All Forum Posts by: Ron H.

There should be no difference between month to month and annual lease.  Long term tenants are going to move when they are ready to move.  Having  a month to month lease is actually a benefit to the owner as you can end leases quickly on bad tenants without having to evict them for a lease violation.

I always do a rent increase yearly even if only $10, just to keep tenants used to the concept of inflation. Due to the rapid rise of rents in my area, and also  rapid rise in expenses I am expecting to do at least a 10% increase for existing tenants this year.  I would like to do more but somewhat concerned about this forcing a turn, which raises my expenses. Properties will still be under area market rates with this increase.

My question is why the selling REA and seller ever agree to this. House must be a hard sell so your chance of selling for a profit would be low.  Hopefully the seller has a high deposit amount for their sake.

I never increase deposit amount. If I am worried that much about damages I just would not renew.

For the subset of tenants (lower credit] that I collected last months rent upfront, I do collect the increase immediately  for the last month in escrow.  Confusing but not sure of another way to handle it other than letting them get their last month at a discount.

Don't discount appliance stores.  Some will negotiate quite a bit making them reasonable, especially on factory (not scratch & dent) seconds. They usually look completely  undamaged.  For big box stores I try to stack discounts - cashback, discount gift cards, rebates, etc.

I do not buy used refrigerators or dishwashers.  I will buy used late model stoves and washer/dryers off Craigslist and facebook.

The tenant has been there 10 years.  A landlord's cost does not go up with a 1 year vs monthly once you have covered the turn cost.  Things like forcing tenants to pay extra for a monthly lease over continuously renewing a yearly lease is what gives landlords a bad name.  The only exception to this is if the area is very seasonal.  I do first year as a 1 year lease to help cover a possible short term turn then go month by month, with normally once yearly  lease amendments for fee and rate increases.

personally I have moved out of places earlier than planned at end of initial lease period due to landlord planning to charge a much higher rate to go monthly.  This greed from the landlord caused the unit to turn sooner, thus  raising his costs.

Dont be short sighted and greedy folks.

Basic  process came from a Bigger Pockets thread about this several years ago. Don't remember from who the idea came from.  Had never heard of Google docs before then.

I use Facebook and zillow.  Craigslist only if no decent applicants a few weeks after listing, which hasn't happened recently. 

I auto respond with a link to a Google docs form to fill out, having them self declare on the requirements that I place in the ad. The Google doc automatically tells them they don't qualify if they fill in data that don't meet the min. requirements, which majority don't meet. Good candidates get a call to arrange a tour.  I would say 50% of the people that get this far are interested in submitting a real application with background check (and fee)

I do 1 year lease then go month to month for the duration.   I give notice of rent increases 2 weeks before required notification period specified in lease.  Notice is actually a lease amendment where tenant has to sign whether they accept new lease or that they will be moving out on lease end date.  I'd anyone doesn't sign this then I would send out notice of lease ending and move out date.

Be thankful you are in TX.  FL rates are up much more than that.  My last 3 this year were 100%, 60% and a cancellation (because roof hit 16 years old]

I avoid cats.  For people not regularly around cats, odor is bothersome and difficult to eliminate.  Also, many people are allergic to cats.   Way to many downsides to allow them.  I prefer no dogs  but it greatly opens up the tenant pool if you accept them.  No puppies, must have insurance, must be vaccinated, must meet dog, no aggressive breeds, monthly dog fee.