All Forum Posts by: Tom Ott

Tom, thank you so much, that is a super comprehensive explanation, it helps me out a lot.

@Tom Ott@Melissa Gittens Thanks guy, this was a big help

Should I do an adverse decline letter based on credit.  That's probably the legal way to decline.  Your thoughts?

Everyone here nailed it. Qualifying the rental is the most important step. Always remember, they need to move into your property more than you need them. Another red flag is reachability.. Is it hard to get ahold of them? Chances are this will be the same during your collection calls. I find it hard to be objective if I have become to personal BEFORE the checks. I catch myself going against better judgement or trying to play hero. "Your interested in the property, great. Fill out the application, I'll email you the link to complete the verification process. If we are a good match, I will call you immediately with more information if we are not a good match I will email you the reasons so you can come up with a plan before shelling out more app fees to others. The key is to lay out all expectations upfront. 

@Johann Jells

I guess I'm hoping he's matured in the last few years and his friends will keep him from capsizing since they're in the same boat as him now.

If you've rented to him, I guess this is the best way for you to learn this lesson. I'm a lot less optimistic about people wanting to rent from me than I was when I started. I now "listen to my gut" and hope you do;-)

I allow pets because it increases the number of potential good tenants, and I can ask for a higher amount of rent. I do collect a pet deposit for each pet but it is refundable. The amount will depend on you and your risk tolerance, but I don't believe that pet parents should be penalized for having a furry family member when human children can be just as bad if not worse when it comes to damaging property.  

I do stipulate however that all pets must be well behaved, licensed, and spayed or neutered. Referrals are a plus. 

I have seen rental listings where pets are allowed with extra "pet rent."  I don't do this. I just list the unit for the total amount that would hypothetically include said pet rent. that way pet owners don't feel penalized, but if I get a non pet owner who wants to rent from me at that same price, then so much the better.  This method also seems to have more integrity to me. In my opinion. Plus it's simpler. 

That said, there are many pets in Portland. You may have a different strategy where fewer people have pets.

Regarding pet deposits, in Oregon it is illegal to call anything that is nonrefundable a "deposit" on a lease. You can call it a fee, if you want, or ask for a refundable pet deposit. Yesterday a fellow landlord informed me that if a pet incurs more damage than the pet deposit, you may have no recourse to pull it from their security deposit in Oregon. She instead simply asks for a higher security deposit when the renter has a pet. That law seems a bit nutty to me and I had a hard time believing that to be the case, but she got her advice from the Oregon Landlord Association. 

 They have accepted the terms, with a 15 month lease.  We have usually let our Downtown tenants go month to month after 1 year, but the Heights is different, seems more seasonally sensitive. I wonder if there's a legal way to let someone go MtM with a winter blackout?

Talking to the current landlord is not the source of truth.  They'll tell you she's good regardless.  If she's good, they'll say she's good.  If she's bad, they'll tell you she's good so they get her out of their hair.

You might talk to her landlord from two places ago.  Does she have car loan(s)?  Student debt?  MAYBE she has learned from her past mistakes.  Such a judgement call.

I am way overdue on posting about my first real estate success in Greenfield Indiana. 

I bought my first house, my primary residence, in 2014. I found a great deal on a small house in the country and could not resist. If I hadn't found this, I would have likely bought a duplex and lived in one side for a few years. I've always wanted rental properties. When I was younger, I'd spend a few weeks in the summer with my grandparents in Kentucky. Some of my best memories are of visiting tenants to collect checks and socialize. We even shucked sweet corn for one elderly tenant. 

Fast forward to 2015 and I was ready. I found 2 properties in town and went to go look at them one evening. The first property was OK, but the second property was the perfect opportunity to me. It was a foreclosure and had cosmetic damage as a result (bleach on the carpet, holes in the drywall, etc) but was in overall great shape with a huge detached garage. I made a full price offer and was told that offers would not be reviewed for another week (it was the first day on the market and priced well below market value). I got a call from my agent the next day saying they accept another offer. I'm guessing it was a cash offer, and this was my first piece of evidence that not everybody in real estate is honest. I still had my $35k funding letter from the bank so my agent said "Why not make an offer on the other property?" I thought the other property had potential as well, so we offered $35k for the HUD home listed for $42k. They accepted almost immediately.

I planned for a 3 month, $5000 renovation after placing $7000 down (20%). It ended up being 6 months and $6000 but I finally got it done. My wife and I did nearly everything ourselves. The first potential tenant I had said he worked for a renovation company and needed a place for him and his daughter. Said he was a newly single dad. I really liked the guy and went home to do more research. I soon realized that he was being evicted from his current residence and didn't even have custody of his daughter. Other than that his record was spotless. I felt pretty bad because it seemed like he was just going through a rough spot and I really wanted to help him out, but I knew as a first time landlord it just didn't make sense for me to take that risk. I sent him an email and asked him if what I found was true and I never heard back. The second tenant was very interested but I had some technical issues with My Smart Move and by the time I got them resolved she was gone. After a string of bad applicants, I finally found my tenant. She was a single mom with a few kids and I knew she would work out. She was early to the showing, her kids seemed disciplined, and she left small clues that she would take care of the place well. My Smart Move recommended declining her but I accepted anyways.

The day after she moved in, she had a plumbing issue. I had to call a plumber unfortunately, and they ripped me off big time. Live and learn. Later that week she brought up another potential plumbing issue but I was able to go and see for myself. It ended up being a problem with her washing machine, but I was happy to go see the place. It was very short notice, but the carpets looked cleaner than when I put them in. I was very impressed with how she was taking care of the place. Rent is paid on time automatically through Rentalutions and I am actively searching for my next house!