All Forum Posts by: Shane H.

I absolutely love them. I love having a master key for my rentals and not a string of keys. It is also nice that the tenants can't change the locks on you as it requires the special key to change the core, not just a commonly bought insert like kwikset locks. Lastly, I don't have to remember any special numbers for them to find me when i call. I tell them who i am and they have my entire history and send whatever i need that will work with my existing master key. LOVE IT!

Have you crunched numbers and discussed them with the sellers?

I get what the OP is getting at. Would you rather invest $10k into an IRA and add $100 (-$100 expense) into it each month where you'd have around $128k in 30 years (assuming a rate of 5%). Or you would you rather use that same $10k to buy a property worth $150k with a negative monthly cash flow of -$100 and end up with an asset worth at least the initial $150k, that is paid in full, and pays a monthly income of $900+ in todays dollars. Of course this doesn't take into account the repairs along the way, opportunity costs, etc. But the idea has merit IF that is all you are planning to do for your retirement plan.

However like @Joe Villeneuve pointed out, how many of these can you afford to do? And more importantly, why? Run that same scenario but on a rental that nets $100 a month instead of -$100 a month over 30 years and see just how massive the difference can be.

So yes, i see what you're saying about it being a feasible investment. But if you're only benchmark for a decent investment is that it's better than other options, then i'd recommend rethinking your strategy. =) Happy hunting!

You make it sound as though they did this suddenly. Was there communication back and forth on this before hand? FWIW, I added a clause to allow a tenant to leave early with a 2 month rent 'penalty'. This allows a tenant not to be stuck in a long term lease if life happens, but also allows me a safety cushion for cleaning, posting, and filling the vacancy.

If it were me i would open the communication with them a bit and let them know they are liable for the full lease term, but due to their excellent rental history and care of the unit you'd like to work with them on their needs. And yes, i would say you would be happy to send them the form releasing them from their lease under the requirements of XYZ, etc.

You know your tenants better than we do, so you'll know what you're looking for or willing to accept. But if it were me and you thought they were good tenants then I'd offer them the out, with a signed addendum, and let them know if they can use you for a future rental reference.

Just my .02

Would you purchase a house for $375k to rent it out for $2k? I personally would not, but if you would, then keep it. If you wouldn't either, then that tells you that you should sell the home.

Check out Innago and Unitdash. I have been trying both and am still on the fence but am leaning towards Unitdash as it allows me better tracking of bi-weekly payments, will mail letters for you, and doesn't require such an in depth set up process. Innago has a better user interface in my opinion, but they have a pretty in depth process to get initially set up and they are still growing their abilities so don't have bi-weekly rent payments as an option yet. (not to be confused with Semi-monthly which they do have).

Oh and both are free. Innago only charges to set up your tennants with auto pay which is very fair for everything they offer. Unitdash charges for some added services if you choose to use them (auto pay, mailing letters, texting through the app, etc...) which is also more than fair as the prices for those features is very low in my opinion. I think it's like $2 ish to mail a letter from the app. For me, saving the stamp and effort of printing and putting said letter in the mail is well worth $2ish.

I'm still trialing both options so i can't really give a clear winner one way or another, but either one is a great option in my opinion.

Hope this helps!

p.s. - I just started trying Cozy as well, but so far it seems to be primarily geared towards listings, screening, and rent payments but not so much focused on organization and management of your rentals. Just my initial thoughts though, still trying that one out too.

p.p.s - I posted this in another forum but i think it was deleted for some reason though I'm not sure why. I am not paid by either site and I didn't a link or anything. Anyways, hope this one stays up.

HA! I think my jaw just hit the floor.... I thought for sure out of everyone that you were going to be the one to be the one to tell me the error of my ways... Yup, didn't see that one coming...

That being said, thank you I hadn't thought of that. I know they were pretty worried they were going to get the boot as they were on a M2M and didn't want to have to move so I went with the year lease to help balance the $150 rent increase.

The unit isn't in bad shape, but it hasn't been renovated since it was built in 1978. So it would need to be "modernized" to compete with those rents.

Thanks Thomas!

I am actually in a similar boat. I just purchased a duplex in November and chose to keep the tenants even though market rents were well below. My reasoning was that i spent almost everything i had rehabbing the other side (Which i was moving into) and so have a sure thing already there was almost necessary. But more than that they paid on time, had been there 7 years, took care of the property and did their own minor repairs. I am about to sign them into a 1 yr lease raising the rent from $900 to $1050, and while i was (And still am) fairly happy with that succesful increase, the market rents here are between $1200-$1450 for comparable 4bd 2ba units. I would have to put a minimum of $15k in that unit to get it up to those rents though and so I chose the path that was more safe/sure thing. 

I'd like to think I am making an educated decision in doing so, but i also have to wonder is it the side of me that is burnt out from a long stressful remodel and not super excited to go through it again just yet that is weighing in on the decision?

We're signing the new lease this weekend and I am still of the mindset that i'm making the right call as even $15k with a rent increase of $300 more a month would take 5 yrs to recoupe. (not including increased value etc). But lately there is a significant increase in rents in the area and it is tempting to jump in on that opportunity despite the associated risks. 

just my .02

Check out Innago and Unitdash. I have been trying both and am still on the fence but am leaning towards Unitdash as it allows me better tracking of bi-weekly payments, will mail letters for you, and doesn't require such an in depth set up process. Innago has a better user interface in my opinion, but they have a pretty in depth process to get initially set up and they are still growing their abilities so don't have bi-weekly rent payments as an option yet. (not to be confused with Semi-monthly which they do have).

Oh and both are free. Innago only charges to set up your tennants with auto pay which is very fair for everything they offer. Unitdash charges for some added services if you choose to use them (auto pay, mailing letters, texting through the app, etc...) which is also more than fair as the prices for those features is very low in my opinion. I think it's like $2 ish to mail a letter from the app. For me, saving the stamp and effort of printing and putting said letter in the mail is well worth $2ish.

I'm still trialing both options so i can't really give a clear winner one way or another, but either one is a great option in my opinion.

Hope this helps!

p.s. - I just started trying Cozy as well, but so far it seems to be primarily geared towards listings, screening, and rent payments but not so much focused on organization and management of your rentals. Just my initial thoughts though, still trying that one out too.

Well said Brian. I think if this approach had been taken earlier on in the discussion as opposed to the approach that it was mathematically sound and the best way for everyone that you may not have received so much push back.