All Forum Posts by: Lois Ginter

I am looking into getting a workers' comp policy for the business to cover subs.  In this area, there are a lot of under employed trades people that will work for a good rate, but they don't carry insurance.  I don't want lack of insurance to be a barrier to employing a good worker for other projects.   Also this will cover my but, in the event the service provider has a lapse in his or her policy.  

If I use the tenant, it would be strictly for snow removal on an as needed basis, and pay as you go.  There are usually two or three "snow events" a month,  in any given winter.   I wouldn't go the rent reduction route, too many complications.  

I am a woman just starting my venture as a landlord.  I have 25 years of tax, HR, accounting and systems project management experience in Fortune 250 companies from my previous career.  While I know I have much to learn about being a landlord, I seem to get a lot of unsolicited and obvious advice from the male gender on how I should run my business, especially from people not in real estate. 

Ummm Dude.....,I know I need to file taxes, do the bookkeeping, screen tenants, have strong leases, insurance, and know a bit more that the average dame when it comes to structural issues and maintenance since my parents were builders.  What I don't know I will research, and what I can't do I will hire an expert.   Funny none of these men were around "helping" when I was working my tail off in cubicle hell and saving the money so I could go into business for myself.  

Not to bash you men out there, but ladies, do you have the same experiences?  Does your gender make you a target for stupid advice on the obvious?  Do men think that you don't know which end of the hammer to hold?  Is reading IRS publications and filing a tax return really on par with launching a rocket? 

Be careful with this process, as some tenants are aware of these provisions, and quit paying the utilities.  If you know the move out date, you can transfer the account to your name in advance.  I included this clause in my lease as well to make sure that tenants get the accounts in their name prior to move in.

• Tenant shall be responsible for arranging for and paying for all utility services required on the Premises. Tenant will show proof of utility accounts, or account numbers registered in his or her name for the premises no less than two days prior to occupancy. Utilities paid by the Tenant include natural gas service and electricity. Tenant shall not cause any interruption or disconnection of service during occupancy due to non- payment of utility bills or other reasons. If the Tenant fails to pay for required utilities, the expense of the Tenant’s unpaid utilities billed to the Landlord will be deducted from the Tenant’s security deposit.

This is my first gig as a landlord, but I worked as a business analyst and accountant for Fortune 250 companies for 30 years.  One of the biggest frustrations with internal business partners was  push back on stating expectations and requirements up front on projects, and then hearing that "You never told me that" when things went sideways.  

I'm not trying to micro-manage peoples' lives, but I also want a list of dos and don'ts so that tenants can expect a safe, respectful and clean place to live.  My first rule is: 

Report to the Landlord in a timely manner any defects, maintenance, or damage in the Tenant’s Premises, or the inside or outside common areas, so the Landlord may remedy in a timely manner and maintain a safe and comfortable environment for the enjoyment of the Tenants.

I have been reading a lot here about what to include in lease agreements, and like the idea of setting expectations up front to tenants and exercising consistency with the rules.  I also believe that having a comprehensive set of rules is proactive in regards to preventing maintenance problems and retaining good tenants since everybody is agreeing to the same standards of conduct. 

However, I am getting advice in real life that with low income tenants, too many rules will make it hard to attract tenants, and that since the leases are month to month, and I can terminate with 30 day notice, that being conservative and comprehensive is counter productive.   I can see the logic in this, and I am not trying to be a control freak, but I want to put common sense things in the leases like no flushing diapers down the toilet, not storing abandoned vehicles on the property, not storing items in the common areas, no hazardous materials, etc, and recovery of expenses related to various issues. 

I own four duplexes that are side by side in a struggling area. So BP folks, am I being too cautious?  What is the sweet spot with these type of tenants? 

Regarding the workers' comp policy, and since it varies greatly by state, how did you get a policy without W-2ing?  Not sure if my policies are considered commercial or not, but they are written specifically for small landlords like me.  Also, if I am living in one of my properties, and work is being done on my residence, does that matter. 

There are handyman insurance policies that he could get on himself as well, but I want flexibility to cover more than one person cocasionaly for demolition, and yard work.

I have four duplexes and have $500K liability on each property.  I have a handyman lined up, who doesn't have workers' compensation.  I am willing to pay for his insurance, because I have about two months of steady work for him to do, and his hourly rate is cheap.

Is there any type of additional insurance I need to cover a workers' compensation situation, or is there some type of insurance he can take out on himself, and I just pay the premium for him?  

Home Depot has a project loan credit card with fixed 8% APR up to $50K, and a long repayment plan. I am doing the same thing as you and financing repairs with a no interest credit card until I get cash flow.

I'm just getting started here, but most people I talk to seem to think I made a good purchase.  I paid cash for 8 doors, and average monthly rent is $600.  

I owned a house in Parkwood Hills on the west side, and Epic is driving the prices up on that side of town.  Downtown is crazy expensive now.