All Forum Posts by: Ben Gilmore

As a result of life changes, my ex-wife and I have sold our rental properties, split the proceeds and now I'm looking to reinvest.  This time, I'm trying to be as efficient w/ my investments as possible.  My question...Has anyone else found it incredibly difficult to find properties or markets where meeting the 2% rule is possible?  The properties I'm looking at here in Columbia MO and other areas across the country don't even come close.  I'm trying to focus on single family homes under $200k, but carrying a loan on these properties significantly limits profitability.

Thanks everyone for your help with this.  Thought I'd close the loop so others might learn as well.  I'm still a rookie landlord but this was a good learning experience.  After 6 years of being a landlord, this is the first time I've had to deal with a challenging tenant.  I suppose I was overdue.

I confronted them with this last night and they maintain that they do not know what caused the faucet to break ("We never actually saw either of the kids use the faucet to get up to the sink.")  Unfortunately, they didn't fully admit fault to the plumber either.  So what I "pretty well" know and what I can prove are two different things.  Bottom line; I'll be eating the expense for the repairs.

Lessons learned... First, I've reviewed my lease and compared it to a few others.  With some experience behind me, I realize that the lease I've been using for years now is full of holes.  I've found a much better lease that addresses "additional fees" and specific scenarios where tenants would be liable for repairs and/or maintenance.  I'll have this reviewed by an attorney to verify it's quality.

Second, Thanks to some sage advice from Bigger Pockets, from a I'll establish specific parameters for screening new renters. The renters I have in this house are from a property management company that I fired about 18 months ago.  If go with another management company in the future, I'll double check their screening requirements.

Thanks everyone for your input!!

 @Mercedes Cantero

Mercedes - I hadn't even thought of checking to see if this might be covered by our Landlord Policy.

After reading everyone's comments, I think the best approach is to call them, tell them what I know and ask them to pay for the repairs.  This would likely get them to admit the truth and pay for damages now.  Given what I've seen so far, I'm concerned that their deposit will not cover everything when they move out.

Damages so far are about $200, but the floor that needs to be replaced is a bigger concern.  I'm guessing another $500 to replace the flooring since it's a small kitchen.

Their security deposit is $1200 and there are 9 months left on their lease.  There have been other minor issues in the past that were questionable as well.  Bottom line is, I do not plan to renew with them at the end of the lease.

This is my exact concern.  There's what I know and what I can prove.  At this point, it seems I can either tell them I know the real story and expect them to pay for the damages or I can eat the costs.

After I paid to replace a kitchen faucet, the plumber indicated to me that the tenant "kinda admitted" that his kids had used the faucet to climb up to the sink.  I called the tenant and asked if someone may have pulled the handle off the sink somehow.  He said he didn't know.  I also asked if someone may have been standing on the counter and he said he didn't know.

Based on pictures, from the plumber it makes perfect sense.  I'd like to send a letter to the tenants telling them what I discovered and that I expect them to pay for the repairs to the sink as well as the replacement of the wood floor that is now warped.  

If this was your tenant, how would you handle it?  This is not the first "unexplained" damage to the house and I live in a different state from the tenant.  Thanks for your perspective.

After lurking around here for a little bit, I thought I'd introduce myself.  My wife and I will be moving to the Columbia area in the next month or two and I'm looking forward to living in a small town (compared to St Louis).  We're working on our 3rd rental so, I've got a little but of experience/knowledge.  Bigger Pockets is helping with the knowledge part.

Anyway, I'm glad to have found Bigger Pockets and looking forward to connecting to the community in Columbia.

-Ben