All Forum Posts by: John Lenhart

To try and answer your question, and this is qualified on the fact we don't know how much you want to invest and if you plan to keep your day job, but,

If you are looking for something that is close to mailbox money, find a NNN property. The downside is the returns are low and it is risky when a tenant lease ends and they move to a much larger location. However, if you have the right tenant, and they tend to be a national tenant, it can throw off a consistent return.

I have a feeling you may be trying to talk about this type of property but I am just speculating without more specifics

@George T.1) I have an attorney I work with in Ohio who is a qualified intermediary. I am happy to send you his info in you are interested. His rates are reasonable and I have done 2 1031's with him in the last couple of years. PM if you want his info.

2) You have 45 days from the close of the sale of your property to identify up to 3 replacement properties. If you already have your property, this is easy and done already, but you have at least 45 days to identify up to 3 you may want to purchase. Once you identify them, you have up to 180 from the closing date of the sale of your property to close on the replacement property.

3) no, there is no issue buying property in different states. As long as the property meets the like/kind rules, it can be located anywhere.

1031's are fairly simple to execute but must meet the strict deadlines for the IRS to recognize them.

@Megan S. I know if you become a member of your local apartment association or REIA they often offer courses or point you in the direction of trainings where you can be certified as a fair housing provider. I know you probably are already up on the rules but as a marketing tool it is nice to be able to place the fair housing logo on your advertising.

@Megan S. one thing that is important is to list your screening criteria or rental criteria on your application. For example, our criteria states you must have gross income of 3x rent, and cant have a recent eviction (3 years) and cant have a violent crime of drug offense  in the last 10 years.

This way the applicant can see what you are looking for before they waste the time to apply. 

We use the time threshold on dealing with former felons because we feel it balances the interest and safety of others in the community with the limited chance of recidivism for the applicant (HUD has come around to this approach too). Just because someone did something dumb when they were 18 does not mean they are the same person at 40 as they were back then. Therefore, we will give someone a chance if they are far removed from a prior felony.

The only question I have about your advertising criteria on who can be turned away, is that the only groups where you can actively advertise that you accept have to deal with senior or student housing. Outside of those 2 subgroups, you cant discriminate on age or familiar status. Is this what you mean in your advertising?

@Megan S. I think social responsibility is important for a landlord. If you are dealing C/D class tenants you want to be considerate of their situations because they don't have the means for excess fees and constant rent increases but still deserve a good place to live.

1) Know the law, make sure you don't interfere with their quiet enjoyment of the premises, but also make sure they respect their neighbors rights too.

2) Hold them accountable. The majority of your tenants pay their rent on time. However, sometimes circumstances occur where they will be late. Work with the tenant, but still hold them accountable. Give them a 3 day eviction notice early so that they can seek the help of a non-profit rent assistance company to help get them over the hump and keep them in their unit. 

3) Do not waive the rent yourself because it is unfair to the other tenants who pay on time, point them in the direction of agencies who can help them. The apartment building is a collection of neighbors who live together and the landlord often acts as the arbiter. When one tenant does not pay the rent, they are harming their neighbors as much if not more than the landlord. It is socially responsible to make them move.

4) Keep ads general and inclusive. Let the tenant decide they do not want the unit and weed themselves out.

5) Make sure you qualify your tenants thoroughly. Especially on income. It is nice to help the tenant get a good place that is affordable however, do not set them up to fail. Make sure they can reasonably pay the rent, put food on the table, get to and from work, and have a little left over for discretionary income.

6) Create community space. People need to interact with each other. The more they can know their neighbors the longer they will stay and better they will like the property.

7) Stay out of your tenants personal lives.  You are just asking for trouble if  you get involved too much and it can get turned back on you.

8) don't lock yourself into a specific rental term/contract language that prevents you from taking action. Limiting rental increases to 90 days notice or other potential changes or actions, limits your ability to manage effectively. Sometimes you may need flexibility in this language to remove a problem tenant who is effecting the whole community in a negative manner.

@Rich Wells - we are looking at a property on the East Side that would be perfect for this type of project. Would love to hear more about the non-profit and if we may be able to help.

It will depend on the state you are located in. Typically, many states allow you to file a 3 day notice to vacate on the day it is late, unless the lease states otherwise. However, some states, and counties have additional requirements in the eviction process. If you choose not to consult an attorney, oftentimes, you can call the local clerk of courts to get advice on the eviction process.

Are you sure they are bed bugs? We have tenants who swear they see bedbugs but often is not the case. We use the Clearview bed bug traps between turns and also use them when a tenant first complains of bugs to ensure they know what they are talking about. If they do in fact have bed bugs, we call the exterminator and bill the cost to the tenant for treatment.

@Eugene Rogachevsky Yes, I have used Inspections Plus on a 25 unit complex we purchased 2 years ago and Finegan for a 50 unit and 40 unit building we purchased recently. Both do good jobs. They work primarily in the Cincinnati market, but I do know Finegan will go to Dayton (it is less than 40 minutes from his house).  I don't do single family but I think they do single family too.

Depending on what part of dayton, I always recommend Inspections Plus or Finegan Inspection Service. Both have done a number of inspections in the Northern Cincinnati market And they cover most of Dayton too