Yep applicants typically pay for the background check here as well in the form of an application fee
Sent from my iPhone > On Jul 21, 2016, at 7:05 PM, Dan Penoff via Mercedes <mercedes@okiebenz.com> > wrote: > > I work with two guys who have in excess of 10 single family rental properties > each. One is the cheapest, skin-flintyest person I have ever known, who goes > to great lengths to vet his potential tenants (I suspect in violation of HUD > laws) and kicks people out the second they get out of line. His occupancy > rate is pretty poor, as is the quality of his tenants. > > The other is a bit more laid back, but still does all the right things in > qualifying his tenants. He responds quickly and promptly to their concerns > when things come up and he goes to great lengths to maintain and even improve > his properties. He rarely has an unoccupied property. > > That being said, these are both career government employees, and despite > their obligations at work both spend a lot of their free time dealing with > the overhead and hassles of being landlords. > > I have a friend I used to work with in the school district who has four > rental properties. He has a real estate license as well. He recently > married and has a young son. He pays a management company 10% of the monthly > rent to manage his properties. All he does is collect the monies monthly > when the check comes in from the management company. Yes, he’s giving up > 10%, but he still has the revenue stream and isn’t being woke up at 4:00 am > to deal with a broken pipe. He’s not the one qualifying potential renters, > either. > > My immediate manager is married and has three children, all of whom are > school age. Wife stays at home and home schools. They live in a very small > 60s era ranch home with three bedrooms and one bath. His recent promotion > has given him the additional income to afford a larger home. Wife suggests > they should keep their starter home and rent it, that she could deal with it > since she’s home all day. > > My question to him was, “When the phone rings at 4:00 am and there’s a broken > pipe, is your wife going to be the one to deal with it?” > > He put a stop to that idea right away. > > I guess my point is that while the idea of renting a property sounds like > easy money, it’s not. It’s a lot of work and effort on your part if you’re > not willing to offload the overhead to a property manager. If you want to > become a slumlord, so to speak, like my fellow employees, great. But you > better have time on your hands and be expected to be on call 24/7. It’s not > as simple as just advertising, finding a tenant, and collecting the rent > check. Also, when that property is empty, it’s not generating any revenue. > But - you still have to pay the utilities and taxes on it, so you better have > some reserves on hand for the lean months. > > I speak from direct experience, as some years ago we owned two doubles and > occupied half of one. We were lucky in that the other half of the one we > lived in had a long time (15+ years) tenant that was probably going to die in > the place. The other we had to rent out, and it was a lot of work. At the > time the tax benefits weren’t bad, but if we hadn’t had a decent tax > accountant we would have missed a lot of the breaks. Another expense. > > Lawyer up, get the tenants out, dust yourself off and chalk this up to > experience, have your lawyer sort out your lease agreement and do background > and credit checks. (And you do realize the renter can be the one to pay the > background and credit check fees, too? At least here in Florida they can be > charged for it.) > > Dan > > > >> On Jul 21, 2016, at 7:38 PM, Craig via Mercedes <mercedes@okiebenz.com> >> wrote: >> >> On Thu, 21 Jul 2016 17:03:09 -0500 "Kaleb C. Striplin via Mercedes" >> <mercedes@okiebenz.com> wrote: >> >>> My plan was to rent out house and by the time I was ready to retire it >>> would be paid off and would either have the month rent coming in or >>> could sell it at that time. >> >> Great plan. Poor execution to date. The execution, however, can be >> changed. >> >> >> Craig >> >> _______________________________________ >> http://www.okiebenz.com >> >> To search list archives http://www.okiebenz.com/archive/ >> >> To Unsubscribe or change delivery options go to: >> http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > > > _______________________________________ > http://www.okiebenz.com > > To search list archives http://www.okiebenz.com/archive/ > > To Unsubscribe or change delivery options go to: > http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com > _______________________________________ http://www.okiebenz.com To search list archives http://www.okiebenz.com/archive/ To Unsubscribe or change delivery options go to: http://mail.okiebenz.com/mailman/listinfo/mercedes_okiebenz.com
