All Forum Posts by: Jessica Hughes

I am a newer landlord (2 properties in Dallas County) and so far everything has gone well with my tenants. 

I am concerned with the county wide shut down order for COVID19 and the announcement that evictions are suspended for 60 days will affect my ability to collect rent. 

I have one tenant who is probably directly affected. He is a maintenance guy for a chain of gyms, and all gyms have been ordered shut down.

The other property has rent paid until the 14th of April from a tenant who had to break the lease early, with a new tenant moving in the 15th. Less worried about that one unless they decide not to move in. 

Should I have a preemptive conversation with this first tenant about his work prospects and how even of he doesnt pay rent hes still going to owe it after this crisis or whatever it is passes? 

Maybe find a way to explain how if the rent isnt paid the mortgage isnt paid and I cant promise the property wont be sold with him in it if it turns into a loser? 

That would be a completely empty threat, I do have 360k in cash reserves to carry me through if necessary. And maybe the federal government will come up with a rent relief program of some sort, I have no idea what's going to happen. 

Maybe offer to reduce rent to right about the cost of the mortgage for the duration of the crisis? Waive late fees temporarily?

Pretend nothing is happening and see what he does on the 1st and then figure out what to tell him?  

This is new territory for everybody I'm sure, so some advice from more experienced people about how they would approach the situation would be greatly appreciated.

I feel like people with lower end apartment complexes are going to have a terrible time soon once word gets around about the no eviction policy....

Thanks for all the input guys! I read some article a while back that made it sound like anyone who doesnt raise rent every year is an unprofessional sucker and kept finding articles pretty much reinforcing that attitude.

My gut feeling told me it would be a mistake, but I like to get as much advice as I can. Thanks everybody! 

And yeah, I'm gonna be really sad when this tenant goes. He keeps the property looking like a darn magazine spread. Hes like winning the lottery of tenants. I'm almost wishing something really bad would happen to his credit so he cant leave, but that would be terrible of me!

Hi, this is my first year landlording. I have a lease coming to an end around the end of april.

Market rates havent gone up at all and my unit is on the high end of that range according to rentometer. 

The tenant is very happy and low maintenance. He is planning on moving in 2 years because he is saving for a house and my rent is well under his budget, so I doubt an increase would make him move.  

I read that you should raise rents 3-5% a year, but should I raise rent to above market rates if that's where 3% puts me? 

My rent is 1495, average range in the market is 1350-1500. I'm cash flowing 300 on it so it's not like I'm dying on the price. 

I think 1540 would be pretty dang high for the area, so should I do like a super lame $15 increase or something just to set a precedent that increases can happen and blame it on property taxes or some crap?

.... why don't you get something at a cheapo community college. You dont need to go into 100k in debt. Thats stupid. Just get an accounting degree or something that will be helpful and applicable in starting your own business. If you choose to further your education down the road then you will already have a good start. 

And you can invest while you're i school. No ones stopping you. Fatalist excuses dont get you ahead, thoughtful planning does. 

So I've been stalking this property. Ultra disgusting boarded up vacant house on a very nice B+ class street. 

Did some research. 10 years of back taxes totalling a bit over 20 grand. Owner died in 2002, his wife died in 2009, which is when the taxes stopped being paid. 

I believe their only child died at the age of 14. The only one I could find a record of, but I could be wrong, I didnt hire anyone or anything, this is just google research for now. 

Dead guy is still on the title. Talked to the neighbor, he said the city has been mowing it, but once he did see a big truck pull up and someone go in the back yard (could be another curious person, not sure if it means anything) 

Back taxes are around 20K. A lot with a partially burned down house a few streets over sold for 65K six months ago. 3/1s in the area sell for 150. I was thinking I would buy it for the taxes and sell it for the value of the lot. 

I plan on calling the county to ask a few questions, but what should I be aware of/beware of trying to pursue this property? I have the cash available to throw about 30k at it, but it would be all my cash earmarked for investments for the time being 

Awesome information! Sounds like I have a few phonecalls and chats with neighbors before I decide what to do, but I really appreciate your detailed responses to all my dumb questions! 

But because it is clearly abandoned the 180 day redemption period would apply? And if the owner did show up I could give him some cash to waive his right to redeem? 

Once the redemption period is over, does that clear up any title issues that would cause me to have difficulty selling? Or would that be a whole other can of worms?

Well if scenario one isnt a possibility I guess I am gonna forget about it until I get me a good attorney friend. 

Dealing with the county or courts makes me want to jump off a bridge, and just knowing human nature, I dont feel like dealing with heirs to anything. 

Thanks everyone for sharing your knowledge with me!!! 

Okay, so let me make sure I'm not confused. Say I call, and because I am a super lucky person, I find out that this property will soon be at auction. I get a sherriff's deed. I am free and clear and can sell or improve the property as I please? 

Or scenario 2. I call and find out that the county is still in contact with the owners and there is some kind of litigation they are involved in. I would then file an affidavit, pay the taxes, still have to wait a few years and hope nobody comes out of the woodwork claiming ownership? 

Or scenario 3, I manage to track down an heir and offer them a little extra cash on top of the back taxes and they're stoked to unload it because they don't know what to do with it and they're happy with an extra 10 grand or whatever?

I'm sure I'm missing some subtleties. 

What is the difference between a tax deed state and a tax lien state? Like I said, new territory for me! And I would like to sound like I know what I'm talking about when I call.