All Forum Posts by: Jennifer T.

I was just wondering the same thing earlier this week.  Think of what an ADVANTAGE that would be if I could advertise in my rental ads that on-time rental payments would reflect positively on a tenant's credit score/history.  Especially if I were first on the bandwagon to somehow be able to set that up.

I'm not sure when it is rolling out, but FICO is about to start counting in utility bills toward a person's FICO score.  However, the article I read (which I can't find now), made it sound like this program would more be for people who have NO credit history at all.  Here is an article from April this year about it:

http://blogs.wsj.com/totalreturn/2015/04/01/fico-gives-millions-a-path-toward-a-decent-credit-score/

Haha!  Great minds think alike.  I actually did this with my first rental.  I listed the rent as $895 instead of $900.

Honestly, though.  I didn't get the impression that it mattered and it annoyed me to have the rent at something other than an even number.  So I only tried it that first time.  But I'm also one of those crazy people who rounds out my tip at a restaurant so my total charge does not have change on it.

Since then, I round down to the closest $50 increment that matches up with the current market rent, ie $1200 or $1250.  Though if you are literally that close to a thousand dollar mark, I think the $2,000 looks a lot more attractive than the $2050.

From what I've looked into, @Lynn M. is absolutely right.  If your policy is each unit can have one pet (under 25 lbs.) with no pet deposit/rent (or whatever it is), you can't suddenly have a different policy for your tenant's cat to try and skirt around the fact that her b/f's service animal will be moving in.  And for a service animal itself, you cannot charge a pet rent or pet deposit.

You can require a doctor's note stating an emotional support service animal is necessary for Patient Boyfriend.  However, you cannot ask the nature of the disability or reason for needing an emotional support service animal.

Service animal or not, you can also require vet records now and annually that the animal is up to date on all its shots.

Also to keep in mind, although you can't charge a pet deposit for the service dog.  If the dog does cause damage, the tenants are responsible for that damage...like any other damage...and it can be deducted from their security deposit.

Is it complete and total bulls**t that this particular dog is an emotional support animal?  Of course it is.  But this is the country we live in.  And, to be honest,  I wouldn't have it any other way.  It's absolutely disgusting when people take advantage of a situation that is meant for the greater good...but I'd rather have 10 liars use a loophole to slide their pets in where they are not allowed than have 1 person...who legitimately needs an emotional support animal...to have hard a time finding a place to live with their animal.

Now I'm curious if they will magically be able to come up with the full rent for the next two months.  Since it does sound like there was a legitimate problem as opposed to them being professional tenants, I wouldn't be surprised if they find the money now.  They just might have to go through less pleasant channels now, like getting a loan from a family member/friend, a cash advance from their CC, and/or a payday loan (since the wife starts working in Nov.).

Keep us updated!  And good for you for standing strong.

Here is my "I'm a heartless ***" story.  I bought a duplex in August that had the seller's disabled brother living for free in one of the units.  My first order of business after closing was to pop on over and serve him with a 30-day notice to vacate. 

He had a friend of his there to also speak with me and, although she was obviously on his side, she was actually a rational individual who understood the situation and in essence acted like a mediator.  Granted, I could have just served the notice and left and that is what most people would have done, but I knew he'd be upset and at least wanted to give him the opportunity to vent.

He was furious...though I think more at the situation than at me...and couldn't even talk to me.  So, again, great his friend was there.  "He'd lived in the house for ten years", "He didn't want to move...but only got $530/month in disability and really couldn't pay any rent", "There was no way he could move in 30 days because he is constantly in the hospital", "He was going to end up in a homeless shelter if I didn't give him more time", etc.

I was nice, I was calm, I patiently listened to it all without interrupting, I was sympathetic.  But I also made it very clear he needed to be out in 30 days.  I offered cash for keys if he was out in 30 days (was going to do that anyway).  I also pointed out it was not necessary for me to do that, but I was trying to make things easier for all of us.  I even told him, "I realize it's going to be hard for you to move after living here for so long, but this is now my house.  I'm happy to and required by law to give you a 30-day notice but, the fact of the matter is, I'm not a charity.  I'm a small-time investor and every day you are living here is money out of my pocket."

Here is what I wanted to say (but didn't):

--I realize you are bummed about losing your 10-year long free rent gravy train.  I would be too.  But you had to know it couldn't go on forever and now its over.

--To his friend (though I liked her) who said he would be homeless if I evicted him.  "And that has what to do with me?  Homelessness is tragic and I hope that doesn't happen to him.  However, I see homeless people all the time, but I don't invite them to live in my house.  He isn't my friend.  He isn't my family.  We are almost strangers to each other.  So, if you don't want him in a homeless shelter, why don't you take him in?"

BTW, he was out in 30 days even after swearing multiple times there was "no way".  And he found a room to rent, so no homeless shelter either.

Yikes!!! That is really creepster.  But just reading what he said makes me think your spidey sense is right on.  I wonder if he knew exactly how to work his thermostat and was just so desperate for company he tried to make an excuse, so you would come visit him. 

Just out of curiosity, what is going to be different next year that isn't true now?  Is his supposed disability short term and he will be back to work next year?  Is she taking on more work to make up the shortfall in their income?

Hopefully you have asked and know the answers to these questions.  Otherwise, they are just going to be digging themselves deeper in the hole with you.  And end up moving out anyway because they still don't have the full rent plus $100 in Jan., except they were able to put off their move out date by two months by getting you to agree to a lowered rent for two months that will supposedly be paid back later.

I'm not saying it won't work out, just pointing out how it can easily turn ugly for you.  And also making sure you know their full situation.  Because if he is still going to be unemployed in Jan., they still won't be able to pay.

It's okay to be sympathetic.  It's okay to be helpful and work with them on a move-out plan if they can no longer afford your apartment.  But, at the end of the day, you need to remember you are running a business.  Not a charity.  And the bottom line is...no matter how great a people they are, no matter how sympathetic their situation...if they can't afford the rent, they need to go.

I had tenants sign a 3-month lease and agreed they could pay weekly.  Long story short, I was only looking for a shorter term tenant because I was coming into "make a ton more money on AirBnB" season.  And the husband was on contract work and they would only be in the city a few months.  So it worked out great for everyone.

Weekly was there choice, not mine.  But then when I figured out I'd actually end up getting an extra week of rent that way, I was definitely on board.

Then I found out the negatives of collecting rent once a week, lol.  Especially from folks who have to pay that way because they live paycheck to paycheck.  It's 4-5 rent due dates in a month instead of 1.  The first 6 weeks were fine.  After that, I had to call EVERY Tuesday (Mon. was the due date) as to where the rent was.  They also fell behind a few times, even in that short period, though always made it up.

Never say never, but probably not something I would do again unless there is a compelling reason.

Sorry to get off topic!  Back to Tenant Applicants say the dumbest things. 

Bravo!  Love the "outside of the box" thinking to make the deal happen.

The right purchase + a good, creative financing idea = over $600/mo. in cash flow.  Awesome!

I'm also impressed you had the foresight to view the purchase from the seller's vantage point and prepare your presentation accordingly.

I've purchased two duplexes in my city.  Plus I've had an appraisal ordered for twice for two HELOCs I did.  In all four of those situations, the houses were appraised with a comparative sales approach; however, the appraiser was usually able to find at least 1-2 nearby properties that were also duplexes.

Rental amounts were included in the data for the appraisals, but I don't think they were used at all for determining the appraisal value.  The value was based strictly on a determination of the square footage value multiplied by the sq. ft. of my house.  With a few limited add-ins/subtractions for additional features like garage/deck...though, added nothing for my solar panels (whatever!). 

Are you also looking at their credit history or just their score?  Not quite as "black and white", but I personally know what it is like to have my credit score torpedoed because of a bogus $100 collection listed on it.  I think a credit history gives a much better picture of how well someone pays their bills and their current debt obligations.

One of the problems with the current credit scoring system we use in the U.S.  I forget the exact statistic, but there is a good sized percentage of credit scores/histories with mistakes on them.

Heck, I currently have two past 30 day late payments on my Home Depot credit card.  HD admitted it was their mistake...they credited back my late charges and told me they would take the negative marks off my history, but of course they didn't bother and its a PITA to do it myself, so I've procrastinated.  But I am just a few points shy of a score above 700 thanks to them and their incompetency.  Meh!