All Forum Posts by: Penny Clark

Hi Gordon, Is this property still available?

Before we paint our interior rooms, we use a mixture of Dawn dish washing liquid, white vinegar and water, particularly if there is grease, food or nicotine stains. Painting over dirt - even if it is not oil-based- may still cause new paint layers to crack and peel over time and may also not allow the paint to bind correctly to the surface. I know this is definitely true when painting exterior surfaces. I've linked an article you can read about that below.

Even though "everybody does it" doesn't mean it's a good practice to follow!

http://www.nytimes.com/1986/07/13/nyregion/home-clinic-painting-over-dirt-a-brush-with-disaster.html

@kevinmcginnis , I look at the amount as well as the type of debt it is. More than $1000 in collections is a red flag for me, specifically if the type of debt is utilities or judgements. 

@kevinmcginnis, although some applicants will balk at the fee, run a background check on anyone 18 or older who applies. Let all applicants know beforehand what your rental criteria is by giving them a written copy of it or by including it in your ad. Tell them the minimum credit score, income to rent ratio, what amount if any of outstanding debts is acceptable, etc. If they don't know what their credit score is refer them to creditkarma.com. I also give them a copy of the report if they don't pass the screening process. 

I would first invest in upgrades to conserve heat - thermostats that can't be readjusted by the tenants, inspect and seal gaps along windows and doorways, etc. If your tenants are on a current lease that includes utilities, you'll have to wait until it reverts to a month to month. When it does, you can do one of three things: raise the rent to compensate for included utility cost; draw up a new lease showing landlord no longer pays for electric and gas and transfer it out of your name ( If you go this route offer a small rent decrease to compensate); If tenants have low to moderate income, they may qualify for cash discount from company to help pay their bill. In Sacramento, both SMUD and PG&E have these. SMUDs program is called HEAP and PG&Es is called CARES. I keep applications on hand for this purpose; or, you can start fresh, by not renewing the lease and get new tenants in who are okay with paying their own utilities. I encourage all our owners to have any electric and gas accounts put in tenant's name and include water in that as well. Reason being it makes tenants accountable for their use and, if these services are provided by you in the lease you may be stuck paying them even when the tenant stops paying your rent.

Hope this helps and good luck!

@Michael R., I agree this is a delicate situation, but the compassionate thing to do would be to let the tenant know you do not intend to renew his lease because you want to make necessary repairs and improvements. This way it will give him some time to make other living arrangements. He clearly cannot afford the rent on his own and you cannot subsidize his tenancy. If you want to be a "nice guy" let him keep most of the security deposit. You're better off to get new tenants in the property.

Good luck!

Advertising your rental and including part or all of your criteria can boost your chances in finding quality tenants and eliminating deadbeats. However, take care criteria is nondiscriminatory by taking a Fair Housing class and having an attorney review it.

@Eric Kang, I manage my own properties because they're in my city. However, if I lived more than an hour away, I'd hire a property manager. Being in the business, three things I'd look for are:

1) What is their response rate like (Do they return emails and calls within a couple hours or sooner)? Are they willing to answer questions you have such as vacancy rate in the area, how they handle repairs, etc. WITHOUT you signing a management agreement?  If they brush you off or return your call two days late, that is what you can expect when you sign with them.

2) Are they willing to send you the management agreement and lease they use prior to signing so you can review it? This way, you can review the lease up fee, management fee, how they handle utilities and other payments as well as vendors. A professional company will not have any issues sending you that information.

3)  I would also want to know how long they've been in business, how many units they manage and what management experience they have. For example, if your properties accept housing vouchers, what experience do they have with these programs?

We all want someone to care for our properties as we would, so put in the time to ask these questions. Resist the urge to settle with a company who may offer the cheapest deal. Just my two cents!

Good luck!

@J. Martin, now that is a plan to get excited about! I will definitely consider starting one!

I agree with @Nicole W and others. Do an addendum and add him to the lease. Spell out who gets the deposit when they move out. And, more importantly, all parties are responsible for meeting the rent - even if one of the tenants moves out.