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All Forum Posts by: Nathan Gesner

Nathan Gesner has started 316 posts and replied 27552 times.

Post: How to increase rent 300% in 90 days?

Nathan Gesner
ModeratorPosted
  • Real Estate Broker
  • Cody, WY
  • Posts 28,238
  • Votes 41,447

My guess is they don't even have a written lease or it is a decade old. Check your local laws to see what the requirements are for notice and then provide them with the appropriate notice.

Now, you want to run the property like a business, but that doesn't mean you can't have a heart. These people have lived there a long time and will probably have a difficult time finding a suitable replacement they can afford. So if you are required to give them 30 days, you may want to play nice and give them 90.

I would not immediately assume you will have to kick them out. If these are good tenants, maybe they are willing to pay a higher rate and stay in the home. Let's say they were paying $250 a month and the rental is worth $1,000 a month. Perhaps they are willing to pay $750 and stay in the home. The cost of renovating could easily cost you a year's worth of rent, plus you could have 1-3 months of lost rent while renovating and looking for a new tenant at the higher rate. That process could take you 3 - 5 years to break even!

If the tenants are good, my preference is to hit them with a big increase but still keep it below market and give them time to adjust. I have done this many times and increased their rent every three months over a one-year period. This enables me to keep good tenants with a proven track record, avoid a vacancy, etc. You have to look at the whole picture and count the costs/benefits from different angles.

Post: Management Software with Smart Phone App

Nathan Gesner
ModeratorPosted
  • Real Estate Broker
  • Cody, WY
  • Posts 28,238
  • Votes 41,447

I use Propertyware and they are mobile friendly. Tenants can log into their portal on mobile devices to submit work orders, email us, submit payments, etc. It also has a mobile app for property managers where I can see contacts, leases, balances due, email conversations, work orders, vendors, etc. It's very handy in the field.

I believe Buildium, Appfolio, and other major providers include mobile apps, as well.

Post: Eviction & PM conflict

Nathan Gesner
ModeratorPosted
  • Real Estate Broker
  • Cody, WY
  • Posts 28,238
  • Votes 41,447

@Michell P. it sounds like you are taking the right step by firing your PM. I assume you will need to hire a new manager. Let me suggest you go to www.narpm.org to learn about the National Association of Residential Property Managers and search for a new PM in your area. These members voluntarily subscribe to a higher level of ethics and are generally better educated than most. It's at least a start.

Question: how did the tenants get two months behind if they were on housing assistance? HUD is a guaranteed payment unless they were dropped from the program. Did they allow their coverage to lapse? Are they making too much money to qualify and are now responsible for the entire rent?

A payment plan may be an option in certain circumstances but I wouldn't recommend it in this case. It sounds like these are young, irresponsible tenants. If it were me, I would proceed with eviction immediately and try to cut my losses.

I'm not an attorney and I don't know what your relationship is with your PM but I would consider pressing them for lost income. First off, the PM should have been notified that the tenants were losing HUD assistance (if that is the case). That should have been enough to start the eviction process or try to work out a payment plan in November, not December. Secondly, the PM should have office procedures in place to deal with unpaid rent. In my case, I hit tenants with a late fee on the 5th day of the month and file a 3-day Pay or Quit on the 10th day. This enables me to get the tenant out within 30 - 40 days after rent is due, which cuts losses dramatically. It sounds as though your PM didn't do anything until after the tenants were late a second time, which means you are already 40 days behind the curve. If they have policies in place that were violated, you have grounds to push for compensation.

Long story short, evict and fire the PM. But make him/her work for their remaining days!!!

Post: cash for keys

Nathan Gesner
ModeratorPosted
  • Real Estate Broker
  • Cody, WY
  • Posts 28,238
  • Votes 41,447

Check with an attorney before attempting this. 

I agree with @Nicole W. Make sure you get the details in writing and do not hand them any cash until they have turned over the keys and you have a chance to inspect the unit for damages. When you make the agreement, make sure you tell them that you intend to continue with the eviction process "just in case" and then do it. You want to be prepared for the worst-case scenario.

I have never personally used this technique, though I was close to it a couple times. It should definitely be a last resort and you need to be prepared. Have an agreement built now, not in the heat of the moment. Make sure it includes significant penalties for when the tenant changes their mind or trashes the house.

Post: Eviction before tenant is in default?

Nathan Gesner
ModeratorPosted
  • Real Estate Broker
  • Cody, WY
  • Posts 28,238
  • Votes 41,447

Not an attorney. If you are on a month-to-month lease, give them written notice of termination and then wait. All you have right now is a statement that they do not intend to leave. You may consider sending a follow-up letter citing the law and that you intend to take them to court if they refuse to abide by your notice.

I don't know what your laws are or what your lease states, but I have a clause that says their failure to vacate results in "Holdover Fees" equal to 3x the monthly rent rate, prorated for the number of days they remain in the unit. If rent is $1,000 and they refuse to move out, they will be charged $100 a day (daily rent rate of $33.33 x 3) until they vacate. I would also have all the paperwork lined up so that you can file the very next business day after they refuse to vacate. Notice from the court is usually enough to motivate tenants when they know they are in the wrong.

Make sure everything is documented!!!

Post: Prospective tenant with collections & judgments on credit report

Nathan Gesner
ModeratorPosted
  • Real Estate Broker
  • Cody, WY
  • Posts 28,238
  • Votes 41,447

running a credit/criminal background check doesn't work if you have no idea how to use the information. They have collections or judgments in their past and apparently STILL can't afford rent because their co-signers are going to pay it for them. That sounds like someone too immature to take care if a rental! Are you so desperate that you have to take this person?

Everyone should have customized criteria to determine the worthiness of an applicant. With my criteria, I wouldn't touch them with a ten-foot pole.

    Post: Do you need to send a itemized list after eviction?

    Nathan Gesner
    ModeratorPosted
    • Real Estate Broker
    • Cody, WY
    • Posts 28,238
    • Votes 41,447

    Not an attorney. If they were legally evicted through the court and a judgment was made against them then your obligation was met. I don't know of any state that would require you to notify them again.

    Post: service animals of a tenant's guest

    Nathan Gesner
    ModeratorPosted
    • Real Estate Broker
    • Cody, WY
    • Posts 28,238
    • Votes 41,447

    Not an attorney. I recommend you talk to HUD or an attorney for assistance but I'm pretty familiar with the issue and you probably should allow the guest to visit. HOWEVER...you do have the right to verify that the person has a disability that requires the use of a service animal. If you contact HUD they can help you track down some sample policy or forms to use.

    I require people with service animals to fill out a form requesting a waiver of my no-pet policy. Then I give them a sample letter that must be placed on the letterhead of the individual qualified to prescribe the need for a service animal. This ensures it is verifiable and current. It scares away about 75% of the people because they are trying to manipulate the system.

    I would also provide a letter to your tenant stating that he is responsible for the condition of the home and that the law still allows you to charge for damages. I would then give him an estimate of professional cleaning costs and odor removal. Once he sees how much he will owe to remove any evidence of an animal in the unit, he will probably tell his friend not to bring the dog any more!

    For more information, CLICK HERE

    Post: Property Management Company Criteria

    Nathan Gesner
    ModeratorPosted
    • Real Estate Broker
    • Cody, WY
    • Posts 28,238
    • Votes 41,447

    Be sure to look at the documents: Management Agreement, Lease Agreement, Landlord or Tenant Handbooks, etc. Ask how they deal with late rent, turnovers, security deposit deductions, application screening, lease violations, lawn maintenance, how often they inspect, lease renewals or extensions, etc. Basically, think of all the things that could go wrong and see how they deal with it. Take notes and then compare them to the next company. Try to investigate at least three managers before selecting one. And make sure you have a way to terminate without penalty if they don't perform!

    Post: Need a PM in the St. Louis, MO area

    Nathan Gesner
    ModeratorPosted
    • Real Estate Broker
    • Cody, WY
    • Posts 28,238
    • Votes 41,447

    Go to www.narpm.org and search for managers there. Members of the National Association of Residential Property Managers voluntarily subscribe to a higher ethical standard, have more education, and are generally motivated to provide a higher level of service instead of idling collecting rent. It's a good plate to start.