All Forum Posts by: Jill F.

Quote from @Benjamin Aaker:

I'm on the other side. I prefer having the long-term lease. Here's why:

1. Why aren't you just starting with a MTM lease? If you are worried about the bank, then you would want to continue leasing up annually. I've never had my bank inspect my leases. Maybe it's different for others.

2. MTM tenants are always one month away from leaving. Then, you have 2-4 weeks of down-time when you are surprised that they left you. They were so happy there!

3. It's hard to raise the rent on MTM. You always worry they will leave.

4. The end of the yearly lease is a great time to raise the rent, sensibly, and following the market. I put on a premium for MTM. Tenants that are willing to pay this are the ones I know will be leaving within 12 months. Now, I'm prepared.

5. To the tenants will leave when they want to argument: They certainly will with MTM, with a contract, there is at least a thought about staying. You can sue them for breaching your agreement.

6. Tenants under longer term contract in my experience take better care of the place. Your mileage may vary.

You are in the landlording business and you've got to run it that way. Keep reupping the contracts and know when they will leave.

I have not found it difficult to raise rent on m2m tenants. In fact, when difficult (usually newly inherited, end of lease term) tenants don't sign my rental agreements, I'll tell them I"m going to raise the rent every 30 days until they get my paperwork turned in. That stops that nonsense. every. time. 

If a tenant really needs to move, they are going to move whether they
have a lease or not and you have a duty to mitigate the loss. Usually I get a bigger increase when turnover a unit than I would get from an in place tenant, so I don't worry about it if a tenant decides to  move.

When I operated in "D" neighborhood world, I would only do m2m leases. When you sign a lease, you give the tenant a possessory right to your property that courts take very seriously. It's much harder to get out a rent paying bad actor if they have a lease. In Ohio at the end of a lease term (including m2m) you don't have to give any reason for the non-renewal, you just give 1 months notice and say we'll not be renewing your lease. And to my knowledge, there are no grounds to defend a holdover lawsuit. I did know a landlord who had a non-renewed tenant get granted 6 months to find a new place but they still had to pay rent and they still had to leave in 6 months.

Hahahaha. I feel sorry for the cops. People are crazy. At least she didn't shoot at them.

Quote from @James Wise:

Quote from @Jill F.:

I seriously doubt that carpet was laid over wet blood. It was probably laid over a stain and even if it was (now, it's just a stain). People die in buildings all the time. The police could have just been messing with her because that's so ridiculous. $500!!?? No. A biohazard clean up a year after the fact?? Oh good grief. Understandably upset? what does she think is going to happen to her? Why is that understandably upset? You don't owe her anything.

 More likely than the Police messing with her and telling her someone died there last year is her just making up the part about calling the Police because she wants out of the lease.

 That's most likely it. You're right.

I seriously doubt that carpet was laid over wet blood. It was probably laid over a stain and even if it was (now, it's just a stain). People die in buildings all the time. The police could have just been messing with her because that's so ridiculous. $500!!?? No. A biohazard clean up a year after the fact?? Oh good grief. Understandably upset? what does she think is going to happen to her? Why is that understandably upset? You don't owe her anything.

Insurance on new purchases. Most of my portfolio is 70s-90s vintage multi-family in NE Ohio. I own a ten unit where I still pay $40/door/month (dp3); in Jan I purchased a 6 unit and it was 70/door/month. I'm in the process of buying an 18 unit now and the first quote was $115/door/month. I sure hope we get some better quotes. My agent says everything over 30 years old is now through the tertiary market? no one else will write the policies. This is broken.

Quote from @Jeff Printz:

Quote from @Jill F.:

 ...buy a 40-55 unit 1978-2000 value add preferably (town-house style) apartment complex in an A-B neighborhood.

 Where in the world would you find an apartment complex that large. A/B with only a million dollars?

 That's the down payment.

That's all we ever get on commercial portfolio loans. We only have one lender that will fully amortize the loans and generally they aren't the lowest rate. most have a balloon after 5 years or if we're luck we might get one reset and then a balloon

I have found that people really high in entitlement are the worst neighbors, the worst employees, the worst co-workers, and the worst tenants . And here's the thing about sex offenders, the level of entitlement required for someone to convince themselves that it is somehow okay for them sexually abuse another person's body is just incomprehensible.

 ...buy a 40-55 unit 1978-2000 value add preferably (town-house style) apartment complex in an A-B neighborhood.