All Forum Posts by: Lynn McGeein

Our longest tenant was with us for 18 years, actually lived there before we bought it as well, and while it was a win-win -- house paid off with a little cash flow over the years and she got a great value -- it taught us to keep all our others closer to market. Afterwards, we renovated and doubled the rent, so a lot of cash flow missing over the years, although I would never have made her move.

Our longest currently active one is going on 10 years, but we do raise the rent every 2 years or so, although it's still slightly under current market as it initially rented to them during the great recession so started lower than normal. The units that turnover more frequently rent at current market, so there is a benefit to turnovers as long as there isn't too much work involved, but I prefer long-term tenants at slightly under-market rent.  

People who say they only smoke outside usually mean except for when it's raining, snowing, they're entertaining, etc.  So no, not worth the risk.

For my own rentals, I don't accept applications until I've met them at the unit -- this weeds out many. Then I verify employment and check rental history before having them pay for and complete online screening. Application states first qualified applicant who signs lease and pays deposit and first month's rent will get the unit, so they should let their prior landlords and employers know to look for my inquiries as that can hold up their application.  The online screening is not refundable, but I'm not involved with payment, so I don't have to return any money. I've had applicants get upset when they pay for screening and then don't get the unit, but most realize it's their own fault as they either waited too long to sign the lease and pay the funds or perhaps one person in a couple didn't complete their screening before another who really wanted the unit just got it done.  I used to process in order of receipt and give qualified applicant x days to complete lease and payments, but I lost other qualified applicants while waiting. This works much better for me as it's on the applicant to make things happen before someone else does.  If they are not qualified, you have to give a reason or adverse action letter, but if you're dealing with qualified applicants, it really is just that another qualified applicant finished first. 

I try to refer 2-3 lenders depending on client's circumstances.  Lenders have their strengths and weaknesses, so matching the lender with the client can help both immensely.  For instance, I have one lender who is wonderful with renovation loans.  I have another who is best with jumbo.  And sometimes, calling 2-3 for estimates can help you save a lot of money over the life of the loan.  If you already have a good one, then definitely worth using again, but if your last one did not work out well, find a better fit. 

Since it is not attached to the main structure, could the lender just confirm it is not an attached structure, that the main structure is not within a flood zone, and hopefully not require flood insurance?  Or because there is living space above the detached garage, they're requiring it?  I know if any part of the main structure is within a flood zone, even a teeny tiny corner of the crawl with nothing in it (like 2 feet square in one of my rentals) then they require flood insurance. But my understanding, not a lender or insurance agent so not 100% sure, is that they can exclude structures that are not actually attached to the primary residence.  Also, I've read on here about special flood vents -- is it possible you could just have those installed in the garage to eliminate the insurance requirement?

I would say most prefer post cards, as I get probably 10 of those to every 1 letter from NC investors asking about our NC properties. We probably get at least one a week, so there's a lot of competition out there.  I liked the one that had the alien on it.  The new thing is I've been receiving a bunch of texts, so someone must have had a seminar or something, but I had to ask quite a few to remove my name from their list.  

Current owner is treating so I would create a plan for when you move in, like 1) give notice to M2M tenant as soon as you close; 2) ask tenants to put any pet on active flea treatment, and 3) have a pest company provide blanket treatments periodically until problem is solved.  Then change rules of lease when possible to include tenant is responsible for keeping their unit pest free, including fleas, roaches, etc., and have pet policy address requirement for pet to be on active flea treatment (receipt from vet for proof, maybe? -- I already require proof of current rabies and local pet license if applicable)  For multi-family, however, one tenant can create problems for all units, so I actually feel more obligation as owner for pest treatment for attached units versus detached single family.

I don't purchase it on investment properties in X zones because they apply a $250 surcharge to each policy because you're a landlord, not an owner occupant, it doesn't include personal property, and it appears to be higher rates. It just takes it from something I'd consider to, No, thanks.  For my owner occupied home, I get $250,000 max coverage on home and $100,000 personal property for about $550, I think.   The estimate was about the same annual cost for $100,000 in coverage and no personal property on a townhouse I own, also Zone X.

My understanding is if home is already under a flood policy, those rates can transfer to new owner, although that may be only for owner-occupied. I know there is a $250 surcharge on investment property per policy, as that is why I do not purchase flood insurance for my units where it is not required. It would be a reasonable expense I would consider without adding $250 per property extra.  I caution my clients against purchasing in a flood zone unless they feel the purchase price makes it worth the risk, and that if buying with a loan, they are prepared if flood rates increase drastically as the flood insurance market is still in flux, and lenders can force-place insurance if it is required and you don't have it. 

@Richi Brown  Yes, that is true.  I actually have relatives and friends of former tenants calling me to see if I have anything available before they look elsewhere.