All Forum Posts by: Terri Pour-Rastegar

I feel your pain: keys for each house, storage buildings, work trailers, padlocks, etc. It can be a mess.

Currently, I use a very sophisticated system I like to call "label-on-a-hook." ;) All my keys are attached to little plastic tags, labeled with just the street name, and organized alphabetically. One original key is hung on the hook first with a label marked "do not remove"--that stays on the peg board no matter what. Then additional copies (if there are any) go on the same hook with their own plastic label.

The plastic labels are very durable, and I can write directly on them or stick a paper label on them. I got them from an office supply shop, and they're made by MMF Industries.

I didn't built a board or anything--I simply inserted little cup hooks inside a door in my office. The little clanging noise they make when I open the door is not the least bit annoying--in fact, the louder it is, the bigger I smile.

I have simplified my life drastically by using only keyed deadbolts and passage locks. Each of my properties is keyed separately. Some of my properties are very close to eachother, and it's a very small town--I would not be comfortable having each property keyed the same.

Now I am considering going for one of those master key systems, where the tenant's keys open only their home--not the locks on another of my properties--but I have just one key in my possession which would open all units. I like that.

Here's my rule of thumb: If I (as a woman) would not live there, I will not buy there. That's that.

If you're a guy, as yourself: "would I let my single sister with 2 kids live here?" Your answer to that question is your answer to the question of whether or not to buy in a warzone--however you define it.

Just being dead straight with you:

Are you running a charity or a business? If it's a charity, and you feel you need to assuage his feelings throughout this process, then continue as you are.

If this is a business, he has 2 options: step up to the task at had as originally agreed, or leave. That's it.

In a business, you cannot afford to be your contractor's friend. A good working relationship is one thing, but this is not it. It's only good if you're both benefiting from the relationship. YOU are not. HE certainly is.

He's using you. Cut your losses (before you have even more!) and move on.

Take it from me. I've made these same mistakes too. I'm done being nice with these guys. And as a woman, it's even harder. I think they feel they can walk all over me and expect me to be sweet--which I usually am. When I've finally had enough and pushed back, I was very happy to see it worked. I was shocked. But guess why it worked? Because I AM THE BOSS. I forgot that.

Don't YOU forget it.

@Chris Martin, First, thank you for the info on the Wal-Mart paying thing--I didn't know about it. It's good to know if ever it's needed.

No, I certainly agree with you that it's impossible to predict future problems with tenants. However, through the screening process you can greatly reduce the chances that you'll end up with a deadbeat tenant.

I can't tell that a tenant won't lose their job, but I can use my judgment to determine the likelihood. For example, previous job stability certainly is an indicator of future job stability. Certainly, I can't tell if a tenant is likely to have health issues--that's just silly. I'm not talking about unexpected problems--crap happens to everyone from time to time. But a tenant's history is a very good tool in determinig what you might expect in the future.

I screen for everything. First, on the application, I request information on all accounts--checking, savings, credit cards, loans, etc. I check that information against the credit check that I run. If there is no checking account, it's usually because they have had money problems.

Not to sound uppity, but it sounds like we're dealing with different 'classes' of tenants. My rentals do not generally attract marginal tenants who live financially on the edge. I have one tenant who is like that, but he's been great all along.

I'm just trying to encourage people to do the work up front so that we don't have to invent all these other systems to coax our tenants into paying the rent that is due. If credit cards are a useful tool for you, that's great. I'm only trying to avoid unnecessary extra hassle.

Mike, say it ain't so! Please don't rely ONLY on your own judgment. Yes, it might be the first thing--your gut feeling and such--but please run a background check and credit check, call their previous landlords and do a google search and such. It's a tiny bit of effort and cost, but it's incredibly valuable!!!

No Pergo or other "fake" laminate--ever--please! It looks hideous even when first installed, and it looks even worse in just a few years.

If there is wood underneath--either oak or pine--I will always refinish, even if it needs patching. I agree with stealing strips from the closet--you can always put new strips back in the closets and then it's less noticeable. However, staining is not a big deal, and it really helps breathe new life into a hodge-podged floor, if need be.

I avoid carpet at all costs, but sometimes it's unavoidable, like when the house is on a slab. I can't justify the expense of installing new hardwood flooring, so carpet it is.

I always install porcelain (porcelain is tougher than ceramic) versus any kind of vinyl flooring, whenever possible, for all the good reasons already stated. However, I see no reason to pull up existing solid wood flooring simply to replace it with plywood and then backer board. Can't you just apply a 1/4" layer of cement board before you install your tile? Or would that make your new finished floor too high?

All of this credit card thing should not be necessary if you are truly, thoroughly screening your tenants AND providing them with a nice, well-maintained home. I too rent in blue-collar areas, and this is just not a problem for me. The other thing I do is use direct-deposit to collect the rent each month. Even the one tenant I have who does not have a checking account is able to use that service with his pre-paid debit card. Side note: I generally will not rent to someone if they don't have a checking account--it's a red flag issue.

Do the easy work up front, and the rest of it is easy too.

I'm with Jason V on this one. I will always set up my insurance at replacement value.

I mainly invest in SFR rentals, and although cash flow is, of course the first thing I consider when selecting a property to buy, I also consider the resale value of the property. That's because I always want 2 exit strategies, whenever possible.

So, let's say I have $45K into a property that I just bought. 12 years from now, this fabulously cash-flowing rental burns to the ground. I've bought cheapo insurance and insured it for the bare minimum. The insurance company hands me a check. It is not enough to re-build. And it is also no longer enough to buy another fabulously cash-flowing property anymore because housing prices are out of this world.

I have just lost a tremendous amount of future profit, just to save a few dollars every year.

However, I am not interested in overpaying for anything. So I am working with a great broker, looking into getting a blanket commercial policy. In the meantime, I save a little money by setting up a high deductible, and I have a multi-million-dollar umbrella policy in place.

@David--hahahah! I know, it's crazy. But we weren't dealing with thieves. Our problem was crackheads looking for a place to crash for the night. I'm not sure it's a tactic I will try again, because my nerves didn't hold up well the whole time. But I've heard this recommendation from several people, strangely enough.

I would not bother with any kind of temporary cage. AC units have been stolen from homes with people living there. Check out www.ACArmor .net and look at their first (cheapest) level of cages. Now, imagine doing a style like this yourself, but with big galvanized pipe. You bury the legs in concrete. It's permanent, and if you do it right, your repair person can still work on the unit. It's a pretty cheap but solid solution.

Of course, nothing is really theft-proof 100%, but it's a really good deterrant. I also try to make sure there is a motion-sensing flood light pointed right at that area, installed high enough that it can't be tampered with.

What I ended up doing (relative to the house in my original post last year) was--and you won't believe this--leaving the doors unlocked. This actually came at the suggestion of the local police. Against my better judgment, I left the doors unlocked, and--to my amazement--no one broke in anymore.

In the meantime, I've learned to take measures to make my properties less interesting to the dirtbags who cause us so much trouble. I lock access to power (or, better yet, move the breaker panel inside), lock access to the crawlspace, beef up the door jambs, install deadbolts with a longer throw, lay a big stick in the track of sliders (or replace them with traditional doors), leave lights on inside with blinds open so cops can see if anyone is inside (they recommended this), keep water shut off at the street (in case they get in and cut up your plumbing), and install chain-link fence posts around AC units. One of the best things I do is request stepped-up police patrols. I call in the request and then try to personally meet the officers in the area, give them my contact info, let them know what I'm doing and that I would love any advice they can offer. They see I'm doing a nice job on my renovation work--that I'm not a slum lord--and they seem to take an extra interest in helping.

I refuse to install burglar bars--it automatically sends a signal that this neighborhood is dangerous. The bars themselves are dangerous in the event of a fire.

The #1 thing I do is: Do not buy in the hood.