All Forum Posts by: Alvin Sylvain

Originally posted by @Thomas S.:

I don't think that small time landlords understand the message they are sending to tenants and honestly this is not about being a scrooge.

To put this into perspective how about we get a few investors on here with 1000+ doors and ask them what they give their tenants as Xmas presents. No, they don't, why is that.

What message do you think a landlord is sending their tenants?

And why would I care whether or not an investor with 1000+ doors is going to do a little something nice for his tenants?

OK, maybe if I give my tenants a nice little holiday gift, they'll all laugh at me then burn the place down then sue me. I'm willing to take that risk.

Originally posted by @Caleb Heimsoth:

Originally posted by @Dennis M.:

@Adrian Smude

Think of it this way. Let's take any normal REI that has a mortgage (like most investors), does your bank send you a gift for paying on time? The answer is likely no. So why would you do this for tenants?

 Your bank probably sends you a calendar every year, or at least has them at the bank that you can take for free. And you don't even need to pay on time. Danged calendar retails for $15 if you buy one at Target.

Originally posted by @Nathan Wankel:

@Moises B. This is a great idea to keep tenants if you only have a couple of units. However, I can see it becoming a significant expense if someone has multiple doors. Especially if you have a few multi-family properties. 

If your cash-flow is so marginal that a gift of $20 per door per year is going to put you deep into the red, maybe you aren't charging enough rent in the first place.

OF COURSE it's a significant expense with dozens of doors! But dozens of doors should be bringing a significant cash-flow, more than enough to afford a small token of the season.

Originally posted by @Terrell Garren:

Lowes and Home Depot may give you a gift card but it is not because they love you, it is to get you inside the store. 

You don't have to "love" your tenants either. But if a small token gift makes good paying tenants more likely to continue being good paying tenants, then I say go for it. As a landlord, you already have them "inside the store". You want to keep them there.

I'm surprised at all the "scrooges" posting here who can't see the benefits of doing a little something extra for the people they do business with. You can just as easily send a small something to your vendors and employees.

@Reggie Maggard Shop around. E.g., the closest PO to me charges $135/yr. The one a mile or so further (in a different city) charges $85/yr. Some PO are open 24 hrs. The ones near me are not. There's a certain convenience to being in the same zip code as your box ... "123 Main St #456" as someone posted ... but I didn't think that was worth an extra $50.

@Fatima Champagne Existing tenants CAN BE a problem, unless you happen to know the seller had a thorough screening process (hah!) For that matter, new tenants can be a problem sometimes, despite your most excellent screening. Personally, unless I get information contrariwise, I give people the benefit of a doubt. I've read stories on BP where one tenant was great, and another was a pain. Do what you can to keep the good ones, and encourage the others to live elsewhere.

@Travis Schreiber One thing you have to recognize is that 2-4 plexes often sell on the same emotional level as a SFR (or SFH as I've seen it here). Now, a 10 to 100 unit apartment building, yah, you can argue cash flow. But 2-4 plexes sell based on "comparables". What did the duplex down the street sell for? It doesn't matter if cash flow is negative. A lot of plex sales are more like a SFR sale, and the buyer plans to move in. Rent from the other units help with the mortgage, and actual profit is a long term dream. There are even cases where the negative cash flow is desirable, to help against a high W2 income, tax-wise. Bottom line, if you can't make the numbers work, and the seller won't budge on the price, move on to another deal. It may be necessary to find a different market.

One thing to mention in getting a new stove, ask around to see where you might get a "factory second" or some such. Sometimes you can find an appliance in perfectly good working order, but it's got this huge gash -- in the back!

Even if the imperfection is minor, or even it's impossible to notice, they still can't sell it at full retail. There's no guarantee you can find something good, but it's worth a look. Even with a few ugly scratches or dings, it's probably similar to the condition of a used one.

You might luck out and get something reasonably nice, brand new, for the same price as used, and it'll be good for a fresh 15 years or whatever, plus be under the new stove warranty for however long.

@Michelle Santhanam criminies I wish I could view those images on this blankedy-blank mobile app!

@Nerissa Marbury another lesson to be learned -- do NOT have anything made of glass in a rental, because, sooner or later, a tenant WILL break it. You can bank on that. If you have to replace this stove, remember, NO GLASS. I reluctantly allow glass windows coz they're kinda required by law ...