All Forum Posts by: Linda S.

@David Lemont,

If the housing authority said 11/30, that means they won't pay their portion until December.     When a S8 tenant moves, they must give the landlord 60 days prior notice, so that's when their voucher can be reassigned.   They can sign a lease all they want-- but what matters is what the authority said when/what they will pay.   The housing authority won't pay the old landlord and you at the same time, so December 1 is when the lease would start.  It can take a few weeks, so I would reach out to them and confirm they have the right direct deposit information.   They will always pay, but sometimes it may take a few weeks to get caught up, especially around the holidays.

Regarding the deposit, in VA-- the tenant pays the deposit, the housing authority has nothing to do with it. Their job is just to ensure their portion of rent is paid.

@Glen Wiley,

In the ideal world, it sounds like a great value-add way to make more money.

In the real world, IMO washers/dryers are the biggest headaches for landlords, and the #1 reason we got maintenance calls.   About 4 years ago, we stopped including them,  and let me say-- I don't miss it for a second.  We haven't had any pushback either, people are fine with buying their own.  I often tell people-- "you're going to buy a nicer one than I'd offer anyway!"  In today's economy, people would rather see lower rent IMO and figure out a W/D themselves.   People are a lot rougher on the appliances, especially if they aren't theirs.  Just don't be surprised if that W/D costs you more in the long run.

@Brian Caulfield,

If you're going to invest in a D+ area, you need to go into it fully knowing what you're going against.    I have properties from B+ through D- (just sold the D- ones!!) and let me say, it's just different. It's different from a C type of area too, when you're in the a warzone, it's almost like a different world where there are legit different rules. 

My advice is to go on the offense.  If it has HVAC, plan for it to be stolen and switch to baseboard heat.   If you're remodeling, only buy used or cheapest stuff, because it's going to be trashed and with each turnover, good chance you'll be doing a full remodel.   You'd be amazed at how EVERYTHING in a house can be trashed.    Even stupid little things like outlet covers, can be broken.    

Do the absolute minimum with renovation, because again-- it's going to be trashed afterward, and PS. I guarantee they will skip out on the last month of rent, so you'll use your deposit, and now it's all just costing YOU. Buy bars for the windows, to hopefully prevent them from being broken.  Put the minimal amount in, because like I said-- you should PLAN on it being a full remodel each and every time there's turnover, and it'll happen more often than you think. I have C properties of tenants going on 8 years, 0 turnover, but my D- Properties-- people moved every single year, one guy got put in jail for attempted murder, and the next one spent time in jail for assaulting a police officer.. yup, that's what you should expect.

You're going to make more money on paper, but as others have advised, you'll pay for it in stress/damages.  

@Bob Stevens,

If you remove the human/life element, then price/price/price works just fine!    If it's  

It's when you realize that it's cheap for a reason, and often the reason is most decent people don't want to live there!   What you don't pay for in price, you pay for in headaches.  I used to say "it's about the quality of the house" but learned my lesson-- quality of the house doesn't mean anything if neighborhood kids are breaking in and  throwing bricks at your windows!    This is coming from someone who has bought houses at $8500  -$9500.

If it's the right location, you can rent anything and someone will live in it.   

If it's the right price (free) you can get someone to rent it, but you will always have problems and it will cost you more.  Problems you don't have at the right location-- that's the difference. 

@Faustin Hoover,

Do you think your tenants are giving you a Christmas gift, or a birthday gift-- the answer is no, because you aren't friends.  You aren't their friend.  Don't try and think for a second your tenants like you, they don't.   Most people hate their landlords, even if they are nice people, take A+ care of the hosue,   and yes, even if their rent is below market because the landlord is who takes so much of their money! '

Honestly, most tenants would see a gift as proof you are overcharging them and have extra $$$ lying around!     If it's $25, they'll think-- why not just knock it off rent, and if you can do it this month-- can you do it next month?  See how quickly that "nice" gesture gets turned around?  Get used to people hating you, they will!

@D.Y. LeeIs the 3.2x income/rent before or after that $3900 payment?  

If it's after, I'd consider if it there job was incredibly stable (ex: nurse), but if it's before that-- No, that's a lot of loan payments that will likely get paid before rent. 

We always use the most conservative approach-- after taxes/fees/etc-- what's the net or actual amount they take home, that's what they can control to pay rent with.    

@Paul F.

I think you're making this harder than it is. I simply say "Thank you for applying, but unfortunately, we decided to go with another tenant. We wish you the best of luck in your home search." Unless you want lot of back and forth, you don't have to give a specific reason in VA, unless it's something they can change (such as not bringing a dog). Short and professional is fine.

Some will ask why, but most people understand they won't get every house they apply for.  If you're listing it through zillow, I think half the people just click the button apply and don't even care or plan on moving forward.  People aren't stupid, they know if their credit is 601 and your minimum is 600 they probably won't get it.  

If they have applied, but you've already essentially picked your tenant, I'd let them know that you have a pending application,  but if anything falls through you'll reach out to them.   This way they know they are still in line, and you aren't burning any bridges if something falls through or another house comes up.   Some times our best tenants have been found this way!   Hope this helps!

@Joseph B.,

I manage our 55 properties, and let me say-- I HATE 1bd apartments and houses.     No one wants a 1bd, most people have at least 1 kid they need a bedroom for, or want an office to work from home, or a guest bedroom, or honestly just storage..   1 bedroom is the least desirable housing option.

As @Patti Robertson said, they are incredibly hard to rent, and IMO have the highest turnover.. think about it logically, a person with 1 bd isn't likely going to have kids to tie them to a certain school district, or if it's a young couple they may move, or break up... I'd estimate 85% of our turnover last year was because of 1 bedroom.

Knowing what I know now, I'd pass.  They are headaches, and no one really wants them-- unless it's for price. I can't see any section 8 people jumping to them either, again I could be wrong, but as an example we have a S8 tenant who is single grandmother, her grandkids always visit and she is in a 2bd, most are going to desire that extra room for options.

@Emily Simmons

Stupidity is overconfidence IMO.  If someone goes into it thinking it will be easy, or that other people just "didn't know what they were doing"  -- those are stupid.    If you look at others failing and think "Gosh, that won't happen to me"-- that's stupidity IMO. 

Fear is normal and healthy, you should be worried because honestly, things go wrong a lot of the time.  You should be scared, but you plan and mitigate risks.  The more you are scared, the more you should have backup plans-- that's how you handle it and then you jump in, when you know you can handle the punches, because they come often and they come hard. 

@Roman Randall,

The real question you need to ask yourself-- Do you want to know of the problems as they arise, or when the tenant moves out and then you learn they actually weren't wonderful, they just paid rent and never called you?  

We do full annual inspections each year, and without a doubt, they are crucial to keeping our houses in good shape.    We do a full 18-question inspection and go over everything-- interior/exterior/electric/hvac/etc.   There are times after a big storm, if I drive by a house a piece of siding is loose, tenants never reported that-- but I fixed it because if I didn't, it'd be water damage.   What about looking at a giant tree limb that's waiting to fall on your house, tenants don't think to report that-- but if you see it and catch it ahead of time, you'll be significantly better off.    Are the gutters clogged?  So much big stuff can be avoided by being proactive.

Tenants don't want to bother you and definitely don't want their rental rates increased,  so their motive isn't truly to upkeep the house (unless it inconveniences them).