All Forum Posts by: Zach Scheer

I have had a couple go a couple months, if the resident is smart they would get out sooner than later and not incur more debt. I think you can screen all you want but your never going to be perfect. I just had a resident that was good for 5 years and as of the summer time she continued to pay late every month and we finally said no more. For 5 years she was a great tenant so how could I have seen it coming.

You're right. I don't know how I missed that lol. It makes sense why my numbers were so off. I forgot to multiply that rent by 12 to get the full year income. Thank you for catching that. So now my question would be... what would be a reasonable rent increase for commercial? Do commercial properties expect $50-$100 increases every year or are they like residential with smaller increases of $25

I have a property in West Hartford, CT that we purchased in June of this year.  The property is a mixed use with 4 commercial spots and 5 residential.  I understand the rental rates and everything to do with the residential as I work in the field, I have a few questions about the commercial side.

So, three of my commercial spots are due for a new lease starting in January 2017.  I am looking to increase rent but am having a little trouble deciding where everything should be.   As of right now we are cash flow positive so take that into account. 

Rental #1 is 290 Sq feet and they are paying $700 = $2.41 SF/Year

Rental #2 is 560 Sq feet and they are paying $800 = $1.43 SF/Year

Rental #3 is 105 Sq feet and they are paying $550 = $5.23 SF/Year

I have looked on Loopnet and some other websites looking for an average rate per SF and it's between $4-$10.  Now I just leased the 4th spot at 800SF for $2000 and had a lot of people tell me the rent is too high.  My question to everyone here is how would you increase these tenants to get closer to average without losing them.  All 4 commercial tenants have been really good and the only thing they have asked for is a bucket of ice melt.

Please let me know what you think since I have to get the new leases out to these tenants within the next two weeks.

Thank you!!!

It's a little harder to rent in November and December but not impossible. Like mentioned above everyone has their own reason for moving. Don't worry about that aspect, focus on the address issue.

I agree with Carolina E., at my main job we do not end leases in November or December due to it being harder to get tenants in when it's cold. Not many people want to move during the holidays or when it's 10 degrees out. It's not impossible but definitely more difficult.

You will either be getting singles or a couple in just a bedroom, so at most they will have two cars. Being guaranteed at least one parking spot is huge for most residents. Having to park on the street shouldn't be a problem. I have talked to a few people who have lived in complexes with no off street parking at all. Just tell prospects that they are guaranteed one parking spot and continue with the showing.

What made you choose those towns? The reason I ask is I try and find properties in good school systems, but that's just my personal criteria. I work for a management company and they have properties in both Manchester and East Hartford. They seem to do well but in my opinion there's a lot of competition in those areas.

I have electric heat for all 5 apartments in my building. There are 4 one bedrooms and a studio. No one has complained yet and I was able to move two new residents in who knew it had that type of heating system.

Hi Chad, There's a REI meeting in Manchester on the 10th of this month. There is more information in the events section. This will be my first meeting as well so if you go, you won't be the only new guy.

I personally would call the Hartford police and see what the crime is like in that neighborhood. Some people associate Hartford with being crime ridden. If this property is in a good area, the numbers work and you do a proper inspection I don't see why it wouldn't work.