All Forum Posts by: John Sheedy

Before building anything you also should consider the curb appeal of the property before and after. Storage units can be somewhat of an eyesore if not built and/or maintained properly. I lived in a building once that offered storage as a form of ancillary revenue but they had them in the garages so it didn't affect the cosmetic value of the building yet added $ to the bottom line.

California is tough because it is very expensive from an entry standpoint as well as ongoing costs (taxes, maintenance, etc) and it is a very landlord-unfriendly state from a legal perspective. However the rents are high and one generally has an easy time filling a vacant. No market is perfect out there but a lot of ex-California investors are loving Texas these days.

You could always submeter the building and everyone would pay for what they use. Usually runs a few hundred bucks a unit for the labor, materials, and install.

Yes to question #1.

All of the reputable ones that are apartment or real estate management association members (I will send you the names of a couple) are generally good to go. They set up a sub-account in your name and store the money there until monthly reimbursement is how it works. If you are on Appfolio I believe it's free to the tenant.

Will F.

My suggestion is having a contractor (or handyman) look at your units and give you a set price per unit type for the work you describe and say that this will be a recurring gig if he continues to do a good job. Then you know how much and can budget going forward. The type of work you describe should not cost $1660 even in LA where labor and materials are more expensive. How many units do you own/manage? You should be able to negotiate a deal based on volume as well.

OK, it's legal there I'm fairly certain. Few things to note about RUBS:

1. Can't be implemented in the middle of a lease, it generally requires a signed addendum.

2. Most 3rd party companies that do it require a service fee which for a property such as yours might be $5.00/mo added to the tenants "share" of the water costs.

3. If implemented properly it definitely boosts your bottom line (think about your water bill being reduced by 80% and do the math) but you have to make sure your tenants will go for it. You hear some stories about people not re-upping due to add'l payments. What you save in water won't mean anything if your units are vacant.

4. You can also consider doing a submetering of the property which generally runs $500/unit and will give an accurate reading of usage whereas RUBS is an estimate.

Where's your property located? There's different laws in different states even sometimes in different municipalities.

Some management companies I talk to refer to a co-applicant as a person that will be living in the rental unit but not necessarily responsible for paying the lease. Examples might be a significant other, adult child, roommate, etc.

A guarantor is a term used a lot in student housing screening. Many students obviously doesn't have the credit or income to qualify for the lease so a parent would become the guarantor even though the parent will not be living in the unit.

Guarantor - financially responsible but generally not living in the unit

Co-Applicant - sometimes not financially responsible but lives in the unit or could be a roommate with responsibility

With a guarantor most important thing is credit and/or employment, criminal isn't as technically important since they won't be living on the property.

On the opposite end of the spectrum the 21 year old unemployed kid who's living with his/her renter parents should be screened for criminal while their credit and employment history isn't necessarily that important.

Sounds like you are good to go.

http://www.ehow.com/list_7505079_transunion-inspection-requirements.html

Just no matter who you use see if you can get inspection fee waived. Many companies will do this for you and you'll save a quick $50-75.