All Forum Posts by: Jim Shepard

Several problems with taking a years worth of rent upfront. Your State may not allow it. Most will not allow that much deposit. Another problem is how many renters can afford a years worth of rent upfront? Where did it come from...drug money? Another problem would be if he was a problem tenant. Getting the rent upfront will make it harder to evict him if necessary. I wouldn't just pass on this one but run!

Since both units are not working, check the disconnect outside to make sure it is on. They may have left them in the off position.

He could gift you and your wife $14,000 each for 2017. He could then have you sign a promissory note for the $2000. In 2018 he could then forgive the note.

Ted Klein I use "tenantbackgroundsearch.com" for credit checks & background searches. They offer 3 different levels of searches that cost $20 to 30 per applicant. If they use a Lifelock type of program, they need to turn it off. Tenant reimburses me upfront for the cost.

I always meet prospective tenants at my office to do the credit and background check. I approve them on the spot or reject them based on this information. If they pass I have them sign the lease and get all of the money upfront. This takes them "off the market" because until they give you money, they will keep looking. In your case since you had a couple of days worth of work to do, just start their lease 2 days later.

I would suggest that you look at your rental market to decide whether you get white or stainless. If you aren't replacing all of the appliances I would stick with the white so it matches. I actually make the refrigerator optional and charge $25 per month extra for it. About half of the renters will have one. This way it saves your tenants the hassle of where to store the extra one and you the cost of purchase / repairs.

Blake Pruett I would suggest waiting until you are out of pharmacy school. After graduating you may decide to take a job elsewhere and your deal is too thin to pay a property manager to take care of it. I bet you know a pharmacist John M.? Tell him the Subway guy says hello!

The only time a tenant may use the self cleaning feature is during moveout. If there is too much grease buildup it could start a fire! I go with the simple ovens for my rentals.

I think your decision should be based on what your competition has to offer. In my area I don't have to supply a garbage disposal. I have one or two calls a year with houses that have them so I now yank them between tenants. If the tenant causes a clog I will take care of it the first time myself. After that my plumber goes out and I bill the tenant for the clog. None of my Northern rentals have sprinkler systems so it's not an issue there. My rentals in SW Florida all have sprinklers. I require the tenants to take care of the water bill. I did just get a letter from one of the municipalities that my tenant was watering on the wrong day. No charge the first time. $100 the second time. $200 the third etc. The PM is getting ahold of them. I don't have any houses with alarm systems. If I did I would make the tenant responsible for any maintenance and monitoring.

Some words that I have lived by were spoken by Kemmons Wilson (founder of Holiday Inn). He said "I work the first 40 hours to keep up with the competition. I work the second 40 hours to surpass the competition"! Yes to become wealthy takes sacrifice. Something most people will never understand. To get where I am today I sold our house and moved my family into a rental. Sold some toys (cars) and invested everything we had into a business. Thru working 75 -80 hours a week for many years and reinvesting the profits back into the business, we were successful. I still put in 55 - 60 hours a week and occasionally still have to sacrifice but not like the beginning. Some people will say getting wealthy takes luck. Someone else said "the harder I work, the luckier I get". It's working hard but smart. Let it sink in...