anyone own rental properties on here?
Ok, let me add some details
It is a duplex we are looking at
One side will be homesteaders by my nephew, short term (he just got married and they need to be on their own, so that is why now is the right time to do it)
At this moment, both sides have tenants
one who is cool, and gets to stay, the others not so much and will have to leave
(then being out is a term of the sale)
when my nephew moves out, wheneverthat is, we intend to rent out both sides
the house is in a great part of town, close to the lake so that should help attract good renters I think
oh yeah,, where do I get a crystal ball that tells me who will be a good renter and who won't?
Mostly what to avoid
Also, what to reasonably expect
Sorry I meant to respond yesterday.
What to expect? Anxiety is a good answer.
Anger, that's going to happen. But, if you get a decent renter, it won't be as bad.
Someone posted a bunch of tips on here, and they were all good and valid.
Post number 13 in fact.
Just go ahead and count on the 1st 5 to 10 years as a loss.
You're going to have to pay a mortgage, insurance, pest control, landscaping and have money for wear and tear as well as any repairs. Hot water takes a crap, guess who pays for that? You get the idea.
Vacancies happen. Expect to drop anywhere from $500 to $2500 between renters.
I replace carpet every 10 years. Gas stoves seem to last forever, refrigerators about 10 years. Sometimes more often.
No pets! Lesson learned!
You can't just come out and say no kids, but......... I tend to lean towards older tenants.
I've let kids come, but that usually means a pet is going to get sneaked into the house. A secret puppy is usually a indoor puppy and the reason you replace a carpet.
No unauthorized long term guests. If they're not on the lease, you don't want them there.
I do a walk thru every 3 months for "insurance and fire marshal" reasons. I really do check the smoke detectors and replace batteries. I also make sure things like the hot water heater, the central air system aren't blocked. I replace filters as well. Flip light switches etc.
How do you avoid turd tenants? I wish I had a good answer.
I do run background checks on people. I've found people on the pervert list, people with felonies, people with credit scores so low I didn't know they went that low, people with evictions etc..
I've called employers, some with good luck, some not so much.
I've visited their current home. Apartments can be deceiving. Current landlords, well I've learned that can be an issue to. I rented to a couple, talked with their landlord and they gave me this glowing review! Three months in, I had issues. I called the old landlord back and the reason they gave such a super recommendation was because they were in eviction process and wanted them out sooner than later. She saw an out and took it. BTW, I've taken a page from that book as well.
Speaking of evictions, what are the laws in your state? Are they pro renter or landlord. I'm in Ohio and we have the 3 day eviction policy. It takes longer than 3 days, but it's effective. Oh yeah, an attorney is another expense. Once you do get a deadbeat out, there's the whole matter of getting paid. Pretty much count on loosing that money while you go thru court.
Speaking of which, utilities! I give tenants 3 days to change the utilities. Another lesson learned.
You need to call everyone, gas, electric, water, etc. Make sure that the utility co knows that the address is a rental. That helps.
Something I never thought would happen was the COVID no eviction moratorium.
I literally had to go to the county welfare office, pick up, fill out and have my current renter sign the paperwork because she "didn't know what to do". Bullshit!
I was getting excuses, and $200 one week, $400 another, the remainder split up over the rest of the month. I went to pick up rent this past Monday. Guess who didn't have all the rent, but had an excuse and a new car sitting in the drive way. My attorney will be serving the eviction notice by this Monday. That's a thing too. You're not in this to make friends, but to make money. Those two cats don't ride in the same car together.
Throw your religious beliefs out the window. I've never open a bible and found the rent money. You won't either.
Don't low ball the rent. Find out what the comps in the area are. If most people are getting $600 a month, maybe that's not the place you want to buy in. Remember, you get what you pay for. That goes for renters as well.
I did partner with a guy several years back on a 12 unit apartment building. He bought me out and I was happy to leave it.
A few months after we parted ways, he told me about the tenant he had on the 3rd floor.
This guy became an issue fighting with others and flushed a few bags of quickrete down the toilet. I think the plumbing bill cost Ken somewhere in the neighborhood of $20K and took 4 months 10 years ago. All of Ken's tenants had to leave during all this. Imagine going to eviction court and losing 11 of 12 times.
Those are the things off the top of my head.
I'll think of others I'm sure.
Keep in mind, I don't have a mortgage. I inherited the house. My money situation is unique. I only pay myself once a year. I set $$ back for insurance, rainy day fund, improvements, regular maintenance what ever else might pop up. This year, after I paid the house back, I'll walk away with $900. This year sucked.
