Is this my fault?
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Is this my fault? (by Roy [AL]) Oct 14, 2018 4:09 AM
       Is this my fault? (by NE [PA]) Oct 14, 2018 4:28 AM
       Is this my fault? (by Roy [AL]) Oct 14, 2018 4:34 AM
       Is this my fault? (by Still Learning [NH]) Oct 14, 2018 4:49 AM
       Is this my fault? (by nhsailmaker [NH]) Oct 14, 2018 4:49 AM
       Is this my fault? (by Vee [OH]) Oct 14, 2018 5:09 AM
       Is this my fault? (by Roy [AL]) Oct 14, 2018 5:15 AM
       Is this my fault? (by NE [PA]) Oct 14, 2018 5:45 AM
       Is this my fault? (by RB [MI]) Oct 14, 2018 5:50 AM
       Is this my fault? (by Dave [MO]) Oct 14, 2018 5:59 AM
       Is this my fault? (by Deanna [TX]) Oct 14, 2018 6:20 AM
       Is this my fault? (by razorback_tim [AR]) Oct 14, 2018 6:42 AM
       Is this my fault? (by Ken [NY]) Oct 14, 2018 6:43 AM
       Is this my fault? (by Roy [AL]) Oct 14, 2018 6:59 AM
       Is this my fault? (by NE [PA]) Oct 14, 2018 7:06 AM
       Is this my fault? (by Roy [AL]) Oct 14, 2018 7:12 AM
       Is this my fault? (by Jim in O C [CA]) Oct 14, 2018 8:02 AM
       Is this my fault? (by AllyM [NJ]) Oct 14, 2018 8:28 AM
       Is this my fault? (by AllyM [NJ]) Oct 14, 2018 8:34 AM
       Is this my fault? (by Tom [FL]) Oct 14, 2018 9:08 AM
       Is this my fault? (by Tom [FL]) Oct 14, 2018 9:30 AM
       Is this my fault? (by Moshe [CA]) Oct 14, 2018 9:38 AM
       Is this my fault? (by Sisco [MO]) Oct 14, 2018 9:56 AM
       Is this my fault? (by Robert,OntarioCanada [ON]) Oct 14, 2018 10:29 AM
       Is this my fault? (by Ken [NY]) Oct 14, 2018 10:58 AM
       Is this my fault? (by gevans [SC]) Oct 14, 2018 11:00 AM
       Is this my fault? (by LisaFL [FL]) Oct 14, 2018 11:56 AM
       Is this my fault? (by JB [OR]) Oct 14, 2018 12:13 PM
       Is this my fault? (by melinda [MD]) Oct 14, 2018 1:52 PM
       Is this my fault? (by NE [PA]) Oct 14, 2018 1:55 PM
       Is this my fault? (by myob [GA]) Oct 14, 2018 1:58 PM
       Is this my fault? (by Roy [AL]) Oct 14, 2018 3:28 PM
       Is this my fault? (by MikeA [TX]) Oct 14, 2018 3:41 PM
       Is this my fault? (by LisaFL [FL]) Oct 14, 2018 4:03 PM
       Is this my fault? (by Robert J [CA]) Oct 14, 2018 4:25 PM
       Is this my fault? (by Livethedream [AZ]) Oct 14, 2018 7:17 PM
       Is this my fault? (by Roy [AL]) Oct 15, 2018 4:30 AM
       Is this my fault? (by Plenty [MO]) Oct 15, 2018 4:45 AM
       Is this my fault? (by S i d [MO]) Oct 15, 2018 4:57 AM
       Is this my fault? (by S i d [MO]) Oct 15, 2018 4:57 AM
       Is this my fault? (by Roy [AL]) Oct 15, 2018 5:53 AM
       Is this my fault? (by S i d [MO]) Oct 16, 2018 7:14 AM
       Is this my fault? (by Mickie [OH]) Oct 16, 2018 9:43 AM

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Is this my fault? (by Roy [AL]) Posted on: Oct 14, 2018 4:09 AM
Message:

I have two rental houses (in different hoods) in which I am having to file eviction on almost every tenant I put in there. At each house, tenants have paid rent and lived there for min. of 6 months- 1 year. Since I practice Zero Tolerance, I find myself filing eviction the day after the 7-day P/Q notice expires. (I am filing another eviction on Monday morning at 8:00 a.m.).

Question: If you have a rental house in which you are evicting everyone you put in there, do you take this personally and assume this is your fault (you made the decision to rent to these tenants) or just blow it off and assume this just happens in some crappy Class C neighborhoods?

To keeps things in perspective here, I have 15 rentals that have good long term rent paying tenants. The above situation seems to happen only in 2 of my rentals. Just trying to figure why this situation happens and if I should ease up on ZT and give tenants move time to pay.

--68.63.xxx.xxx




Is this my fault? (by NE [PA]) Posted on: Oct 14, 2018 4:28 AM
Message:

No don't take it personal. Some houses are bum magnets. --50.107.xxx.xxx




Is this my fault? (by Roy [AL]) Posted on: Oct 14, 2018 4:34 AM
Message:

NE,

Should I sell the bum magnets ? --68.63.xxx.xxx




Is this my fault? (by Still Learning [NH]) Posted on: Oct 14, 2018 4:49 AM
Message:

I wouldnít say itís your fault, but is there any thing that could be done to improve the quality of tenant or how you train them? If not, then is it profitable enough to deal with the headache? Would bi-weekly or pay day payment plans work better? --73.17.xx.xx




Is this my fault? (by nhsailmaker [NH]) Posted on: Oct 14, 2018 4:49 AM
Message:

You are letting other peoples problems become your problems - reduce your problems

life is too short to put up with those 2 bum magnets - SELL --24.34.xx.xxx




Is this my fault? (by Vee [OH]) Posted on: Oct 14, 2018 5:09 AM
Message:

I would not sell, raise the rent - somewhere is a balance of tenant and wallet, many here have learned how it works. Zero tolerance on reductions of some sort, -Jane, we need to recover enough in rent for taxes and overall property care - the price is for no smokers or pets and I can not lower it- --76.188.xxx.xx




Is this my fault? (by Roy [AL]) Posted on: Oct 14, 2018 5:15 AM
Message:

NHsailmaker (NH)

As long as a tenant is paying rent, these 2 houses are cash cows. When they stop paying rent, they become a thorn in my back side. All I want is tenants who will pay rent for more than 1 year before I have to boot them. --68.63.xxx.xxx




Is this my fault? (by NE [PA]) Posted on: Oct 14, 2018 5:45 AM
Message:

No I wouldn't sell it. Some properties lie outside the parameters of what most LL's here strive to do. They need a special touch to manage.

I have one that was an old chicken coop back in the 1930's. 400 sq ft. The front ceilings are 7.5' and slope to 6' in the back. It attracts losers but cash flows great. --50.107.xxx.xxx




Is this my fault? (by RB [MI]) Posted on: Oct 14, 2018 5:50 AM
Message:

They (people) come and go,

some even stay for a while.

Isn't that how life works, in general ?

Ya cant holdem hostage.

--184.53.x.xx




Is this my fault? (by Dave [MO]) Posted on: Oct 14, 2018 5:59 AM
Message:

Itís the tenant pool you are choosing from.

Have you considered your steps, procedures that youíre taking when interviewing the applicant ?

Any past eviction?

Home inspection?

3x rent

Are they uncollectible ?

Job history?

If all those are clear, next I would start analyzing the location of the home, does it have an obsolete floor plan, etc. ?

If all those check out, it could be a bum hous as NE, said.

I have had bum houses in good neighborhoods and in lower income neighborhoods, for me, itís time to unload and put the money to better use. I make no money on a revolving doors and evictions. Think Kenny Rogers :)

--173.216.xxx.xxx




Is this my fault? (by Deanna [TX]) Posted on: Oct 14, 2018 6:20 AM
Message:

I have one house that seems to attract certain people. Some of the winnahs I put in there were clearly my fault-- hoping for the best, and having it not turn out that way. But other people just seemed to be ordinary people-- or even otherwise successful people-- who attract trouble, or make unexpected poor life choices. Like there was the single trucker who was just fine-- until he needed major foot surgery and couldn't drive anymore. Or there was the genteel and affluent woman who managed the local nursing home-- who was fired because she slipped a job to her felon son.

Because those two addresses have a higher turnover, you've got a higher chance of getting someone in who just can't keep it together for a year without it affecting you, especially if they tend to come vacant at awkward times of the year. You've managed to reach a nice coasting speed on your other houses, and have found dependable people who aren't going anywhere. But if one of them did decide they were going to go follow a job opportunity that takes them away, or go buy themselves a house-- chances are, that house will be susceptible to a few misses as well until you can find someone who was as awesome as the steady person who left.

So you can either have a thorn in your side from having to evict someone at the first sign of instability, or you can have a thorn in your side by choosing to "work with" someone on the off chance they can get back on their feet-- or until you get to the time of year of your choosing. They're both irritating. And a lot of its success depends on the person in question, and the circumstances at play.

If we were doing, say, RTO, then Zero Tolerance would ultimately be more profitable in the long run-- because you've got an infinite number of people who would love to owner-finance a house, and it requires significant initial investment on the incoming purchaser's part. But if we're just renting ordinary houses to ordinary guys-- then the costs of eviction/turnover don't get absorbed nearly so easily (especially in a non-garnishable state). And so it makes sense to pick and choose when to be hardnosed-- given the circumstances of whatever crisis is affecting them at the moment, is it more reasonable to give a chance, or just wipe the slate clean? Both requires more effort, and there's no guarantee of reward on the other side. --96.46.xxx.xx




Is this my fault? (by razorback_tim [AR]) Posted on: Oct 14, 2018 6:42 AM
Message:

It may or may not be your fault.

Everyone Iíve ever had to evict would not pass my screening today, with one exception. Go back over the application, references, etc of these people and see if there was something you missed. There usually is. Adjust your screening criteria appropriately.

How many addresses have they used during the last 5 years prior to yours? My guess is more than 5. How long have they had their current job? My guess is not long. Were they current on their utility bills when they applied to rent from you? Stable people tend to stay stable. Unstable people tend to stay unstable. --97.105.xxx.xx




Is this my fault? (by Ken [NY]) Posted on: Oct 14, 2018 6:43 AM
Message:

I would sell and here is why,I believe in buying class c houses when no one wants them and selling them when the economy heats up and folks want them and financing is easy and getting a good price for them.The economy is real good right now and they should sell.Maybe you could take the money and do 2-3 for each sale or get into a class b with better quality tenants --72.231.xxx.xxx




Is this my fault? (by Roy [AL]) Posted on: Oct 14, 2018 6:59 AM
Message:

Ken (NY)

I may just sell for the reasons you gave. Should I wait till Spring 2019 or put them on the market during the upcoming November - January doldrums here? Do people buy houses from you during the Christmas holidays? --68.63.xxx.xxx




Is this my fault? (by NE [PA]) Posted on: Oct 14, 2018 7:06 AM
Message:

Roy, every house I've flipped I have put on the market as soon as it is ready. List now and you'll complete a sale in 2-3-4 months. List in spring and you'll complete a sale in June-July. --50.107.xxx.xxx




Is this my fault? (by Roy [AL]) Posted on: Oct 14, 2018 7:12 AM
Message:

Thanks Deanna,

Your reply reflects my situation here. People screen okay in the beginning but their lives fall apart due to poor choices. The tenant I am filing on tomorrow has paid rent on time for 11 months but he got fired from his job (he is a welder) and did not pay October rent. Do I wait for him to get another job or file papers on him and boot him out? Again, this situation seems to happen more at two of my houses than any other. --68.63.xxx.xxx




Is this my fault? (by Jim in O C [CA]) Posted on: Oct 14, 2018 8:02 AM
Message:

I Would sell. I Think your neighborhood only attracts losers. My very first house was in a wonderful neighborhood but 15 years later the neighborhood had deteriorated to bars on windows, police presence weekly, drug activity and gangs. Any decent person would not consider living there so I sold. --172.17.xxx.xx




Is this my fault? (by AllyM [NJ]) Posted on: Oct 14, 2018 8:28 AM
Message:

I would ease up on the ZT and talk. Example: I see your rent is late. When will you be able to pay the rent? What problem do you have?

The reason I say this is that some folks don't have checking accounts or direct deposit and have to be at work before the banks open and don't get off work until they close. That happened to one of my tenants this month. Saving money from the previous paycheck is not something they do. It's their fault but if you want to stop evicting people you have to deal with it.

One of the pair had to pay for a funeral in another country. So they question is, how much can you pay this month and next month to get to the amount you need to pay?

There is one caveat. The people who this happened to I may be evicting for wasting the garage with gas and chemicals and repairing motorcycles to sell which is a violation of the lease. It was not happening on Oct 3 land I found that situation on october 12. So you are dealing with unstable people in a way and I wish I had not acceptedd their late rent and filed on them because I don't know how much chemical damage was done in 9 days and I have to give them a week to get rid of the cycles. I am giving them 24 hours to get rid of all the gas cans and chemicals tomorrow if they are still there.

--73.178.xxx.xx




Is this my fault? (by AllyM [NJ]) Posted on: Oct 14, 2018 8:34 AM
Message:

One more thing. OUr government is competing with us by trying to get people into houses by giving them grants. So the better part of the available pool of potential renters is being skimmed. These folks may not be able to keep the houses and go into foreclosure and be back in the pool, but meanwhile the government is renting them homes at a very high rate. --73.178.xxx.xx




Is this my fault? (by Tom [FL]) Posted on: Oct 14, 2018 9:08 AM
Message:

You have 15 houses that are doing very well and tenants stay long term lower turn over.

You have two houses that are a thorn in your side.

Whats the difference in the neighborhoods? crime? condition of houses in the neighborhood? School districts are rated poorly for the two houses compared to the other 15 houses? What are the factors that are out of your control?

During the screening process for the two houses since the tenant pool is questionable did you lower your qualifications and take a questionable tenant; over looking a negative.

Zero Tolerance is the best option, if you did AllyM of NJ policy and let people slide in those two house your dollars in eviction costs, back rents and damages will increase if you let the tenant slide. The cash cow then becomes a cash burden.

Sell your two problem houses and buy in the better neighborhoods.

IF you do decide to sell the two units; are there any dated areas that can be spruced up tp get a higher price for the two houses?

It gets old when you have the "Revolving Door of Tenants" that creates a costs due to AGAIN prep in 6 months to a year. Could it be you relax your screening process on the two problem houses? or is it out of your control due to the neighborhood conditions and its time to 1031 exchange to a house in your other rental property neighborhoods.

Prepare the two houses once the tenants are evicted and sell the two houses. Buy in a better neighborhood of your best houses.

OR once the houses are sold take a cruise around the world or complete a few of your buckets liists that you have put off!!! Enjoy your hard earned money!!! It maybe tome to reduce your number of units.

--99.56.xx.xx




Is this my fault? (by Tom [FL]) Posted on: Oct 14, 2018 9:30 AM
Message:

Roy are the two problem houses the pics you posted of the yellow ranch with the brick railing on the front porch? and the two story white 1st floor with green second story?

If they are the two problem houses consider painting the exterior:

Home Exterior

ē Gray/Brown (greige ó mix of gray and beige): +$1,526

Asford Greige DC-20 Broxburn Greige DC-19

ē Brown (medium brown, taupe, or stucco): -$1,970

Front Door

ē Gray/Blue (navy blue to dark gray or charcoal): +$1,514

I am not sure where I saw how the color does make a difference on a house.

If the two houses are not your problem houses; consider posting the problem houses with exterior and interior pics. There may be an area that you could update with a color change or pressure wash the house. The yellow house the brick should be pressure washed.

Best of Success!!! --99.56.xx.xx




Is this my fault? (by Moshe [CA]) Posted on: Oct 14, 2018 9:38 AM
Message:

What is your fault is your choice of tenants. How do you suppose that this repeating situation happens after you screen tenants, eliminating documented deadbeats, late payers, high-risk applicants. So you need to re-evaluate your screening and decision process.

If you find that, by raising your screening process, that you cannot attract tenants, then you need to think about trading in that property. If the property is incapable of attracting acceptable tenants, then it is not a good investment and should be dealt with accordingly.

--47.139.xx.xxx




Is this my fault? (by Sisco [MO]) Posted on: Oct 14, 2018 9:56 AM
Message:

You are correct in being introspective.

Perhaps you should consider who your current marketing reaches, and who is not reached by your marketing. I think some marketing outlets only reach locals who are moving from one rental to another for the 30th time.

Meanwhile, other marketing outlets reach a more stable type: newly married, job transfers, moving mom closer to family type people. --72.172.xxx.xx




Is this my fault? (by Robert,OntarioCanada [ON]) Posted on: Oct 14, 2018 10:29 AM
Message:

There are still rental housing providers who do not run thorough credit checks on all adult applicants. Unpaid utilities and unpaid rent go hand in hand together. Applicants with credit scores in the lower four hundreds will not last more then a few months were getting evicted is a way of life that is a never ending story. Had a person come around who was around 30 years old holed up in mothers basement with his girl friend. Who said it was not possible to run a thorough credit check on his girl friend where they are going to holed up mothers basement a very long time. Now as the vacancy rate declines then why should anyone accept problem tenants who are not going to pay rent then completely trash out a rental unit or rental home. One out of three applicants is a problem tenant so the odds of getting a problem tenant is part of reality. The problem tenants avoid professional rental housing providers as they already know the results. --147.194.xxx.xx




Is this my fault? (by Ken [NY]) Posted on: Oct 14, 2018 10:58 AM
Message:

Roy,I would just list them now,i like selling houses without a realtor but if I am expecting someone to get a mortgage on a house these days the vast majority of those buyers use an agent so I list them.You may find an investor also with cash who is willing to buy the house.I would list them tomorrow. --72.231.xxx.xxx




Is this my fault? (by gevans [SC]) Posted on: Oct 14, 2018 11:00 AM
Message:

I'd sell em and never look back. Think how much it will reduce the stress in your life. And you can use the proceeds (or even 1031) into another rental or two. --98.122.x.xx




Is this my fault? (by LisaFL [FL]) Posted on: Oct 14, 2018 11:56 AM
Message:

It all depends on how much you like to work. Certain places attract certain kinds of people. They are cash cows when they are rented because if they weren't it wouldn't be worth dealing with.

I don't bother with houses that attract high maintenance folks because lower stress levels are more important to me than more money. But some people thrive on doing this and happily find replacement tenants.

Your only fault is expecting it to change anytime soon. --75.89.xx.xxx




Is this my fault? (by JB [OR]) Posted on: Oct 14, 2018 12:13 PM
Message:

I would be considering the future prospects of those two neighborhoods.

Are they getting better, worse, or stagnant?

Is this likely to change one way or another for some reason (such as big employer coming nearby or a major employer leaving)?

If after considering this I don't feel comfortable with the scenarios I'm foreseeing then I'm dumping them ASAP! --24.20.xxx.xxx




Is this my fault? (by melinda [MD]) Posted on: Oct 14, 2018 1:52 PM
Message:

LOVE the phrase----Bum Magnet. Perfect description of several of my houses with consistantly poor tenants. I take some of the blame. Most goes to the tenant--maybe 20/80 --24.233.xxx.xx




Is this my fault? (by NE [PA]) Posted on: Oct 14, 2018 1:55 PM
Message:

If you're not sure whether or not you should sell, run your numbers today as they stand and ask yourself if you would buy them again. If you've had them a while, you're a different investor today than when you first bought them. --50.107.xxx.xxx




Is this my fault? (by myob [GA]) Posted on: Oct 14, 2018 1:58 PM
Message:

ROY-- u da man!!!! This is a dream property as long as your putting people in them that you can collect from. Why do you care they're leaving----???? Your policy needs to be I only put people in these 2 rentals if they are on jobs they're not going to leave. It's a dream come true. You could have a bonus cash stream of 5 or 6 X tenants along with current tenants giving you cash-- althought only one will be on a lease-- collections for the other 6. GOLD MINE.

ROY there's no money in people who stay and stay and stay. --170.55.xx.xxx




Is this my fault? (by Roy [AL]) Posted on: Oct 14, 2018 3:28 PM
Message:

These two houses are not causing me any stress. I would be stressed out if ALL of my rentals were like this, but with only 2,..this situation is more of an inconvenience that anything else.

I have owned one house since 2010 and the other since 2015. Overall, the numbers look good on both houses but I am having to spend more time on these properties (getting them re-rented) than my other cash cows. --68.63.xxx.xxx




Is this my fault? (by MikeA [TX]) Posted on: Oct 14, 2018 3:41 PM
Message:

My suggestion is hold to your ZT policy, otherwise you stand to loose much more.

As to sell or not, that is a financial decision. Can you find replacements that will produce more income than these two do with their flaws? If so, might be worth a 1031.

I had your very situation a few years ago. I cashed out of one house that was barely making a profit because the location would only attract trouble and re-invested a few blocks away. It was one of the better decisions I made both financially and from a time investment.

--50.26.xx.xxx




Is this my fault? (by LisaFL [FL]) Posted on: Oct 14, 2018 4:03 PM
Message:

Go ahead and give them more time to pay if you're not feeling any stress. I'd be curious to know if you then feel more stress or less stress! --75.89.xx.xxx




Is this my fault? (by Robert J [CA]) Posted on: Oct 14, 2018 4:25 PM
Message:

Just to help you I'll let you in on a big secret. Back in 1996, 1997 and 1998, at the depths of the real estate depression, because there were so many vacancies, landlords would accept almost anyone, with money, into apartments without running background or credit checks. These were "C" class neighborhoods and applicants were mostly illegal day laborers.

You guessed it, almost everyone, around 65% were delinquent on paying their rent on time. 20% were making back payments and 25% were in eviction.

I tell you this story because I am a licensed contractor working for these landlords. They were about to loose their property and had to sell them or go bankrupted or insane.

So I purchased many buildings and then had to evict 50% of the tenants, work with the others to make a timely payment.

That was then and this is now. Still having over 100 tenants in those types of buildings, I always run a background check and full credit reports. Around 90% of the tenants I put into a vacancy pay their rent and leave on good terms. 10% I still have to evict. The tenants that I got when I purchased those properties -- around 20% are still with me paying on time.

If your tenants aren't paying rent, it's the manager's fault and owners fault -- in other words, your fault. If you accept responsibility, then you can change your ways and improve your process for accepting tenants. This is not a game, it's big business.....Good luck. --47.156.xx.xx




Is this my fault? (by Livethedream [AZ]) Posted on: Oct 14, 2018 7:17 PM
Message:

Sorry I'm late... Roy I would look at the neighborhood with a fresh eye, decide if it is where you want to be. Meaning is it generally improving, declining or staying the same - and your best guess for the future.

You seem very knowledgable on your market. Might talk to some realtors and get their feel too.

If you sell, will you better than double your money after tax and costs? I kind of use that as a guide. Anytime you double your money I think it can be considered successful. Will the lost income matter until you reinvest? That might be a year or two. And of course what is the tax hit?

--47.216.xx.xxx




Is this my fault? (by Roy [AL]) Posted on: Oct 15, 2018 4:30 AM
Message:

Thanks LTD for your answer. One of the houses of this post was the first house I paid $5K for back in 2011. (I bought the house from an insurance company). Since then, I have invested $25K in upgrades (new roof, HVAC, re-wired, re-plumbed, you name it this large 3/2 house got it).

What I have now is a free and clear $30K house that rents for $700.00/month. That is the good news.

Now for some bad news. This house is located in a neighborhood where is the zoning is all screwed up. On one side of the street you have Class C residential houses and just across the street you have these crappy looking businesses that cater to low income people. Because of this, I doubt this my house would ever qualify for conventional mortgage financing if I decided to sell it to a 1st time homeowner who needed a mortgage. If I do decide to sell, I would probably have to offer RTO or owner financing like MYOB does.

More than likely, I will hang on to this cash-cow since selling it would probably be more hassle than I am willing to deal with.

--68.63.xxx.xxx




Is this my fault? (by Plenty [MO]) Posted on: Oct 15, 2018 4:45 AM
Message:

I put HUD tenants in mine. Helps stabilize things. May not be a good option for you. Most stay 5 to 6 years. Others at least 3 years. I would suggest you let the home sit empty a bit longer inbetween tenants. Paint new colors on exterior or add flower pots witg plants. Make it look so nice in pic that the magnet people won't even call. Up the price a bit, offer a move in special. Try something new with your terms and advertising. Try to attract better applications. Wait patiently for the right one. --99.203.xx.xxx




Is this my fault? (by S i d [MO]) Posted on: Oct 15, 2018 4:57 AM
Message:

Hi Roy,

Good early morning. As you know, I manage rentals in the same kind of hoods that attract the same kinds of tenants that you have. I've gone thru periods where it seems like one house was a bum-magnet, and I swore I would sell as soon as the weather got nicer.

Well...time passed and things improved.

This time of year it's natural to think about thinning the herd, and I'm not sayings that's the wrong decision. But let's consider some facts...

1) You have a property described as a cash cow. The monthly rent is 2.3% of the "all in" price, although since my guess is you donated a lot of the labor yourself that number may be skewed a bit. Regardless of how it got there, that is it's performance today. I love properties like this.

2) You're evicting people in less than a year. That's too short. Folks gotta stay at LEAST one year or the turn over costs--even low costs--are killed. This must change.

3) Class C houses rarely sell to anyone but other investors. You might do okay if you get a newbie who can't write a check just yet and owner-finance it, or RTO it like one of Brad's beauties. I've got mixed feeling toward this kind of house and RTO: seems like it sets up a perpetual "churn and burn" scenario where you're kicking folks out who fail to close to deal every 2-3 years and collecting a huge fee to boot. Personally, I am not comfy with that strategy, but you may be and that's fine. It would improve the problem we discussed in paragraph 2 above since folks are staying longer.

Aside from eviction, are there any other major issues? Do they do a lot of damage and/or require significantly more clean up and repairs when someone moved out?

I think the goal is to get folks to where they can pay the rent. People with jobs? Yes, check that off the list. People who can manage money? No. So we need to get that fixed. I recommend that when you screen you next tenant, find the day their payday hits and set up your system so that the rent is due that day or the day after. Get the money when there is money to be had, before it goes to the Rent-a-Center and wherever else it goes.

Zero tolerance? Yes, keep it in effect. Once they're done paying, the goal is to get them out ASAP to limit your loss. I don't get quite as excited as myob does having mounds of judgments to collect, but it can help offset your losses. However, you might try timing your filings like I do so that the court date shows up on the 1st or 2nd day of the next rent cycle so you get two month's rent vs. one. That's why I file on day 7 that rent is late (Example: due on 1st, file on the 8th)... I almost always get a court date on the 2nd/3rd of the next month, so in exchange for waiting a couple of days to file, I get two months of rent awarded instead of one. That helps "pay" for my collector's fee.

Good luck. I'm rootin' for you!

.

--173.20.xxx.xxx




Is this my fault? (by S i d [MO]) Posted on: Oct 15, 2018 4:57 AM
Message:

Hi Roy,

Good early morning. As you know, I manage rentals in the same kind of hoods that attract the same kinds of tenants that you have. I've gone thru periods where it seems like one house was a bum-magnet, and I swore I would sell as soon as the weather got nicer.

Well...time passed and things improved.

This time of year it's natural to think about thinning the herd, and I'm not sayings that's the wrong decision. But let's consider some facts...

1) You have a property described as a cash cow. The monthly rent is 2.3% of the "all in" price, although since my guess is you donated a lot of the labor yourself that number may be skewed a bit. Regardless of how it got there, that is it's performance today. I love properties like this.

2) You're evicting people in less than a year. That's too short. Folks gotta stay at LEAST one year or the turn over costs--even low costs--are killed. This must change.

3) Class C houses rarely sell to anyone but other investors. You might do okay if you get a newbie who can't write a check just yet and owner-finance it, or RTO it like one of Brad's beauties. I've got mixed feeling toward this kind of house and RTO: seems like it sets up a perpetual "churn and burn" scenario where you're kicking folks out who fail to close to deal every 2-3 years and collecting a huge fee to boot. Personally, I am not comfy with that strategy, but you may be and that's fine. It would improve the problem we discussed in paragraph 2 above since folks are staying longer.

Aside from eviction, are there any other major issues? Do they do a lot of damage and/or require significantly more clean up and repairs when someone moved out?

I think the goal is to get folks to where they can pay the rent. People with jobs? Yes, check that off the list. People who can manage money? No. So we need to get that fixed. I recommend that when you screen you next tenant, find the day their payday hits and set up your system so that the rent is due that day or the day after. Get the money when there is money to be had, before it goes to the Rent-a-Center and wherever else it goes.

Zero tolerance? Yes, keep it in effect. Once they're done paying, the goal is to get them out ASAP to limit your loss. I don't get quite as excited as myob does having mounds of judgments to collect, but it can help offset your losses. However, you might try timing your filings like I do so that the court date shows up on the 1st or 2nd day of the next rent cycle so you get two month's rent vs. one. That's why I file on day 7 that rent is late (Example: due on 1st, file on the 8th)... I almost always get a court date on the 2nd/3rd of the next month, so in exchange for waiting a couple of days to file, I get two months of rent awarded instead of one. That helps "pay" for my collector's fee.

Good luck. I'm rootin' for you!

.

--173.20.xxx.xxx




Is this my fault? (by Roy [AL]) Posted on: Oct 15, 2018 5:53 AM
Message:

Plenty,

funny that you mentioned HUD tenants. I had a 3 year Section 8 tenant in this house and I think she was the only one I did not have to evict,...LOL. She moved out 2 years ago and called me yesterday and wants to come back to this 3/2 house. I am not sure if I want her back though.

Sid,

We need to get a together again, drink some more Coors and talk shop. I have to leave here and go file an eviction. Courthouse opens at 8:00a.m. and my papers will be served today if I can get them in the Constable's office before 9:00a.m. The best day of the week (here) to file an eviction is Monday morning at 8:15 -8:30 a.m. sharp. The Constable and I are on a 1st name basis now. --68.63.xxx.xxx




Is this my fault? (by S i d [MO]) Posted on: Oct 16, 2018 7:14 AM
Message:

You bet, Roy! I'll always have cold ones waiting for you!

I'm impressed with your Constable. Same day service, wow! Here the option is the sheriff's deputy who take 1-2 weeks and has little motivation to get it done, or a process server who gets it done in 3 days or less, and he ALWAYS gets them unless they've moved out of town/state. You can guess which one I choose, and we've only missed a couple in the past 10 years... --173.20.xxx.xxx




Is this my fault? (by Mickie [OH]) Posted on: Oct 16, 2018 9:43 AM
Message:

Just a thought,. But if they're making money but are taking up more of your time if it were me I'd either sell or make it worth my time. Depending on how many bedrooms and baths and the demand for housing in that area, I'd entertain the idea of renting the bedrooms out and advertise itas co-living. I have a 4 br that stays full with very little vacancy. Instead of grossing 950 a month it grosses 2000.00 per mo. The former tenant was a pita with 2 kids. I made it worth my time. And the weird thing is by screening carefully I've only had 1 guy that couldn't follow the rules and I sent him on down the road. Just something to think about. --174.233.x.xxx



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