All Forum Posts by: Rob B.

Just be super careful with using any type of heaters especially if you're not going to be in-unit. That, to me, almost sounds riskier than just letting it go the week without any intervention (always at risk of a fire when you leave a heater unattended). Others have asked valid questions re. whether or not that piping is insulated. It can get really cold here in Chicago during the winter so fighting the urge to do things like use space heaters and ____ can be a challenge. But. Generally, with our family home, we will let the faucets drip and this becomes a quick solution. Otherwise, you can turn the water off and then let that water drain or you can go the antifreeze route Jim suggested above. 

This is a great question. Right off the bat, there are a few things to always be mindful of -- during the listing and tenant screening process, pay attention to:

• the applicant’s attentiveness/the applicant’s willingness to communicate early and often
• holdups that the applicant might have as far as being screened
• and set your standards (ie. do they have an eviction history? do they have prior landlord references, and if so, what are they saying about this tenant? do they have a ton of delinquencies or accounts in collections, as far as payments of their credit history? etc)

If the tenant is not willing to communicate through the viewing and screening processes, this could be an early sign that they might not be the most responsible as far as communicating about things (ie. if they’re not willing to do their due diligence by communicating on something as simple as setting up a time to come by and see the place, then they’re probably not going to be the best about communicating once they’re an actual tenant). You don’t want to be in a position where you’re wondering if something has broken in the unit, and whether or not that will be communicated correctly (and in a timely manner) by the tenant.

Other things to make note of if they’re already a resident of your property:

• the tenant is consistently late with rent payments or making excuses as for why rent was received late (even if they communicate a lot, if they’re always telling you rent might be late, that can put a damper on any plans you might have around paying your own bills, or taking care of your own financial obligations).
• non-payment of rent
• letting other guests stay for extended periods of time without approval
• a bit more obvious, but clear violations of the lease with no regard for the repercussions.
• not communicating about things that need to be fixed before they become bigger issues (ie. broken bathroom fan - and rather than communicating that it happened, it remains broken; possibly leads to mold issues as the tenant continues to take hot showers).

Again, some of these are very general, but if the person does not come across as being too responsible, then chances are you may run into other issues with them down the line. I know you asked about what makes a good tenant candidate, but hopefully, this helps to highlight some of the things you'll want to look out for! @Rosaria Pipitone

Just make sure that this is a viable option in the state where you're planning on doing this. Some states and even local municipalities/local ordinances have restrictions on what you can do as far as renting out rooms. Now, having said that might be worth consulting someone in your market (preferably legal counsel) to make sure that your lease is airtight. As far as finding other renters for the rooms, post to the Facebook Marketplace -- I noted in a different post that I have several family members who actually found their most recent rentals via the FB marketplace. There are still some great options out there which may be able to help you cast a super-wide net (get a new listing for the property up and posted to 10+ major rental listing sites, managing listing responses + scheduling viewing times, tenant screening w/ a fully comprehensive application, digital lease creation, online rent collection, and maintenance request tracking in one spot). But start with your affinity groups; most of the major listing sites have restrictions on listing rooms for rent -- just a fyi. and lean on local connections based on your lifestyle/standards. I hope this helps! Best of luck to you! @Logan Beckner

Others are spot on. Make sure the lender knows whether it is owner-occupied vs investment prop, as that will make a difference. Additionally, with regard to making sure your screening process is ironed out since it sounds like you're considering living in it (owner-occupied) with roommates, you may want to take into account lifestyle through your screening process. That is important because you want someone who is going to be on the same page as you (as far as taking on a roommate, should you decide to go that route). It is standard to have anyone who is 18 years of age or older to both complete the full screening process and to have them on the lease. Set a baseline set of standards that you look for and go from there. Either way, this is a great start and just wanted to say congratulations! 

To be fair, everyone makes those first-time mistakes; don't be too hard on yourself. Having said that you will want to make sure your screening process is ironed out moving forward. I know there are a lot of things to pay attention to on the applicant's end (and especially need to be careful when dealing with their sensitive info) but as you've now seen, protecting your own information is just as important. And to build on that, as you continue to iron out your screening process, having that second business line (whether Google voice number or another number) is going to be super important for reasons like this. It could be worth considering an option that brings a certain level of automation to the process so this way you're able to keep them at an arms-length distance while still screening with the questions and requirements you've established.

Same, although some users here who have gone the PM route will swear by it (just seems really really low). Here in Chicago, that 6-12% number is right on par with what I'm familiar with.

I'm of the same notion as Matt— it might be a solid idea to inquire with your insurance company as I'm sure they'll have a list of preferred contractors. That $48k figure sounds very high. I wouldn't sign anything with either of those companies; again, lean on that insurance company.

Hi Daniel. I know moving can be super stressful but it certainly sounds like you're starting to ask the right questions. Landlords have different screening processes, so your landlord (or the property management company that they're using) might have specified a set of requirements that you'll all need to meet. Generally, you can anticipate that anyone over the age of 18 who intends to reside on the property will need to complete the full screening and will be required to be on the lease. Having said that, a rental owner might be reluctant to sign a lease with a tenant if they don't feel as though that tenant will be able to honor that lease (ie. pay rent on time, and honor the rules established within the lease).

If you have a roommate who has little to no credit, the landlord will probably require a co-signer to vouch for them; i.e. have a parent who has a monthly income 3x that of this roommate's share of the rent. A big reason for this is to mitigate some of the risks of taking on a tenant who might not be able to make rent, and there's no credit history to go off of so no way for them to know.

Now, if the tenant doesn't have the greatest credit score (or even a super low credit score), more often than not that will have an impact on the overall application (not saying it is right, but it is about mitigating risks; if you have someone who doesn't have the greatest history of on-time payments, or, makes habitually late payments, has accounts in collections, etc., then these become clear indicators that this individual tenant may not be the most responsible. The landlord may decide to sign a lease with the other candidates but may indicate that the other candidate is a no go. Again, all comes down to communicating early and often with the landlord. It is possible they'll be willing to negotiate if the other applicants are super stellar. I hope this information helps! @Daniel Byrd

In line with what others have mentioned, definitely make sure you're not committing a fair housing violation based on if they fall under a protected class. 

Side note, have them on ONE lease, have your move-in/move-out checklist process completely ironed out beforehand, and frequent check-ins don't hurt. A very close family member is located in the Hyde Park area and it has proven to be a great market for graduate students at the University of Chicago. Usually, their rent is covered by the program that they're in and with it being a top university (and one of the most challenging) you're dealing with a different type of student. Just don't violate any FHA rules in your screening process. It all comes down to the amount of risk you're comfortable with assuming (as far as damages to the property). Probably putting the property at higher risk when dealing with undergrads. But again, students can be great for cash-flow. Just be sure to get a feel for whether or not this violates fair housing law.

I'm in full agreeance with Patricia Steiner. Comes down to the area; how much do they charge for in-unit washer dryer in your market? I would keep it in terms of rent, and assess a rent increase.