All Forum Posts by: Bill P.

@Sharon Powell

For our auto debit rent payments we use rentpayment dot com.

@Aaron Lathan

I also employ both strategies and have done so since the 1980s when I was like you...without much capital. Things have changed a lot and I would suggest also looking into sandwich lease options and land contracts. BTW, some states are harder on investors for lease options (generally). And you most know what you are doing or you can get sued for non-performance and/or theft by deception if you don't hold to your word. A word of caution is just to learn more about your process and to be careful in your recording process so you aren't the victim of the DOSC. Best of luck to you in your endeavor.

@Chris Stromdahl

Assuming the rest of my first post is accurate, I would say that your $25 per month for pets compensates you for normal pet damage. Generally, I think no part of the security deposit should be held for pet issues. Just honestly assess if true damages have really been done and have been caused by the tenants above normal wear and tear and the paid for pet fee.

@Chris Stromdahl

It depends on the condition of the carpet when they moved in, the age of the carpet itself (was it on the 8th year of its 10 year life), what additional wear and tear they created (above normal wear and tear) and were the pets allowed. From the demeanor of your post, I think the carpet was probably going to have to be replaced anyway so I would be leaning towards "NO". But more facts could change my thinking process.

@Chris Case

When I had my public accounting practice, I told my clients that I thought the best strategy was to buy a SFH as a rental starting at age 25. Keep it and allow the tenants to collectively pay off each 30 year mortgage. Then when you are 55, you can sell each home as a completely free and clear home (of course, before tax considerations) and use the proceeds as your retirement income for the subsequent 30 years. Therefore, I love the idea of accumulating SFHs in a personal portfolio. No matter what, property will always be in demand.

@Mil Sanghvi

Perhaps a simple discussion of asking the tenant what she would do if she was in your shoes and explaining her reasoning. Perhaps she will default to the $250 scenario but in any case she needs to be released as 1) she hasn't done any damage to your place and 2)  you don't want a disgruntled tenant that will cause you unimaginable problems in the future. Cut your losses and move on as you are running a business. 

@Kris Haskins

Just make sure that the appliances you placed in the house didn't break down and get replaced. If they did, you could be on shaky ground, especially if you said the appliances were there and had no warranty. If they broke and were replaced by the tenant, they is certainly an argument that the personal property belongs to them.

Next, if they weren't replaced, ask yourself if the appliances are worth the effort going forward. To be sure, in this case, it certainly appears to be theft, but make sure you are on solid ground as you don't want to be on the wrong side of a lawsuit. Sometimes, you just need to eat the sinach and hope it makes you stronger.

@Michael Kappel

As long as there are not major repairs that are looming on the horizon, I would take them. Good long term rates but you have to watch out for the DOSC as banks may become more vigilant in a rising rate environment.

@Dennis Lau

@Randy E. makes a valid point in regards to the perspective of the damage. While we wish we never had any vacancy or damages with our properties, we know as investors, that will not be the case. You have to look at this from a numbers point of view and not an emotional one. I have had both long term and short term tenants and for the most part I just deal with the exit wounds and bill the old tenant for anything above common sense wear and tear of a property. They know I am going to do this through the original lease agreement that they sign. However, if they don't pay, there really isn't a cost effective method to collect. Only once have I gone after old tenants and that was for a bill in excess of $15,000. I got the judgment but have not collected one dime as they have become artful dodgers. Was the additional cost worth it? For me, yes; but as a business person I can't justify the additional expense. Hope this helps.

@Jay J.

Congrats for finding BP and all of its resources. Great place to learn.