All Forum Posts by: Dan Lieberman
Dan Lieberman has started 0 posts and replied 3 times.
Post: Shower Head Recommendation for Rentals
- Investor
- Berkeley, CA
- Posts 3
- Votes 5
I have used the Niagara 2915CH 1.5GPM showerhead as well, and it has worked well for me (in that case, I was required to use a 1.5GPM showerhead). Another showerhead that I like is the Speakman S-2005-HB, which is also available on Amazon. I like this one because my managers can sell the 'spa-like' shower to my tenants. This is also a low flow showerhead.
Post: Millionaire but cash poor
- Investor
- Berkeley, CA
- Posts 3
- Votes 5
Liquidity will become very important when we enter the next downturn. My advice - if you can't borrow against the assets, your best bet is to sell the farm property. It may not be what you want to hear, but there is no point in owning these properties if you aunt can't even pay for healthcare and basic quality of life items.
Post: Raising rents on new acquisition
- Investor
- Berkeley, CA
- Posts 3
- Votes 5
When we have a large discrepancy between market rents and current rents, I try to look at several factors. 1) what can the tenant really afford (hopefully you have applications which show their income)? 2) what would you consider 'market rent' for the apartment in its current condition (what is it worth with old paint, old carpet, etc.). If 'new', it is worth $800 and they are now paying $500, you could not re-rent it at full market without putting a certain amount of money into turning the apartment.
In general, we try to go a little more than half the gap between what the tenant is currently paying and what market in current condition is in year one. If the rent gap is not so huge, we might go closer to market. Even after you do this big rent bump, they are still getting a great deal. They will know it. The next year, the dollar amount of the increase will probably be less, as you get closer and closer to market.
As for looking at what the tenant can afford, it helps soften the blow of a large increase if they really could afford to pay more, but just haven't had to (If you need to point that fact out to them). If they really are near the limit of what they can comfortably pay, you might give them a little more time to find another place, but I would not keep the rent artificially low due to that.
I hope this helps you.