All Forum Posts by: David S.

Depending on the brand name of equipment, you may have parts-only costs of about $2000 for a bare bones unit and ducts to $4000+.

I would infer as to the equipment brand name and costs.  But it looks like you have that one covered.

Also, you can check references, Angie's List, and the BBB to see if any of the companies have issues.  Each company should be able to provide 3 references.

I have seen huge disparities in quote price.  The small start-ups, mom and pops,  and part timers will give the best price.  Some big box franchises, having to pay large franchise fees, will be by far the highest in cost.  200 to 300 percent difference in prices is normal.

Some small companies just don't have the overhead costs that larger ones have.  No need for a manager since many are self-managed.  Also, they may not have to provide as many benefits if they have no employees, assuming they are an owner/operator. No need for a wharehouse since they don't need to store inventory, etc.

Class D is something that can only excel if it is a local owner who is often present.  I had 2 buildings where a neighborhood turned and couldn't get out fast enough.  I sold them and reinvested in better areas. 

Pro formas are just wishful thinking.  You will never get what they promise you. Your maintenance costs will be higher and vacancy costs higher. Your time investment will be unreal.  I know of some neighborhoods where the landlords are required to remove appliances during vacant periods because they would otherwise get stolen.  Is it really worth it then?

By the way, a few hours after I signed the paperwork and collected my proceeds from the aforementioned sale, I got a call from one of the tenants asking me to come right over to board up her window since it was smashed in.  It felt great to refer her to the new owner instead of taking care of it!

First of all, I pre-screen the tenant to see if they have some minimum qualifications before I move on to the paid part of the screening.  Is the income 3 times rent?  Have you been evicted? etc.  Some will lie about the eviction, only to show up on the report, but that's another story.

When I collect the application fee, I explain to them that I do not make a dime off of it.  It is simply what the screening service charges me.  Most prospects are ok with the fee when I explain this to them.  You can do the ground work to keep prices down by consistent shopping of services.  Also, you could get the necessary reports and do the calling of employers and past landlords instead of opting for that higher price option where the screening service does everything.

I disagree with not collecting the fee.  There are many "tire kickers" and you could end up paying unnecessary fees and wasting time on phone calls for someone who will not or cannot rent from you. Collecting an application fee shows that the prospect actually has the intention of following through at that moment. Money talks...and you know what walks.

I like to put ceramic tile in kitchens.  You can get great deals at Lowes, HD, or Surplus Warehouse.  I like the bigger 16 or 17 inch tile; I think it looks better than the 12 inch tile by making the room look larger.  Normally, you can find it for $0.79/square foot. If you do not have a concrete floor, keep in mind that hardiboard, which is a thin cement backboard (or similar product), would be necessary to put down first.  Ceramic is resistant to water, more so than laminate. So when a tenant overflows a sink or you have a plumbing leak, you won't have to replace the entire floor. Keep an extra box of tiles in case one cracks or is chipped.

In addition to the post office, check your local property tax office or Clerk of Court or public works/planning/building permit office.  The properties may already be assigned an address.

@Dawn Anastasi could probably answer to Wisconsin eviction law.

However, I think it would depend on what you have in writing.  If the person is in default of your contract, I would think you could pursue eviction.  It looks like they have possession, so filing would be necessary. In my jurisdiction, that would be the case. Verify yours.

I have tried to shortcut renovations on an apartment before and I just couldn't attract the best tenants.  You could be missing an outer wall, and the desperate ones would take it because they would have no place to go.  Then they would cry foul like the female you referred to.  By finishing the reno, you could attract the best tenants in the area.

Like @Jeff Rabinowitz, I require a full deposit and an entire 1st month's rent (2nd month pays the pro-rated amount).  This filters out 70% of the rift raft.

Also, tenant does not sign a lease until deposit and rent is paid.  With the lease signed, the tenant has possession, then you have to evict without receiving a dime.

For me, rent is due on the 1st and late on the 2nd, unless the 1st is a weekend or holiday.  In that case, it is due the next business day.  Keep in mind that my state laws support this.

I tried the grace period before and tenants waited until that day to pay.  Some even pushed a few days after that.  That is totally unacceptable.

I did do a per day charge on late fees before, but am now converting to a fixed amount.  The per day did not work out too well and it was an accounting nightmare. I do think that the per day late fee may violate state usury laws (depending on the state) if set too high. 

Stay away from carpet in rentals!  I never go back with it for this and other reasons. Tenants can destroy it in 6 months.

Use some type of hard surface.  I like to put tile.  Vinyl flooring was mentioned here.  Maybe tile in kitchens and bathrooms and the wood lookalike vinyl in the rest of the rooms.  Tenants like carpet in bedrooms? Too bad-tell them to buy an area rug.

One thing to also look at that was not mentioned is the walls and baseboards.  Did the pets urinate on the bottom 1 foot of the wall/baseboards? I have seen this before.  Also, on the second floor, did the urine penetrate the seams between the plywood sheets and go in the flooring cavity?  With an incomplete rehab of the damage, the smell will come back for many years. You may also need ozone treatment.

Definitely try for that waiver. I did not understand if you knew about the problem before the big bill or the tenant failed to notify you.  That would most definitely impact responsibility for the bill.  Hopefully, the water company will give a goodwill waiver. 

There was an issue similar to this in my local area about three years ago.  The water bill was over 1k.  The homeowner (was not a tenant occupied house) was on a "fixed income" and notified the local news and with that bad publicity, the water company cut the bill down.  Also, you may check with your local/state utilities commission.  

I am installing this valve (see link below) in all of my toilets for just this reason of toilets running and not getting notified about it, especially in units where I pay water.

Leak Detector Toilet Valve

This valve will shut off the water to the toilet when a failed flapper or any other reason why the toilet would run constantly. It is only $3 more than the normal valve.

Not a factor.

Keep in mind the paperwork and procedure requirements of Section 8.  I have not rented to a new Section 8 tenant in years because it takes a few weeks in between an approved application and an inspection.  A private renter does not have to wait.  I require a "hold deposit" and that is on a first come, first serve basis on all approved applicants.  So if a Section 8 tenant won't give a hold deposit until the inspection is complete, another approved applicant can get the apartment with the hold deposit.  Also, my Section 8 office requires an empty apartment for inspection (maybe different in your area).  I often rent out my vacancies before the previous tenant has moved out.  Just some things to consider......