All Forum Posts by: Carl Millsap

@Marco Morkous it depends on your area.

I would contact the housing authority that runs the Section 8 program for their checklist. The unit has to meet certain standards. 

In my area we have to complete a 15 page packet and the unit has to pass their inspection. If you follow the checklist you should pass. 

Good: 

1. Money comes on the first every month.

2. Housing (Section 8) does an annual inspection and now they make the tenant fix things they broke. We are only responsible for ensuring it's safe and systems function as they should.

3. Depending on the tenant, very low maintenance. Same could be said of someone not on Section 8. 

4. Housing sends us a a courtesy copy of every communication they send the tenant. If their voucher is changing we get a notice, if they need to get "re-certified" for the program we get a notice.

5. The tenants tend to stay longer. I just looked yesterday we've had one in a unit since 2014, another since 2016. 

The Bad:

1. It all depends on the tenant. No different than someone not on Section 8. 

@Armand Soto let's go back to...."I have a great tenant that has never been late on rent in the 1.5 years that she has been my tenant (I inherited her when I purchased) and has never caused any problems."

I would renew the lease with her, and just "give permission" for the boyfriend to live there. She hasn't been an issue, wants to stay and it doesn't cost you anything. 

By not putting him on the lease if God forbid their relationship doesn't workout it's easy for her to put him out. He's not on the lease and she has proven she can handle the expenses on her own. Again, no cost to you.

Plus the company you used gave a "Accept" recommendation. A DUI 5 years ago? Nah, not an issue.

I have a fitness business. We applied for the EIDL $10k grant and "only" received $1k per employee. Grateful for what we did receive. 

The EIDL and PPP programs have moving targets. Grant (Loan) Terms and qualification are changing if not daily, weekly. 

As @Kim Lisa Taylor stated write your Federal reps it's the best way to ensure we are eligible / considered for assistance.  

@Anthony Murphy in addition to what was already provided; Here are things I would look for  / spell out in the contract:

1. Limit what they can spend without a call to you for approval.i.e. any maintenance issue over $125 or something to that effect. 

2. Ensure you know how maintenance is being handled. Do they have their own maintenance team? 

3. How often if at all will they walk the property when a tenant is living there?

4. Look at the lease your future clients will sign with them, ensure you know what their fee structure is from start to finish with tenants. 

5. Once you know what the lease says then look at how that money transfers to you. i.e. does the PM keep the late fees or is that part of the "gross rents" collected? Are you charged a "lease-up" fee when they place someone that is separate from the management fee? Are you paying a management fee if the place is vacant? If so what is it?

@Luchiano Nivar that's an open question and you'll get more than you can chew on. So.....

1. Determine your criteria. Are you looking for a duplex, 4plex, 5+ units?

2. Have you talked with a bank or two to see what they'll loan you....that is if you're not paying cash.

3. Find an investor friendly real estate agent, preferably an agent who invest let them know what you're looking for and that you have financing lined up. 

@Kenneth C. you're welcome.

@Kenneth C. As a landlord your obligations are probably spelled out in the State, County, City laws and your lease. 

As it pertains to the other tenants you met your obligation when you changed the key to the main entrance.

I'd venture to say your question about the specific tenant is more of a moral question. 

In 17 years in this business I've had 2 cases of alleged domestic abuse, here's how I handled it. 

1. In one case both parties were on the lease, so they had to agree in writing that one person would be removed from the lease, and the person staying would be financially responsible for rent, cost of changing locks etc. - I set it up so I met with each person one on one as not to put anyone in danger. 

2. The 2nd case was a female tenant who requested permission to change her locks because she was afraid of her boyfriend. He wasn't on the lease but she gave him a key at some point. We gave her permission to change the locks, and provide us a key. 

That's it. Simple. Here's why:

1. You can only help those who want to help themselves. You suggested she file a protective order etc. Now it's on her to act on that advice. 

2. Legally what else can you do? You're the landlord. Try not to make your tenant's problems yours. Help where you can, but remember #1.....you can only help those who want to help themselves.

@Janani Narayanan does your State, County, City specifically prevent you from charging a pet deposit for a ESA? 

I don't think ESAs have the same protections under ADA or Fair Housing laws....but I encourage you to check.

Now, let's say the answer is yes the State, County or City does prevent you from taking a "pet deposit," there is nothing that prevents you from requiring a higher security deposit....unless of course there is...LOL. 

Find what the law says in your area and then play inside the boundaries. 

A security deposit is different from a pet deposit but can be used for the same purpose to cover damage done by the person renting the unit. Who cares if the damage was done by the ESA, ultimately the person leasing the unit is responsible. 

@Anthony Paul Guglielmi Yes and NO. 

1. If you know there is a good chance your HVAC or hot water heater is on its last leg and you don't have the reserves to cover it, then sure keep the warranty. 

2. But if all systems are in good working order, I'd put all of the cashflow into a maintenance account until you have a healthy reserve. 

I bought a rental years ago, the HVAC looked like it was on it's last leg so I bought the warranty @ closing. Sure enough the unit went out. 

It was an absolute nightmare getting the unit replaced. Add in the fact I still had to shell out another $850 because the warranty didn't cover the "modifications" needed to replace the unit. 

So... who really paid for that unit? I paid $450 for the warranty and $850 for "modifications." They probably had $2k into the unit if that.

Look at it this way....how many service calls have you made on the warranty since 2016? If you had to use it how much was the deductible? 

Now take the money invested annually into the warranty since 2016, and think if you had it in a savings account for just in case maintenance issues. Would you be ahead...breakeven...or at a loss?  

@Paul M. Cozy property management system will allow you to accept rent via CC, and not incur fees. 

The tenant will pay a fee to use their CC. If you want to give them a credit to offset the fees the system will allow that as well.