All Forum Posts by: Michele Fischer

You are getting a lot of varied advice to consider, will throw another one in the mix.  Offer to cost share and split the cost 50/50.  This would give them some skin in the game and would lower your outlay.  In general, if it is a reliable tenant, pay it and move on.  As long as a tenant isn't nickel and diming you to death, it is a good investment to keep the tenant and property in good standing.

You are getting good advice here.

The tenant didn't indicate whether the out of towners were staying with them, but your guest policy should dictate how much of a delay you could afford them.

Not guaranteed, but likely they are trying to stall for some reason.

Offer them three different date and times that work for you, always.

Steve,

Sorry you are facing this, it is no fun no matter how compassionate you are.

Agree with others that this is probably a downward slide that may not improve.  Also agree with others that this is a financial decision that should be made with more head than heart.  There may be tenant relief dollars available, but nobody feels bad or helps the landlords, we are assumed to have deep deep undeserving pockets.

That said, consider how long this tenant has been a good tenant and what you are comfortable with.  We have had tenants who have successfully paid up after a few months of grace, and we have had tenants who have not recovered.  Cash for keys has always been better for us (and likely tenants) than the time and expense of an eviction as well.  Decide what you can handle, write up one or more options, include consequences, and hold them to it.

 Duncan,

We currently live in a highrise in downtown Seattle, so completely understand the model of renting something to live in and buying rentals elsewhere.  Some cringe at that, but with the new higher standard deduction, it isn't as much of a tax disadvantage as it once was.  And the flexibility is great.

We did not set up LLC's for the rentals, that is another risk tolerance decision. There are horror stories out there, but it is easier and cheaper to not. It's a good time to research it, at purchase is the time to do it if you want to.

Hey, Duncan!  Congrats to you for having the courage to do what I have not yet been able to pull the trigger on, out of state investing.  Given both the prices and the political climate on the west coast, it seems the way to go.

Nobody can tell you that everything is going to be OK, but seems like you are being wise.  If worst case happens, it seems like you would be able to recover and start again.  More likely is that you might get hit with up to $2k in unexpected costs now and then, keep some funds liquid.  Get insurance, stay educated, agree on some arms length from the relatives, and decide whether you will be able to sleep at night or not.  Heck, I stopped sleeping when we started buying our rentals and that was OK too.  More time to read BiggerPockets.

It's all about your risk tolerance and whether you want to get rich super slow or want to move things along faster.  I would not sell the bare land unless the reason you originally wanted it has changed.

This is kind of the nature of things, the newer buildings attract the most rent and best tenants and older buildings get older, more run down, and less appealing to the top renters.  Good advice above, focus on safety, cleanliness, and being an attentive smaller landlord.  Keep up with upgrades.  Be a good value for the money.  I would also think about whether there is anything you can do to make your building unique.  Accent wall in a trendy color in the units?  All pets or no pets?  Any other niche?

Most people who rent to travelling nurses rent to the employer or intermediatry, not directly to the short term renters, so that there is a longer relationship even though the actual faces move in and out.  Agree with others that you wait to get notice before advertising.  The longer renters stay, the better for you, turnover just takes time, energy, and costs.

Start watching for ads on Craigslist and other places as well.  I was able to keep track of addresses in my target neighborhood and what they were advertised for to get a sense for the market.  Over time it started to show how long tenancies were as well.

Keep in mind that if you take him off the lease, you have one less person to chase for rent and damages.  We normally work with the tenants, though, even though it is a pain to deal with the drama, uncertainty, and new paperwork.  Just amke sure you don't change the locks on a valid tenant or anything illegal like that.  We've had one tenant for about 10 years and I've lost track of how many authorized occpants or co-renters they have burned through.

We have this clause in our rental agreements:

In the event that Tenants decide they no longer want to live together, ___________ will be considered the primary Tenant to make decisions about modifying or terminating tenancy. Deposits will not be returned (full or partial) until all tenants move out.

We name the strongest applicant, we talk about it at signing, and it makes it a lot easier when things flare up.

Agree with others that this is not your issue to work, it is theirs.  Make them do the work.

Also agree that if you take him off the lease you have one less person to try to recover damages or rent from.  If you proceed you should do a maintenance inspection to ensure that there isn't a lot of damage so far.

We have this clause in our rental agreement and spend time discussing it with them at signing.  We choose the strongest applicant of the two to be primary.

In the event that Tenants decide they no longer want to live together, ___________ will be considered the primary Tenant to make decisions about modifying or terminating tenancy. Deposits will not be returned (full or partial) until all tenants move out.