All Forum Posts by: Charles Perkins
Charles Perkins has started 4 posts and replied 200 times.
Post: How Has BiggerPockets helped you in your real estate?
- Posts 200
- Votes 149
I also didn't start here, but have learned many things here. Regardless of where you are at in your investing life there is more to learn.
BiggerPockets has helped me see broader issues in RE across the country as well as different investment approaches.
Another thing is reading the stories of success and failure. Most importantly it has been the connections made over the years.
Post: Quitting everything for full-time investing, big mistake?
- Posts 200
- Votes 149
More than 10 years ago, I retired from my day job and have actively managing all of my rental properties. Soon I will be completing a major remodel and will be beginning a short plat. Eventually I will have two duplexes on this large property.
While RE investing is generally passive, in my case I actively manage and qualify as a professional RE investor. It is possible to quit your day job, but you need a plan and sufficient income to support the decision.
Post: Deposit back to tenant who’s leaving early?
- Posts 200
- Votes 149
Quote from @Charles Perkins:
Quote from @Tracy Minick:
In Washington we have similiar laws. However we also have a law that states that we must provide an accounting of the security deposit funds and refund (if applicable) within 30 days.
Solution: Create the security deposit move out form. Add charges for rent for the remaining months, estimated utilities, estimated cleaning and repairs and cost to re-rent (in our case: cost to PM is 1/2 a month's rent). Provide all of this and state that these are estimates and that the amount exceeds the deposit. Advise that you will update all documentation upon the unit re-renting. In the meantime work diligently to make the unit rent ready and advertise.
Legislation passed in 2023 changed this for the state of Washington. An account must be done in 21 days. A checklist or detailed description of move-in condition is required to deduct anything from the security deposit. Signed by landlord or representative and the tenant. A move-out check is required as well. The security deposit can not be greater than the first month's rent.
Correction increased from 21 days to 30 days this year. Along with other provisions.
Post: Utilities Question Help
- Posts 200
- Votes 149
My tenants are all responsible for their utilities including the one ADU that I have. I have been doing this for nearly 30 years with overall good success. The lease clearly outlines the tenant responsibility and I'm notified of past due accounts which can lead to a 10 day notice to comply or vacate.
Post: Real Estate Business, Active Investor, or Passive Investor?
- Posts 200
- Votes 149
Active investor with my own rental properties. I'm a RE professional actively managing all properties and working on further developments. All property purchased based on value add criteria.
Post: Deposit back to tenant who’s leaving early?
- Posts 200
- Votes 149
Quote from @Tracy Minick:
In Washington we have similiar laws. However we also have a law that states that we must provide an accounting of the security deposit funds and refund (if applicable) within 30 days.
Solution: Create the security deposit move out form. Add charges for rent for the remaining months, estimated utilities, estimated cleaning and repairs and cost to re-rent (in our case: cost to PM is 1/2 a month's rent). Provide all of this and state that these are estimates and that the amount exceeds the deposit. Advise that you will update all documentation upon the unit re-renting. In the meantime work diligently to make the unit rent ready and advertise.
Legislation passed in 2023 changed this for the state of Washington. An account must be done in 21 days. A checklist or detailed description of move-in condition is required to deduct anything from the security deposit. Signed by landlord or representative and the tenant. A move-out check is required as well. The security deposit can not be greater than the first month's rent.
Quote from @Adam Bartomeo:
Don't listen to people on here that say "Always raise the rent", they don't know what they are talking about. Raising the rent depends on multiple factors but most of all is market trends. We are currently lowering some of our tenants rents because rents a rapidly decreasing.
I agree there may be times to lower the rent, but in my cities, county and generally state I have found that to be rare Other parts of the country have different economic, real estate and supply & demand situations.
Ultimately it is the market, laws & condition that determine what rent is appropriate and what the community will accept. Every market is different.
Post: Proposed Rent Increase Limit of 5%/Yr Nationally?! Seriously?
- Posts 200
- Votes 149
Here Washington State we have no limit perse, but there are strict notice. 120 days notice for an 3% increase in rent which cannot take effect before the end of the lease. 180 day notice is required if over 10% again before the end of the lease.
Post: What reason is ok to use to refuse tenant in renting? (Is misdemeanor a good reason?)
- Posts 200
- Votes 149
Quote from @Nathan Gesner:
Quote from @Mary Jay:
I disagree with blanket rejections.
The point of screening an applicant is to determine the level of risk to your property, your income, and others. A felony conviction and ten years in prison sounds pretty bad, but were they guilty of embezzling money from their employer, or were they guilty of raping the next-door neighbor? Those present two very different levels of risk.
You should also consider how long ago the offense occurred and what the individual has done since then. If they spent ten years in prison for drug dealing, but have been out for ten years, have been sober, stayed employed, and paid their bills, there's really no risk associated with their criminal past.
As we review screening criteria results we also like to create an overall risk assessment. This makes more sense to us than relying strictly on rigid yes or no criteria where any negative disqualifies a candidate entirely.
Some criteria is weighted more heavily and can overcome negatives. It can be quite subjective but based on our past experiences it has worked for us.
Post: The Ten Most Ridiculous Type Posters on BP
- Posts 200
- Votes 149
Quote from @Steve K.:
I think the #1 most ridiculous poster is the person living in a desirable, high-appreciation location who has plenty of capital to deploy who asks which crappy undesirable market thousands of miles from where they live is the best place to buy their first investment property. This is also one of the most commonly asked questions. The “grass is greener” psychology is strong on BP and the irony can be rich at times.
A first investment is going to be riskier anyway, but adding significantly to one's risk makes little sense. Getting to know comps, locations, and resources in one's own neighborhood makes more sense to start. A property a long distance away adds significantly to the due diligence process and greatly to risk when bought sight unseen.
Personally, I want to inspect each property, check county records and ordinances, come to understand the neighborhood including economics, crime, taxes, etc. The numbers are important, but can't tell the whole story.
Like you said the grass is not always as green as it is made out to be.