What Does a Slumlord Want???

Question

Slordlord "A": Has little trouble renting rooms. He has owned the property for so long, in such a desirable space, that it nearly does not matter the rent is charged. Space will be filled.

What problem do i, a non-slumlord, solve?

person is renting  ugly/gross rooms at market rate due to lack off rooms. no "plethora" of rooms on the horizon.

how to gain from this situation?

Eric Mayer · Answer

I can’t figure out what your question is.

Dennis M. · Answer

Most slumlords I know are ball buster business men . They’ve been around and know the property values and rents . Your not going to be pulling a fast one on these guys  . Most will market their product cheaper than everyone and just  never update or fix them . They do very well you can’t argue with the results

Account Closed · Answer

I'm still confused.  Are you trying to figure out how to get this landlord to sell you his property for cheap because he doesn't charge higher rents than he does?

I worked for a couple of old school brothers who weren't about maximizing the rents.  I tried my best to make them more money, but that wasn't the most important thing to them.  They had pet tenants who were basically charity cases.  That made them feel good - to do something nice.  And they really didn't need the money at all.

They did their own maintenance, or most of it, themselves, even though they were in their 70's and 80's.

The guys I worked for kept the place in great condition.  Not fancy, but well-maintained and clean.

Your landlord may just prefer to keep the status quo because it's low hassle, and maybe he also doesn't want to deal with the kind of renovation it might need to re-rent it.

My guys were also very much aware of leaving property to their kids/relatives.  So, that could be in there, too.  He'll pass it on and let his kids either fix it up or not, and sell it or not.

To negotiate a deal, you first need to figure out what matters to the other side.  So, if you wanted to approach him, I'd suggest starting out with something very low-key and non-saleman-y.  Like, I would love to buy your building.  Would you be willing to talk about what it would take and whether or not I could afford it?  And see what happens.  Offer to buy him coffee and talk about it.

Account Closed · Answer

@Sam Epperson

If he doesn't care about his property that much then i'm sure he wouldn't mind letting it go for a low price either.

Get the market value for it and offer less.

Get in there, fix it up, and increase rents.

Jaron Walling · Answer

Account Closed Oh no that's a bummer! They don't have the law in Ohio and Indiana I can confirm.

Kenneth Garrett · Answer

@Sam Epperson

Let’s look at the definition:

Slumlord Law and Legal Definition. A slumlord is an unscrupulous landlord who milks a property without concern for tenants, neighborhoods or their own long term interests. Slumlords overcharge for property in poor neighborhoods that is kept in poor repair and allowed to deteriorate.

A slumlord causes negative viewpoints of a landlord to be painted with a broad brush.  All landlords even the great ones are treated negatively.  They are no benefit to the community and there buildings are in poor condition with no intent to keep them maintained.  Continual fight with the city and code enforcement.  They are terrible neighbors and devalue property values.  Treat tenants like they are gods gift to allow them to rent from them.  No morality of any type.  I don’t care if they are successful business people.  We would all be better if they sold the properties.

Just my two cents.

Jaron Walling · Answer

Account Closed  "My guys were also very much aware of leaving property to their kids/relatives."

- And when they do the family can kiss capital gains tax goodbye :-)

Account Closed · Answer

Not in California.  Prop 13 protected inherited properties.  So, people here can inherit a property and keep the same tax base, etc.  I'm no tax expert, but that's my understanding.  CA doesn't have an inheritance tax, from what I understand.

What Does a Slumlord Want???

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