All Forum Posts by: Josh L.

I've got a property in a good location, but the kitchen needs updating and the carpet will be changed to either a laminate or hardwood.

I know I'll need to do the flooring update when the tenant moves out- I saw the carpet and the carpet downstairs can't be saved.

But, should I also update the kitchen at the same time I update the flooring? When I do the kitchen, I'll switch out the current tile countertops for granite and I might get new Ikea cabinets too. 

On one hand, if I only upgrade the flooring when the current tenant moves out and then do the kitchen later on when the replacement tenant moves out, then I can market the property each time with brand new X when I'm looking for a tenant.

But, if I only do one upgrade at a time, I'm afraid that the tenants will not be impressed and regard it as half-finished. Will I still get the same bounce from wood floors if the kitchen itself is kind of shabby?

Its Class A-ish. Good location with views and some updates to the bathroom, although the kitchen needs work. 

When the carpet goes, I know that I'll go either with  engineered hardwood or laminate. 

But, I'm just concerned about the tenant damaging or scratching the hardwood floors. 

The carpet in the living room downstairs needs to be replaced, but I don't know about the condition of the carpet upstairs. They still might be fine. 

I know laminate or hardwood is popular for the common spaces, but what's popular for the bedrooms- hardwood/laminate or carpet?

Does it make sense to put in wood flooring in a rental?

When my current tenant moves out, I know the carpet will need to be replaced. 

Normally, I wouldn't even consider installing wood flooring to replace the carpet because of their vulnerability to damage by the tenants. But, I noticed that a number of the comps are using wood floors which is making me reconsider my stance. 

There's tile in the most trafficked areas in the kitchen and adjoining dining room which is where you enter. And, there's carpeting in the upstairs bedrooms, stairs, and for a living room downstairs.

If I put wood flooring in those areas where the carpet is right now, would I still need to worry about damages to the wood floors since those are the less trafficked areas? 

And, how much wood flooring would I need to put in to to increase the marketing and appeal of the property? If I put in wood flooring in just that downstairs living room and kept the carpeting upstairs, I wouldn't be able to still market it as wood floors? Just saying that it only has wood floor sounds awkward. 

I'm willing to let my tenant stay another month after original year lease expires.

Since, its just for another month, do I need them to sign a brand new multipage lease with attachments and everything?

Or, could they sign the lease extension forms I found on the internet like this:

http://www.adaboston.org/Lease%20Extension%20Agree...

or something like this:

http://nationalparalegal.edu/documentMovies/realPr...

Is one lease extension form better than the other?

I wouldn't set my rents by what Zillow said, but I find their numbers to be much closer and more in the ballpark compared to Rent-O-Meter's numbers. And, Zillow is just as quick and easy to use as Rent-O-Meter.

You should try and test it out to see what I'm talking about. Take a SFH, where you have a good idea what the market rate is, and compare that versus the numbers you get from Rent-O-Meter and Zillow.

 This isn't 2005 anymore so I don't know why anybody would still use Rent-O-Meter given all the problems you yourself acknowledge that it has- it doesn't differentiate between a apartment vs a single family home, doesn't factor square footage, doesn't  factor in bathrooms when there's a big difference between a 3 bedroom with 3 bathrooms vs 3 bedroom with only 1 bathroom, etc...

Zillow  isn't guaranteed to give you a perfect comp, but I feel that their algorithm takes all that various factors into account which Rent-O-Meter doesn't. 

Originally, I start off where the security deposit was equal to one month's rent. But, every time you increase the rent, do you also increase the security deposit so that it continues to be equal to the new amount for one month's rent?

Otherwise, if the tenant has been there awhile and you've increased the rent each time, there could be a big disconnect between the increased rent and the original security deposit.

If you do increase the SD each time, how do you go about doing it? If the rent increased by a $100 dollars, do you have the tenant give you a check for $100 for the SD? Or, do you return the initial SD to the tenant and have the tenant write you a new SD that covers the whole SD?

What's the headline? Without a strong headline, a lot of applicants won't even read the rest of your ad. 

What's your biggest selling point? Is it that it was renovated recently? The Donelson neighborhood? Or, that it could be used as a 4 bedroom? (If you're marketing it as a possible 4th bedroom, then why limit it to only 4 total occupants?).

Whatever the biggest selling point is should be your lead sentence or headline . I'm assuming the title would already say how many bedrooms and baths so don't repeat it again in the first sentence. Otherwise, you're burying your best selling point by starting off about how the place is 'crisp, fresh, and clean.' 

I have no idea what 'crisp' and 'fresh' means here. And, any place that's up for rent should already be 'clean' so it really doesn't differentiate your place from any other rental.

I would get rid of 'excellent curb appeal'. You should show it with a photograph, and not need to tell it. 

Photographs are important, and should reinforce your writing. When you write about the large secondary bedrooms, then the photos should show that those bedrooms are large. 

I would not say its close to an airport because that would convey it might get noisy from all that air traffic.

And, I would also list a way for applicants to contact you through your email or text and not just by phone. 

I would take that discussion with a grain of salt. The person who was so adamant that an ETF would not be legal was also the same person who claimed, "Non-refundable fees are not legal in CA." But, that's not true. Otherwise, we wouldn't be able to collect a non-refundable application screening fee. 

If you know what the fair market rent is, how would you price your rental so that its just below fair market rent? Would you determine that as a percentage of the fair market price, or are you just subtracting $X dollars from the fair market price?

I want to price my rental below the fair market price to reduce how long it stays vacant and to attract enough qualified applicants so I can pick and choose the best possible tenant. 

At the same time, I don't want to leave too much money on the table by pricing it too low. Sometimes, I have this nagging feeling that I could have asked for more money.

If I priced it significantly lower than fair market price, I could accomplish those goals. But, if I priced it higher but below fair market rate, I could still accomplish those goals while keeping more money for myself. 

Let's say I determined the fair market rent should be $2800. I've checked Craigslist, called landlords, MLS, etc.. And, I know with certainty that's what the comps have rented out for.

What would you price it so it'd be just below fair market rent and still accomplish my goals?

$2795 would be below fair market prices, but that price difference doesn't seem significant enough to make a difference.

If I priced it at $2500, 10% below fair market price, then it seems I'm leaving too much money on the table.

I'm looking for that sweet spot, that just noticeable difference, where a qualified applicant would view that as just enough to notice it was cheaper than the comps but without giving away the store at that price.