All Forum Posts by: Rob Gribben

Rent for me is due on the 1st of the month, and my lease states if I don't have it by the 5th, then a late fee applies.  I typically remind tenants on the 2nd or 3rd of the month that if I don't have the rent check by the 5th, a late fee will be due.  You really have to take a hard line IMO.  Tenants will no doubt take advantage if they can get away with paying late.  If you draw that line in the sand early on, it will help to mitigate problems in the future.    

I would wait until you have the work done before advertising. You get the most interest when the ad is new, and you want to be able to show a finished product as soon as you start showing.  It's not really worth advertising in advance IMO, just wait until you are 100% done, post the ad, and if the place stands out among the competition, you'll rent it quickly.

Also, Craigslist is ok, but I've found that advertising on Zillow (also free) is getting me a lot more exposure.  I think Craigslist is no longer the go to website for people searching for rentals, Zillow I think is more popular right now, and I think much better. 

Llead has to be tested at each tenant turnover.  If tenants are staying and previous owner had the lead inspection done prior to their occupancy, you should be good to go.  You can call or email MDE and explain your situation, they are pretty good about getting back to you and letting you know what needs to be done.  

Baltimore county has inspection standards (initial, and they every 2 or 3 years I think).  If you google "Baltimore county landlord" or something similar, it should direct you to the county site where they have all of the forms in PDF.  It's not a big deal, PM me if you need leads on inspectors, I can get you a few names and forms.  

Best advise I can give, get a good screening done on prospective tenants.  Take your time, find qualified tenants with good references.  I use www.clearscreening.com to run credit checks.  Check out their "smartscreen" service, it's worked well for me.  

It sure can't help Baltimore, there's no denying that.  I avoid and would not invest in West Baltimore now or ever.  Too much crime, blight, and open air drug markets that 99% of investors want no part of.  Even in the more stable areas like Canton and Fells Point, there were some issues last night, and things like this not only scare away potential renters, it scares away investors (residential and commercial).  Baltimore has come a long way in the last 15 years, though I fear what we've seen this week will undo a lot of that progress.  There will still be those areas of the city that are pretty stable, and people want to live in.  But people will want to live and invest in those pockets only, as opposed to spreading into those less stable areas of the city that really need investors.  That spread was starting to happen more and more, now I think investors will be a lot more hesitant.  

I would check Zillow.  There's a lot of foreclosures in Dundalk dragging prices down.  If I was paying $90k on Elton I would want the place to be basically turn key....  I do agree with Scott, appreciation in that area may be pretty minimal.  

Lukasz,

I ran the numbers on my calculator, and the ROI looks very good (about 125% ROI, assuming you hold for 10 years and sell in year 11). I assumed $5,000 in repairs or capital improvements prior to renting. I'm familiar with the area, I have two rentals in the Eastwood area of Dundalk, which I really like as an area for rentals. The area around Elton can be pretty rough. I looked at a place there years ago, and I passed on it, though the numbers probably were not as favorable as yours. That would be my only word of caution, that's probably a C-class rental, so likely to not get the greatest tenants, just my two cents. Good luck, let me know if you have any other questions I can help you out with.

I have 3 properties, and a $1M umbrella policy that costs about $140/year, cheap insurance, and a lot cheaper than forming an LLC. I had to raise my liability coverage on my homeowner's policies before they would issue, but for me, well worth it. You definitely have a hgher probability of needing additional insurance as the number of properties you own goes up, so I think one has to decide whether to establish an LLC or get additional insurance through an umbrella policy in order to mitigate risk.

I had to replace the roof on two of my rentals, both within the first year of purchase.  One was a foreclosure and one was a short sale.  My assumption for short sale and foreclosed properties is that the roof is going to need replacing in short order.  That's not true for all properties, but a pretty high % I would guess.  I got a good enough deal on both that it wasn't an issue.  Both tenants remained in the house while the work was going on.  Just let them know what to expect, and advise to keep kids clear of any work that's going on.    

www.clearscreening.com

@Mark Cruse, I wouldn't "ask for papers" from anyone....