, Spain · Member since 2019 · 156 posts · 68 votes
    5y

    I think it goes back to the saying location location location. If you have a highly valuable location the people will still come. Both of my properties are in highly desirable locations and I put the tenants in and had multiple applications within a week of placing the ads. Hope this helps.

    0Reply
  • Michael Haynes
    Investor · Tampa, FL · Member since 2016 · 681 posts · 288 votes
    5y

    Hello Randy Bates. You worry about having rentals in this pandemic and you don't own any yet? Then, why start?? Imagine that you could find and buy a cheap trailer park...You have to fix it up like new to pass the Section 8 requirements and keep everything running like new because a tenant can call their worker and you are immediately confronted with Government Bureacracy and heavy fines etc. Trailer Parks are the best Cash Cow vehicles. You sign up with HUD and fill them with Section 8 tenants. Do you know what kind of people live in Trailers? My friend owns 90 single and double wides on individual lots with septic and water pumps or small trailer parks. He manages all of them by himself and drives around with thousands of dollars in his pocket, collecting rents for 30 years. SFH's make less Cash Flow than MFH's. Your starting out and you can't afford to buy a small block of apartments. Your Goal is to rent them with a Government Guarantee at a time when all the Rules may be changed by the new Administration. Why? Because BP teaches methods to Make a Million in Five Years with Rentals? Why not eliminate the specific Risk with having to manage Tenants and just do a Flip house? Do you own your own Residence? If not, why not? Doesn't anyone see that the first thing you need is a Residence and that after you fix it up in two years you can sell it Tax-free and move into another house that you just fixed up? I just get the impression that Newbie's are renting and working and they think that they can get out of the Rat Race if they just buy a bunch of Rentals. Good luck.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free