Rentals...Worth the effort?

[dragoneggs]

I don't desire to be friends but I do desire to make my tenants free from intrusion. I am lucky as I have a DIY older couple with well behaved teenage kids. He gathers bids for repair, and does some himself. I have surprised them with a gift certificate just because they are great renters. I'm in this only because I made the mistake of buying before selling and have only had two tenants in six years. Probably will sell in a year or two when my current tenants flee since their kids will be out of high school. I admit I have been lucky other than the first tenants were pack rats and the place had quite the odor when they left. I raised the rent and got a better class of renter the second go around.

 

[PILOON]

As a landlord for more than 30 years, one absolute is to never become "friends" with tenants, especially divorced or widowed women or single mothers. They will adopt you as a surrogate father or husband.

Keep it impersonal and direct.

LOL, yep had a few of them. One kept inviting me over for a drink another seemed to want me to join them for a 'party a trois'.
LOL, wife would not let me go.

Then I once had a 'couple' that had lots of 'couple' friends.(Man could they consume wine.) While discrete they were a hazard as they made a lot of outdoor fires where they would cuddle and hold hands etc, problem was very dry forest and fire hazard which they did not understand. Otherwise they were not a problem. They were extremely well employed with VIP positions.
Again I refused to 'drop in' for a drink.

 

[LD1]

So far, most of my renters have sorta been friends.

Trouble living in the country and small towns. One way or another.....I know most of the people who are looking to rent. Not that they are really "close" friends that I hang out with, but rather people I went to school with, or one of my brothers or wife went to school with. Since between by brothers and wife siblings, we span the ages of ~25-35. And in my area......thats the ones doing most of the renting.

 

[ultrarunner]

For several years I have been able to avoid evictions in our units.

Instead I offer a cash payment when the tenant has moved everything out. Usually $200 to $300 will do the trick. They are out like a rocket, and there is never any damage.

Many people have criticized me for this, saying that a deadbeat tenant doesn't deserve anything, but I save lawyer costs and the damage to the unit. I come out ahead and the tenant leaves happy.

This is my philosophy... I have a lot to lose and any rental property is vulnerable if someone wants to do you wrong.

Business is about achieving your goals and not about teaching someone a lesson.

Many of the areas where I managed were lower income areas... some people really couldn't afford a U-haul rental or storage.

I have an eviction maybe every 5 to 7 years... and this is mostly due to very favorable to tenant rent control ordinances.

Typically, I will have a heart to heart with the tenant by saying this isn't working out and they have to go... We can work together or not and it is their choice.

If we work together, I will help with some expenses. If not, the money will to to the lawyers... either way they are leaving.

 

[ultrarunner]

Be friendly and not friends is the business philosophy that works for me...

One of my friends married his tenant... it was a duplex and he lived in one unit... they were happy for a number of years... he was older and she was from the midwest... after about 10 years they divorced... she really wanted kids and he didn't...

It was a friendly divorce if you can say that... when they met she was 25 and he was 35

 

[California]

As a landlord for more than 30 years, one absolute is to never become "friends" with tenants, especially divorced or widowed women or single mothers. They will adopt you as a surrogate father or husband.

Keep it impersonal and direct.

Amen to that. College kids venturing out on their own after a couple of years in student dorms, too. I told new tenants this is a business relationship, you pay timely, in return I place in your hands an asset of mine that cost many thousands of dollars and I'm trusting you to keep it nice. Recognize that's my perspective if I ask you a question, I'm not taking an interest in your personal life. Particularly for the early duplexes and then the ranch cabin, I explained we are unavoidably going to cross paths and if we can ignore each other that's better for everybody.

Explaining rent rates: Postmark or in person before the month starts, the rent is $1000. Pay after that, the monthly rent is $1050 for that month. This was clearer for the tenant to understand than a 'late fee' that some thought was negotiable.

I only did one eviction. And that lady showed up at my house and paid in full hours before the court hearing! Apparently she couldn't afford to add to her legal problems. She started out employed but it turned out to be a Christmas temp position. Then other tenants phoned and said she was beating her kid. I went to see and she seemed to be full of meth, excitable, jumpy. She said she had stripped the little bush by the door for switches to whip her 4 year old. I phoned CPS and she lost the kid. She quit paying rent, maybe the kid qualified her for welfare. I served eviction along with a pamphlet from the welfare department that said so long as the tenant is current on rent they have the upper hand, if they are behind then they need to get current before government will advocate for them dealing with a landlord. I used that pamphlet a couple of other times and always got paid. I don't recall that I lost any of the scheduled rent in any instance.

 

[PILOON]

A neighbor worked for a bank and told me of horror stories concerning repos.
Paint poured in tubs and sinks, studs cut water poured in electric panel etc etc.
Naturally those deadbeats can't be prosecuted as they have no assets and probably on welfare as well.

I once almost was going to buy a bank repo Mortgage outstanding was about $100k and they offered it to me for $25K
After examining the property I refused it.
Anything porcelain was destroyed, they had totally scrapped the floors by randomly cutting it with a skill saw even weakening the floor joists. Stairs were also chopped up and most windows needed replacing. Furnace had been sabotaged as well.
While not a castle, it had been a cute 2 BR 'starter home' in a not bad area. Landscaping had also been demolished.

The attitude seems to be, If I can't have it, then nobody will get it.

 

[ultrarunner]

Scorched Earth policy....

The banks and realtors don't really want to be involved either... I made repeated calls the listing agent that people were in the home carrying things out... she said not to call her again... call the police which I did first... they wanted an owner's representative to meet them and that is why I called her.

 

[MGH PA]

Wow. A lot to take in. Thanks for the information.

 

[EddieWalker]

A neighbor worked for a bank and told me of horror stories concerning repos.
Paint poured in tubs and sinks, studs cut water poured in electric panel etc etc.
Naturally those deadbeats can't be prosecuted as they have no assets and probably on welfare as well.

I once almost was going to buy a bank repo Mortgage outstanding was about $100k and they offered it to me for $25K
After examining the property I refused it.
Anything porcelain was destroyed, they had totally scrapped the floors by randomly cutting it with a skill saw even weakening the floor joists. Stairs were also chopped up and most windows needed replacing. Furnace had been sabotaged as well.
While not a castle, it had been a cute 2 BR 'starter home' in a not bad area. Landscaping had also been demolished.

The attitude seems to be, If I can't have it, then nobody will get it.

These where the types of homes that I would buy when I was flipping houses. They where trashed, unlivable and impossible to get a loan on to buy. I paid cash for them, which is the only way the bank would let them go. Then gut and rebuild them. Until those TV shows came along claiming to make six figures off of every flip, I was doing pretty good. Then people started paying twice and four times what they where worth and never being able to sell them once they cleaned them up.