All Forum Posts by: Malcolm Boston

@Adam Zach

Mechanical Engineer (with Masters in Biomedical) here. Biggest challenge for me is narrowing down tool investments and opting out of turning my own wrenches for everything. I found a happy medium by investing in DIYing the really expensive stuff (electrical, HVAC, rough plumbing). Everything else stimulates the local econony.

I have PV panels on my SFR. I also have a summer's worth of PV production data. Not enough yet to offer a credible flat fee billing option. I want to get a rolling 12 month average of occupied usage first. Meanwhile, electric stays in my name and tenant gets a bill from me for the electricity they use. i provide a copy of the bill so they can verify if they choose. i make it clear up front that i merely pass through the cost of electricity. i do not sell power. Tenant pays all fixed costs and whatever FPL charges for the kwh they deliver. My bill tells me how much power they delivered and how much power they received from me. Slightly higher administrative overhead for me but worth it. Lease says tenant is responsible for electric charges so if they dont pay, they get evicted.

It is, obviously, up to you. Government shutdowns remain rare though they seem to be increasing in frequency. So far, they are typically short in duration. Tenants who are Government employees are unique in that their stories are 100% verifiable AND no fault of their own. That said, business is business. In your place, I would consider the tenant's payment history. Do they have a history of paying late? Damaging the property? Being high maintenance? Can your finances survive a couple of weeks tardiness for an otherwise reliable tenant? Some on BP describe tenants as business partners to the landlord. If your partner is otherwise reliable, consider giving a little leeway.

Also, consider hybrid water heaters if you have a hot room you can put them in.

Mechanical Engineer here. To answer a question with a series of questions in relative order of priority. 1) If you can sweat copper, you can install PEX. Why haven't you submetered your units for water? Especially given your tenants' high water usage? It's a DIY job. 2) If you can wire PV, you can install electric submeters with current clamps and have your tenants pay their own electricity. 3) You didnt mention natural gas, but these can be submetered too. This is a professional/Expert DIYer level job. Commercial tenants should be paying their own utilities (and contribution to your capex), otherwise you are silently subsidizing their business. That said, tenants who pay their own utilities will be incentivised to find energy efficient locations. To that end: 1) Apply cool roof coating (DIY). 2) Consider radiant barrier in the attic space (I've used prodex in the past). You'll also find this stuff in self storage units, wineries, etc. 2.1) Install upgraded insulation and seal drafts. Ensure you are not conditioning outdoor air. Be careful you don't create an issue with makeup air. 2.2) You mentioned replacing single pane windows with glass block. Yes there is thermal mass but also the fenestration. They may not provide much R value relative to the labor to install. Consider upgraded windows from big box stores. These can be ordered and DIY installed if you're adventurous. Invest in a flir to make sure you're solving an energy loss/gain problem. 3) Passive Solar water heating will benefit your tenants and can be marketed as such. But i would submeter and make them heat their own water first. Consider tankless heaters for each unit so that they can use the solar array as a preheater but also heat as needed. That way the sun provides hot water and they pay for usage beyond that capacity. 4) PV electricity is interesting. In that it will make your submetering a step more complex (but still not difficult). It should be transparent to the tenants and you can make a little revenue back. Be careful as my understanding is you are not allowed to "sell" power to your tenants because you are not a utility company. I interpret that to mean that you can only do pass through billing and generate no profit from your tenants. You cant tack on a profit factor. I would max out your energy efficiency dollars on efficient consumption first before investing in PV.

I would take a measured approach. A past eviction would not be an automatic disqualifier but, realistically, it would move them lower in priority if i have 15 applications for the same vacancy. It means more due diligence on the part of the Land Lord. What were the circumstances? I had a dispute with a landlord many years ago over a pool that turned green and a refrigerator that failed. It could have gotten ugly. Automatically rejecting evictees means automatically taking the "side" of the past landlord. And that is not always warranted.

good idea. im planning to do the same shortly.

i fail to see how this is an ethical dilemna. Market rates are what they are. Did you get a break on your purchase price because the seller felt it unethical to charge whatever the market will bear? i think its a bit hasty to nonrenew the tenants. perhaps offering them favorable terms if they choose to stay on at the new rent rate might be better. Read: if they minimize your turnover costs. You are not running a nonprofit (at least you didnt declare that). if you want to give away money, there are numerous charities available.

my two cents: people whonare tech saavy enough to know what a roku tv is are saavy enough to have their own login accounts. My N=1 opinion is that most people only care about high speed wifi that doesnt lag.

Also consider upgrading to more robust materials at your next remodel. im a fan of tile flooring as its nearly impervious and easily fixed if keep a few boxes of tile and pick a grout color the home centers offer in small quantities.