All Forum Posts by: Kim Meredith Hampton

Rick

Treat this like a business. I think you are letting your feelings get in the way of making bad business decisions. You really should non-renew them now and let them find something more affordable. Be extremely cautious when processing your next applicant, this one seemed doomed from the start. I use the 3x rent for my first barometer, steady employment, good credit, and of course 3 years of rental history. Stick to these tools, and you should be significantly happier with your next renters 

Sara, Just very slow this year in long and mid term. Where are you advertising?

It also has been one of the slowest rental cycles this year than almost any that I can remember. No time to start too high, it just creates a slow death and makes the listing stale

I’m going to share some of my thoughts when I talk to new investors;

Are you pre approved, and for how much? 

What is your risk tolerance, and are you ok with properties that need work, or do you want turn key?

We run calculators on what you can expect for expenses beyond your mortgage, I don’t like surprises. And always set aside reserves for the unexpected.

always look at location, schools and is there an area that is gentrifying where we could take advantage of better appreciation 

Inspections are paramount. Due diligence is key before you sign on the dotted line

Build a network of a great property manager, lender and maintenance team

Depending on your budget, I usually would start with at least a duplex, triplex or quad. Of one unit is vacant, at least you have money still coming in on a monthly basis. With SF, if it’s vacant, you have no income

Eric,

Without going into too much detail on each line item, at first I use my back of the napkin method with a 40-50% expense ratio. A lot of lenders used to apply 35% for expenses, but in the last several years, the numbers for supplies, labor, utilities, taxes, etc… have increased significantly.

Also take into account the age, occupancy and how has the property been maintained, this will affect the expenses too

Daniel,

If its something you really like from all accounts, get with an inspector and property manager to give their thoughts on the area, condition of the property etc... Try and get some referrals on here from other ivestors

Felicia,

Look first to see if there are other quads in the area, as your only zoned now for three units, so at minimum, you could probably make this a triplex in lieu of duplex. 
Will need to know density, parking requirements, can the building withstand building on top, lot size, future planning etc…. depending on how well the zoning and platting dept plays with others! It’s worth a look see, just do your homework up front before hiring the other professionals to make this happen.

Good luck

Have you went and knocked on the door? Texted?Have a process server physically give the notice of non renewal. and as Teresa said, try calling from a different number

@Ray D. I have used NES for years at a 10 unit I own. Received a letter that they are more than doubling my monthly fee + a $50 meter reading fee, and unfortunately this is a cost that the state does not allow us to pass along to the tenant! I told them to remove their equipment at the end of this month. I will just have my bookkeeper bill a flat amount monthly from Jan 1st on. 

Obviously, it’s better to have the units submetered, but I know sometimes it’s cost prohibitive. Look around and see who is in your area and pricing. Ask chat GPT to create a spreadsheet for you will all the information you want

A lot of this process depends on your laws regarding STR and Mid term leases/occupancy? Did they sign a lease or are they still considered STR? How long have they been there? How do they pay?