All Forum Posts by: Mary M.

I think folks get confused as we hear about big businesses "writing off" income. They can do this as they reported their income (and paid taxes on it) using the accrual method of accounting- which means they report the income when the service or sale happens - not when the funds are received . So, if something is uncollectible they will need to "write it off" to reverse that previous recognition of income and to remove it from their tax returns. 

Most (but not all) investors use the Cash accounting method where we report our income and expenses when they are paid  or received.  Therefore if rent has not been paid it has not been reported or taxes paid on it therefore no need to "write off" anything. 

A couple thoughts: regarding "writing it off"  - you can only write off expenses - you can not write off income not received. 

Second: Can the OP research Covid rent assistance for the tenant? The tenant would need to (possibly) comply, but it would be worth looking into it asap.   one program here in OR I was able to get 2 months of unpaid rent and did not need the tenants direct input (Tenant had applied for other assistance that had not yet come thru).... 

You really need to be insured unless you can self insure.  I cant believe your insurance would be that expensive as my 6M properties ins is 6k/year., 

I have BO insurance (business owners) and it is for apartment owners.   I would suggest talking to a commercial Insurance agent. 

@Scott M. Thanks for your reply. It makes sense that one whole month at move in no matter when they moved in is so the PM can collect their fee.  I do prorate up to about the 15th and anything after that is all paid at once (ie if the move in on the 25th they pay 5 days + a full month) .  and All my rents are due on the 1st.   I would go crazy trying to keep track otherwise lol! 

One thing I try to recommend to all new folks is to take classes at their local Rental Owners association. This is where I learned most of my "best practices" and I think it can really set folks up to know what is working in their specific locale and type of property. 

@Anthony King My recommendation was to provide yard service during the leaf fall times - this would be a total of maybe 150 and should be provided as tenants are not generally going to maintain the yard. I have learned (the hard way) that providing maint for my assets is the best way to ensure my assets stay in tip top condition.  I provide weekly yard/cam maint at my buildings. The reason I said dont raise the rent (at this time)  is it would feel punitive to the tenant - of course rents need to go up over time, but check state laws on when and how much but raising rent right now after she complained could look like retaliation.    Someone else mentioned a fence so sure, that could work (could be much cheaper than 10k)  but just having the yard maint during leaf fall would be the cheapest and easiest solution. 

I live off my rentals....  and you are welcome to apply when I have an opening....  :) 

I would set up weekly yard maint for the fall during leaf drop.  I would not increase rent (this type of maint is really not the tenants responsibility IMO) I would NOT send a snarky "susan is a pain" response. That will just make you look bad. 

Long term a solid fence is great.  Short term a maint co to clean leaves for a couple months in the fall. 

Your response to your tenant should be caring and honest. "Thank you  for letting me know about this issue. I will deal with this by doing XYZ.  Let me know if you have any further issues or if you have questions. "

Can you explain why? I know the big box places do this but its not anything I have ever done....

This can be totally location driven....  here housing is really in low supply so sometimes its hard for folks to find a place at the end of their current lease....   so just be sure to do your due diligence. 

@Dan Marl  I generally will work with tenants to a degree....  I try not to let my apts sit longer than 2 weeks so If say the place is vacant on the 1st I have it cleaned and ready to go by the 7th and tenant wants to move on the 1st of the following month, I would see if they would start the lease on the 15th of the current month. This will give them 2 weeks to move etc.   I have never had anyone walk away from a lease doing this, but your locale may be different so just be sure to do the math and be flexible if needed. 

As for how I charge the rent - I prorate the first month and the rent and deposit is due in full before they move in.  Then next month full rent is due as usual.  If for some reason the tenant is moving in the last week of the month I collect the prorated rent and the rent for the next month all at once. 

Flexibility is key but set up your rules so you apply them fairly and equally to everyone. 

Your bank should have a notary and usually its free.  Many other places have them too (mail box store, UPS store, fed Ex etc)