All Forum Posts by: Joe Splitrock

@Mindy Jensen is correct. Be careful of some misinformation you are otherwise being given. I recently went through fair housing training on this subject. A comfort or emotional support animal is not a pet. You cannot charge pet rent or extra pet deposit. An ESA is not a service animal and is not governed under ADA. An ESA does not have to go through training such as a service animal would. An ESA could be any breed, including dangerous breeds such as Pit Bull. There is court precedence that you cannot deny the breed, even if your community has a ban on it (scary). This applies to apartments with no pets policy and even condos with no pets covenants. It could also be other animals such as a cat, snake or a pig for that matter. You cannot ask why they need the animal, but you can ask for a letter from a qualified mental health care professional stating they need that specific animal. 

There are some ways to protect yourself. I would request the provider to send the letter directly to you. I would make sure it is a doctor or psychologist who is local to the area. I would ask that they state the specific type of animal and breed in the letter. If a physiologist thinks they need a Pit Bull, then he/she should be willing to sign their name saying it is necessary. The obvious reason to get the letter directly from the provider is to avoid a situation where your tenant creates their own letter. It also prevents them from going on the internet and paying $25 for a certificate or letter. If it is legitimate, you are required by fair housing to accept the animal without deposit and regardless of your policy. 

As @Don Konipol pointed out, if the owner doesn't meet your criteria, you are not required to accept them. 

Very impressive run over four years. I assume you do this full time? Just curious what you did before you got started and how did you transition from that to real estate full time?

Assuming this is priced competitively for the neighborhood, I wouldn't personally consider dropping price until after 30 days. As a buyer, price drops get me to take a second look at something, but after three days people may not have had even a first look! 

You will have to weigh price drops against carrying costs. Does it cost you more to wait or reduce the price? The reason I mention that is because the time of year may be a factor. As we move closer to spring there will be more buyers looking. 

One last thing to consider, are you comparing your price to what others are asking or what others have sold for? If the $60-90K is what comps sold for, then your price is at the high end. I am not saying it isn't worth it, just making the observation.

It sounds like your true concern is that if you negotiate with her, that everyone else will find out and expect the same price. That would overall reduce your property value which it sounds like you intend to sell. 

You could accept the counter offer with the understanding her lease rate is confidential. If she knows she is getting a better deal than others, she probably will not mess it up by telling everyone.

Another option may be to offer her a lease at $800 with and give her a 50% discount one of the months for signing with you. Either the first or last month. First month helps her build up some money for the increase. Last month ensures she meets her lease commitment. This allows you to get her to the new $800 rent amount and still offer her a concession for being a good long term tenant.

I require paid application and background check on each person over 18. I require them to list all occupants on the lease, so i am aware of anyone living in the property. I am not sure you can do background checks on minors due to privacy issues. There is nothing stopping you from doing a Google search and Facebook search on each occupant. You can also check registered sex offender lists. 

Also as @Dan Hatch mentioned, put something in your lease defining the length of time visitors can stay. I would also have a crime free statement in your lease that gives you the right to ask them to leave if they commit a crime in the property. You will need to check what is allowable in your area. 

The crack looks small enough to be filled with caulk unless there is some greater structural issue that is causing the brick to pull away. Out of curiosity, why are you residing the house? Assuming the stucco only needs small patching in sections, why not just repair the stucco and paint it? Stucco is a durable and long lasting material and if you get it painted, it should look great. Just a thought.

You should talk to a lawyer, but I will share my thoughts on the subject.

It seems you need to establish if the use is exclusive and if converting it would release you of the easement. You solution to convert sounds good if it works.

Have you had any discussion with the neighbor about this and what their understanding is? Is it necessary to drive on his property to access the garage? 

I had an older applicant that had only part time income that didn't meet my criteria for the home she was renting. I told her based on income that I couldn't approve her application.  She told me she would write a check for the entire year. She wrote a $16,000 check to me. I called my bank to verify funds with her bank and after checking on it they told me it was totally legitimate. Her bank said she had plenty of money and was a great customer. I was told it is not uncommon to see an older person pay cash for rent like this. I did a Google search and found out she owned a business for years, so the source of the money was legitimate. She stayed one year and left the house identical to move-in. I was concerned but it all turned out fine. I just wanted to share my story so you can see that although unusual, it doesn't mean there is a problem. Good luck!

For years I never charged an application fee. I was concerned that taking money from someone would make it harder if I denied them, which it could. If you deny someone after taking their money, they have more invested than if it was free to apply. 

Over time I noticed I was getting lots of applications from unqualified people. I determined some people just apply everywhere they can, hoping someone will accept them. If you charge a fee, those people will go away. Better yet, if you say you charge a fee in your advertisement, they will probably not even call you.

Now my process for applications is to review the application before taking their money just to make sure they look good on paper. If they don't have two references or sufficient income, I reject them and give them their money back. I don't incur any cost beyond time, so no big deal. I am not trying to profit from applications.

I charge $35 per adult and I tell prospective tenants that after their application is accepted, I will credit the fee to their first months rent. 

You will get objections to the fee and you may get less calls. Just keep in mind you are looking for quality and not quantity. 

Hi Barry,

Welcome to the forum. I am in the Sioux Falls area. I wish you best of luck. I got started myself after reading Rich Dad Poor Dad. It is a great book to show you why investing in rental property is a good idea. BiggerPockets is a great resource to show you how to invest in real estate.

Joe