All Forum Posts by: Jennifer T.

Most renters would have a problem with a tiny 10 cu ft fridge and I would never put something that small in.  Especially for a 900 sq ft. apartment.  I think 15 cu ft is a bit too small, but at least it looks like a basic, standard sized (18-20 cu ft) fridge and would probably be acceptable to most people.  Especially if it is the only size that will fit in the space.   

If they end up moving out, make the security deposit check payable to both of them.  It's their responsibility to work together at least to cash it!  Unless they direct you otherwise and then get it in writing.

For example, I had a couple who broke up and gave their notice they would not be renewing the lease.  I told them I would be making the security deposit check payable to both of them, unless they told me differently.  They both told me Tenant A should get the full security deposit return.  Easy enough.  But, just to protect myself, I wrote up a document outlining that and had Tenant B sign it.

Since she is starting to have trouble with stairs, perhaps you can offer her moving into the lower unit for the market rent of $950?  Could be a win-win and take some of the sting out for her of having her rent jumped up a good bit.

But, if that's not possible, then give her the appropriate notice after closing that the rent will be raised to $XXX.  It is great to have a reasonable and responsible tenant.  And I tend to keep my tenants like that a little below market.  But I think even the "middle ground" you're thinking about at $850/month is too much discount.

What's "fair" for anything, whether it's rentals/services/goods, is market price.  Of course, she won't like her rent being raised $200-$250/month.  But that should not be your concern.  That's the world marching forward.  I wish my expenses stayed the same as what they were 15 years ago too, lol!  However, that is not the way economics tends to work.

I've never had a claim, but do live in a high risk area for property insurance because of hurricane threats.

I think Citizen's is a "last resort" insurer, though they tend to be spendy.  I currently have my personal home with Lloyd's of London.  My agent told me they have a niche for insuring in more unusual/higher risk situations.

I have most of my rentals with NREIG. I like them. I find them to be lower cost than other choices and they specifically focus on REI properties. I certainly can't say how they'd treat your situation. But it doesn't hurt to call.

Another trick I've found that will sometimes result in a lower cost is to separate the liability insurance from the property insurance.  As in, two separate policies.  I don't know why it often comes out less that way because it doesn't make sense that it would.  Yet, it does.  My only guess is that the choices for property insurance are very limited where I live and where my properties are.  Not much competition.  But since the liability portion has nothing to do with the dreaded "named storms" part of insurance, that part of the insurance can be shopped far and wide.  Perhaps that would work for you also, since your claim was related only to the property.

That's a pretty large jump.  And, even if the tenant can afford it...which is a big "if"...he'll probably be resentful about it.

I'm not in FL, but recently had this issue in New Orleans.  I bought two duplexes that are next to each other (same seller).  Basically a slumlord situation where he let these properties deteriorate for years.  I suspect rented to whoever had cash in hand at really low rates, so no one bothered him with maintenance issues.  No leases, though I did get estoppel agreements.  Everyone was month-to-month.  Heck, he didn't even have keys for the units.  Only the tenants did.  No way was someone like that going to go to the trouble of vacating tenants for a sale.  But that's okay.  It's one of the reasons I got these babies on the cheap.

One unit was vacant at closing.  The other three were inherited tenants paying $500/month for rents that should have been $750/month.  Even with their poor condition.  And $1200/month once fixed up.  One of those tenants had been there for 20 years.

For this situation, I didn't even give the option for the tenants to stay for a higher rent.  I would have doubled it and I highly doubt anyone could have afforded that.  Plus, for the kind of renovations I wanted to do, it would have been tough to do with people living there.  Instead, I closed toward the end of June and gave everyone a Notice to Vacate by July 31st.

Oh, but of course.  2 out of the 3 tenants don't pay their July rent.  Including Miss "I've lived here 20 years and always paid my rent on time", mmm...hmmm.  Nor did they leave when I posted the Pay or Quit.  Evicted both sets for non-payment of rent and they were gone by July 29th.  The third tenant pushed it about a week past their deadline.  But we could see they were in the process of moving out and didn't make an issue about it.

A pain while it was happening, sure.  But was about what I expected and it is so much nicer to start with a fresh slate.

4bd/2ba SFH for $38K in NOLA in 2016. Took the money out of my HELOC to buy it cash. Safe, but lower middle class neighborhood. Inherited a S8 tenant with that agency paying $1125/mo. in rent. It was so awesome to close on the 21st of the month and get back almost 3% of my purchase price in rent, only 9 days later! Worth about $50k when I bought it. I was cash flowing about $700/month and that includes my HELOC interest on the purchase price.

Tenant moved out and we're investing around $6K (mostly materials, we're DIY) on new flooring for the living room, total repaint of the interior, and new kitchen cabinets.  Including taking out most of the wall between the living room and kitchen to open up the space and put in a breakfast bar.  That layout is SO much nicer and cuter for very little cost.  We could rent it out again for $1200/mo.  But we're planning to sell instead for around $65K and use that as a down payment for a multi.

No doubt I would do this deal again!  I wish I could find them.  They were rare back then and I don't think they exist now at those price points.  At least not in my area. 

Right on!  My only regret in real estate investing is that I didn't start it MUCH sooner than I did.

The trades are great to get into.  It's good money for a short bit of schooling.  Plus, when you own properties yourself, it's that much less expense to DIY what you can.  At least in the beginning.

I wouldn't necessarily recommend taking real estate classes, though I'm sure that wouldn't hurt either.  I just think your time would be spent more efficiently reading books on the subject.  I'd also recommend educating yourself on financial subjects, in general.  Including  the home buying process.  Get a good grasp for how loans work, how credit works, how to budget, etc.

Also, I don't know how attached you are to where you currently live.  But the world is about to be your oyster!  You'll have the freedom in a few years to move wherever you want.  Think about where you might want to go that could nicely coincide with your real estate goals.  For example, I grew up in So. CA.  But when I graduated from college, I moved to New Orleans because the cost of living was SO much cheaper.  I wasn't even thinking about real estate investing at that time.  I just didn't want to have to live with roommates until I was 30, lol.

There is no reason you can't buy a house when you're 20, if you have the down payment and a decent credit score/report ready.  Like other suggested, buy your own home with all the loan goodness (lower down payment and lower interest) that comes with being an "owner occupant" and house-hack.  Either by renting out rooms in your house or by buying a duplex, triplex, or quad and renting out the other units.

I apologize for being a bit harsh when you are already feeling stressed, but you need to change this attitude that she is a "good person".  She isn't.  You don't even know her.  And, what you do know, is that she is a deadbeat who isn't paying you her rent.  The PM company is literally having to evict her.  That is not a good person or a good tenant.  It doesn't matter why she is unhappy.  An upstanding person would give you a 30-Day notice and pay their rent for their last month.  Because they're living there.  They're "eating the steak", so they need to pay for it.

If you heed my words, you will save yourself a lot of grief.  Grow a thicker skin and treat your business, like a business.  There are a lot of tenants out there who will bombard you with excuses as to why they can't pay rent on time or at all.  At best, it's them putting rent above other bills because you allow it.  At worst, it's lies.  However, it sounds like you've made a good choice in using a PM company.  Let them handle the tenants.

I don't even understand why you're actually trying to talk her out of leaving!  She's not paying you rent anyway!  It's a gift if she just leaves and hopefully doesn't cause you the further expense of taking her to eviction court, while she languishes in your unit living rent-free.

Since funds are limited for you, do the best you can with what you have to work with.  Get the vacant units clean and habitable as best you can.  You may not be able to get typical market rent in their current condition but, when the price is right, people will still rent them.  Get some cash flow going for now.  Save money.  And spruce the units up down the road. 

I'll admit to being a little more lax with timeliness of rent payments than most people on BP.  But my rentals are mostly C-class, plus I'm in a soft market.  However, what I definitely do for some protection is post the appropriate Pay or Quit notice so if they do not pay on the day promised, I can immediately file for an eviction the next day.

With that said, I've also non-renewed leases when every/most months I was having to post notices.

I also got creative and worked out an agreement with a couple tenants where they pay a partial rent every time they get paid or every two weeks.  It's not my first choice and it has to be the right tenant that I think it will work for.  I also ALWAYS increase the rent, if the tenant wants to go for that option because it is more risk and hassle.  Plus there is still a late fee if they miss any of the due dates.  But I was surprised at how much better and more consistent the rent paying got.

I sadly know from experience that, even when pets are kept up-to-date with their flea medication, there can still be a flea problem.

I'll even take your tenant at face value and look at it in the best possible light for her.  Let's say she did everything right and regularly uses flea medication on her cat and the flea problem started with the nearby feral cats.  And?  So what?  It's still her cat that brought the fleas into the house.  Ergo, she's responsible for the flea treatment(s), no matter how you slice it.

I have verbiage in my leases that, not including the first 14 days of the tenancy, tenants are responsible for the cost of pest control.  I have one tenant who occasionally complains to me about flies.  I have no idea what she thinks I can do about pests that literally fly anywhere and everywhere.  I always tell her to look around her house.  Something she has is attracting them.  Plus, it's a duplex and the other tenant doesn't have this problem.