All Forum Posts by: Ray Harrell

From my experience using a PM company, this is part for the course, especially in older, lower income housing. My PM raked in more money than me. I ended up firing them, and guess what? Maintenance calls dropped to almost NOTHING! Could be because they repaired everything, or could be because many of the "calls" were bogus. Find yourself a handyman that you pay directly and send him over once a month to take care of a punch list. You will find that you save money. With my old PM company, most months, after they collected rent and took out their fees and expenses, I ended up writing them a check!

I thought about putting electronic deadbolts on my tenant doors, so on day 5 I can change the code!! Just kidding, I know I can't do that, but imagine if we could...rent would be paid on time every time...or you'd have a lot of damaged doors.

But I would prefer to be there when people view the unit. You want to see who you are renting to, their body language, whether they visualize themselves in a home, or just looking for a quick spot to crash for a while. You also want to be able to answer any questions they may have. If there's nothing in the place I wouldn't worry too much about theft or vandalism, unless you are renting in that type of area.

You can always ask the tenants if they are ok and see what story you get. But it's not really your business if someone is arrested as long as they pay the rent.

You're claiming a higher interest rate to reduce taxable income, but you're PAYING a higher interest rate. What is the benefit of that? The income from the rental property, unless you're a corporation, flows through to your personal taxes anyway.

If they are wanting to change the terms of the tenancy, then you can have them sign a new lease with increased rent. as @Marcia Maynard stated, anything is negotiable as long as it's mutual. But @Thomas S., I would not make them equally responsible. I would make them "jointly and severally" responsible, meaning it doesn't matter who leaves, each is responsible for the full amount of the rent. If you only make them equally responsible, then one can skip and the others will only be liable for their portion.

Ask if there was any remodeling done, and if so, was there a permit pulled and signed off. Ask about utilities and meters...are they separate or all on one. Keep in mind the selling agent is making a sale and will present the property in the best possible light. BUT, they are not permitted to lie once you ask the question. Ask about the ages of the furnaces and water heaters and roof. Are appliances owner or tenant owned.

@Thomas S., all businesses are learn-as-you-go. NOBODY, including NOBODY knows everything about anything. Even law and policy makers are learn-as-you-go. That's why laws and policies change. Everyone SHOULD, before buying a property read the state and local laws BEFORE they buy. The laws may be a game changer.

@Amy J., in more strict jurisdictions, security deposit may ONLY be used to recoup costs due to damage, and no other reason. If it is allowed for other things, then you'd have to make sure it's in your lease in a section called security deposits, and outline what it can be used for.

Good rule of thumb for bad tenants is to never expect them to pay any more than they have already given you (late rent, late fees, utilities, court & eviction fees, etc.), AND expect to pay back all deposits in full. That way you manage your expectations.

@Gavin Welch, in Chicago only the lawless can be armed. LOL. Criminals have more rights than law abiding citizens.

maybe it means the property is legal, but the zoning is not?

It's possible that they have past due balances from previous apartments that prevent them from switching the utilities. You can keep hoping they continue to reimburse you, or you can evict and get a tenant who follows the rules, assuming setting up utilities is part of your lease.