All Forum Posts by: Jason Miller

Question for everyone that has lost a tenant for this reason.  Have you offered up the house for sale to the prospective tenants?  Seems like you might be able to work out a strong relationship from the beginning.  Ive never had to try it, that's why I ask.

I use AFC Group in Denver.   I would rate them 6/10.  I also had issue with them picking up the phone due to a new phone system, but it has since been corrected.  They have a new PM Ashli who is top notch.  I would actually follow her if she went to another company.  She has implemented many standards you see in apartment communities.  She replaced a rather subpar manager that we threatened to switch companies over.  They fired him and hired her.

They get a mildly above average rating due to the issues we had with the previous PM.  lack of inspections resulting in tenant caused damage that was not caught early.

I agree with @Dawn Anastasi   We have a few properties in a town that hasn't really been updated for 100 years.  The conditions of rentals up there is simply appalling.  When we spend the money to bring things up to date and really improve these properties, people think we are throwing money away. I think we are investing in the community.

We have some great used appliance shops locally.  If i wanted, I can put in a GE elite Fridge 21.5 Cu ft with a lower freezer for less than $700.  I know because it sits in my own house.  My rental fridges, while nice, tend to be around $300-500.  I skip fridges with water spouts and ice makers.  Seen to many water leaks or breaks from the systems.

I have borrowed from Pine Financial in the past and attended their Denver meetings (including the first one they had at Hacienda on Colorado blvd).   I have never come across any sales pitches during that time.   Ive always come away with good information at the meetings.

Only those that don't know me call me a slumlord.   They better be ready for a 1/2 hour tirade on my dislike for bad landlords and how we take personal pride in ensuring our properties are nice, up to date, safe, and are houses the neighbors cans be proud of. Yep, a few make that mistake once.

@James Furlo Thank you for your detailed post.  Well done on the steps you and your wife take.  I like the idea of a newsletter.  Our properties are spread across 4 states, so we do not have direct contact with tenants.  A newsletter may help.  I'm glad to hear from someone who has had success their tenants on this idea.

@Jesse Waters  I agree with you on giving back.  I feel financial education is extremely important and can help society (not sure how it would hurt).  Even If we get no immediate benefit, i think there would be an overall benefit.

@Marcia Maynard I agree with not wanting to be a social worker for our tenants.  We have enough of our own issues.  While I believe in financial education and would eat the cost if it helped a few people, a major reason I'm thinking of this is for business reasons.  My estimate is it would cost ~$3000 for one hundred sets of books.  How many of those tenants will avoid an eviction or have to move due to financial reasons?  If just 1-2 tenants improve their situation, I have paid for those books.  I think this is a long term +EV play.

Yes and no, I'm still buying rentals there and have widened my criteria, but I don't invest in other types of real estate at this time.  I may pass on a good office space under similar circumstances since it deviates to much from my gameplan.

An idea Ive been toying with for a while is giving financial books to my tenants.  Specifically the Richest Man in Babylon and The Total Money Makeover.  I realize you can lead a horse to water, but my theory is that if If just 1 in 100 tenants listen or read these books and help their financial situation, it may reduce my turnovers and cost of turnovers.

I'm curious as to if anyone has tried this or something similar in their welcome package.

Absolutely.  Two immediate deals come to mind.  

A 2/1 in Aurora that I passed up for 54k.  Needed no work and cashflowed.  I convinced myself that those properties were not my focus despite having solid economic indicators for the area (i live 2 blocks down and attend many neighborhood and city meeting).  House could sell today for 130k and 250/mo more in rent.

A 2nd house I did not make an offer on.  I let my former realtor convince me it wasn't worth the time to low ball that property.   It sold for 30k lower than what i would have asked.

I allow myself to regret both because it they stick with me as great lessons. 180k in equity and $500/mo missed cashflow have helped me greatly. So In that aspect, i guess there are not regrets.  Got to love the gray world of real estate.