So, you want to be a landlord

[PEERless]

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.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[PurEnergy]

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.

 

[PEERless]

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.

 

[hatterasguy]

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.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[PurEnergy]

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 :smx9:

 

[randallg99]

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.

 

[JesseO]

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....

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[M&T]

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.

 

[Edge]

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.

These properties are in Kansas City, MO, and I agree, we do enjoy pretty healthy rents especially compared to open market rents.

Check out the attached link for comps on 4br SFRs in KC, MO:

Socialserve.com - Find Affordable Housing

MsMoney-
Sorry I haven't had the time for a more detailed response, but I disagree with all of the "section 8 isn't worth the time/money" crowd. That's simply too generalized of a statement, you should check out your own area and make your own decision. I feel it does work in Kansas City and is something i'll always keep in my toolbag. I hear a lot of talk about how section 8 isn't worth the time, I can honestly say if I compared my time commitment to open market rentals vs. section 8 rentals, i'd take section 8 hands down. Having my propery manager send out my handyman for a repair doesn't impact my time at all.

I can't speak for all markets, but around here you are allowed to screen tennants. Each year there is an inspection performed by the section 8 housing authority and non-normal maintenance is placed on the shoulders of the tennant. Guess what, they tend to do their share when the alternative is getting kicked off the program and having to find a way to put their own roof over their head.

If you can have something section 8 ready for around $40k (it can be done for less but I am not a bird dog or a contractor) and you collect $900/mo on it, there are ways to make it work. It does take a different approach to management, but as I have stated in previous posts, I have a property manager and handyman that handles my section 8 houses and a seperate property manager for my open market rentals.

I don't intent to sound pro-section 8, becuase as I have stated previously I am still neutral on the financial benefit of section 8 vs open market in this area. I do think that if you all are not considering it as an alternative, you could be missing out on some opportunity.

 

[M&T]

Wow! Edge your market is different there.Not only do we get very low rents for sec 8 they try to negotiate down to the lowest possible dollar. When you do have a sec 8 tenant they do not like rent increases yearly. You have to pull teeth to get increases. Also if you have repairs to be complete it is the property owner's responsibility! I never had a sec 8 tenant step up to fix or pay for anything!I have had them destroy plenty!
The sec 8 staff here is divided. One person in the office is pissed at the executive in charge because they are driving away good property owners.Which is what happened in my case.I dropped the program.The caseworker was actually mad at the executive in charge because they screwed me out of 5 months rent. I had to go to court to evict a sec 8 tenant and it cost me thousands till it was all finished.They have lied to me and cost me tons of money.
Your market sounds a lot better!Also the staff is probably better to deal with. Which would make it a better deal. I guess it is a market to market decision in the end.
M&T...

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[lightning]

After reading this thread, I am compelled to tell you a story of a Section 8 family a friend of mine was forced to deal with in a bad area of Ohio a few years back....

I was told this story a few years ago, so the specifics may be off a bit. A friend of mine used to work for a Project Manager as a plumber, and was dispatched all over his city to take care of plumbing emergencys on the fly. One day, he got a call about a home that needed some serious work, as the tenants were refusing to pay part of their rent until the landlord fixed a plumbing problem.

My friend was the one dispatched to this particular job..in a VERY poor neighborhood of the city...

When he walked into the house, the stench nearly knocked him off his feet. (the next part is one I remember specifically). A full family of 5 was in the living room and paid him little notice, as they watched tv on what seemed to be a brand new flatscreen. The "man of the house" (father?) simply pointed up, letting him know to go up stairs. When he got upstairs to the bathroom, he realized what the "odor" he smelled was...

The family had clogged the toilet probably months ago, and instead of taking care of the (ahem) problem, had continued to use it till the bowl had filled up to the seat level. After they could no longer sit down, they had turned to the bathtub, and (using the ledge as a "seat", and had now filled up THAT about halfway up. Against one wall of the room opposite the tub, there were coffee cans and bottles of all sizes filled with urine, as the tenants had apparently decided there was no better way to store it. The scene he described to me almost made me lose my lunch, so I almost feel bad about telling you about it now! (i do apologize!!!).

My friend however REFUSED to touch or fix anything, and promptly walked out of hte house in disbelief at what he had just seen, or the human garbage that sat on the couch who were capable of such filth. He quit his job later that day, and told me that he will NEVER deal with Section 8 tenants again in any way, regardless of which way his real-estate endeavors go. I have been scared to get involved with them ever since hearing that story, lol.

One last thing, please note that I am only relaying ONE experience while dealing with Section 8 tenants, and am NOT making assumptions in any way about all of them! I am sure some have had good experiences with them, however stories like the above (and others posted here) have scared me enough to never take the risk!

 

[venom]

I have had a tenant not pay the utlility bill and the kitchen caught on fire when the utilitles were turned back on. Oh they had moved out in the middle of the nite....
The rent was covered by insurance. So it wasnt as bad as it sounds. Gave us time to fix the rest of the mess.
Had the tenant who's cat sprayed the whole house.
and multiple other crummy tenants
The nice thing about my first sec 8 was she didnt pay much. The state paid most of the rent. Which once it got started was sent like clockwork. It was a really nice house in a good neigborhood. I dont think the owners in the area like me ):
The only issue was they called me and said there was a problem with the ac. I sent the ac guy and they serviced the ac. When I showed up over a month later. The garage had lots of water. The water heater was what was leaking. I turned off the hot water. Which they turned back on that nite. So they could take showers. .....
The funny part is they were complaining to me about the water bill. I was like duh all you had to do was call and it would of been fixed the next day.
Oh and the other issue was the kids took the knobs off the oven and they broke the ice maker in the fridge. I had to fix that because the section 8 people told me to !
Rob

 

[andviv]

One of my tenants refused to pay this month's rent until I fix a problem with the septic tank (it's full). My PM asked him since when this has been a problem and he said almost two months. And only now they decided to tell us about it. He just needed to call us and we'd taken care of the issue, and now he's holding this month's rent until the problem is fixed... go figure.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[RealOG]

One of my tenants refused to pay this month's rent until I fix a problem with the septic tank (it's full). My PM asked him since when this has been a problem and he said almost two months. And only now they decided to tell us about it. He just needed to call us and we'd taken care of the issue, and now he's holding this month's rent until the problem is fixed... go figure.

Its funny how tenants act. Usually its a ploy to avoid paying rent or to give them more time. They expect you to know the issues they have been dealing with without any communication. Some folks are weird...

Another thing I see is tenants who try to play games. Its funny, but they try these tricks that they think are new, but we've seen em all before.

 

[randallg99]

here's an issue that pissed me off enough to jump out of bed....

a tenant occupied property was receiving social services support (more or less sec. 8 type of support) let a nephew move in while she moved out without telling me... so the person living there is not even on the lease and is a 20-something home wrecking party freak....

I basically yelled at the woman who is on the lease and she said she can't get him out of the house....

long story short, I am filing for eviction but after riding by the property recently, there is loads of trash around the property, broken windows, fold up and plastic chairs around the front of the house and who else knows what problems await me inside...

 

[Runum]

here's an issue that pissed me off enough to jump out of bed....

a tenant occupied property was receiving social services support (more or less sec. 8 type of support) let a nephew move in while she moved out without telling me... so the person living there is not even on the lease and is a 20-something home wrecking party freak....

I basically yelled at the woman who is on the lease and she said she can't get him out of the house....

long story short, I am filing for eviction but after riding by the property recently, there is loads of trash around the property, broken windows, fold up and plastic chairs around the front of the house and who else knows what problems await me inside...

I would definitely report her to the housing authorities for doing you like that.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Bilgefisher]

I have never rented before, how futile would it be to press charges against the nephew? He's not on the lease and he basically caused destruction of your property.

 

[JesseO]

Unfortunately I believe it's the woman who you are going to have to get a judgment against for all the damage, breaking the rules, and forcing a lease break via eviction proceedings. She can legally have the locks changed so that he cannot get in anymore, but it looks like you're beyond that point. I think after she's got a judgment on her credit for $3,000 or whatever all this amounts to, she can then sue your nephew for that amount. I'm not positive about all this so contact a lawyer of course. Good luck!

 

[JesseO]

I know we've seen lots of trashed apartments already, so I'll just post this link and not a bunch of pictures....


How can anyone live like this? (pics)

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Bilgefisher]

The owner of the rental home across the street from me had a break in last Friday. They broke every light fixture and sprayed graffiti over all the walls. He evicted the last tenant 1 month ago and just finished fixing the place up including fresh paint. He's been very careful on who he chooses for the next tenant and has turned down literally scores of folks looking. The act looks very deliberate. I would go out on a limb and guess a turned down or formally evicted tenant wanted to get even.

I feel kinda bad for the gentleman. He's elderly and I think its his only rental.

He did make a few key mistakes though. Zero lighting in the back yard where the break-in took place. No motion lights. Front porch light off when every other house on the street has one on. No security system signs. Again every other house has a sign, it only makes his house a target in my neighborhood. He has barely talked to any neighbors around here. There are several 10+ year residence that could gladly give him names to potential tenants with a decent background. Also you can buy multi setting timers for indoor lights for fairly cheap. $15 timer, $20 in signs, $35 in motion lights to prevent several hundred dollars damage.

 

[Bilgefisher]

I know we've seen lots of trashed apartments already, so I'll just post this link and not a bunch of pictures....


How can anyone live like this? (pics)

Wow. I hope to hell that the lady didn't have kids. I'd call social services from out of state. At the very least call the police and have her arrested for animal cruelty to her cat.

 

[QueensKiddd]

I'm new to RE investing. Planning on buying my first property soon. When this type of damage is left behind by the tenant, is there anything you can do? Can't you take the tenant to court?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[JesseO]

Yes, you can charge them for the cleanup, damages, etc. Any expense you have should be documented (keep those receipts!) and you can issue a judgment against them for unpaid rent, damages, late fees, court costs, etc.

On a side note, here's what one company is doing to tenants who don't pay their rent:

Estate agents shame tenants by putting up 'rent dodger lives here' signs outside homes | Mail Online

 

[Jito]

I know we've seen lots of trashed apartments already, so I'll just post this link and not a bunch of pictures....


How can anyone live like this? (pics)

You're lucky that place didn't go up in flames...

 

[NoMoneyDown]

I know we've seen lots of trashed apartments already, so I'll just post this link and not a bunch of pictures....


How can anyone live like this? (pics)

Looks like the person likes smoking and eating take-out from What-A-Burger.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Starsky]

So far my move outs havnt been too bad.. I did complete my FIRST eviction in May, that was actually fun... Not too much damage...

 

[PEERless]

HOLY CRAP! Not to be outdone by cigarettes, feces, and dildos; see Workers Clear 100 Tons of Rubbish.

 

[MJ DeMarco]

How's this for unkept tenants ... more pictures at the link below...

Top New Blog- Blog for the top web news

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[PurEnergy]

OMG!

I would close the door, go home, and pray that the place burned down overnight.

There is absolutely no excuse for that. If you are capable of making that mess you are surely capable of putting the trash in a freakin bag and at least getting someone else to take it out.

My last one was pretty bad but that one makes me feel a whole lot better. :smx4:

 

[Adam K]

I know we've seen lots of trashed apartments already, so I'll just post this link and not a bunch of pictures....


How can anyone live like this? (pics)

I can honestly say that just made me sick to my stomach. I am throwing away the burger I have in my hands right now! I really dont know how someone could live like that without getting some kind of sickness or something. I mean do people just not care about themselves that much that they would subject themselves and or someone else to that kind of nasty display. I am shocked, I have seen bad places at friends houses roaches all over the place in there beds, on the couter and table, in the stove and hey they cook with it in there. You can bet I never ate at there house. And a few more where im there the whole time saying how can I politely say im leaving because there house STINKS LIKE SHIT!

I really dont understand people anymore.