All Forum Posts by: Jill F.

My lease allows tenants a three day grace period. So I can file for eviction on the 4th day of the month. However, I have found it very useful to have a more generous late policy in order to reduce turnover. 

Under my late policy (Ohio) I will accept late rent with advance notice given without a quit or pay ONLY IF the tenant pays enough to stay current through the pay in full date. My policy permits up to 4 "small" lates per year (with notice), 3 lates in a row (with notice), and two quit or pays (with notice). With no partial payment I quit or pay on the 4th and file for eviction in three buisness days if not paid in full or according to the terms of a payment plan. Payment plans MUST BE PAID EXACTLY as agreed.

In the case you described, For example, for $750 monthly rent /30days = $25/day. 25*11=275. I would require a payment of $275 before the end of the 3 day grace period in order for my tenants to avoid a quit or pay. If rent (and late fee) is not paid as agreed on the 11th I would then quit or pay on the 12th. If this is not possible, since the 11th is almost half way through the month, I would insist on a token payment and quit or pay the day after the token payment ran out and then file on the 12th if not paid in full.

The policy allows me flexibility but protects me from larger losses because I get partial payment and/or quit and pay early. It also trains tenants to GIVE NOTICE and to DO EXACTLY WHAT THEY PROMISE if they go on a payment plan. My tenants seem to appreciate the flexibility and appreciate knowing in advance what will happen if some misfortune prevents them from paying the rent in full. In this case, I would tell the tenant, It's better for you if you can do a partial payment so you don't have to use one of your two quit or pays. Can you pay $275 on time? if not, I tell them okay, expect a quit or pay on the 7th-- this does not mean I really want you to move; I want you to pay. You have three business days after the 7th to pay in full plus late fees I'll wait the one extra day until the 11th but I'll file eviction on the 12th if not paid in full. This has been really useful for "C" properties where tenants sometimes struggle to get work hours during slow seasons; I have found that tenants tend to "save" their late allowances for actual emergencies.

Buying and holding rental properties that you self manage is really a business start-up rather than an "investment." I would present it to my husband as exactly that and ask him to support ME in furthering my goal/dream to found and operate my own business. Then you aren't asking him to evaluate the deal, you are asking him to take a bet on your abilities. He might be more willing to do that. 

On those numbers however, I would not buy that townhouse unless you are are expecting (almost) immediate appreciation. It wouldn't cashflow enough to make me happy but then again I'm out here in the cheap midwest.

I agree with @Roger S. . Our lease makes the tenant responsible, but twice a year we go through our units to change filters and once a year we do smoke detector checks. It gets us in the units and tenants appreciate the service rather than resenting "an inspection"

@Account Closed 

Did you forget the verse that goes "Do not Judge; and you will not be judged"?

With a multifamily when you have a vacancy, your occupancy is usually not 0%. Really though, when we buy we are looking for good deals, so I am willing to buy either, whatever looks like the best deal at a given point in time.

In Ohio, oral leases are enforcable in court (the courts just won't enforce late fees without a written lease). I prefer month to month leases especially in "C" neighborhoods, that way all you have to do is give 30 days notice to tenants when you want them to leave and no reason is required. When we take over apartments, we have existing tenants that are already month to month, sign our monthly rental agreeent. We feel that a term lease gives the tenant more protection than it gives us (the landlords}.

I rent college apartments in my city. Here, you have to rent June, July, and the first week of August. Otherwise, you'll either have to wait for the few that start in the winter semester or market to someone else.  (I thought your place looked really nice.)

I put dishwashers in the "unwarranteed" section of my lease and tell tenants that they can use it if it's there but if it breaks they have to fix it if they want it fixed.

When you can quit or pay is governed by the state and by your lease. Where did you get your lease? Was it written by an attorney that specializes in repping LLs in your local court? (If not, I would do that ASAP so next time you'll be ready). What is the term of this lease (M2M, yearly, something else)? If it is M2M yay! you can non-renew get these tenants out try again. I have a late policy that I use to govern my responses to late rent. It's worth the time it takes to figure out what is acceptable to you so that you don't have to worry or make decisions when late rent does happen.

A little over one year in, I like being a landlord. I like searching for and finding properties. I like improving properties on a budget. I like selecting tenants. I find it rewarding to get new (and inherited) tenants trained, to find reliable subs, to make process changes and enhancements that save money, or time. I really don't even mind finding the best way to part ways with a tenant that is not working out. I do at times find particular tenants or situations frustrating but landlording is a good fit for my skill set. Self managing my properties is a startup business not just an investment and as such my expectation is that the first couple years require significant set-up time and effort. 

So I think "many people" don't like being a landlording primarily for the reasons below:

Unrealistic expectations. Landlording is not a passive investment and there is no such thing as an "easy" business startup. 

Insufficient Capital Reserves. Everything will not go perfectly and there may be startup costs that cannot be immediately covered out of revenue.

Unsuitable properties.  "Accidental" landlords that are stuck with time and money pits that don't cashflow.

Conflict avoiding personalities. Landlords that are not willing to deal with conflict will have a difficult time enforcing rules and requiring pushier tenants to toe the line and will have a difficult time managing needed contractors

Insufficient Communication, Planning, and Organization Skills.