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All Forum Posts by: Peter Sinclair

Peter Sinclair has started 2 posts and replied 65 times.

Post: Would You Rent To This Applicant?

Peter SinclairPosted
  • Duarte, CA
  • Posts 65
  • Votes 54
Originally posted by @Ihe O.:
Originally posted by @Peter Sinclair:
Originally posted by @Ihe O.:
Originally posted by @Peter Sinclair:

Stick with the minimum requirements you set when screening tenants. Its good to be empathetic but don’t get caught up in their situations. 

If you require a minimum credit score of 650 and the tenant has a 635.. stick to your minimum. If you have minimum household income requirements such as double or triple the rent.. stick with it! Her alimony isn’t set in stone... what if the husband doesn’t pay?

There were times I felt bad turning down a renter, especially after they’ve paid a $40 application fee but I have to remind myself these are the rules of the game.

If you decide to turn her down, you can always pass the buck of blame to someone else. For example, I tell my renters that I just manage the place and the “owner” makes the ultimate decision.  In your situation I would say “ I pleaded on your behalf and explained everything to the owner but they decided not to waive the minimum requirements, If I could rent it to yah.. I definitely would.. I’m sure you’ll find a place better than this one anyhow.” 

Since you are giving that advice what is the difference between a 650 and a 635 credit score.

 The difference could be attributed to many factors, such as maxing out a credit card, being late on a payment, having your credit run multiple times. A 650 credit score ranks higher than 40% of US consumers, whereas a 635 credit score ranks higher than 36% of US consumers. 

Not that I consider it relevant for a rental applicant  - I don't -  but the difference could simply be down to putting a large item that you can perfectly afford on  interest free credit at Loews.

Even with your example, I can argue that if you can perfectly afford something, why not just pay it off? What if after this large purchase you get laid off from work and you can afford these interests free payments anymore.

Since differing credit scores have a myriad of affecting factors, i chose to screen my tenants against minimum credit score as it provides an objective reference point for me to make decisions rather than leave them up to questionable, subjective interpretations of ones credit score.

It would be unethical if you feel what you’re doing is wrong and unjust. 

Post: Would You Rent To This Applicant?

Peter SinclairPosted
  • Duarte, CA
  • Posts 65
  • Votes 54
Originally posted by @Ihe O.:
Originally posted by @Peter Sinclair:

Stick with the minimum requirements you set when screening tenants. Its good to be empathetic but don’t get caught up in their situations. 

If you require a minimum credit score of 650 and the tenant has a 635.. stick to your minimum. If you have minimum household income requirements such as double or triple the rent.. stick with it! Her alimony isn’t set in stone... what if the husband doesn’t pay?

There were times I felt bad turning down a renter, especially after they’ve paid a $40 application fee but I have to remind myself these are the rules of the game.

If you decide to turn her down, you can always pass the buck of blame to someone else. For example, I tell my renters that I just manage the place and the “owner” makes the ultimate decision.  In your situation I would say “ I pleaded on your behalf and explained everything to the owner but they decided not to waive the minimum requirements, If I could rent it to yah.. I definitely would.. I’m sure you’ll find a place better than this one anyhow.” 

Since you are giving that advice what is the difference between a 650 and a 635 credit score.

 The difference could be attributed to many factors, such as maxing out a credit card, being late on a payment, having your credit run multiple times. A 650 credit score ranks higher than 40% of US consumers, whereas a 635 credit score ranks higher than 36% of US consumers. 

Its like you didn’t have to pay for staging at all! 

As long as you note it does not come with furniture you’re good. 

Post: Would You Rent To This Applicant?

Peter SinclairPosted
  • Duarte, CA
  • Posts 65
  • Votes 54

Stick with the minimum requirements you set when screening tenants. Its good to be empathetic but don’t get caught up in their situations. 

If you require a minimum credit score of 650 and the tenant has a 635.. stick to your minimum. If you have minimum household income requirements such as double or triple the rent.. stick with it! Her alimony isn’t set in stone... what if the husband doesn’t pay?

There were times I felt bad turning down a renter, especially after they’ve paid a $40 application fee but I have to remind myself these are the rules of the game.

If you decide to turn her down, you can always pass the buck of blame to someone else. For example, I tell my renters that I just manage the place and the “owner” makes the ultimate decision.  In your situation I would say “ I pleaded on your behalf and explained everything to the owner but they decided not to waive the minimum requirements, If I could rent it to yah.. I definitely would.. I’m sure you’ll find a place better than this one anyhow.” 

Originally posted by @Jody Schnurrenberger:

@Peter Sinclair, thanks for the links.  :-)

Your duplex didn't have doorbells or you replaced them with newer ones?  Did you actually do the wired kind or wireless that plug into an outlet?

Before you put in ductless a/c and heating, did they just have window units?  You definitely upgraded them for sure!  I first learned about these types of units when I lived in Korea in the 90's.  They were really common there, though I'd never seen one here.  I'm sure the tenants will be much happier than with a window unit!

Funny that you mentioned putting a motion sensing light in the bathroom.  I JUST (like in the last hr) saw a video about ways to update your bathroom and that's one of their suggestions.  lol  My concern was 2-fold while watching the video.  1st, what about when I'm in the shower?  How does it know not to turn off?  If it stays on for a longer time, doesn't it waste power when I leave after just a quick trip to the toilet or do I just turn it off in those cases?  Too many questions about all that.  lol  2nd, I don't like turning on the light in the middle of the night when I go to the bathroom.  I have a night light and that's it.  (I'm a girl and don't need to see well enough to aim so long as I can find the seat.  lol)  For those reasons, I discounted the idea of a motion sensing light in the bathroom, but maybe I should revisit it, especially if I ever have trouble getting renters.  I can see how it provides a wow factor, as you said.  :-D  Good for you!  I hope they love it and aren't consumed by dumb concerns like I am.  lol

 I just placed the Ring Doorbells over the holes from the previous doorbells but I didn’t wire them. I gave the tenant the instructions and special tool for removing and charging the battery. So far it been 5 months and the tenants have yet to charge them... both are at 78% 

One unit didn’t have any type of AC and the other had a wall unit. The type of renters we aimed for prefer a luxury still of living lol 

As for the bathroom sensor light.. the sensor is only linked to the light fixture above the mirror.. there’s a separate switch for the light over the shower for that exact reason. 

Instead of asking them what their income and credit score is.. just tell them what the minimum qualifications are to rent your place. 

For example, Ive told my potential renters that the owner requires a minimum credit score of 650 with a household income of at least double the rent. People will usually respond, no problem I fit that criteria and then we schedule a tour. If they don’t they usually let you know. 

Originally posted by @Jody Schnurrenberger:

What special touches or amenities do you add when you renovate?  I'm not talking about paint color or flooring until you do something special like an accent wall in red or cork floors.  I have some upcoming projects, so here's my list...

Some are things they would like, such as #3 and others are things I do simply to protect my home, like #1.  And some I only have to do once, like #1 and others I do every time I renovate and possibly at every changeover like #5.

1.   Apply varnish under sink cabinets to prevent water damage in case of leaks.

2.   Add door stops to protect walls.

3.   Add 1 USB outlet to the kitchen and each bedroom.

4.   Label the electrical panel.

5.   Flush the water heater.

6.   Check every door for squeaks, loose hardware, or sticking and fix them.

7.   Be sure the address number is on the street, mailbox, and house.

8.   Provide a fire extinguisher for the kitchen.

9.   Provide a stick stopper for all sliding glass doors.

10. Ensure all properties have gutters and gutter guards.

11. Trim dead limbs from trees.

12. Seal all holes in exterior of house such as around water faucets.

13. Aerate lawn and apply fertilizer, lime, and weed killer as needed.

14. Ensure there is a drain pan under the water heater.  (Some of these things are for newly acquired properties.)

15. Run lye water down all drains.  (I make soap, so I have lye, but any drain cleaner would do.)

16. Ensure all cabinets have moulding on top.  (I go for higher end rentals like granite counters.)

17. Depending on the property, consider crown moulding in the living room.  (Probably a waste, but I love it!)

18. Ensure bedrooms and den have ceiling fan lights.

19. Add night light switches (lighted light switches) to bedrooms and bathrooms.

20. Add a programmable thermostat.

21. If property might have water problems, created raised planter beds (among other things) to direct water.

22. Service HVAC.

23. Pressure wash house, driveway, etc.

24. Add motion sensor lights so they can see to get in the house when they drive up.

25. If needed, update faucets and replace all hoses, pipes, washers, seals, etc. if I do.

26. Replace exterior faucets with frost proof ones.

27. Add grab bars in showers and tubs when needed/possible.  (Supposedly you can't to fiberglass ones.)

27. Landscape variations include perennials around the mailbox, dwarf blueberries, and always a tea olive grown from a cutting from my mother's house in memory of her.

I can do a lot of this work myself.  I realize I'm spending a lot of money I don't have to, but a lot of the items are only a 1x (or rarely) expense and I think it subconsciously adds perceived value to the homes, making my renters happier and hopefully more willing to take good care of the home and hopefully pay higher rent.

What do you do to make your property stand out, to protect it, or that perhaps you believe others simply don't?

 Your list is pretty awesome! 

In our newest duplex we’ve added:

Ring Doorbells 

Niagra 0.8 gpf toilets (saves a ton of water - as we cover water for our tenants) (https://www.homedepot.com/p/Niagara-2-piece-0-8-GPF-Ultra-High-Efficiency-Single-Flush-Elongated-Toilet-Featuring-Stealth-Technology-in-White-77000WHAI1-N7714-N7717/205611735

LED lighting throughout (Costco has these modern ceiling fixtures for only $24 bucks) (https://www.costco.com/Altair-LED-14%22-Flushmount-Light-Fixture.product.100354669.html

Ductless AC/Heating 

Motion sensing light switch for the bathroom (Gives a lot of wow factor.. when potential renters were viewing the place they were always impressed by it) (https://www.amazon.com/dp/B005WM3ALC/ref=cm_sw_r_cp_tai_HUglAbPNX8N92) 

Post: What do you do with Cashflow?

Peter SinclairPosted
  • Duarte, CA
  • Posts 65
  • Votes 54

This is an interesting question, one that my wife and I had when we started last year. 

Since we aren’t dependent on the money gerenerated by our investment, we use all the cash flow towards principle only when we pay the mortgage with the highest interest rate. We came to this when we were looking at the amortization for our mortgage. Figured the faster we paid off the loan, the more we could save by paying less interests. 

If you were to follow the same path, be sure to calculate the costs of some major repair and have that sitting in your bank account just in case. 

I really loved reading through this thread. There were some great arguments advocating for both the tenant and landlord. 

This is definitely one of those grey area situations, that was leaning towards  Jonathan. He signed a leased thinking he could have the utilities set up instantly and the landlord believed he gave him a place in which utilities could be turned on whenever the tenant set them up. To both the LL and Jonathan I’m sure this has been a great learning experience. 

For the rest of us, Dont sign a lease especially if you weren’t able to make sure everything is working properly. And don’t rent a place to a tenant unless you can prove everything is working properly.