All Forum Posts by: Filipe Pereira

@Ray B. 

It looks like you're at about that 95% mark. Most of us get underway on a project and then get ahead of ourselves and think “I better get this listed with some photos ASAP” and the end result is something like what you see here. The place looks like it was freshly renovated, but it's just not quite complete yet. To the untrained eye, that can be perceived as a landlord who just does not care about fixing items as they come up.

If you're not even getting decent requests, it might be time to clean things up and post professional photos if you want to maintain that price point.

On a separate note, do you think you just found the top of the market in terms of what it will bear on a per bedroom basis? For example, in my local market of CT you can get $100 to $200 extra per bedroom (1100 for a 2 bed, but 900 for a 1 bed), but that does not apply really once you get past 4 bedrooms. Perhaps that’s some of what is going on here?

Hi @Yuzi Stha, 

They are probably uncomfortable with doing it because, although it is state law in Connecticut and Massachusetts, most landlords simply do not do it. In addition to that, there are some banks that do not require a W-9 to set them up. For example Windsor Federal Savings did not require it, but People's United Bank does.

In situations where tenants have been adamant about not providing their social security number we have asked them to sign a statement acknowledging that their money is not protected from our debtors and that it would have been in their best financial interest for the money to be in an interest-bearing escrow account.

Make sure they know that if you get sued, their money is at risk.

@Victoria St. James here are my thoughts on the greater Hartford (Hartford county, really) rental market in the event that you come up this far. As a licensed real estate agent myself, I can get into trouble for "steering" you to an area, so please accept these as just some generally vague thoughts based on my experience of the area and property management industry. 

Windsor is a great "small town" that generates good cashflow with moderate chances of appreciation (relative to the CT Market)

Granby even a smaller town feel than Windsor, rentals are in high demand and rent prices are high. Expect high prices too, though. Appreciation likely.

Enfield is better on cashflow, but has some rough parts of town that I personally avoid (Specifically T'ville). It does have a busy shopping area, and a mall that desperately needs attention. The proximity to MA is a benefit.

Manchester strong rents, but getting into the market can be tough, as multis are priced accordingly.

West Hartford if you're in this town you're probably banking on appreciation, not cashflow.

Glastonbury Strong rents, but expensive. Multis / rentals are not common, and in demand. Appreciation likely.

East Hartford Mostly a B/C class community. I like it. Rents are strong, proximity to downtown Hartford is a major plus. Prices have gone up steadily since 2015/2016.

New Britain Still has quite a negative stigma, mostly due to crime. I hear it all the time when I'm showing tenants units in other towns and I get asked "Do you have any other units available." You can see the expressions if you say "Yes we have one in New Britain." We manage in town, but I don't feel comfortable enough to purchase in NB myself. That being said, prices can be attractive.

Bristol Strong rental market. Seems to always have demand given proximity to Hartford, Waterbury and Meriden.

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@Derek Labbie - yes, and interests rates for mortgages were also crazy. I think my parents' interest rate on their primary at the time was north of 10%. Nuts! 

Not my story, but one I read on here was a tenant who got upset with the property manager. They cut open the walls, stuffed them with dead fish, patched the walls, painted them and moved out. 

Well needless to say, the PM and owner didn't know about it right away and proceeded to rent out the unit.

Weeks later, the new tenant complained of a growing stench in the unit. The PM and owner couldn't figure out what the stench was for weeks and were convinced the new tenant was just trying to get out of their lease. You know the result. They eventually figured it out. 

Heard another story where the tenants poured concrete down the drains...yike$$$$$$$

I can answer some of these based on my profession @Brad Campbell. As you said, it always varies by company, but here's what we do -

Pipe bursts: tenant calls PM. PM coordinates with tenant / plumber. PM pays for work from collected rents. Your PM and you should agree on an amount that would require approval. For us, that is $500 usually. Anything more requires owner approval. Yes, you can select contractor. I'd question very heavily any pm that requires you to use "their" people. Why would they if they don't stand to benefit?? Red flag... If an owner wants us to use "their guy" we will, but we explain if it breaks in a week and we have to deal with a bunch of nonsense, we will bill them for that time. 

Hope that helps...

I think $75 is a bit steep, yes, but not by much. Typically a "handyman" service call starts at $50 during regular biz hours. If there's parts or materials, it's on top of the $50. So maybe $60 in this case. What you described doesn't sound like more than an hour task, unless the property is very far away from the handyman. 

Really when you hire someone, you're not paying for the job so to speak. In reality, what you're paying for is: 

Insurance

Profit

Taxes
Labor
Experience

Materials

If you figure uncle sam took about 30% of whatever he charged you ($23 there) and subtract materials cost ($10), labor / travel time to lowe's, fuel, vehicle, insurance, tools, etc. you can quickly see how there isn't a whole lot of profit there. In actual expenses just tied to your job he's over $30, which means he's got $45 to cover the rest. Just 1 hr of labor is more than $45, let alone the aforementioned expenses. 

I agree that this issue should have been addressed by your tenant, but that's what leases are for...don't blame the handyman on this one, his price isn't that crazy. If you think it is, have your PM find someone cheaper. It's unlikely it's someone professional, as professionals value their time at a higher rate.

No extra pet fees, deposits or rent for service animals @Calvin Jordan, and be careful what questions you ask. You may ask the following: 

(1) is the dog a service animal required because of a disability? 

(2) what work or task has the dog been trained to perform?

Become more familiar with it on the ada's website here. It's federal policy, so it covers all states: https://www.ada.gov/regs2010/s...

Check with your insurance company about the animal as well, you don't want any surprises on that front later on if something were to happen. 

So if you're talking about a $1,000 / rental (which I don't know that the rent is) it's like $70-100. Significant, but not substantially. If you were to raise the rent, I'd do $20 until spring, then another $20 then, unless you're expecting high turnover costs. If you are, then stick with the lower rent, because it will take you a long time to recoup the turnover costs. 

Well, if they agree to the $20 bump you'd have a few more month's to feel them out before implementing a higher bump in rent, should you go that route. The initial $20 bump isn't going to make or break you, but it sets the precedent that rent increases DO happen. Hopefully that clarifies things a bit for you. 

Yes, the banking commissioner of the state of Connecticut determines the rates @Heather Armoogam. You can view the information here: 
https://portal.ct.gov/DOB/Rent...

 It sure would be. What's the alternative? Not invest? Not going to happen...Keep buying, and if prices do go crazy then at least you have some nice equity to cash out on in 30 years, LOL.