All Forum Posts by: Rob B.

I'm sorry to hear that you're dealing with this issue, @Lisa Barnum. Did you already return the security deposit? If not, I'd make sure to note the condition that the property is in (document everything) so this way they have a clear understanding as to why they're not receiving their full deposit back. Usually, you want to wait until the final walkthrough has been completed before giving that back. It sounds like they're already gone though which I'm assuming is also the case that you're no longer holding onto their security deposit. At this point, I'd maybe reach out to potential legal counsel to get an idea as to what paths of recourse you might have but for the utilities that will follow them if in the tenant's name. Was it explicitly stated within the lease that they were responsible for utilities? If so, you won't really need to worry about it.

Definitely exercise caution so as not to lose a great tenant, but to be honest, unless otherwise indicated by your state's law to do so there's no real obligation on your part for providing a full breakdown of what those reasons are (as for raising rent). But if you're still trying to think through how to frame this, common reasons would be for things like increased property taxes, competitive increases for lower quality properties in the area (to meet the current market value), etc. I would consider this towards the end of the original lease term. If you have a lease that isn't ending for some while, I'd be sure to keep in mind to give them proper notice (maybe during lease renewal time window make them aware of the change so this way they're able to plan ahead of time). @Kalimah Jenkins

1000% what Ben said -- be sure to run those background checks. Generally, anyone who intends to reside on the property over the age of 18, I would screen them and have them on the lease. Definitely a lot of screening options out there.

Hi Ashley! There are some great options out there which can help you by breaking out those fees, and also offers automated maintenance tracking, and fast rent collection (via ACH or debit/credit card). Consider an option though that will also include the added perk of allowing your tenant's on-time rent payments to be reported to the major credit bureaus; this creates just added incentive/point of positive reinforcement to get them to make those payments on time and transition to a system that is easier for you. I hope this information helps! @Ashley Hodge

It is a good rule of thumb that if they're over the age of 18 and plan to reside on the property, 1) screen them, and 2) make sure they're on the lease. There are a lot of great tools out there you can use to screen but I would suggest a platform that helps with not only listing the property (publishing it to 10+ other listing sites, which helps you to cast a wider net) but also comprehensive tenant screening which includes a nationwide criminal background check, credit check, eviction history check, and requires references for prior tenancy. I always think it is a good idea to place a bit of focus on the financials (ie. what do their historical payments look like? Are they meeting the 3 to 1 ratio of salary to rent amount? And did you follow up with prior landlords as part of the verification process?). Just something to keep in mind. Again, definitely a lot of great tools out there that can help with your screening needs. Happy to help out when I can! @Latavia Banks

@Shawn Ziegaus -- I'm with Quintin on this one. Generally, if you have a smaller business portfolio in REI (ie. only own anywhere from 1 to few units), it doesn't make as much sense to go the property management route, rather, manage it yourself with a bit of guidance. Generally, you're going to be paying 6% + out to a property manager -- not to mention that many property management companies ask for a portion of the first month's rent (or even a full month's rent). If you're just starting off, it makes sense to consider managing it yourself to better learn the process, cut back on costs and make sure that you have a sound understanding of what's required so when you do scale up and decide to go with a property manager, you'll know which things to look out for.

Hi @Jacoby Ihejirika - I will say it is great that you're going through the process of deciding on which platform to use to manage your properties. As others have noted above, there are definitely a lot of helpful tools out there. I will say, it could be worth considering a shot at an actual software solution built for DIY landlords (1 - 15 units) that helps you to automate your own rental process (ie. compared to other tools, one that helps you to actually build a single listing and syndicates it to 10+ major listing sites, allows you to schedule showings, provides you with super thorough tenant screening options, online digital leases which can be customized and help you by breaking out those fees, automated maintenance tracking, and fast rent collection which also offers your tenants the ability to report their positive on-time payments to the major credit bureaus; just another positive reinforcement/added incentive to get them to make those payments on time). I hope that helps! 

Hate to sound like a broken record but it really does depend on the numbers. If you can REFI then great!

In addition to the great points that Esayas, John and Mike have noted above (thanks for that advice!), I'd say you also should use this a bargaining chip on price (since it sounds like it is already yours, this is something to keep in mind for next time). Have that structural engineer do their inspection and let the results of that help you to drive down that purchase price. 

@Steven Foster Wilson that is a great idea. Another room; added cashflow -- and it still looks incredible. 

@Nick Gu -- if this is what you were referring to then there's your answer. Otherwise, I'd include a few more details around the initial question.