All Forum Posts by: Chris Chisholm

Are there any state laws that are different as far as tenants rights on a m2m vs a longer term lease?  I'm in Canada and some provinces here for example state that you have to give 12 months notice of a rent increase on a m2m, where as on the 1 year lease you only need to give 90 days.

Best bet is to find out why they want only go m2m.  Do they have set plans for a change in a couple months?  Are they just using you for a place to crash for a 2 months before they bail on you?

I've bought with existing tenants/lease agreements in place and had no issues.  I won't put in an offer until I've seen the lease agreement and/or had some interaction with the tenant (casual but strategic short conversation with the tenant can go a long way).  Can save you on the hassle of finding new tenants from day one.

If your intent is already to tell them no, that's all it has to be.  If it's written in your lease agreement it's that simple.  "As per the lease agreement the late fee is ____ if not paid by ______.  In order to avoid claims of discrimination on who pays it and who doesn't, this is a black and white policy that I do not waive."  There's nothing impolite about being direct and quoting the lease agreement.

I'm a real estate investor.  I do more than just property manage and encompasses it all.

What’s stopping him from setting up new leases with the tenants?  Not sure about your local laws and regulations but if they are not in a lease, with sufficient notice you should be able to get them in a lease at some point noting the changes in policy.  “I’m looking to standardize things across all my properties and make sure we are on the same page with processes/policies, so I’d like to get you in the same consistent lease agreement as the rest…”

I put in my lease agreement that it's a $150 "lock out" fee if I have to come let the tenants in for any reason, plus the cost of new keys if I need to replace them.  Paid up front before I let them back into the unit.  If they don't like it they can jump through the hoops of calling a locksmith on their own.

network, network, network. Start conversations outside your friends/business circles. Chat with old people...like your friends parents or aunts or uncles...typically outdated decor? Looking to downsize? Potential for seller financing? I was working out a deal on a duplex from a co-worker I have previously done business with. Others over heard our conversations and brought it up to me..."heard you are looking to buy a place from Rob...we are thinking about selling". I went from a casual conversation with Rob, to having 3 off market deals at below market value lined up in a couple weeks. Currently working through each to get them all closed over the next few months...buy one...BRRRR, suck the equity out to buy then next and repeat. The other 2 that came of it were people I would have never thought of approaching as I knew nothing about their personal situation, but both were older and downsizing life (one was getting out of rentals and will have more deals over the next couple years to do, the other just old and doesn't need a 1,000 sq ft 5 bed, 2 bath place anymore). A LOT of Baby Boomers are getting too old to maintain houses anymore.

I'm Canadian so different options for me, but I use the free version of Stessa for all my financial tracking and such.  For Tenant Screening a I use SingleKey (I think it's only Canadian) for credit checks, etc.  I make good use of Google forms for screening survey's...prescreen them with a short survey before they ever get a viewing to screen out tire kickers and bottom feeders that have no business renting from me.  During the viewing ask subtle but very targeted questions..."so what did you get up to this weekend?"  "I had a party and we got wasted man..."  Thanks for your time, here's an application if you want (flag the name as definite no).  Search applicants on social media or the internet...The application says they don't smoke and have no pets but they are posting pics with a dog and a smoke in their mouth?  Definite no.  When calling references purposely give them wrong information to see if they correct you..."So John rented 123 Main street from Jan 2020 until Feb 2024"  "no, it was 456 That Street from Feb 2021 until Feb 2024"  "My bad, I was looking at the wrong file..."  Good chance it's an honest reference.  If they don't correct you and agree to the incorrect information, chances are it's the tenants friend lying for them.  Ask the previous 2-3 landlords...the current one might lie to get rid of a crappy tenant.  Software will only get you so far.  Boots on the ground will give you a lot more info to screen tenants to get solid ones.

 What's the current status of the property?  Is it vacant?  Try to house hack it...

Where are the bathrooms?  If you have one on a main floor and one in the basement, can you convert it to a duplex?  Rent the whole place for $1500 vs renting each suite for $900 ($1,800 total)...

Is there an opportunity to rent it by the room?  Whole property for $1,500 vs renting each room for $500 ($2,000 total)...

Is the garage detached?  Temp controlled/insulated?  Powered?  Plumbing to it?  Can you rent it out separate to someone looking for storage or a back yard mechanic/hobby shop?  Could add an extra few hundred to your rent roll...

What is the land/yard situation?  Is there an opportunity to rent out space for seasonal storage of a vehicle (boat, RV, etc)?  Can bring in a few hundred a year...

Is there an opportunity for a "granny"/carriage suite on the property as a short term rental?  Can bring in a few thousand a year..

I bought a property in 2021 and did some of this.  It was already converted to a duplex with well under market rent, but had a massive garage that was used by previous owner as storage.  Discussed with the house tenants about renting out the garage to avoid potentially having to raise there rent more...currently renting the garage for $900/M (825 sq ft heated/insulated, 10 ft ceiling shop space).  Had an inquiry from a friend looking for a place to park his RV for the winter...talked to the tenants about renting out the back yard space (fire pit area that is unused in the winter months)...now have an additional $100/M of income for 5-6 months of the year there.  The property also has a LONG driveway and the downstairs tenant doesn't drive, the upstairs tenants only have 1 car.  Talked to the tenants 
about utilizing a spot on the driveway for long term storage since they don't use it to avoid larger rent increases.  Currently getting $75/month to store a boat there during the winter.  When I bought the place the gross rent was $1700 on the property.  Between small rent increases and the storage I'm bringing in $3,000-$3,200 a month.  I just closed on a property that I'll be doing the same thing with...5 bed, 2 bath with a garage...2 doors down from a college.  Rent by the rooms to students, rent the garage out separate, long driveway in the front that can rent unused parking spots to other students.  Takes a little more work to manage (coordinating who cleans shared spaces like laundry, etc) than just renting to one tenant, but it is very profitable.

I'm in Canada so a little different process on credit scores, etc. but I don't haggle.  I do my market analysis on a regular basis so asking price is very much inline with the market (typically set right at the average on comparable listings I find the month or so leading up to the vacancy).  

What's your tenant profile?  Is your place/area geared towards young professionals?  Small family?  Students?  An income verification and credit check will look VERY different for a student vs a small family vs a grown adult.  To set your target at 3x income on a $3000 rent and a 700 credit score on a property across the street from a college might miss a solid responsible student tenant for 4 years.

I do prescreening through a google form questionnaire to eliminate tire kickers or those that have no business looking at my place (3x is my gross income target) before a viewing.  After they've officially applied I search social media/internet for them to see what comes up.  Often criminal history will come up through a basic web search of someone name.  Get creative with your viewings...A simple small talk question like "what did you get up to this weekend?" can give you volumes on the lifestyle they lead and vetting references...Ask an incorrect question on purpose to see if they are lying "They lived at 123 Main Street, right?", etc and if they correct your just play if off that was the wrong file in front of you, if they don't correct you it's possible that it's just a friends name they gave rather than a previous landlord.  Ask for multiple previous landlords...current one might BS you to get rid of them.  Previous has no vested interested in lying to you.