Rentals

After reading the post about rentals, I thought that there might be a way to improve the rental market. Let me know what you think about this and feel free to give me advice or you ideas. Don't hold back. I could use the help. Thanks in advance.

I've been operating as a one-man (with lots of woman help) rental for 30 years. Here's my top 10 list:
There are 3 rules of the rental business:
1. No pet ever improved the value of real estate.
2. Every tenant goes bad sooner or later.
3. There are no more rules.

As for screening, talk with an applicant's neighbors - do they have a dog they didn't mention; how drunk does it get on Friday nights; is there 2 dead cars in the driveway?

If self-employed, ask to see tax returns for the past 2 years. Most people aren't ballsy enough to lie to Uncle Sam.

Showing: You set the time - most are a waste of your time anyway. Have multiple people show up at the same time. Have a Fact Sheet to hand out which gives room sizes, utility costs, school districts, etc.

Application: Have a written one. accept it only with one-half of the security deposit (stops them looking at other rentals).

Move-in - have THEM make a list of anything that isn't up-to-snuff. Then you've got a record of where you and them started.

and a million other things ...........

After having a rental unit for 2 years and experiencing all the joys of renting, my number one rule is never to own another rental property again.. I used to take care of my neighbors units when he was out of town. Best one was when a renter in the lower unit called Sunday afternoon that there was water coming out of the ceiling light. Went upstairs and had to wake the renter up. She forgot she had the tub running and fell asleep. What a mess.

Take the money you are thinking about investing in the rental property.

Make a pile of the cash.

Soak it in charcoal lighter.

Set it on fire.

Have a beer and think of all the grief you saved yourself.

Gene

If the rent is less than a 1000.00 per month then you will have trouble with,I couldn't work this week,my boy friend moved out,I needed cigarettes and beer this week,the car broke down,there a million reasons why they can t pay the rent but the trash will be full of soda and beer cans. I only rent land now, one gal couldn t come up with a 100.00 lot rent and mouthy about it till I told her the trailer would be in the state road in 20 minutes if she didn't shut up(130HP tractor)I can move a trailer fast,not pretty but fast.

I agree 100X on the last two years of tax returns.

The first sign of a dead beat is no tax return, the second sign is a return filed only to get the EIC refund.

I had to make that threat one one time that I had sold and held the note on. The gal got behind,so I told her to have her stuff out tomorrow,I was coming to get it. She got caught up in a hurry and even paid it off in full in just a short matter of time. Boy,was I ever glad. She had trashed it and I didn't want that thing back for nuthin.

All good replies. After renting out places for fifteen years I think that I have learned something about the business. The first thing is that you tell them how it is going to be, always stay in charge, get it in writing, and be tough as nails. One miss step and they are out, no if ands, or buts. No second chance. If one tenet is forst to go all the other one will straighten up real fast and the word will get out.

Rule #1. NO PETS. Period. End of discussion. Every time I've had a serious problem with a renter, there was one or more dogs at the bottom of the problem. (Or in one case, six cats).

You'll have these people, now living in town, who say they have this big dog that needs more room to run. He'll run, alright. Within 24 hours, he'll be chasing the neighbor's livestock and getting himself shot. Of course, the dog's owner won't believe you when you explain that farmers have many thousands of dollars invested in livestock, and if they see a dog they don't recognize near their stock, they simply shoot him and forget about it. BTDT.

If your rental property is in the country, don't ever rent to anyone who's never lived in the country.

Renting a $200 per month trailer and an $800 per month well maintained house draws a whole different class of renter. Forget about the first one.

Did I say, "NO PETS"?

Just a few thoughts.

I am a renter of my place and can say that I sure wouldn"t want to own a place. We aren"t supposed to have pets and I have two fish tanks and a cat (old house a few mice problems cat solved them). My landlord doesn"t do any upkeep and I am not even under lease anymore but I always pay my rent on time and help maintain the lawn and send in the checks for him and stuff like that.

(quoted from post at 12:21:51 06/27/11) Rule #1. NO PETS. Period. End of discussion. Every time I've had a serious problem with a renter, there was one or more dogs at the bottom of the problem. (Or in one case, six cats).

Did I say, "NO PETS"?

Just a few thoughts.

Click to expand...

Ever watched Hoarders? Most of the folks on that show rent. 'Nuff said!

I cant imagine the nightmares in renting a home or apartment, other then what I have been told by my old boss. My old boss owned 4 rental homes in the city of Detroit. (Yep Detroit)
Every year he would lose 1 month of rent per home due to late payment, no payment and every excuse you can imagine. Every time a tenant would move out he would do the following: Sand/refininsh hardwood floors, (all had hardwood I guess) Do a cheap repaint with $5 per gallon paint, the cheapest he could find cause the people renting were losers anyway and it was going to be trashed. He carried $1 million in liability for each home due to those types of people will sue for anything. After he was laid off in 2001 he sold all 4 homes to a company called Rentco I think just to unload them and get the cash. He bought each home for less then $5000 in the 1980s.
I would never rent to anyone that was not at least married (and caucasian) and the home was in an upper class area where an executive or high ranking person needed a home, $1,500 per month minimum rent. And of course NO PETS.

Find a renter like me. That has no pets. I have a small dog but my mother claimed it when I moved down here. Don't smoke,why smoke when I can drink. Drink a little,but keep my cans picked up and stored away. Makes most of the repairs when needed. Owner pays for the supplies. Keep the yard mowed and my truck and car are up to date. I live a quiet life and try not to bother anyone.

Forgot to add. My rent money,water bill and electric bill are always paid on the day that ranch headquarters tells me the total. Been renting for 3 1/2 years never late yet.

Have been reading the replies below with interest (and amusement). The main part of my law practice is evictions- probably do 150 a year. Have seen everything you guys are talking about, and more.

Only comment I would make is that some of you are really getting hosed by being your own attorney on these things. Can't get a tenant out for 5 years because he filed bankruptcy? Can't evict because gal is pregnant? Oh, please- "He who acts as his own attorney has a fool for a client." Why don't those situations ever seem to slow me up? I get 'em out in 3 weeks. Period. I have many opportunities to be tied up indefinitely by what tenants try to pull- I just don't choose to participate in their foolishness.

Decided long ago that I didn't want to be a landlord, by the way.

As a carpenter, I have thought I should be a landlord. BUT, I would not do well when they tear my place up, so thought I would pass up the trip to jail, and not become a landlord!!!

i have three rental propertys, the biggest is a 12 unit. i have an attorney that handles any evictions if they come up. i have a retired handyman that does any painting ect, i handle most of the other maintenance if not major, you meet some real characters. i run credit and criminal background checks on all prospective tenants. on average, i work maybe 15 hours a month on the 12 unit. not a bad gig.

I need you for a renter. I have one opening up in Mankato, Mn. on Aug. 1st. Can you relocate?

I do it about like you. Before we sign the lease I tell them rent is due on the first. NO EXCEPTIONS Period. If I don't have it by the 5th. then Finance charge. If I don't have it by the 15th then I throw your stuff out on the street. Any part of that you don't understand?

Won't go so far as to say it was the best day of my life--but close---the day I received a call offering to buy my two rental houses for a commercial development.

I have been in the buy fixer, rent it, flip it, live in it for 2 years and get up to $500,000 tax free and doing the 1031 exchance for farm land thing ever since I moved to California in 1986. I have done well. Renting is a great business in a high rent area, miserable in a low rent area . I only rent to people with a FICA score of 700, no smokers, no birds, and are able to explain what they do for a living (they pay for credit and background checks). I also am entertained by some ideas here, can't evict a bankruptcy for 5 years, or a pregnunt woman, only rent to white people. I can't always get them out in 3 weeks, if they evade service it may take 4.

My wife and I have been renting houses for 17 years, and we're still learning. We have three rentals and are working on a fourth. Two houses are in the middle-class city of Sterling Heights, MI and a third is in Pontiac. The one we're working on is also in Pontiac, I didn't want it but my wife can't pass up on something that's nearly free. Must be her French Canadian ancestry.

The one house in Pontiac is more aggravation than the two in Sterling Hgts. We finally wised up and took a Section 8 tenant. BEST DECISION WE EVER MADE. No more late rent. The housing authority inspects the place once a year to make sure the tenant is keeping the place up.

Tenants will ALWAYS have pets, whether you know about it or not. One fellow told me he always advertises "pet friendly" so prospective tenants will list their pets on the application, then he throws those application in the trash. We charge an extra 50 bucks a month if the renter has a dog.

Don't screw around with late rent. If it's a day late, send a notice. Remember, tenants are tenants, not friends, but they will try to use your good nature against you. A notice in the mail reminds them that it's business. They won't miss a payment on their cable TV or cell phone, why should you accept less?

That said, I have always tried to be up-front and honest with tenants, and to treat them as I would want to be treated. Sometimes they've reciprocated, sometimes they've taken advantage of us. That's the way things are. If you get stressed out dealing with people, best to stay out of the rental business.

Sorry married to Texas. Can't leave.

First, be familiar with and understand the landlord/tenant laws in your state. You may decide that renting out properties is not worth the hassle. Good luck!