All Forum Posts by: Michael Peters

Most states don't allow you to deduct for future repairs.  A judge would likely call that wear and tear regardless of the level of damage.  Items should be fixed to include a charge to the tenants.  If the replacement is warranted and covered by the deposit I would definitely hold the tenant responsible and replace it.  

There's nothing wrong with doing the work yourself.  You can find an easy invoice template online, but typically a deposit disposition is all that is required in most states.

We gave that a try as well using Rently.  Its definitely convenient but we had very little success.  Aside from the risk mentioned above I'm a firm believer that the leasing agent makes the deal not the property.  In all aspects of customer service people want to talk to people not machines.  A leasing agent can address concerns on the spot that the tenant might have, they can possible negotiate an incentive for the right tenant, encourage someone to submit an application, or just show them that your tenants mean more to the PM then just the rent.  If a tenant is comparing one company with a self walk through to a company with real people the leasing agent will win out 9/10.  

Make sure your everything is being passed through by the city before starting anything.  Historical renovations come with a lot of extra baggage and loop holes.  Seen a few projects get shut down in Des Moines after the property guidelines weren't followed.  

Great advice so far.  Sounds like you've already signed the purchase agreement and are just waiting on the closing date.  

Make sure you get all relevant documents prior to close including move in pictures, catalog, tenant applications, contact information, rental certificates, and maintenance records.  Make sure you get security deposits from the owner before you sign!

Just like a vacant property turn over I would do you a thorough inspection and address any deferred maintenance.  Better to start off on the right foot with the tenants and prevent future more expensive issues.  Use this as a reason to meet them to go over your expectations and how you handle maintenance requests.

The idea of mold can make people go a little off the rails.  Sadly her refusing to run the hvac system will only make her allergies worse.  Have you verified that the filter was being changed regularly before the test was ordered?  I also provide these at move in so there aren't any excuses and it can add years to the systems life.  If the dated filter was never changed at move out or during my annual inspection I charge the tenant for a service and cleaning.  This is part of the expectation for maintaining the property.  My lease includes the following "If the tenant fails to change the furnace filter,any repairs to the furnace if caused by the lack of filter maintenance shall be assessed to the tenant."

I would make sure to send a follow up email to your last conversation so you have it for your records.  Stick to the facts and that you are unable to move forward with any additional repairs due to the cleared air quality test.  I would also provide the contact information for a reputable duct cleaning service and allow them to complete this at their own cost should they choose.  I would also make sure to mention that since the tenant is choosing to not operate the hvac system they will be responsible for any damages that occur as a result.

Bear the storm until move out but be prepared for any petting work requests that result.  You've done more then enough to accommodate their concerns.

Open concepts are in.  Older homes can be very choppy and some rooms go to waste.  Shot for properties that have adjoining Kitchens, Dining, and Family Rooms.  On the other hand older homes sometimes have odd spare rooms that can be converted into additional bedrooms for little money.

I agree with @Max T. call some local experts to see if they have any other solutions.  If you don't want to spend the additional cost to install brand new systems you can simply average out usage over the past 1-2 years and add a monthly utility charge to your lease renewal or amendment.  Not a perfect solution but its a step in the right direction.

I would have them complete an application and run a background check.  Since they don't have a lease I would treat them as if they were applying for the property.  As I'm sure many here will agree inherited tenants can be some of the biggest headaches after a purchase.  If they don't meet your criteria have the seller remove them as a closing condition.

Its nice to meet a fellow DSM Investor.  Des Moines does have many lower income areas that are still great neighborhoods to invest in but this can change from street to street.  Before pulling the trigger I would recommend looking at local crime reports targeting violent crimes and walk the neighborhood.  If your not comfortable doing so or see some troubling things I would think twice about investing there.

Regarding recently remodeled properties a lot flippers in the area do pretty shotty jobs on these lower income places.  If you can't tell yourself you should be able to make that determination with a good inspector during your due diligence.  Make sure to be present and make use of their time with plenty of questions.  Good enough typically will only cost you more down the line when things start to break.  But if the numbers work they work.  Just make sure to budget for higher repair or cap ex.

Had a tenant move in and request the kitchen cabinets be moved down 6 inches to accommodate her height.  Heated blanket kept tripping the breaker in her bedroom multiple times a time and requested we rewire the room to accommodate it as it was required for a medical condition.

Had another tenant put in multiple requests convinced the property had ghosts or a past murder.  Asked if we would split the cost of having the property exorcised after I wouldn't let her out of the lease without penalty.