All Forum Posts by: Nathan Gesner

Liberty Management or Larsen Properties.

I have something similar to this and include it with my move-out packet. When a tenant gives notice, I acknowledge their notice in writing and provide a list of common questions (e.g. "When can I get my deposit back?"), a list of cleaning instructions for each room and the exterior (single-family rentals). I also give them a link that takes them to a hidden page with estimated costs of cleaning and repairs.

It starts with a disclaimer, "This is an estimate sheet only. The actual cost of cleaning or repairing may be more or less depending on your situation." 

General cleaning, mopping, dusting, washing windows: $25 an hour

Professional carpet cleaning: $0.25 per square foot or more

Clean appliances: $50 per

Clean bathroom: $75 and up

Mow lawn or weed removal: $40 an hour

Replace damaged or missing window screen: $50

Replace lost key: $10

Replace lost garage remote: $40

Replace missing/burned out bulbs: $5 each

Replace broken blinds: $75

Clean or replace HVAC filter: $15

Again, these are just some examples and it is far from a complete list. I believe my list has around 50 items listed under two category headings: cleaning and maintenance.

I can't share my list but it wouldn't be hard for someone to make one or to find examples from others by searching Google.

Go to the web site for the National Association of Residential Property Managers (NARPM) and search their directory. CLICK HERE These are professionals that voluntarily hold themselves to a higher standard. I searched for Sacramento and came up with about 60 different managers so that should give you a good start. 

Many of them will post their rates on their web site or share it with you via phone or email. But I often warn people not to judge solely on rates and to be careful about hidden fees. I happen to be the most expensive property manager in my area but I also provide more services and better services than the competition. I also make my owners more money, even after paying my higher fees. Just look at the whole package and do not be afraid to ask them questions, review their forms, ask about their policies and what-if them to death. 

1. Do not hire the tenant.

2. Get a second opinion for the repairs because three days sounds like a long job. I recommend getting a second opinion until you have built a long relationship with a contractor and can trust them implicitly.

First, you should have a written policy on how you screen applicants and how the applicant can secure the rental. This keeps you straight on your own policies and it protects you if someone ever complains. My policy is first come, first served and I do not take the property off the market until the security deposit is paid and paperwork is signed. If the applicant keeps going back and forth instead of making a decision, they may very well be dragging the whole thing out while shopping for other deals. Until they are willing to commit, your property stays on the market and they run the risk of losing out.

Second, I agree with @Peter MacKercher about the other applicant. If they are chomping at the bit to pay $200 above the advertised rate, I see three possible reasons:

1. 1. You priced the home too low for the market;
2. 2. They are offering more in an effort to blind you to deficiencies in their application; or
3. 3. The market is so tight that they can't find anything else (similar to #1)

I see a lot of owners burned by #2. Someone walks up flashing rolls of bills and offering to pay extra rent or even several months in advance. The owner's eyes glaze over and they don't screen the applicant very well (or at all) because they don't want to lose the money. But the applicant lives outside their means or exaggerates their abilities and everything falls apart within a few months. In the end, the owner loses more than if they had gone with a tenant willing to pay market price.

Call the first applicant. Explain you have other people interested. Give them 24 hours to pay and sign the lease or it stays on the market and goes to the first qualified buyer to complete the process. Then work on your application screening/approval process and put it in writing so you can avoid this problem the next time.

The tenants have smoked inside, damaged a door, damaged your lawn, had complaints from neighbors, paid late, paid utilities late, etc. And your concern is making sure they walk away happy?

I would run it like a business which means you need to protect your asset and your income, not worry about them feeling good about the transaction. Give them 30 days notice in writing and don't budge. It's not your fault they live paycheck to paycheck. It's not your fault that they violated the lease by smoking inside or ruining your lawn. I'm willing to bet you will spend more on the cleaning and repairs than 

Situations like this are how amateurs get themselves into trouble because while you are trying to be nice to the tenant, the tenant could care less about you! I see owners give the tenant time to find a place, save up for a deposit, etc. But what actually happens is the tenant "saves up" for the deposit by not paying their rent on your place! They know you can't force them out in less than 30 days so they just stop paying rent while they find a new place. They also know you won't be giving them the deposit back, so they don't care about damages and they certainly won't clean on the way out the door. You end up losing a month's rent, the cost of cleaning and repairs, plus additional lost rent while turning the place around.

There's nothing wrong with treating people honestly, fairly, and respectfully. That doesn't mean you have to let them walk all over you.

Most renters have their own furnishings. If you rent it furnished, your pool or renters gets smaller because. You also increase your risk of financial loss because they can damage or steal your furniture. If only recommend furnishings if you are doing short-term or vacation rentals, or if it is a small studio or 1-bedroom unit.

There are managers who rent exclusively to college students, most of whom have no credit, no Landlord references, and little income. These managers are successful because they have specific policies and procedures in place to handle the inevitable problems. Try linking up with some to get ideas on how they do it.

I've never heard of a law limiting the number of unrelated people but I know there are rental policies that address it. I do not allow more than two unrelated people. Two friends or a boyfriend/girlfriend is OK allowed. I will not allow three friends to rent together or a boyfriend/girlfriend with a third friend. I will allow a husband/wife and then a friend. Or even two siblings and a friend or a parent/adult child and a friend.

Unrelated people have no bond to tie them, making the relationship easy to dissolve. People bonded by blood or marriage tend to be committed. I've seen friends of 10+ years rent together and six months later they aren't talking!

When friends rent together, particularly three or more, something almost always happens to ruin it. There may be a personal conflict over cleanliness or one Tenant steals food from the others. Maybe someone is always late paying their share of the utilities. Or maybe tenant A catches Tenant B using his toothbrush. Then there is the risk of one tenant losing their job or being transferred. The remaining Tenants can't afford the rent so they either break the lease or rush to find a replacement and things go from bad to worse.

In my experience, multiple friends do not work out. You have no legal requirement to rent to a group of friends. Set a written policy and stick to it. You will be better off!

I would inspect their units and payment history first to see if I want to keep them. Get rid of anyone that is marginal and raise that unit to market rate for new Tenants. If you want to keep someone, sign a one-year lease with a small raise. Do it again the next year until they are caught up, or close to it.

For example, if a tenant were $200 below market, I would give them 60 days notice of a $100 increase and one-year lease. In that lease I would explain they will be hit with another $50-$100 increase at renewal a gear layer. This rewards them for being good Tenants while giving them plenty of time to adjust. But you MUST verify they are worth the trouble!