All Forum Posts by: Greg Weik

Hey @Anastasia Bourdon, I own a property management company and we just started managing house hack properties.  One of my employees also "hacks" his own house and has for a couple of years now.  It's an interesting world, to say the least. 

On price:  It sounds like you're pretty close to market value for how you've described the home.  I highly recommend you do not split out utilities, internet, etc.  The logistical application of this can be a legal nightmare for you if you ever have to evict.  Accepting rent with a known violation (like non-payment of utilities) could waive your right to enforce.  I've been at this for a long time (and went to law school) and I can tell you with certainty that your best bet is to have an inclusive rent price and leave it at that.  

On tenants: The biggest differences I've noticed on the HH properties is that the tenants are flaky and usually less-qualified.  We've had multiple tenants say they are moving forward on a property only to disappear into thin air.  Believe it or not, this is pretty uncommon in our world with about 500 doors under management.  Prospective tenants for HH properties seem more inclined to post selfies on FB groups and saying "contact me if you have a room" vs. seeking out a good room for rent.  So the dynamic is completely switched from what we are accustomed to.  I think this is fine for an owner-occupied situation where you can scour FB groups to find a good fit for your property (it's difficult for us due to scalability with this approach.)

I would highly recommend doing a thorough background and credit check on anyone you are leasing to.  Make sure you have a good lease in place.  I also suggest individual digital door locks for each bedroom (where you, as the landlord, retains the master key) for added security.  Make sure you have solid "house rules" that everyone signs off on.  

Hello, BP Investors and DIY Landlords in Denver and Colorado Springs! 

Let me know if this type of event has value or interest to you - please message me if you would be interested in attending.  I will limit the first meetings to 15 people and if demand warrants, I would move to a larger venue for future meetings. 

The premise of the meeting is that I will go over a lot of what I know as a professional property manager (since 2008), as a local Denver area single-family home investor, and I will discuss a lot of the information below, and answer questions.  

If you decide there's value in our services, you'll have an opportunity to sign up as a property management client to Real Estate Solutions at a discounted rate. If you're not sold on why you should hire us, you'll learn something (probably a lot of somethings) about DIY managing your rental properties. 

Some topics will include:

-Property selection.  Criteria that prove most effective, areas that are on the upswing, areas to potentially avoid. 

-Property preparation.  What needs to be done to a property to make it not only attractive within the rental market, but also safe and legal in Colorado. 

-Tenant selection.  What you can and cannot screen for, what you should be looking for, and the profile of the ideal tenant, which varies by property type and area. 

-Pets or no pets?  Strong opinions abound on this, but cooler heads do the math. 

-Long-term vs. short-term rentals.  Furnished vs. unfurnished.  What's the math and how do we value our time in the context of monthly revenue?

-Rent-by-the-room or "house hack" renting.  Is this an emerging trend?  Is it viable long-term?  What are the pros and cons, and how should an investor navigate this space?

-Process.  The backbone of success in tenant screening, lease preparation, move in, and move out inspections, receiving payments, handling lease violations, handling repairs, etc.  Let's talk about checklists, this is a personal favorite!

-Liability.  What are we up against and what are some best practices to limit our exposure? 

-Communication.  What's the best way to communicate with tenants, vendors, and other parties? 

-Leases.  What are some must-have clauses, and how long is too long?  

-Finding expert vendors.  This can be one of the most challenging parts of owning or managing rental properties.  What's the best approach to finding the best vendors - ones who can do the work, who are professional and honest, and who communicate best? 

-ROI math. How we see ROI, how you see ROI and some light math.

- Questions and answers. Let's all leverage this time so that it has a high ROI for the time spent. Everyone should come out of each meeting with new knowledge and better prepared.

Last - while I did go to law school and have been practicing as a property manager since 2008, I'm not an attorney.  Nothing discussed in the meeting should be construed as legal advice.  

Hey @Travis Hatch, one other thought might be the window(s) as a potential area to address heat loss or poor insulation. Also, maybe consider if there are common area vents you can close off to force more heat into the colder bedroom. 

@John Mayer's suggestion of the wall heaters from Home Depot seems like a winner.  

It's not going to happen.

Even if it does, there will always be ways to make money. No need to worry about the sky falling. 

 Can't say it better than this.  With current mortgage rates so low, most people are investing poorly by overpaying on their mortgage.  Use your money to make more money.  

We use a product called "CoreTec", sold by Carpet Exchange. We have it in our office (very high traffic, Denver, snow/slush/rain coming in frequently) and it holds up well. I use it in my SFR rentals as well. It's impact resistant, waterproof, but the downside is it is pretty easy to damage via scraping (like moving heavy furniture if people aren't careful.)

Tile can be a good option too, especially the newer woodgrain looking finishes, but only if it's installed perfectly.  Tile breaks easily over time if it's not installed on perfectly prepped surfaces. 

Smart move, IMO, to go with solid flooring.  It looks better, shows better and lasts much longer.  I always try to convince my clients not to go with cheap carpet at turnover. 

It could be a liability.  If they didn't put it on a concrete pad, it's possible other corners were cut as well. 

My recommendation is to give the tenants an ultimatum.  Let them know they have violated your lease (I hope this is the case and you have something in there regarding alterations to the property), and create an addendum that will do a couple things:  1) Exculpate you from any liability of tenants, their guests or invitees injuries related to the shed.  2) Tenants agree to remove the shed upon lease termination or be charged accordingly, including restoration of the grass (alternatively, have them sign agreeing that the shed is now part of the property and owned by you, this part is your choice.)  3) Give them a deadline to sign the addendum you create or let them know their lease will not be renewed.  I would not suggest posting the requisite notice and filing an eviction over this alteration unless you deem the shed to be unsafe and/or you really want your tenants out. 

I have tenants at one of my single-family rentals who brought in bees.  In my opinion, very cool.  I love it when good tenants make the home their own.  The biggest issue from my perspective is always liability.  

Did you sign a PMA (Property Management Agreement)?  

The PMA - if you signed one - should outline the process for cancellation.  

I would normally not advocate going to the Real Estate Commission, but in this case I don't see a lot of other options if they won't respond to you.  You need to get ahold of the unit keys, security deposits and leases in order to take over management. 

I hate hearing stories like this that give my industry a bad reputation. Best of luck. 

The Cleveland Browns made the playoffs. Ohio is officially on the map. 

The takeaway for landlords and professional property managers is to focus even more on tenant screening.  Look at who still pays on time and who doesn't - use the data to help mold your processes tighter for the next time.  Be quicker to charge larger security deposits on risky applicants (or deny them.)

If this has taught us anything, it's that there actually can be something more expensive than a vacancy...