All Forum Posts by: Rob B.

Great write-up, Patti! Thank you for that. @Patti Robertson

I'm also inclined to agree with what Aaron has said above, with the one caveat being that if you're worried about the lease being off-season (starting in the late fall/early winter) you can opt to do a shorter lease term and then renew around the summer month for a longer-term lease (year-long). Given that this is based in Austin, I imagine you're probably not as worried about starting that lease in winter months (something that otherwise would have a major impact in Chicago, where I'm located). I would not recommend subleasing given that it is almost up. Might as well release the tenant from the lease and proceed with the new tenant. @Jordan Moorhead

@Monica Johnson - Hi Monica! I'm sorry to hear that you're dealing with a difficult property management company. As I'm sure you've seen by now, there are a lot of helpful tools out there that can help you to self-manage, if you feel that is the path that you want to take (a lot of times property management companies will charge a full month's rent as a standard policy, and usually still take anywhere from 6% or higher from additional months of rent). There are options that can bring a certain level of automation and transparency to your rental management process if you decide to go the DIY route. It really comes down to the number of units that you have, and what is right for you. At the end of the day, of the two options, you should consider pricing based on the number of units that you have. It is helpful to have an option that allows you to achieve all of the steps in one place (ie. listing your unit to 10+ listing sites, schedule showings, screen tenants with a fully comprehensive application, keep track of things like rent payments + leases, and offers several other tools as well -- the ability for tenants to build a credit score up to 40+ points for on-time rent payments which can be enticing for them as rent tends to be one of the largest monthly expenses for most Americans). Again, it sounds like you're about to make a big decision -- I hope this information helps as you think through your process!

Nathan is spot on with this— definitely during the inspection (due diligence) phase. It is so important to know what you're getting yourself into before signing on the dotted line. 

@Thadeous Larkin - this is an incredibly thorough breakdown from a legal perspective. I can't begin to tell you how much I appreciate your post (this is why attorneys get paid the big bucks). I recommend all others who comment to really read what Thadeous has outlined above. The breakdown of the 6 points above will help a lot of people to really think through just how meticulous, and careful one needs to be with a decision like this. Thank you for pinpointing differences between being criminally liable and civilly liable, defining different legal terms and explaining culpability through a use-case scenario, re-emphasizing the importance of seeking out specialized legal counsel; someone who understands your state law, and so-on). It also comes down to asking the right questions; something that proper legal counsel should be able to help you think through. Posts like yours are exactly why I come to BiggerPockets. 

At the end of the day if you're violating FHA law, then yes. Technically this is a form of discrimination (by alienating other groups -- I think Peter has a point about "income" being a protected class in DC; but don't quote me on that). Having said that, it is easy for people to see the downsides to renting to Sec. 8 but there are some pros there (I know there are a lot of stigmas attached to renting to individuals who hold Section 8 housing vouchers; it is easier to think through the cons - however, some of the pros might be that you open up the property to a bigger pool of potential applicants. In many instances a large portion of the rent is almost guaranteed to hit your pocket each month - again, this may not cover the full amount but they are consistent payments coming in (paid by the government). Typically the tenants are already prescreened and you're much more likely to have a lower vacancy rate. However, there's always a certain level of risk that you take in accepting Section 8 vouchers and for you, you need to decide how you'd like to proceed - I know a portion of the rent is guaranteed, which is great, but I also wonder if the portion that the tenant is responsible for is considered riskier when compared to non-section 8 tenant candidates). Either way, interested to learn which path you take! Best of luck! @Charlie Moore

Are their leases actually up in the winter? I'm inclined to agree with Dena on this -- if you're getting income without tenant turnover, you might as well keep it as the current rate; or, if their leases are up, might be worth offering 6-month extension until you're back on-season, and then go with the rent hike and the longer lease term.

Hi @Adri Son -- Congratulations on getting started with both options. As I'm sure you've seen by now, there are a lot of helpful tools out there that can help you to bring a certain level of automation and transparency to this process, but it really comes down to the number of units that you have. At the end of the day, of the two options, you should consider pricing based on the number of units that you have. Either way sounds like you've gotten off to a great start! Helpful to have an option that allows you to achieve all of these steps in one place (ie. keep track of things like rent payments + leases, but it also offers several other tools as well -- the ability for tenants to build a credit score up to 40+ points for on-time rent payments with the latest CreditBoost feature; which can be enticing for them as rent tends to be one of the largest monthly expenses for most Americans.

@Jonathan L Berhow-Rivera Hi Jonathan! Congratulations on getting started with your very first SFH. There are a lot of helpful tools out there that can help you to bring a certain level of automation and transparency to this process.

I'm sure you're experiencing the challenges of trying to decide who to go with; you have a great list, but having everything in different places (ie. using one tool to collect rent, another tool to sign leases, another tool to track the process, etc.) can start to become a hassle. 

Definitely consider an option that allows you to achieve all of these steps in one place (ie. keep track of things like rent payments + leases, but it also offers several other tools as well -- the ability for tenants to build a credit score up to 40+ points for on-time rent payments with our CreditBoost feature; which can be enticing for them as they are new student renters); and lastly offers maintenance ticket tracking with automated messaging). Again, sounds like you're about to make a big decision (shouldn't be taken lightly). Again, you may run into transfer limits with some of those other apps when it comes to paying rent.

There are a lot of helpful tools out there that can help you to bring a certain level of automation and transparency to this process, which is important especially when trying to bring yourself out of the stone age as you so eloquently stated it lol :) I'm sure you're experiencing now the challenges of having everything in different places (ie. using one tool to collect rent, another tool to sign leases, another tool to track the process, etc.) it can start to become a hassle. Definitely consider an option that allows you to achieve all of these steps in one place (ie. keep track of things like rent payments + leases, but it also offers several other tools as well -- the ability for tenants to build a credit score up to 40+ points for on-time rent payments with our CreditBoost feature; which can be enticing for them as they are new student renters); and lastly offers maintenance ticket tracking with automated messaging). Again, sounds like you're about to make a big decision (shouldn't be taken lightly). Again, you may run into transfer limits with some of those other apps when it comes to paying rent. @Stephen Page