All Forum Posts by: Michele Fischer

Agree with others that this may be more hassle than it is worth.

One technique we deploy at times is to make the offer and negotiate sight unseen, and have the first time you see it be the inspection.  This is one less interuption to the existing tenant, and you can pull out if the place is not what you were expecting.

The annual lease process is a perfect opportunity to slip in a rent increase.

Agree with information from others; the tenants wants more security than M2M.  Offer them a one year renewal.

If the market rate is $150 higher, we would raise rent $75, the midpoint.  This keeps you making progress towards market rent and keeps them less willing to go find a new home.

But in Seattle you must give 6 months notice to raise rent, so you may want to offer a one year renewal with the bump happening halfway through the term, and give notice of intent to increase again at that 6 month mark.

You are getting good advice.

The only other things to keep in mind is that you generally can't collect rent for the same unit for the same time period.  So if you get it rerented fast enough, and there were not other deductions, you may owe the tenant a prorated refund.

Agree with Joshua that landlords are losing leverage at an alarming rate.  We need to push for better laws and educate people how the insanity is raising housing costs to help cover the higher risk landlords are taking on.

Agree that I would honor the rate for any current applications, but feel free to raise it for future applicants.  If you were happy to list it at that price, appreciate the interest and seek a stronger tenant.  

If your place is larger, it may be worth more.  There are a lot of factors to consider in market rent and hopefully you would have mroe than two comps to look to.

It's more of an art than a science, but it can be boiled down to numbers by applying rates to amenities and bedrooms and square footage.

We got burned once, so now we use the holding deposit.  The tenant never showed up to sign the agreement and get the keys, after we had held if for a few weeks.

Our goal is to be reimbursed for the extra cost and lost revenue from a tenant falling through, no more.  If I had to take that before a judge I would try to defend it, not that judges are very reasonable anymore.

Part of our security deposit is a non-refundable fee, and the refundable part is pro-rated to not be 100% eligible for refund until they have maintained tenancy for 10 months.

I wouldn't leave a unit unrented for two months, our applicants would need to start paying rent after we hold it for a month.  I rent myself right now, and I cannot imagine applying to a new place more than one month before desired move in.  But maybe markets vary.

You'll get a lot of different opions here, it is ultimately your choice.

I would probably continue annual leases and increase annually, but increase faster.  Changing to a M2M could concern the tenants that you are planning to terminate the agreement and remodel or do something different.

Be sure that you have the right market rent.  If you are comparing a nice unit to a unit that needs a lot of rehab, the market rate is not valid.

We raise rent to the midpoint between market rent and current rent each time we renew, so that would be a larger increase than you show but still keep from finding comparable rent.  It's our way of rewarding longer term tenants but still make progress toward market.

Agree with others that Section 8 should always be at market, keep on top of the HUD rates in your area.

Personally I would take the slight rent increase and keep the tenant rather than chasing higher rent.  It is always cheaper and less hassle to keep an existing tenant than to deal with vacancy, repair costs, uncertaintly of the market and applicants, etc.  We like to raise rent to the midpoint between current and market rent for an existint good tenant, which would be $7950.  I would take the deal but make sure in the third year you are raising rent again.  Steady but lower increases keep the tenant there and keep your bottom line improving.

I would figure out a time when you can get there, give 48 hours notice of a maintenance inspection, and actually do a maintenance inspection while looking for evidence of damage.  Other than that, stay out of it and let her work to get him off the lease/property.  Help her to change the locks once he agrees to move out, but you can't really force him.  This may be the end of your good tenant, we have not had a lot of luck once things get to this level.  When people sign a lease we normally designate one as the primary tenant so that it is clear to everyone who will stay or make decisions about who is staying so we aren't playing monkey in the middle.  The strongest applicant is the primary, the one you would want to stay.

We had this happen a few years ago, in an area where it is rare for temps to get cold enough for pipes to freeze.  It was a good learning to winterize, especially when storms are coming, and in forgotten attic and crawl space areas.

Anyhow, we offered our tenants a hotel and told them which one we would put them up in, and gave them the option to opt in at any time, but they decided to stay put and go to friends and relatives for showers and such.  Agree with others to have them contact their insurance agent as well to see what benefits may be available, and landlords should do the same.

Large corporate landlords offer and pay for hotels in our area when something prevents a unit from being fully functional (flood, fire, meeting definition of uninhabitable).  Tenant belongings are not covered, but landlord insurance often help with fixing the issue and other direct costs incurred.

This is an older thread that has some new posts, I'm wondering how things ended up.

I think it is unfortunate that BP members are so quick to attack anyone using cash for keys.  In my opinion, when there is a non-paying tenant, getting possession back is the most important thing, and a cash for keys agreement can be the least expensive and most effective for everyone.  It is one tool of many in the landlord toolbox.  Props to you for finding a cheaper option than more unpaid rent and eviction proceedings in an environment where it is more and more difficult to remove non-payers.

Of course it is not fair to need to do cash for keys.  But a lot of things in this business are not fair, landlord-tenant contracts are not enforceable in many states, and getting the property ready for a paying tenant is the ultimate goal.