All Forum Posts by: Wesley W.

Just give 60 days notice this time and increase their rent 13 months' worth this time around.  Next year, give 60 days notice for the annual increase.

Well, as I self-manage my own portfolio, the amount of vacancy between tenants is usually zero.  I require a 45-day notice to vacate (MTM leases only).  As soon I receive notice, I post up my ads, using stock pics I have from when the apartment was vacant.  I do all of the viewing while the outgoing tenant is still in place, and get it leased up with a new tenant before they vacate.  I also ask the current tenant if there are any maintenance/repair items that need my attention, and I address that while they are still in possession.

Oftentimes the current tenant will leave prior the end of the month depending on when the last weekend falls, which also gives me a few extra days to do any needed cleaning or repairs.  In rare cases when the move-out/move-in gap is too narrow and more repairs are needed, I just tell the new tenant that I will be back during their first week of possession to take care of x,y,z. 

Good property managers are a true asset, but the contract often does not incentivize the PM to be quite as vigilant as an owner would.  No one will care more about those concerns more than you.

So, I have to ask....how does this play out with vouchers?

In my local market, they still use carbon copy vouchers, which get mailed out on the first of the month.  This means, you get them around the 5th (even longer if a weekend occurs during that period).  You retrieve the voucher from your PO Box, fill it out and mail it back.  You'll be thankful if you get your check to be deposited by the 20th.  Seems to me eviction proceedings should have already commenced by then.  How is this legal?  It's the arrogance of the HA to require acceptance of these programs here in NYS, yet operate with a system that habitually pays the landlord late.  Try that gambit with your taxes here!

This is one of the many reasons my many property owners refuse to deal with these programs.

@Greg Scott nailed Question 1.  

For Question 2, I would bill the tenant directly.  You could set up a payment plan, but I would not protract it out more than a few months (depending upon asset class - the higher the rent, the fewer payments).  You don't want a situation where they leave, owing you rent AND the balance on this damage.  You lease should stipulate that the costs of any damages during tenancy are owed as additional rent.  If it doesn't, revise it for next time.  An additional benefit to this is that if they don't pay, you can evict them for non-payment.

Question 3: it sounds like the scope of damage would not justify an insurance claim.  This is damage caused by your tenant, and therefore the liability as well.  You already know the insurance would not cover the other unit's damage, so why put a claim on your policy history?  Not worth it.  Charge the tenant, then pursue them in small claims in they don't make good.

I would look at a variety of sources (I market on CL, FB, Zillow, Apts.com) and compare the existing inventory to yours and compare amenities, such as off-street parking, W/D hookups, square footage, neighborhood, updates, etc.  Be honest with yourself about how yours compares to these.  You will see a continuum of quality/desirability which will coincide with prices.  See where yours falls in that continuum, and you've got a rough idea on price.

You can also use rentometer.com for a gauge as well.  The more data sources you look at, the more confident you'll be in your pricing.

Absolutely vet the co-signer as you would any other applicant.  Many suggest to have a higher debt-income threshold for them (5x or higher), since they will essentially be financially responsible for two households.

Also have them sign a "performance guarantee" and make a deposit.  Here's a document that developed after the one in Brandon's Turner's book.  As always, run it by your attorney if you have concerns.

THIS LEASE GUARANTY IS HEREBY MADE BETWEEN _______________________ (“Landlord”) AND ___________________ (“Tenant”) AND _____________________

(“Guarantor”)

Tenant has leased from Landlord the rental unit located at _____________________________________

__________________________ (“Premises”). Tenants intend to sign a Lease Agreement specifying the terms and conditions of this rental on ___________________________________. Landlord intends to execute Lease Agreement after the signing this Lease Guaranty Agreement by all parties.

Guarantor guarantees to Landlord the full performance of the Lease Agreement by the Tenant. Guarantor agrees to be jointly and severally liable with Tenant for Tenant’s obligations arising out of the above referenced Lease Agreement, including but not limited to unpaid rent, property damage and cleaning and repair costs that exceed Tenant’s security deposit. Guarantor further agrees to waive all notices about any default by Tenant, including nonpayment of rent. (For example, if Tenant fails to pay rent on time or damages the Premises, Landlord has no duty to warn or notify Guarantor, and may demand that Guarantor pay for these obligations immediately.) All matters concerning this tenancy will be addressed through the Tenant, not the Guarantor.

This Guaranty shall remain in full force and effect and will not be changed by any extensions or renewals of the Lease Agreement. Guarantor shall remain liable under the terms of this Agreement for the performance of the Tenant, unless Landlord relieves Guarantor by express written termination of this Agreement.

Landlord and Guarantor agree to waive trial by jury in any action or proceeding brought against each other on any matter arising out of the Lease Agreement or this Guaranty Agreement.

If Landlord and Guarantor are involved in any legal proceedings arising out of this Agreement, the prevailing party shall recover reasonable attorney fees, court costs and any costs reasonably necessary to collect a judgment.

Guarantor agrees to pay a performance guarantee deposit in the amount of $___________ (refundable after Tenant legally vacates the unit and after all obligations under the Lease and this guaranty have been met).

ALL OTHER TERMS AND CONDITIONS OF THE ABOVE REFERENCED LEASE AGREEMENT SHALL REMAIN THE SAME.

I know cash is tight when you first get started but I would suggested fostering a relationship with a local landlord/tenant attorney in your area.  They will know the local laws and should be able to provide documents that comply with statutes. Believe me, this will be money well spent when you look back during your landlording career. You are also establishing a professional relationship so when the S--t hits the fan, you have someone you can call to handle it.  They will also be enforcing a contract that they provided to you.  That's a win-win!

Agree with @JD Martin.  Here we have to properly evict, and store for 30 days.  My lease states they must pay for storage fees to get their stuff back.

In your situation, I would move to evict.  If she left the utilities on and her possessions were still present inside, you'd have a hard time making the case to a judge that she absconded.

One "short cut" you could try is reaching out to her and explaining your situation with her still in legal possession of the unit and not paying rent to ask her to send you a "return of possession" notice (search it up online) to stop the accruing charges to her.  You may even proactively negotiate to waive some of what's currently due if she does this within 3 days, or whatever.

What I've suggested is essentially a "cash for keys" scenario, which I'm philosophically against - but it is a solution you could try.

It's tough if your market is not a retirement destination area or one that has a dearth of locum medical staff.  One thing you can try is significantly reducing the rate for the off season.  I own a vacation rental in central FL in a large retirement community and in the summer I advertise it for hundreds less than my carrying costs.  I'm thrilled if I get anyone because it mitigates the loss in the low season.  Many of my summer bookings are folks that have sold their home but are waiting to close on their new one, or are in the area to take care of a relative.

Yeah, for $1M it would be just a few hundred here and I'm in one of the most expensive states in the U.S.