All Forum Posts by: Kevin Collins

Thanks again for all the helpful replies—lots of good perspectives in here.

I know I’ve broken a few cardinal rules of landlording over the years, but to be fair, I didn’t enter this situation as a strategic investor—I was essentially forced into it. A few additional details that might help clarify my approach and constraints:

The tenants have been respectful and reliable.
When I moved (about 4 hours away), I felt fortunate to find tenants I could trust with the home. That peace of mind mattered a lot, especially given my distance and life circumstances at the time.

I couldn’t afford a sale or rehab in 2012.
I had just gone through a divorce and didn’t have the cash flow to cover a few months of vacancy and pre-sale repairs. The home was underwater, and a short sale would have been financially and emotionally disruptive.

They went through a hard period—so did I.
There was a stretch where the tenants were facing health and financial issues. Honestly, I felt like they were doing me a favor by covering most of the mortgage, so I didn’t raise rent. (Yes, I know—classic landlord mistake: getting too emotionally involved.)

I moved closer in 2019 but took a pay cut.
The new job was a better long-term move but initially came with lower pay and more demands on my time. I hired a property management company and that’s when I began raising the rent. They’ve signed two 2-year leases since, but rent is still below market.

My situation has improved—but cash flow is still tight.
I’ve remarried and now live in the Atlanta area. We still own the house 4 hours away. We kept it partly for family reasons, but it’s not financially ideal. We plan to sell it within the year, as soon as we can get it market-ready.

We have high out-of-pocket costs.
Our daughter has a learning disability and attends a private school with $40K/year tuition. Even with higher income now, cash flow is tight. I’m planning to refinance the rental to pull equity, pay off debt, improve my credit, and purchase a new primary residence. I do still plan to sell the rental in 2–3 years.

The management company has been a disappointment.
They’ve sent out low-quality contractors that I’ve had to replace at my own expense, and they’ve been slow to respond to the tenants—who often end up texting me directly anyway. It makes no sense to keep paying them for work I end up doing myself. At renewal this fall (lease ends Oct 31), I’ll be self-managing through my newly formed management company.

I want to scale eventually.
This is my only rental right now, but I do want to scale up once we sell the old house and buy a primary residence closer to my job. I’m treating this property as a learning lab—using it to build systems I can use to grow the business later.

With all that in mind, I’ve decided to hold onto the property just a little longer.

It’s currently cash flow negative, but the proposed rent increase would bring it close to break-even. I do still plan to sell within 2–3 years, but right now I need it to cover itself—and I think the rent increase is reasonable and overdue given the long-term underpricing and recent improvements.

Appreciate everyone who took the time to weigh in. Always open to more feedback.

Thanks!

Hey everyone—looking for some level-headed feedback on a rent increase I’m planning.

I have a 7-bedroom, 4,200+ sq ft home in Snellville/Loganville GA area. It was originally my primary residence, but I had to move in 2012 when the property was underwater. Rather than go through a short sale, I kept it and rented it out. The same tenants have lived there ever since—just over a decade now.

The home has been cash flow negative the entire time. I kept rent flat for years—mainly because the market was still soft when they moved in after the 2008–2011 crash. I didn’t begin raising rent until 2020, and since then I’ve increased it at each renewal—but it’s still well below market today.  The last increase was nearly 2 years ago. 

Currently, they’re paying $2,620/month. I’m proposing:

• $3,100/month for a 12-month lease, or

• $3,200/month flat for a 2-year lease

Last year, I invested nearly $40,000 in capital improvements, including:

• A new roof

• Two new HVAC systems

• Sewer line work

The proposed rent would put them toward the low end of the current market for homes of this size in the area. I’m trying to strike a balance between being fair to long-term tenants and finally moving this property toward financial sustainability. They’ve mentioned an eventual interest in buying, but there’s no firm timeline on that.

I appreciate the feedback.  Thanks in advance.

I’m relatively new at landlording.  I currently use a management company, but I’m considering taking that over myself (starting my own management company and scaling up as I acquire more rentals).  Right now, I only have one rental house (a former residence of mine), but plan to add more rentals eventually.  I’d like to find an attorney who can assist with the initial stages (helping with leases, other documentation needed, etc) and who would also be available if there is ever a need for an eviction or other problems.

Thanks!

@Justin Strait Did you go with Anderson? I'm considering them as well.  If you did go with them, have you encountered any of the concerns that @DongHui Patel mentioned? 

I know we need 2 years of experience after getting a real estate license to sit for the broker’s license exam.  Do we have to be actively working as a real estate agent under a broker during that time?  Or is it sufficient to just have the license for the required number of years and maintain the necessary continuing education?

I'm currently studying to get my real estate license. I have a rental property and want to acquire more, and the thought of having a real estate license and access to the MLS appeals to me (as well as possibly saving on the commission although I know I will incur more liability). I cannot work as a real estate sales agent as i have a full time career that i cannot sacrifice, but I'm also interested in eventually getting a brokers license to perhaps start a management company with my spouse in an attempt to get her qualified as a real estate professional for tax purposes. We currently don't have enough property to occupy her for the necessary 500 hrs of material participation (and will likely take some time to acquire that amount of property). Thanks in advance for any advice!