All Forum Posts by: Beth L.

@Abou C. Agreed!

If you specify this in the lease, and they smoke anyway, then they are breaking the lease.

Also, when I meet them to show them the unit, I always take notice to see if they smell like smoke. Good indication even if they say they don't smoke.

@Abou C. 

 Smoking is NOT a protected class, so yes, you definitely can decide rent to non-smokers only if you want to. I make my properties 100% smoke-free meaning that they cannot smoke inside OR out. They would have to go out to the street to smoke.

While this may disqualify some potential tenants, those that I have shown the units to say that it is really a big plus to them since they don't smoke and don't like to smell it from the neighbors.

In my experience, even if you tell them not to smoke inside, the smell always comes in on their clothes, or they smoke inside anyway. It is really difficult to get that smell out and you will always have cigarette butts all over the ground. Plus, if they smoke, their friends and family probably smoke, and that just adds to the issue.

@Account Closed I recently purchased a duplex with a late-paying tenant. At closing, the attorney automatically prorated any rents for that month that would be due to us (the new owner), even though the seller had not received those rents (he was not very happy about that). Not sure if that is a state-specific thing or not.

While we were under contract, anything tenant related was communicated to us and we were given the chance to weigh-in on it. Check your contract. There is most likely wording in there that states that no changes can be made while under contract (usually placing new tenants or renewing leases, but this may also apply).

I had a potential tenant tell me that she vapes, and asked if that would be a problem. We don't allow smokers in our units (inside and outside are 100% smoke free). Are there any second hand health issues relating to vaping? As I am not a smoker, I have no idea. Are there any concerns to vaping indoors? Damage to the units, etc.?

Any input would be much appreciated! Thanks!

Hand the check back and tell them that you will not accept this payment as it is underpaid and does not include the late fees. The late fees will continue to accrue until you receive the proper amount.

We do not accept partial payments, which is exactly what this it.

@Jeffery Hood 

 We just replaced the roof on one of our duplexes. We got estimates from the contractor on both styles and the metal roof was actually CHEAPER and is supposed to last longer. While the product itself costs more, it can actually be installed over the existing old roof so you save money on labor for removal.

However, you'll have to think of looks as well, since I feel that not all roofs look good in metal.

@Kenneth LaVoie 

My real estate agent is also an investor. He told me that he negotiated with a PM to manage all his properties for 6% instead of 8-10%, and tenant placement charge half of rent instead of full month's rent. So I know that PMs are willing to negotiate for multiples.

Personally, I would keep the units and live off the income. That's my strategy anyway. And congrats on making it this far! You don't have much to go to meet your goal.

@Arlan Potter , I am the Payroll Manager at our corporation and I know the FICA requirements. In this guide from the IRS, it explains that the employee is responsible for 7.65% (SS and Medicare withheld from the paycheck and sent in by the employer), and the employer is responsible for matching the employee's amount (another 7.65% taken from the employer's funds, NOT the employee). So the total liabilities to employee a person is not only paying them their income, but also to match their FICA, among lots of other things.

http://www.irs.gov/publications/p15/ar02.html#en_US_2015_publink1000202402

(See Section 9 or Publication 15)

Sorry, @Vicki Gleitz we are off the subject. :-)

@Sam Leon we personally got a laminate countertop, special ordered from Lowe's. We like it because it has a drip edge, so no edges to crack and is one solid piece. Also, it looks like granite but is so easy to take care of. You can wipe it with any kind of cleaner and after 13 years it still looks new. Plus, it gets a lot of wear and tear...I'm always in the kitchen!

Granite can chip, especially around the sink opening, and can stain, plus you need to seal it every so often and use recommended cleaners. Yes, granite does have it's advantages and renters think that it is great. But for our most recent reno, we chose this same laminate and style as our personal laminate and it looks great for a fraction of the price of granite!

@Arlan Potter , @Vicki Gleitz says that she owns a brake and alignment shop. As an employer, when payroll is processed, the employer withholds the employee's portion of FICA (6.2% Social Security Tax and 1.45% Medicare Tax) from the employee's paycheck and ALSO pays in a matching amount. This is an extra expense to the employer and is NOT withheld from the employee. In this case Vicki is the employer and the employee and therefore pays double Social Security and Medicare.

But, you are right with the rental income loss. This cannot offset the SS tax.