How would u handle this? (by Roy [AL]) Aug 2, 2021 9:02 AM
How would u handle this? (by MC [PA]) Aug 2, 2021 9:12 AM
How would u handle this? (by Roy [AL]) Aug 2, 2021 9:18 AM
How would u handle this? (by Homer [TX]) Aug 2, 2021 9:20 AM
How would u handle this? (by Roy [AL]) Aug 2, 2021 9:39 AM
How would u handle this? (by Roy [AL]) Aug 2, 2021 9:56 AM
How would u handle this? (by plenty [MO]) Aug 2, 2021 10:04 AM
How would u handle this? (by myob [GA]) Aug 2, 2021 10:36 AM
How would u handle this? (by Nicole [PA]) Aug 2, 2021 10:49 AM
How would u handle this? (by Roy [AL]) Aug 2, 2021 10:55 AM
How would u handle this? (by Allym [NJ]) Aug 2, 2021 10:56 AM
How would u handle this? (by Sisco [MO]) Aug 2, 2021 11:37 AM
How would u handle this? (by myob [GA]) Aug 2, 2021 12:05 PM
How would u handle this? (by Robert J [CA]) Aug 2, 2021 12:06 PM
How would u handle this? (by Rosie [VA]) Aug 2, 2021 12:11 PM
How would u handle this? (by MC [PA]) Aug 2, 2021 12:12 PM
How would u handle this? (by S i d [MO]) Aug 2, 2021 12:20 PM
How would u handle this? (by Roy [AL]) Aug 2, 2021 12:33 PM
How would u handle this? (by Oregon Woodsmoke [ID]) Aug 2, 2021 12:51 PM
How would u handle this? (by 6x6 [TN]) Aug 2, 2021 12:56 PM
How would u handle this? (by Roy [AL]) Aug 2, 2021 1:08 PM
How would u handle this? (by Sisco [MO]) Aug 2, 2021 1:15 PM
How would u handle this? (by Frank [NJ]) Aug 2, 2021 1:21 PM
How would u handle this? (by 6x6 [TN]) Aug 2, 2021 1:24 PM
How would u handle this? (by S i d [MO]) Aug 2, 2021 1:34 PM
How would u handle this? (by P.B. [MI]) Aug 2, 2021 2:34 PM
How would u handle this? (by RB [MI]) Aug 2, 2021 3:19 PM
How would u handle this? (by Ltd [AZ]) Aug 2, 2021 3:58 PM
How would u handle this? (by BRAD 20,000 [IN]) Aug 2, 2021 4:01 PM
How would u handle this? (by myob [GA]) Aug 2, 2021 4:09 PM
How would u handle this? (by myob [GA]) Aug 2, 2021 4:12 PM
How would u handle this? (by Bonanza [NC]) Aug 2, 2021 4:41 PM
How would u handle this? (by Renne [TX]) Aug 2, 2021 6:38 PM
How would u handle this? (by Roy [AL]) Aug 2, 2021 7:16 PM
How would u handle this? (by LisaFL [FL]) Aug 2, 2021 11:50 PM
How would u handle this? (by Jason [VA]) Aug 3, 2021 12:55 AM
How would u handle this? (by Ken [NY]) Aug 3, 2021 9:57 AM
How would u handle this? (by Tony [NJ]) Aug 3, 2021 10:47 AM
How would u handle this? (by Ray-N-Pa [PA]) Aug 3, 2021 5:26 PM
How would u handle this? (by Bob [GA]) Aug 3, 2021 11:15 PM
How would u handle this? (by mike [CA]) Aug 4, 2021 2:00 AM
How would u handle this? (by Roy [AL]) Aug 4, 2021 6:27 AM
How would u handle this? (by Roy [AL]) Aug 4, 2021 7:08 AM
How would u handle this? (by Rosie [VA]) Aug 4, 2021 8:36 AM
How would u handle this? (by Roy [AL]) Aug 4, 2021 8:57 AM
How would u handle this? (by Ken [NY]) Aug 4, 2021 9:10 AM
How would u handle this? (by Roy [AL]) Aug 4, 2021 9:54 AM
How would u handle this? (by Ken [NY]) Aug 4, 2021 10:18 AM
How would u handle this? (by Roy [AL]) Aug 4, 2021 10:46 AM
How would u handle this? (by Busy [WI]) Aug 4, 2021 3:16 PM
How would u handle this? (by Roy [AL]) Posted on: Aug 2, 2021 9:02 AM Message:
Whenever I raise rents, I mail my tenants a short letter that just says in 30 days, your rent will increase by $25.00. Most tenants pay the increase without ever questioning my motives.
3 months ago, I mailed 6 rent increase notices. I had one tenant that called me and started whining and said "I can't afford this" and since I was at a loss for words that day, I told her to just ignore the letter and just continue paying her original rent that has been the same since she moved in 4 years ago. She is a good tenant and there no need to get hostile with her.
I still need to raise her rent though. If I don't , she will be paying the same amount 10 years from now! Any suggestions on how to get her to pay my modest rent increase?
--68.63.xxx.xxx |
How would u handle this? (by MC [PA]) Posted on: Aug 2, 2021 9:12 AM Message:
MTM or year lease? --73.230.xxx.xx |
How would u handle this? (by Roy [AL]) Posted on: Aug 2, 2021 9:18 AM Message:
MC,
She started out on 1 year lease that converted to MTM. She is the only tenant I have that is on a bi-monthly plan. Her $500.00 rent is split into 2 payments,..$250.00 on the 1st and 3rd Saturdays. --68.63.xxx.xxx |
How would u handle this? (by Homer [TX]) Posted on: Aug 2, 2021 9:20 AM Message:
You have already told her not to worry about it. Too late now….however I
Wouid send a letter letting them
Know that in 4-6 months they will be receiving a letter with a significant increase. That way they can be prepared for what’s coming. They don’t like it, let them move if month to month. Replace them With someone that can pay even higher rent. --107.77.xxx.xx |
How would u handle this? (by Roy [AL]) Posted on: Aug 2, 2021 9:39 AM Message:
Homer,
I was thinking the same thing, giving her a more advanced notice but I do need to stand my ground here. The reason I waited 4 years is because she lives in one my economy houses located in a Class D hood where good rent paying tenants can be hard to come by. Before she moved in, that house was a bum magnet. --68.63.xxx.xxx |
How would u handle this? (by Roy [AL]) Posted on: Aug 2, 2021 9:56 AM Message:
I just checked my tenant rent roster and she moved in on June 15th, 2015. That is 6 years and not 4. How time flies. That 10 year mark is approaching quickly. --68.63.xxx.xxx |
How would u handle this? (by plenty [MO]) Posted on: Aug 2, 2021 10:04 AM Message:
There is an amount she can pay. Even if it stretches the budget. Include in your letter the resl estate tax and insurance has increased. Ask for $15 next time and then let her adjust. Then ask for another $15. Now you are up $30, five extra if she hadn't been a complainer she could have been ahead. Train her to accept and not complain. Or move ... is there anywhere she can move for cheaper? They all got stimulus money and are sitting on cash. Might as well get yours. --172.56.xx.xx |
How would u handle this? (by myob [GA]) Posted on: Aug 2, 2021 10:36 AM Message:
grow a s*t and do your job. Pretty simple.
Otherwise join a charity outfit-- cause really Roy your working for free. --99.103.xxx.xxx |
How would u handle this? (by Nicole [PA]) Posted on: Aug 2, 2021 10:49 AM Message:
Because you said "okay, no increase", I'd stick to my word.
I'd send another letter stating in another xx (I'd pick 3 or 4) months the rent will be going up by $15 and to be prepared because six months later it will again be going up another $15. Hopefully she doesn't walk ... but she might. Those who say folks don't leave for $15 know nothing about the lower end tenants. Only reason I'd give her the break is because of the type area/tenant pool you describe. --72.70.xxx.xxx |
How would u handle this? (by Roy [AL]) Posted on: Aug 2, 2021 10:55 AM Message:
Myob,
As usual, I will have to disagree with you. I bought this house in 2007 and it was my first $5K house. I invested another $10K in rehab and even at $500/month rent, my return each year is outstanding. Do the math and then tell me if I am working for free. --68.63.xxx.xxx |
How would u handle this? (by Allym [NJ]) Posted on: Aug 2, 2021 10:56 AM Message:
Well we are not in the midst of the covid crisis anymore. I would call her and ask if she can handle $12.50 now and another in six months. I will tell you that I picked and moved when I was young because my new landlord who bought the building, raised my rent by 9 percent. I was paying $165 in 1975 and making $100 a week. He raised my rent $20 to $185. I found the same size in the next building over, hauled my sh-t out of there and rented next door for $160. He was sure surprised, tried to claim my fridge and my rugs which were loose lay. I cleaned it to look like no one had been there, removed my carpet tiles and he got what he deserved, a plain gray unit with no carpet or fridge. He was charging me from the improvements I made. Yes I am still mad 46 years later.
--108.24.xx.xx |
How would u handle this? (by Sisco [MO]) Posted on: Aug 2, 2021 11:37 AM Message:
I would send her another letter stating that rent is now $109 higher per month. --149.76.xxx.xxx |
How would u handle this? (by myob [GA]) Posted on: Aug 2, 2021 12:05 PM Message:
As usual ROY you don't get it. IT's a business.
Has not a thing to do with what you paid for it.
Let me ask you-- Bill Gates has all the money in the world-- does he say gee I don't need any more? Does he lower the price for DOS or his selling of Microsoft?
IT has nothing to do with what you invested -- its the return.
Paying the same rent for 4+ years-- now that's a problem. --99.103.xxx.xxx |
How would u handle this? (by Robert J [CA]) Posted on: Aug 2, 2021 12:06 PM Message:
My partner didn't listen and sent out 16 rent increase letters in Late November for a January 1st rent raise. The tenants all got to talking to each other and ganged up on us, demanding new paint, carpet and appliances.
In all of my other buildings with no partners, I never raise all tenants at the same time, I usually do one apartment per month per property, if 12 or less units. If more than I'll raise 2 units per month. This why if a tenant threatens me with moving or not paying the rent increase, they won't be able to influence other tenants. --47.155.xx.xxx |
How would u handle this? (by Rosie [VA]) Posted on: Aug 2, 2021 12:11 PM Message:
Like others have said (and you're thinking), I'd give her notice that the rent will have to go up $xx in 3 months. Holy cow, she can't afford a $25 increase after 6 years? That's ridiculous!
We didn't raise rents last year (2020) during the pandemic, but all our houses are getting increases as they renew this year. Our tax assessments and insurance are going up (among other expenses), so if we don't try to raise them we are falling behind. And yes, we do think about how we'd handle it if anyone balks. In some cases we might negotiate; in others we're prepared to hold our ground. --108.4.xxx.x |
How would u handle this? (by MC [PA]) Posted on: Aug 2, 2021 12:12 PM Message:
Since it is MTM, I would wait 3 months and give her 60 day notice. Move it up $25. She had a warning it was coming. I have had the good paying tenants who only request things that are actually broken fixed. Hard to want to rock the boat but you have to make the move sometime. --73.230.xxx.xx |
How would u handle this? (by S i d [MO]) Posted on: Aug 2, 2021 12:20 PM Message:
My rent adjustment reminder letter is clear, "This is what we agreed on at lease signing (annual 2.9% cost of living)." Elegant, easy, no arguing. It's what we already agreed to. If they refuse, they leave.
Let me ask you: if your tenant walks into a store and tells the cashier, "I can't afford that item at this price!" does the cashier lower the price? Nope. She leaves the store without the item.
Send her the 30 days walking papers. I can almost guarantee you she will offer to pay the extra $25 once those are received. That's not being hostile: that's running a business. --108.230.xxx.xx |
How would u handle this? (by Roy [AL]) Posted on: Aug 2, 2021 12:33 PM Message:
Sid,
I understand your point here. However, if your tenant did not pay the 2.9% increase, would you evict her over it???
In other words, just how far are you willing to go to enforce your lease? --68.63.xxx.xxx |
How would u handle this? (by Oregon Woodsmoke [ID]) Posted on: Aug 2, 2021 12:51 PM Message:
You told her to forget the rent increase, so now you should wait about 6 months before you raise her rent. Be good for your word.
She applied to rent from you, so you know how much her income is. You know what rents are going for in your town. If you raise rent $20-$25 can she afford to move? Is the rent already a hardship and more will sink the ship?
It's a hard to rent place and she is taking good care of it. That is worth something. But how much is it worth? How much below market is she?
Word the increase by how much more for each payment. It will seem like a lot less than if you give her the total monthly amount. $12 more for each rent payment sounds a better bargain than $25 rent increase. --76.178.xxx.xxx |
How would u handle this? (by 6x6 [TN]) Posted on: Aug 2, 2021 12:56 PM Message:
I like plenty's response.
Robert J has a good strategy.
Sid makes very valid points and I also have an automatic rent increase built into my lease.
You could do as some do and give her three options $25, $35 or $50. Offer her the three options with the lowest being what you actually want. Or maybe they just ask them how much of a rent increase they can afford.
If you do not enforce your lease then it is worthless.
myob makes me laugh (unless it's me, grins..) but makes very good points. I like his advice. --73.120.xx.xxx |
How would u handle this? (by Roy [AL]) Posted on: Aug 2, 2021 1:08 PM Message:
6x6 and others,
Again, are YOU going to evict a good tenant that refuses to pay your rent increase? Yes or No. I can't make this question any more simple than this.
--68.63.xxx.xxx |
How would u handle this? (by Sisco [MO]) Posted on: Aug 2, 2021 1:15 PM Message:
How would u handle this? (by Frank [NJ]) Posted on: Aug 2, 2021 1:21 PM Message:
You are not going to evict her.
She is going to make the decision to leave and you are going to raise your rent to the current market rate.
After 6 years what are the going rates for taxes, upkeep insurance etc.
Is there anything else in the area that rents for 500.00/125 per week. Around here a room with a shared bath and kitch priveledges is 600 or more. Oh....and due to the current ru ups those units are almost non existent anymore --74.105.xxx.xx |
How would u handle this? (by 6x6 [TN]) Posted on: Aug 2, 2021 1:24 PM Message:
I would give them a 30 day notice hoping that it didn't go all the way to eviction. Let her know that she has had at least 6 years without a rent increase while your cost have gone up.
The problem will be that if you let this slide, then she will never pay a rent increase and may refuse to do other things. If you were to end up in court one day then the judge will see and the tenant will mention were you didn't enforce things.
It is difficult to make some of these decisions, admittedly, and I am still trying to learn how to handle things myself. I think that maybe it is a little more difficult as well from living in the south where people tend to be a little more friendly and too forgiving. --73.120.xx.xxx |
How would u handle this? (by S i d [MO]) Posted on: Aug 2, 2021 1:34 PM Message:
Roy, no. I would non-renew the lease and re-rent it to someone else for 15% more. The 2.9% rent bump barely keeps me even, but when I get vacancies I bump them $50 and am re-rented in a week's time.
What you need to ask yourself is would you hand this woman $300 cash today? That's basically what you're doing when not implementing your $25 a month raise. And that will carry forward into the coming years.
No one starts out hundreds below market....it's a slow creep over 4-5 years, then you wake up one morning and wonder why everyone else is getting $900 and you're only getting $700. --108.230.xxx.xx |
How would u handle this? (by P.B. [MI]) Posted on: Aug 2, 2021 2:34 PM Message:
Again, are YOU going to evict a good tenant that refuses to pay your rent increase? Yes or No.
NO, and I believe you just answered your own question. You stated "a good tenant" and good tenants are getting harder to find. She had the courtesy to call you and she did not actually refuse, you both worked it out.
You gave her your word. I suggest you keep your word, this time.
When the Lease renewal arrives politely explain to her that your expenses to keep the property/rental has increased and because of those increases the rental increase of $25.00 will apply.
It sounds like she is on a fixed income and if so she receives a cost of living increase each year.
I do not believe it is worth it to evict her because of this, at this time. Let it go and keep your word. --67.22.x.xx |
How would u handle this? (by RB [MI]) Posted on: Aug 2, 2021 3:19 PM Message:
For rent: an Economy house, in a class D hood,
vacant and a Bum magnet. --199.192.xxx.xxx |
How would u handle this? (by Ltd [AZ]) Posted on: Aug 2, 2021 3:58 PM Message:
Roy, I'm late as usual, but I disagree with some of the advice.
You have a 6 year tenant. How much will it cost to replace her? A lost months rent and possibly a couple thousand dollars to renovate after six years and re-rent. The result is taking possibly years to recover the lost income.
Exceptions would be A) If she is substantially under market and you are confident of a quality replacement tenant. or B) She is likely to move anyway.
I might try a conversation and explain the rise in inflation and costs is putting you into a loss situation and you dislike doing it but you have to ask your tenants to help out.
Then offer a solution. She is on a bi-weekly plan - how about a $5 increase, which gives you $10 a month now with a $5 spiff every couple of months on the 5th week. In 6 months a second $5 increase, which gives you $20 with $30 on occasion. $25 a month is $300 more a year, unless you end up vacant. Going this way you get $70 the first 6 months, and $140 the second six months for $210 in a year, and you don't end up with an empty.
The second half of the conversation should be a "brain-storming" session with her, "if" appropriate.
"How can we find a way for you to boost your income by $2.50 a week?" "Can you get an extra hour at work? Maybe forego one Starbucks, or smoke one less pack of cigarettes?" Maybe walk to the store instead of driving and save a half gallon of gas.
Maybe she can get some sort of side gig? It may fall to you to educate her that anyone not moving forward these days is going to get left behind.
EVERYONE needs to understand if inflation continues at current rates they/we are going to have to tighten up and figure out ways to cut costs and increase one's income.
I'm a millionaire, and last year we stopped driving to Vegas 250 mi r/t to go shopping and instead of buying vegetables and salmon (etc.) at Trader Joes or Whole Foods, we now get veggies at the 99 Cent Store, and buy whole salmon at Safeway on sale for $8 each. I get like 20 and freeze 'em, lasts 6 months. We save a couple of grand a year and our menus and food quality hasn't changed.
And all the money we save I can squander on my Jeep! ;) LOL
--47.216.xx.xxx |
How would u handle this? (by BRAD 20,000 [IN]) Posted on: Aug 2, 2021 4:01 PM Message:
Roy,
Evict over not paying the increase? Yes.
Within reason. I use Jeffrey's approach. "If you cannot afford this increase write the amount here $___ tht you can afford."
So I knock a few bucks off but I cam keeping closer track with the market.
I just heard today that our 2021 inflation SO FAR has been 14%.
Your taxes and insurance and Lowes bill have gone up to take care of her house.
Who's in charge? Sometimes that means I am flexible and don't push it to stay FREE!
BRAD
New rent " +2.9%" Year
2015 500.00
2016 514.50 14.50 174.00
2017 529.42 29.42 353.05
2018 544.77 44.77 537.28
2019 560.57 60.57 726.87
2020 576.83 76.83 921.94
2021 593.56 93.56 1,122.68
TOTAL LOST 3,835.82
--73.102.xxx.xxx |
How would u handle this? (by myob [GA]) Posted on: Aug 2, 2021 4:09 PM Message:
YES because Roy you are a king with no "subjects" or "crown" if you don't. --99.103.xxx.xxx |
How would u handle this? (by myob [GA]) Posted on: Aug 2, 2021 4:12 PM Message:
you got some good back up posts.
WHO has 6 year tenants? My dog gets washed and my underwear gets changed --REGULARLY.
6YEAR TENANTS? how do you keep your places current and updated? --99.103.xxx.xxx |
How would u handle this? (by Bonanza [NC]) Posted on: Aug 2, 2021 4:41 PM Message:
Meh. I have one tenant that is 200 below market rent. sometimes she is needy but in general she pays and doesn't give me a problem. I should get rid of her as others have suggested but it is work for me to find a new tenant and I always want to do some kind of update when a tenant leaves which costs me more money and time. If she bothers me enough i'd get another tenant. Short version for me is it's the devil I know and she's alright. I can't seem to do 24 hour turn arounds like WMH anyway. It can cost me a month rent and a couple of grand in updates to change tenants.
I've got a day job so I am not dependent on the rent income to live on. I'd say if she is your only one struggling and you have better things to do, let it be. Wait till January 1st and tell her rent will be $25 more on March 1st. If you don't agree then you have 60 days to find other accomadations.
I don't really give the tenant a choice on rent. I just tell them starting X date the rent is Y. --71.217.xxx.xx |
How would u handle this? (by Renne [TX]) Posted on: Aug 2, 2021 6:38 PM Message:
Roy, the very best lease clause we have, we borrowed from Brad 20,000. When a Resident signs a lease, they agree to a 2.9% cost-of-living increase at renewal unless we notify them more than 30 days out that it will be more.
There is no haggling, there is no me feeling awkward, there is none of that anxiety and drama of how do I tell them that I used to bring on myself by not having a clear standard that the Residents agreed to when they moved in.
We send them an Anniversary Letter congratulating them on their anniversary, asking them what they have chosen as their home anniversary gift (we borrowed that idea from Jeffrey) and spelling out the new rent and lease time period 45 days out. We say we hope the new rental increase of $XX per two weeks or $XX per month or $XX on the 1st and $XX on the 15th will fit into their budget and if not, we enjoyed having them as our Residents and we wish them the best in their future. We also enclose a full new lease for them to sign with all the new lease clauses that we have added since they signed their last lease.
That said, we currently have an elderly couple and a separate elderly widow who we are basically subsidizing. What happens though, is when they need a new septic system or they need a new water heater, (both have happened) the plumber or the septic engineer do not subsidize them and we lose more money. We are beginning to slowly raise their rents to market.
We are trying to follow John Schaub’s (Building Wealth One House at a Time) principle of keeping our business separate from our charity work or we will have no funds with which to do our charity work. It has been a huge struggle for me.
LTD also has a very good point; offer this lady something in manageable bite-sized pieces that she can afford. Real estate seems to be very local, and maybe it is worth it to you for the home to stay rented to this lady even if it’s a little under market rent so as not to have that home vacant and start attract vagrants and undesirable applicants.
My market is white hot right now and our property tax valuation increased by 31% in just one year, so we are scrambling to keep pace. I am taking to heart Brad 20,000’s advice about how much money we have lost over several years by not doing consistent rent increases.
I know there are all types of reasons that people do not pay rent, but our Residents have only not paid rent on time for one simple reason: they do not have enough money. At the very first sign of a problem, we try to nip that in the bud so that we are able to cut our losses.
We now have a new company policy saying if we ever send a Resident an eviction notice they will not be renewed even if they catch up. In our history, we have sent only 2 Residents an eviction notice. The first one had approximately 1 notice in 2018, 3 in 2019, 4 in 2020 and from there it just went downhill. That was all my fault. We just evicted them at a loss of over $5,000 and that was not even our true loss. We decided to sell the home as it was more expensive to repair it (single wide mobile home) to a rentable condition that would attract a nice Resident than it would bring in in a year’s worth of rent. The 2nd Resident received an eviction notice over a past due balance of $45.00.
We are also working on a company policy handbook so we are not having to recreate the wheel every time a decision pops up. For example, we had a woman at one of our RV parks who said she was trying to move out. Our policy is that we prorate move in, but we do not prorate their move out. Well, it was not written and I was talking on the phone and on the fly again and I forgot to tell her wait let me get back to you. I spoke hastily and said under the circumstances we can refund August’s rent and now it is coming back to haunt me. She also has a huge deck that she wants to just leave and I told her under no circumstances could she leave it with us, but I only have a $300 deposit (since I returned her $320 August lot rent) and removal of that enormous deck will cost at least $600. So now it is going in our policy book that we do not give anyone any money until they have completely vacated. Now I just need to remember to look at my handbook.
Frank Rolfe, the mobile home park guru, wrote a book about owning and operating a mobile home park. When he bought his first park, he purchased a Viking hat with horns that he donned when he would make calls to his new Residents as a way to help him change his persona. :-) One of very his best pieces of advice was to slow everything down. No instant answers to questions, no instant acceptances of bids, no instant acceptance of a new Resident. Slow everything down.
I have been working on that as when I am hasty, it costs me money.
Let us know how it goes.
All the best!
Renne
--96.8.xxx.xxx |
How would u handle this? (by Roy [AL]) Posted on: Aug 2, 2021 7:16 PM Message:
Thanks LTD and Brad20K for your insights here.
Not that it makes any difference, but this is Class D hood where slumlords own 80% of the houses here and low rents here seem to be the norm. Some of the skid-row houses on this street still rent for $350.00/month and those are rented either by drug dealers or nude go-go dancers.
Average market rents on this street is approximately $450.00/month. Even at $500/month, I am still at the top of the food chain here. I do agree with you all that a rent increase is necessary. --68.63.xxx.xxx |
How would u handle this? (by LisaFL [FL]) Posted on: Aug 2, 2021 11:50 PM Message:
Roy,
I will answer your question. In a heartbeat I would get rid of a tenant who balked at an increase. Why? My rents are all already too low because I have long term tenants and rents have increased tremendously. They would be doing me a favor by moving.
Why do I keep it this way? I like them. I know who I’m dealing with, they’re easy to work with and make my life easier. SO I technically am subsidizing them. I am willing to do this to a point.
The one time I got pushback from my 10 year tenant who claimed he couldn’t afford a $35 month increase I informed him he was quite a bit below market but I understood if he needed to move. I even offered him a smaller place, no garage and a duplex as opposed to his large single family home with a garage but it would save him $100 a month. He suddenly decided he could afford the $35 increase after all.
When he asked me to “give him a break” I told him he’s been receiving a break for years, and is still receiving a break because I value him as a tenant but there comes a point that it doesn’t make financial sense for me to continue to increase the break- my roofer, AC company, insurance company, electrician, plumber, tax collector don’t give me breaks and if I can’t afford them, I can’t afford to keep the house- but I totally understand if you need to find something more affordable! He got the point, the next year I received no pushback. --24.96.xx.xxx |
How would u handle this? (by Jason [VA]) Posted on: Aug 3, 2021 12:55 AM Message:
If I send an increase letter, either they’re paying it or leaving. Hopefully on their own accord, but if not I wouldn’t hesitate to evict. It sets a bad precedent to flip flop. If she can’t afford it I would simply ask her if she’ll be providing notice or if I should provide one for her. --73.177.xxx.xx |
How would u handle this? (by Ken [NY]) Posted on: Aug 3, 2021 9:57 AM Message:
Renee,before paying someone to remove the deck put it on craigslist for free and they have to remove it or facebook.I get rid of stuff all the time on craigslist and have no doubt that i could get rid of that for free.Lumber prices are high right now and someone has a project they want to do and could use that lumber --72.231.xxx.xxx |
How would u handle this? (by Tony [NJ]) Posted on: Aug 3, 2021 10:47 AM Message:
Roy I side with Sisco. If I go to the gas pump and complain about the price - I get no consideration or discount. You scored a home-run on your purchase and improvements investment with a nice rate of return. YOU ARE NOT COMPELLED TO SHARE THAT against your will. If similar rentals are - say - 650 - 700/m, and you're at 500/m, and you want 620/m, why not raise it to 580/m this year and 620-630 next year.
Tenant is faced with "move and pay a lot more" or stay and pay a little more.
Don't let your tenant bully you. It doesn't work at the gas pump, utility company or grocery store and it shouldn't work with you.
Correspondence should be limited to mail, email or text.
If your state allows, discreetly record all conversations. Even in liberal NJ, a judge won't have much sympathy for such an arrogant tenant.
Good luck and let us know how it went. --73.215.xxx.xx |
How would u handle this? (by Ray-N-Pa [PA]) Posted on: Aug 3, 2021 5:26 PM Message:
Use the rentometer website to show that they are paying well below the average and median rental rate for the area. I include this along with my letters. So when someone says I can't afford the increase, you can let them know that they can't afford the neighborhood any longer.
--24.101.xxx.xxx |
How would u handle this? (by Bob [GA]) Posted on: Aug 3, 2021 11:15 PM Message:
I had a long term tenant, 7 years complain when I had small increases. They claimed they could not afford increases, so I gave in and kept the rent below market for serval years. They finally decided to move and guess what, they were buying a house. They had saved enough money to make a down payment on a home and somewhat because of my generosity. Now, everyone gets an increase. Kinda like Opra "you get an increase and you get an increase, everyone gets an increase" --172.102.xxx.xxx |
How would u handle this? (by mike [CA]) Posted on: Aug 4, 2021 2:00 AM Message:
roy, please direct me to the nude go-go dancer neighborhood where rents are 350...do they pay rent in wads of $1 dollar bills? do you wear latex gloves to count those?
also, i'd sell any home that was dragging down low rents...just one water heater or roof HAMMERS the return calculation and can easily consume 2 months of gross income or far more in the case of a roof. --76.173.xxx.xxx |
How would u handle this? (by Roy [AL]) Posted on: Aug 4, 2021 6:27 AM Message:
Mike(CA)
I do not have to wear latex gloves to count dollars bills,...my LL competitors on this block do that. At $500/month, I am still the highest paid LL on the block and that gets me a tenant that has a real job with a real paycheck. My definition of a Class D hood is when all residents either get paid cash under the table or are on the government dole or both.
Right now, the flop house across the street from mine is up for sale on Zillow. In the Zillow search box, type in 331 Taylor Street,(35903 zip code) and you will see a 4/1 house that was a former boarding house for drunks and prostitutes. I was friends with the live-in owner/manager before he died 3 years ago. He wanted me to convert my house across the street into a boarding house and he would manage it for me,..which never actually happened though. --68.63.xxx.xxx |
How would u handle this? (by Roy [AL]) Posted on: Aug 4, 2021 7:08 AM Message:
Mike and any others,
When you get done looking at 331 Taylor, type in the address: 338 Taylor Street and you will see my 2/1 house across the street. It should be obvious (curb appeal) why I get more rent than most other LL's on this block.
When you get done looking at 338 Taylor Street, scroll down the Zillow thumbnail photo listings and look for 516 E. Chestnut Street (same zip code 35903) and you will see a house listed for $39,900. This is the house I posted on here last week where I had almost got it under contract for $25K until some idiot investor came in and offered to pay the full listing price for it. 3 years ago, I could have bought that dump for $15K and now someone is paying almost $40K for it!!! --68.63.xxx.xxx |
How would u handle this? (by Rosie [VA]) Posted on: Aug 4, 2021 8:36 AM Message:
Roy - thanks for posting these addresses. I have always wondered how on earth you're able to buy houses for what you do. Actually, they look a lot nicer than I was expecting. I couldn't touch anything like that in my area for less than $125K to $150K now. It's crazy! I could probably rent them for $800 or $900 a month. But I can see how you are able to make the type of returns you do. --108.4.xxx.x |
How would u handle this? (by Roy [AL]) Posted on: Aug 4, 2021 8:57 AM Message:
Rosie (VA)
The houses I shop for are also located in your town or city, however, the asking prices may be higher. The asking or MLS list price means nothing to me. I pay only what the house is actually worth to me. I am usually the only one making an offer too but in this overheated market, I have competition now which will not last forever though. A correction is on the horizon and then things will get back to normal. --68.63.xxx.xxx |
How would u handle this? (by Ken [NY]) Posted on: Aug 4, 2021 9:10 AM Message:
Roy,your house is very nice looking, i was expecting the house across the street to be worse than it is,it is not really all that bad looking.I could get $1000-$1200 here although i would have a $3000 yearly tax bill.With the cost of materials i dont know how you make a profit on $500 month rent --72.231.xxx.xxx |
How would u handle this? (by Roy [AL]) Posted on: Aug 4, 2021 9:54 AM Message:
Ken,
It is not the houses here but it is the Class D hood (and the slumlords) here that keeps rents from moving up very much. Most of the houses on this street are owned by wealthy slumlords who always have the lowest rents in town. There is a reason they prefer to keep their rents low ($300-$400) but I am not going to get into that right now. Many years ago, one of these slumlords would show up once a month driving a shiny red Porsche 911 to collect his rents in cash with. It was disgusting to see him.
My cost of materials was the cost of materials back in 2007 when the house was bought for $5K and was rehabbed complete with a new roof and vinyl siding which were the biggest rehab expenses. Yes, if I had to do that same rehab at today's lumber prices, I would feel a pinch. --68.63.xxx.xxx |
How would u handle this? (by Ken [NY]) Posted on: Aug 4, 2021 10:18 AM Message:
Roy,that doesnt look like class D to me,around here there would be graffiti on the houses,yours included and junk cars in the driveways,shopping carts and garbage in the driveways etc --72.231.xxx.xxx |
How would u handle this? (by Roy [AL]) Posted on: Aug 4, 2021 10:46 AM Message:
Ken,
You see graffiti here in the Class F hoods which are located near downtown where most of the 'skid-row projects' are. Down in the projects, they have to mount the outside A/C compressors for each unit on a steel caged platform that is elevated 8-10 ft. off the ground. Also, here you see trash on the streets, junk cars and prostitutes plying their trade in broad daylight. Again, that is Class F and we only have 1 or 2 neighborhoods that are like that. My rental houses are miles away in better Class C and D hoods. However, on Taylor Street, there are cars parked in the front yards, you just can't see them with the Zillow photos which are misleading. After sundown, Taylor Street comes alive with activity of a dubious nature. How do I know this? My 6 year tenant always tells me more than I want to hear. It is what it is though. Never a dull moment. --68.63.xxx.xxx |
How would u handle this? (by Busy [WI]) Posted on: Aug 4, 2021 3:16 PM Message:
Well, all I have to say is- Roy, you SLY DOG!!!
Talk about knowing how to make a market. Cimba, you could take lessons from this genius!
For anyone not catching on, search your other Real Estate social media sites to see which small town is suddenly HOT! Hot! Hot! --172.56.xx.xx |
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