Thread: So, you want to be a landlord

Wow! I charged a$1000 deposit on my $800/mo. apt. Think that's enough to discourage THIS ind of behavior?

Originally Posted by PEERless

Wow! I charged a$1000 deposit on my $800/mo. apt. Think that's enough to discourage THIS ind of behavior?

Sure that works great if your units are in that type of area. My example was in the inner-city core. The only thing that a "for rent" sign in the yard followed up with a "I want a $1000 deposit" would get me is my copper plumbing stolen.

I'm not complaining, I chose to buy these houses for the section 8 cashflow. Was it a good decision? Jury is still out, after 3 years it seems like a wash compared to nicer areas.

Originally Posted by Edge

Sure that works great if your units are in that type of area. My example was in the inner-city core. The only thing that a "for rent" sign in the yard followed up with a "I want a $1000 deposit" would get me is my copper plumbing stolen.

I'm not complaining, I chose to buy these houses for the section 8 cashflow. Was it a good decision? Jury is still out, after 3 years it seems like a wash compared to nicer areas.

Thats what I have seen, I rather rent higher end places. You still have problems, but they are usualy less.

Edge, how much is your deposit? And rent, for that matter?

For my lower end, rent is 625 and deposit is 600. 200 non refundable if they have pets.

I see. OK. I have no pets, so all $1000 is NRF in that case.

Originally Posted by PEERless

Edge, how much is your deposit? And rent, for that matter?

My inner-city open market is between $600-$700 rent, deposit is 1 month non-negotiable.

Inner-city section 8 ranges between $775-$900, I advertise $300 deposit but it is alway negotiated. I haven't ever collected more than $250 for a section 8 deposit. I've actually let one section 8 tennant move in for $0 deosit, and she has been a great tennant.

Originally Posted by PEERless

I see. OK. I have no pets, so all $1000 is NRF in that case.

Maybe I missed something, but are you saying a $1000 NRF security deposit?

Wow! So, are you telling me that these pics and these stories I've read are ALL Section 8 tenants?

Even with the cashflow, I don't want that much of a headache! I've NEVER had any problems like that with my tenants. Is it worth your time & energy to have to deal with that kind of b.s.?

Do any of you have GOOD Section 8 tenants...paying on time, taking care of your property? I just don't see the long term financial value in that....can some one educate me a bit more? Is it that profitable? It just seems more of a headache and having to put out that kind of time on something....I find my time is more valuable to me...

I'd rather rent to someone that will care for my property, and I have my PM check it out every 6 months for "maintenence" inspections (i.e., changing the air conditioning vents, making sure the unit/home is in good condition)....do any of you do that??

I'm just in shock. Those are the kind of props I'd buy and rehab....but I would NEVER want a tenant like that....are all those Section 8 people like that??....

Sorry, I'm rambling....I'm just in a state of shock!

Those were regular tenants in that house. At first, when the PM went to check on the house, everything seemed OK but when they started falling short on the rent and not paying on time, thats when they had nothing to lose, hence the furniture being left behind.

I threatened them with the pay or quit letter, so they moved out, no notice or anything. They even kept the keys. But that's the low end of my rentals, I have other decent ones in better areas that fair alot better.

The nature of the business.

Originally Posted by NoMoneyDown

Maybe I missed something, but are you saying a $1000 NRF security deposit?

Pets would be a breach of my lease, so I'd keep the money.

Only my application fees are truly NRF.

I have one rental property left and I'm about ready to get rid of it. It recently went vacant again for the fifth time in seven years. This time they flooded the house and left without saying anything. Usually they just leave without saying anything.

The house used to be in a pretty nice neighborhood until other investors liked it too and started buying there. This is just the opposite of how I saw the neighborhood going.

Over the years I've grown to dislike renting houses. There's got to be a better way to do the house business.

Has anyone seen "million dollar listing?" It seems those kids selling houses in LA are in a much faster lane than any landlord I know.

I have seen that show, and the sheer douchiness of those kids drives me to change the channel (and not want to be ANYTHING like them).

Perhaps it's time for you to move into apartment buildings or commercial.

Congrats on outgrowing the first step.

The trick is to buy enough properties to make it worth hiring a PM. Its hard to get over that hump though. One of the big guys around here started his own property managment company.

Peerless,

Man you're a breath of fresh air. I take this stuff pretty serious. If that's the next step than I'm happy to have made it this far unblemished, pretty much. I didn't know getting sick of tenants was first base in a successful career in real estate. I'll keep that in mind.

Thanks

Originally Posted by MsMoney

Wow! So, are you telling me that these pics and these stories I've read are ALL Section 8 tenants?

Even with the cashflow, I don't want that much of a headache! I've NEVER had any problems like that with my tenants. Is it worth your time & energy to have to deal with that kind of b.s.?

Do any of you have GOOD Section 8 tenants...paying on time, taking care of your property? I just don't see the long term financial value in that....can some one educate me a bit more? Is it that profitable? It just seems more of a headache and having to put out that kind of time on something....I find my time is more valuable to me...

I'd rather rent to someone that will care for my property, and I have my PM check it out every 6 months for "maintenence" inspections (i.e., changing the air conditioning vents, making sure the unit/home is in good condition)....do any of you do that??

I'm just in shock. Those are the kind of props I'd buy and rehab....but I would NEVER want a tenant like that....are all those Section 8 people like that??....

Sorry, I'm rambling....I'm just in a state of shock!

1. the damage shown in the pictures was caused by a woman who held a steady job with decent income for many years. She apparently fell off the wagon (alcohol or drugs) or she had a mental illness that she had befallen upon her.

2. I have rented to Sec8 tenants but I have parameters I follow: a) I must have open communication with the assigned case manager; b) the tenant must provide previous landlord references... of course delays in payment is expected (that's why they need public assistance) but I am mostly seeking damages history; and c) pass background criminal check

and to answer other questions regarding rents and security deposits:

3. depending on the state the property is located, only certain amounts can be collected by local law/ordinance.
NJ - 1st month rent + 1.5 mth security deposit can be collected before
PA - 1st month, last month and 1 month security deposit.

So, to quell your fears: a strong policy regarding tenant screening can usually prevent disasters from occurring.

Agreed with the above, but I will still never work with Section 8 again. Why stick to the lowest common demoninator even if most of the money is guaranteed? Problems are going to come with it....

Edge- what city do you live in? Those are pretty good rents for inner city.
MsMoney, I have not had a good se 8 tenant. The only one that was decent payed on time all the time.But... He was filthy! thats the BEST one I had. Sec 8 is not worth the time, sorry.