All Forum Posts by: David Peschio

Regarding the flooring options, I recommend Luxury Vinyl Plank (LVP) over carpet. While carpet might have a lower upfront cost, it tends to have a shorter lifespan and can lead to longer vacancy times due to how it looks after a while.
LVP, on the other hand, is a more durable option that will last longer and present better during tenant turnovers, despite its higher initial cost.

I agree with everyone's comments here. We are completely moving away from carpet and installing LVP, so you won't experience this issue again.

Carpets and fabrics can trap odors, so it's essential to clean them thoroughly. Vacuum carpets and upholstery to remove loose particles. For deeper cleaning, use a steam cleaner with an appropriate cleaning solution. Alternatively, sprinkle baking soda on carpets, let it sit for several hours or overnight, then vacuum it up to absorb odors. Launder any removable fabric items like curtains and cushion covers with a detergent designed to neutralize odors.

Ozone generators can neutralize odors by breaking down odor-causing molecules. Place the ozone generator in the center of the room, close all windows and doors, and run the machine for the recommended duration, typically between 30 minutes to several hours, depending on the size of the room and the severity of the odor. After treatment, ventilate the area thoroughly before re-entering.

Did they finish the turn - meaning it is fixed and being shown?

I wanted to share a piece of advice that I've found incredibly helpful in managing the demands of this business: avoid giving out your personal cell phone number to owners or tenants, especially tenants.

I highly recommend setting up a separate business line, like through a service such as Ring Central. This business can easily become a 24/7 commitment if you allow it, which can quickly lead to burnout. By establishing this boundary now, you'll be able to create a healthier separation between your personal life and the business as you continue to grow.

Has the tenant explained any genuine hardship? They mentioned job changes causing delays, which have happened twice in the past six months. While this suggests instability, it's worth assessing if they are actively trying to resolve the situation.

One potential solution could be to offer the tenant the option of finding a roommate. This might help increase rental income and provide them with the financial support needed to meet their rent obligations. If you decide to go this route, make sure any new roommate is added to the lease agreement and that the rent amount is adjusted accordingly.
It's crucial to apply your policies consistently for all tenants regarding late payments to ensure fairness and avoid potential legal issues. If you decide to issue a formal notice, please ensure it complies with your state's legal requirements.

If the tenant doesn't respond to informal requests and continues to miss payments, you might need to start formal eviction proceedings. Generally, for nonpayment of rent in most areas, landlords need to provide a 5-day "Pay or Quit" notice. If the tenant doesn't pay or leave within that time, you can then file an unlawful detainer lawsuit. Keep in mind that this process can take several weeks to months, depending on court schedules and how the tenant responds.

Eviction can be a lengthy and expensive process. It's worth weighing the potential financial impact, including lost rent and legal fees, against the benefits of regaining possession of the property. In some situations, working out a payment plan or allowing a roommate might be a more cost-effective solution.

Given the complexities of this situation, it would be beneficial to consult with a local attorney who specializes in landlord-tenant law. They can provide guidance specific to your situation, help with drafting notices, reviewing your lease agreement, and ensuring you comply with your state's laws.

Finally, it might be beneficial to have a direct conversation with the tenant to understand if they are facing overwhelming difficulties and would prefer to terminate the lease early. While this would result in a loss of rental income, it could potentially be a less expensive route than pursuing eviction.

Becoming a licensed real estate agent offers several advantages. One significant benefit is gaining direct access to MLS data, enabling you to identify potential deals more quickly than the general public. Furthermore, you can realize considerable savings on commissions when buying or selling your own properties, as you'll eliminate the need for an agent. For those interested in assisting others with their real estate transactions, licensure can also open up an additional avenue for income. Beyond the financial benefits, holding a real estate license can enhance your professional credibility and expand your industry network, providing you with valuable connections and insights.
However, it's important to consider the potential drawbacks. The initial licensing process involves upfront expenses for required courses, examinations, and membership dues, along with ongoing obligations such as continuing education. Licensed agents also face specific disclosure requirements when purchasing properties for their own account, which can introduce added complexity to these transactions. If your primary business focus is on owning and managing rental properties rather than acting as a broker, obtaining a real estate license might not represent the most efficient use of your time and resources.  The decision of whether or not to pursue a real estate license hinges on your long-term objectives. If direct access to property listings and the opportunity to earn commissions are priorities for you, the investment in licensure may be worthwhile. Conversely, if you prefer to concentrate on property acquisition and management while building relationships with experienced real estate agents, operating without a license can be a perfectly suitable approach.

I agree with Melanie's suggestion regarding the per diem option if it's legally permissible. I believe this approach encourages tenants to pay promptly once they are late, as it provides a clear incentive for them to do so. Without such a structure, there might be less motivation for tenants to prioritize payment.

Regarding the 15% property management fee in OKC for a 6-month to 1-year rental property, while price is certainly a factor, it's important to consider more than just the cost.
You should also evaluate the services included for that fee. Think about what their management package covers, such as tenant screening, maintenance coordination, rent collection, property inspections, and legal compliance. A slightly higher fee can be worthwhile if the company offers thorough and high-quality services that ultimately save you time, money, and worry.
It would be a good idea to compare the services offered by various property management companies in OKC and weigh those against their fees to find the best value for your specific needs.

In Virginia, it's important to know that the law offers specific guidelines for late fees to ensure fairness for both landlords and tenants while still allowing landlords to encourage timely rent payments. Virginia law, specifically Va. Code § 55.1-1204(E), states that a landlord can only charge a late fee if it's clearly outlined in the written rental agreement. This fee cannot be more than either 10% of the periodic rent or 10% of any remaining balance due. Additionally, Virginia law requires landlords to provide a 5-day grace period before a late fee can be applied, meaning rent must be at least five days late before a fee is charged. Remember that landlord-tenant laws can vary, and since you are in Tennessee, it's advisable to check the specific regulations in your local area to ensure compliance.

Because of these legal guidelines, many landlords in Virginia choose to implement a straightforward 10% flat late fee, as it is legally compliant. However, it's important to think about how this might affect your tenants. A significant late fee could potentially damage your relationship with them, especially if they are already facing financial challenges.
To help maintain a positive balance, it's a good idea to make sure your tenants are fully aware of the late fee policy right from the start. Applying this policy consistently to all tenants is also crucial to avoid any perception of unfairness. Furthermore, consider being open to offering payment plans or additional grace periods for tenants who are experiencing genuine financial difficulties. By prioritizing clear communication and offering flexible solutions when possible, you can work towards encouraging timely rent payments while also maintaining good relationships with your tenants.