All Forum Posts by: Chris London

Natalie, 

That is generous and kind-hearted of you.

My personal belief is that this is going to get much worse over the next few months and perhaps using the funds on a case by case basis (as people become sick or unemployed) and truly can't pay may benefit all parties best. 

Dimitri, yes, I run the highest deductible possible.

Here is the language we use for renters insurance:

I also provide the name of a recommended insurance agent to make it easier for the tenant to get quality coverage.

RENTERS INSURANCE

You are also required under your lease to obtain a renter's insurance policy to protect your new home and personal belongings in case of fire, water damage, or theft. We will need a copy of your renter's insurance policy in order to give you keys to the property. Please make sure you obtain at least $300,000 of coverage (liability and personal property) and have your agent list (insert your name here) as an interested party. Please note each tenant on the lease will need their own policy unless tenants are related. 

John, In regard to renovations. Talk to a local property manager about rents in that area.

I just got done talking an owner/client down from doing a refi to renovate a townhouse that was only 15 years old and already in good shape. The $20-$35K he was going to spend on floors, cabinets, appliances, countertops & paint was only going to take my suggested rental rate from $1400/mo to $1550/mo (roughly).

Dwelling coverage is usually determined by the insurance company and is typically based on square feet. Don't confuse what you paid for your house with the cost to rebuild.

Liability coverage is what I am most concerned about for my properties. IMO, It's more likely someone is going to sue me for a slip and fall or a tenants dog biting the mailman and they go after me than the house burning to the ground and needing to be rebuilt (but I'm covered for that too). If you have a lot of personal assets look into additional ways to protect yourself like an LLC and/or an umbrella policy.

Finally, play with the coverage, you might be surprised how little your premium actually goes up for large increases in coverage.

There is an elastic period for renting and it is April 1st through August.

Let them know now that you will only do another 1-year lease and would like an answer 60 days in advance of the lease end date. This means that by April 30th you will either have a 1-year lease signed with them or you will put the property up for rent on April 30th and hopefully have a new leased signed well in advance of your late June due date.

Virtual showings are how leasing is being done now, while some properties are taking a little longer to rent and we are slightly dropping some prices, many properties are still getting multiple applications (sight unseen) at full price.

Finally, I'd say close to 25%+ of my tenants ask for a month to month option at the end of their 1-year lease because it is the best option for them. It is not, however, the best option for me (or my client/owners) based on my 1st statement above.

Jason, while I have 2 plumbers I use a lot and trust, if you do not, you should be getting multiple quotes. Also, there are jobs that a plumber is required to do by law in most states, often anything dealing with accessing the main sewer line. The job you mention is not one of them and an hourly handyman would be best. I think the take away for any property owner is to invest the time in finding service providers you can trust and use repeatedly (big or small).

Jason, to your specific question regarding additional screening.

I'm continuing with the same screening as before which is: 650 credit score. 3x gross income, 1-year lease minimum with spring lease starting dates, previous landlord background checks, and criminal history only with the view as it contributes to the overall assessment and is not an automatic disqualified on its own. 

I just filled one of my personal properties with a couple where she qualified solely on her own and he was recently unemployed due to his business temporarily closing. Our PM software (Appfolio) allows for rent to be paid by credit card (as does most consumer payment software like Cozy).

I see a lot of people giving advice on their new higher qualifications and would ask how much vacancy they are willing to have to find an applicant that may never come along. I have experienced far fewer applications then this time last year (or even last month). If I am wrong and need to evict then, fortunately,/unfortunately, I know how to do that as well.

Marcele, You can find this resource right here on Bigger Pockets. Check under 'Tools' & 'Services'.

David, I was talking to a fellow experienced PM the other week and they started talking about something similar and referred to it as a 'bill'. I replied that I had seen a petition on Facebook and hadn't heard it was a bill. They replied, oh yeah, I mean the petition on Facebook. 

Don't let people's hysteria affect you. Paraphrasing everyone's favorite book (Rich Dad). There are a lot of Chicken Littles running around telling everyone the sky is falling. Don't listen to them.

Todd, To echo what Jay said, the security deposit is about all your going to get. You have the right to the deposit based on both the damage as well as the early lease term. Make sure you document the damage and lease break and send the former tenant your accounting statement within the allotted time your state allows (my state, for instance, is 30 days). 

It's a long shot but you can contact them and try and negotiate additional money in place of not sending them to collections and damaging their credit. 

Keep in mind, actually sending them to collections will result in the collection company getting half and you possibly seeing some money possibly in the very distant future.

Going to small claims court you will be the evil rich landlord forcing possibly a deadly disease (Coronavirus) on your tenant (according to them) and your chances of winning depend on how liberal your state/judge is.